What does the term 'escalation of commitment' refer to in organizational behavior?

The term 'escalation of commitment' refers specifically to the tendency of individuals or groups to continue investing in a course of action even when it is proving to be unsuccessful or counterproductive. This behavior often stems from a desire to justify previous decisions, avoid admitting failure, or an emotional attachment to the decisions made. In organizational contexts, it can manifest when companies continue to fund failing projects, expecting that further investment will eventually lead to success, despite evidence to the contrary.

This concept highlights a critical psychological aspect in decision-making processes, where individuals may overlook rational analysis in favor of justifying past choices. The other options do not capture this phenomenon; for instance, making decisions based solely on popular opinion does not necessarily imply a commitment to a failing course, nor does it relate to the emotional or rational factors that influence escalation. Similarly, creating a new path for organizational growth or completing tasks without collaboration focuses on organizational processes and structures, rather than the behavioral tendency to persist in the face of adversity.