| Summary: | This study aims to examine the factors that can influence the reduced tendency of
managers to do the escalation of commitment. The hypothesis advanced is that (1)
monitoring controls can affect reduced the tendency of managers to do the
escalation of commitment, (2) the compensation system may affect reduced the
tendency of managers to do the escalation of commitment, and (3) the interaction
of monitoring control and system of compensation will be positively related to the
reduced the tendency of managers to do the escalation of commitment. The study
design was 2 x 2 laboratory experiment, with 84 subject students of MM, MAKSI,
and MEP UGM in Yogyakarta as a proxy for a project manager. Each subject was
provided one of four versions of the case are available were randomly (random
assignment). Statistical methods used to test the hypothesis is two-way ANOVA.
The results showed that the influence of monitoring control to reduced the
tendency of managers to do the escalation of commitment, compensation system
in this study proved to be positively related to the reduced tendency of managers
to do the escalation of commitment, but this study cannot provide the empirical
evidence about the effects of the interaction between monitoring control and
system compensation to reduced the tendency of managers to do the escalation of
commitment.
|
|---|