Non-rational Escalation of Commitment - Case Study Example

Though Kate is not the decision-maker per se, she has a part to play. Now, Ted has a potentiality to be an exceptional advisor coupled with his moral scope and intellectual versatility. Projections of a vast client-base future with flexible and friendly schedule dominate the discourses of both of them. However, his vast knowledge and admirable ethics see him sidelined as others in his field with unworthy morals and less knowledge are quite a success. Doing what is right for his clients as against what puts money in the pocket seems to be disadvantageous; only a few of such people get a lucky breakthrough.

The non-rational escalation of commitment may occur where both Ted and Kate decide to keep Ted’s new job. This will not be so much as a result of the quest for success as the quest not to lose sunk cost. Thus, judgmental bias will facilitate this escalation. Although Ted recognizes that an initial poor choice has been made, impression management could lead him to embrace the “success” ethics of his sector which may pose a potential ethical issue. More so, Kate seems to be unfair in supporting the decision of Ted to remain in the new job.

Even though she sympathizes with Ted’s situation, preeminent in her mind is the concern about the sunk cost as well as a painted picture of the future where Ted is in control of his workload and schedule while running a large client base finance institution. Basically, such an escalation is clearly irrational because Ted and Kate are obviously acting in defense of their initial decision. They have also refused to consider seriously the situation of the finance market: that the playing ground is only suitable for the big guns at the moment.

When stakes are high and the thing is not going on as planned, there is a pressure on the party who has something to lose to carry on with the initial course of action with the hope that the intended goal will be achieved (Greitemeyer, Fischer, Frey, Schulz-Hardt, 2008).ConclusionConclusively, it is certain that escalation of commitment occurs and could result in either success or failure. But in order to secure benefits, the escalation of commitment must be rational (Hammond, Keeney, Raiffa, 1999).

Thus, Ted (and Kate) has to keenly determine why they are continuing as planned and keep reminding themselves of the cost involvement. Also, they have to learn to focus and look less at people in other to determine what to do.