Decision-making Responsibility,Decision-making Procedural Rationality,Accountability Mechanisms And Escalation Of Commitment

As a kind of investment trap, escalation of commitment appeared more and morefrequently in the enterprises’ daily investment decision, which bring a huge waste ofresources to the enterprise and even the whole country. However, the present theory did notgive a comprehensive and clear conclusion on a series of problems, such as escalation ofcommitment’ influence factors, formation reason and management measures.At present, the relationship between the decision-making responsibility and escalationof commitment of the academia has not formed the unified viewpoint.To sum up, there arethree different conclusion.The first view is a significant escalation tendency on failure ofdecision-making responsibility management.The second view is responsible for the failureof decision management does not have significant escalation tendency.The third view is nosignificant relationship between the decision-making responsibility and escalationtendency.At the same time, the decision procedure rationality and decision result ofrational relations, academia has not formed the unified viewpoint.To sum up, but there arethree different conclusion.The first view is a decision procedure rationality must be able tobring the rational decision.The second view is decision-making procedure rationality doesnot necessarily lead to the decision of the rational.The third view is rational decisionprocedure is to ensure rational decision results.In addition, the relationship ofaccountability mechanism and decision-making problems, the academic circles mainlyform the following three points.The first point is the accountability system and otherfactors influence each other, mutual influence decision outcomes.The second view isfocused on macroscopic aspect, establish accountability system is one effective way ofsolving the problem of low efficiency of government investment.The third view is focusingon the micro aspect, accountability mechanism is the effective operation of corporategovernance to ensure.In this paper, we put the decision-making responsibility, rational decision-makingprocedures, accountability and escalation of commitment on the same frame.From the pointof view of "self-defence theory" and "limited rationality" theory, combined with China’scultural background,we think that,the decision procedure rationality can not bring therational decision.That is the decision procedure rationality can not inhibit the escalationbehavior the occurrence, high responsibility for the management of malignant capital tendsto be more pronounced.In order to escalation behavior can inhibit high responsibility ofmanagers, we can introduce accountability mechanism, through the establishment ofaccountability mechanisms to effectively guarantee the efficiency of investment managers. In this paper,we use experimental research methods to examine the effects ofdecision-making responsibility,decision-making procedural rationality,accountabilitymechanisms on managers, escalation of commitment behavior.Student at a university ismore accountable for this action.The experimental results show that:(1)decision-makingresponsibility have a significant positive effects on managers, escalation of commitmentbehavior.That is compared with managers of lower responsibility,managers of higherresponsibility will show a stronger tendency of escalation of commitment.At this time, we can reduce the management decision-making responsibility throughthe replacement of the initial management, so as to prevent escalation ofpurpose.(2)decision-making procedural rationality have no effect on managers, escalationof commitment behavior.(3)under the premise of rational decision-making of highresponsibility and decision-making process, accountability mechanisms have a significantnegative effects on managers, escalation of commitment behavior.That is compared withmanagers of no accountability mechanism,managers of accountability mechanism wouldshow more weakly malignant increase tendency.At this time, we can prevent the escalationof the objective through the establishment of accountability mechanisms.This paper simulates the manager project investment decision task, so it has importantmeaning in the management of the investment decision-making theory andpractice.Specifically, its theoretical significance lies in that:(1)The research hypothesisverified by experiments of escalation of commitment decision, significant negativeescalation behavior to affect the management and decision-making procedure rationalityand managers have no significant relationship, and provides a new way to explain thecurrent management of escalation of commitment in the frequency.(2)It emphasizes theaccountability mechanisms exist to inhibit managers escalation behavior has importantsignificance.Its practical significance lies in that:(1)It provides governance strategyextremely valuable management control decision-making practice of escalationbehavior.(2)It asked the effective implementation of accountability mechanism in theenterprise to provide the theory foundation and system guarantee.