Changes needed to adapt to environmental changes:
A) are easier in established organizations because of inertia.
B) can be avoided by late entry.
C) are more difficult because of the tendency to escalate commitment.
D) don't affect smaller organizations.

Question

Changes needed to adapt to environmental changes: 
A) are easier in established organizations because of inertia.
B) can be avoided by late entry.
C) are more difficult because of the tendency to escalate commitment.
D) don't affect smaller organizations.

Quizplus · Accepted Answer

The tendency to escalate commitment refers to a situation in which decision-makers continue to invest resources in a failing course of action even when it becomes apparent that the situation is not improving. This can make it more difficult for organizations to adapt to changing environments. Late entry (B) may not necessarily avoid the need for change, and smaller organizations (D) can also be impacted by environmental changes. The idea that changes are easier in established organizations because of inertia (A) is actually the opposite of the correct answer.

Changes Needed to Adapt to Environmental Changes