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ESCALATION AND FAIRNESS

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You and your co-workers had an in-depth discussion about nonrational escalation of commitment. Use your best communication techniques to discuss the following questions: Identify the possible original decisions, the person(s) who could make it, and the person(s) who may escalate the commitment to that decision.
? Describe the circumstances that led to the commitment being escalated
? Where do you think the nonrational escalation of commitment may occur?
? Explain why the escalation is nonrational
? Discuss the impact of this escalation of commitment.
Document any assumptions you made, and use the APA Guide, 5th edition for citation

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Solution Preview

You and your co-workers had an in-depth discussion about non-rational escalation of commitment. Use your best communication techniques to discuss the following questions: Identify the possible original decisions, the person(s) who could make it, and the person(s) who may escalate the commitment to that decision.
The non-rational escalation of commitment related to the high sales target of 6.5 m dollars being taken up by Sales Manager 4. Ben Hendrickson. Coming under the rubric of escalation of commitment, a number of studies have shown that people can become stuck in losing courses of action, sometimes to the point of "throwing good money after bad." Studies have shown that people are likely to expend substantial amounts of time and money in efforts to reach a receding or elusive goal. The maximum attainable goal for Ben and his area was 4.5 million dollars and he should have stuck to that goal during the annual sales conference.
? Describe the circumstances that led to the commitment being escalated
Ben had been challenged by his superior, general manager sales to do a " prize winning" pitch. In addition, Ben was the only sales manager who had not been promoted ...

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