What risk is associated with the escalation of commitment?

The escalation of commitment refers to a situation where individuals or organizations continue to invest in a decision despite evidence that it may not be the best course of action. This behavior often stems from a desire to justify previous investments—whether time, money, or effort. Therefore, an unwillingness to change ineffective strategies is a direct risk associated with this tendency.

When organizations are locked into a particular course of action, they may ignore new information or fail to recognize changes in the environment that indicate the strategy is no longer effective. This rigidity can lead to further losses as resources continue to be allocated to a failing strategy, ultimately hindering organizational growth and adaptation.

In contrast, the other options such as increased motivation among employees or a better understanding of team dynamics do not inherently tie to the risks of escalation of commitment. While motivated employees and effective team dynamics are desirable, they do not directly address the consequences of persisting with ineffective strategies. Greater innovation in problem-solving is also not a risk associated with escalation of commitment; in fact, it’s more likely that such commitment could stifle innovation, as the focus becomes centered on justifying existing decisions rather than exploring new possibilities. Therefore, the risk of an unwillingness to change ineffective strategies captures the essence of the problem associated with