Question

Managers often make the mistake of basing decisions on the amount of time and effort that has gone into a project. In many cases, they are reluctant to cancel a project out of fear of being viewed as having wasted resources, or due to an emotional attachment to their prior choices. Why is this so? Should managers consider past investments when making decisions? Is the textbook's recommendations regarding sunk costs realistic in a modern corporate environment? Offer examples to support your arguments.

Answer 1

To start with, it will be uncommon for an owner to become a supervisor in the very same company. Most of the business owners are profit-oriented. So, for them, it's not appropriate to keep someone who is ineffective. As a manager/ task supervisor he/she ought to be expert adequate to lead their group to the goal. Prior to beginning a job, all the objectives need to be established in a step by step ways. For any work, the emotional should be left aside. Nevertheless, in some situations managers overlooked their own work and try to skip either by emotional attachment and so on these are entirely incorrect to deal with a job. In order to avoid this, there should be a dedicated audit team to keep monitoring on the project, or perhaps watching on the works schedule which was the strategy prior to the start of the task. And it takes place on numerous jobs manager messed up the revenue of the job. When a job supervisor is leading a task, he/she must mark the schedule of the task. But, in a few situations due to emotions, they could not execute the project in time. Recruitment of inexperienced resources due to the favor of loved ones and so on eventually they might not carry out.