According to Staw (1981), there are several reasons for escalation of commitment. Sometimes, the decision-makers ego is so involved with the decision that his identity is totally wrapped up in it. Failure or cancellation seems to threaten his reasons for existence. Hence, he continues to push the decision despite strong evidence contrary to it. Some ‘decisions are such that their benefits will be visible only at the end and hence the decision-maker must stay on the decision. Sometimes, group norms, social structure and pressure and group cohesiveness is too strong and provides tremendous support so that cancelling the decision is impossible.
Organizational inertia may also lead to continuation of the decision. (c) Ethics:Ethics are an individual’s beliefs about what constitutes good and bad or right and wrong behaviour. Ethical behaviour is that which conforms to generally accept social norms. Some managerial decisions such as selecting or removing a teacher, dealing with students and parents, dealing with corruption concerning examination and students’ marks, assigning tasks to teachers and maintaining financial accounts properly involve ethical issues. Thus, most of the ethical dilemmas centre on a manager’s direct and indirect personal goals and preferences.
Thus, while taking a decision, attention must be paid to ethical considerations carefully and deliberately.