ESCALATION IN ORGANIZATIONAL DECISION-MAKING - A CASE OF RECRUITING AN INCOMPETENT EMPLOYEE

This paper analyses a case of hiring a manager who subsequently proves to be incompetent. Analysis reveals the importance of structural fact ors in escalation, especially politics. When these are considered, per sistence emerges as both escalatory and rational. Likewise, behaviours manifest of information bias are actually logical managerial strategi es and may mask political calculation. New potential escalation variab les are identified including power, visibility, and organization cultu re. Withdrawal reflects an intricate balancing of factors including ri sk and opportunity. The theoretical implications of the findings are d iscussed.