Samir Authorizes the Expenditure of an Additional $200,000 for the Production

question 89

Multiple Choice

Samir authorizes the expenditure of an additional $200,000 for the production of a new product despite mounting concerns from top management that it will be unprofitable.His behaviour illustrates the phenomenon of __________.

• A)confirmation bias
• B)represenation bias
• C)anchoring bias
• D)availability bias
• E)escalation of commitment

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Definitions:

Social Needs

Human requirements for belonging, affection, acceptance, and friendship – part of Maslow's hierarchy of needs.

Mayo's Research

Refers to the studies conducted by Elton Mayo, particularly the Hawthorne Experiments, which emphasized the importance of social relations in the workplace.

Productivity

The measurement of efficiency in which resources are converted into goods and services, often evaluated by output relative to input.

Deficit Principle

A concept in motivation theory suggesting that a deficit or lack of something will lead to motivation to fill or reduce that deficit.