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5.Your supervisor has requested a status on your progress. Using the data you chose, create a graph(s) or chart(s) that best illustrates your position on the proposal. Specify why you used the data and graph(s) or chart(s) you did, the conclusions you have drawn from them and why. Document any assumptions or elaborations you had to make. Apply the standard of APA Style to all research and writing tasks for the course.

6.Your coworkers and you were discussing nonrational escalation of commitment. Considering your scenario, give some possible examples where nonrational escalation of commitment may occur. 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
Explain why the escalation is nonrational
Discuss the impact of this escalation of commitment Cite any sources you use. Document any assumptions you made. Be sure to follow APA style for proper documentation.

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Solution Preview

#5.The graphs generated from the data given in the part 3 of the question is attached as an excel spreadsheet.

The conclusions, which we have drawn from, these are that compared to the US population the area 60614 is highly educated, well employed and has higher than the average income than the national average.

The recommendations are that in case of the mall the shops should be exclusive and should position the mall as a place of exclusive showrooms with the best brands in the country. In case of the university the programs should be post graduate MBA and should meet the needs of a rich well educated job minded population.

The assumptions include firstly that there are no other universities in the area which are offering MBA programs and that the tastes and preferences of the people are such that they prefer MBA programs.

In case of the mall the assumptions are that the people of the locality prefer conspicuous consumption and they like exclusive and well-established brands.

# 6.

Escalation of Commitment

Please note that escalation of commitment especially non rational takes place due to several reasons. If we consider with the organizational recruitment decision in the question given above, the recruitment of some person initially takes place because of friendship or relationship. Then the decision escalates. Even when the company needs highly technical as well as qualified persons each person in the decision making process fishes around for friends and relatives to the detriment of the company. The relatives of the owner or the HRD chief by right ask for positions because someone else who was not suitably qualified has got into the company. The impact is mind-boggling, even before the position arises there is a queue of relatives waiting and fighting for the post. So substandard recruitment continues and it becomes impossible for the managers to refuse favors. In management literature there are several such instance and you can use the articles given below.

The escalation of commitment is not necessarily a constructive course of strategic action. A number of organizational theorists have defined the escalation of a commitment in terms of non-rationality. For example, escalation situations occur when a decision-maker is faced with a situation where costs are incurred in pursuit of an objective that is unlikely to occur, regardless of any future course of action undertaken (Schaubroeck and Williams, 1993; Staw, 1981). When the initial decision is reconsidered, it is possible that the commitment will be escalated. A common example of an escalation situation occurs when businesses continue to lose on an investment because the associated sunk costs often force managers to overlook viable alternatives (Geiger, Robertson, and Irwin, 1998). Gundlach, Achrol and Mentzer (1995, p. 89) even conclude that "commitment is expected to involve a snowballing process."

Self-justification has been attributed as the main cause of escalation of commitment (Staw, ...