Final answer:
Managers may escalate commitment to a bad decision due to work overload, role conflict, difficult work relationships, cultural sanctions, status quo bias, initial poor design decisions, and emotions influencing rationality.
Step-by-step explanation:
Managers sometimes escalate commitment to a failing project due to various psychological and organizational factors. In some cases, they may experience work overload, leading to hastened decision-making without thorough evaluation. Additionally, role conflict and ambiguity may result in unclear objectives, causing managers to stick with a known, albeit poor, decision rather than venture into the uncertain. Difficult work relationships can also contribute to managers' reluctance to admit mistakes, for fear of conflict or loss of face. Managers might also justify their continued efforts by appealing to a higher purpose (Sykes & Matza, 1957), framing the decision as serving a greater good, regardless of its negative outcomes.
The cultural sanctions of breaking social norms or the fear of negative consequences like being labeled lazy or facing legal repercussions can deter managers from backpedaling on decisions. Furthermore, the status quo bias explains why managers might avoid changing a decision, as any alternative requires overcoming collective inertia or making a decision that could be costlier or more effortful.
Moreover, managers may continue to push forward with a bad decision if early design choices in a project limit the possibility of satisfying customers' needs, thus forcing them to work with what has already been set in motion. Finally, the influence of emotional states and the psychological pain of recognizing a loss may skew rational decision-making, leading managers to focus more on potential gains than on minimizing losses, as highlighted by traditional consumer theory.