Essay Title: 

nonrational escalation of commitmen

March 24, 2016 | Author: | Posted in accounting, mathematics and economics

Everyday we experienced making decisions . It is part of life . Escalation of Commitment means ready for action character of a person having higher level of given dedication although it gives a negative feedback information of performance . Gambling , waiting at a bus stop , bidding in a certain object or thing and running for political position such like are the possible situations that led to Escalation of Commitment Nonrational or Irrational Escalation of Commitment occurs when there is a competitive manner happens but still results to negative information of performance

A Nonrational or [banner_entry_middle]

Irrational Commitment takes place when a man who engage in gambling spent all his money and end up loosing the game hopingly waiting at a bus stop in the middle of the night and not able to ride bidding highest and finish up to pay what he bid Company E and F are important corporations of a product , Company G is their target buyer and worth 1 .5 Billion if managed by E and F , if Company E acquired G , then F would be shattering inconveniences and loose 0 .5 Billion , vise versa , at the end they loose 100 million . We can see that there ‘s a competitive thing occurs in these candidates . Making a decision that will have a failure or not a good result in the end

The impact of Escalation of Commitment is harmful to investors who wanted to increase the amount of his or her money . For Businessmen it is a desperate move to give all you have despite that you know the negative outcome but it enhances your competitive attitude , the will to fight until the end . Anyway , being in the business world is sometimes gains and sometimes loose , which is a thing to accept . Courage means doing the things you are afraid to do and if you have courage to be in management then you have to accept to fight to win and sometimes felt to be a looser… [banner_entry_footer]

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