What term describes the tendency to stick to an ineffective course of action despite negative outcomes?

The term that describes the tendency to stick to an ineffective course of action despite negative outcomes is "Escalation of Commitment." This phenomenon occurs when individuals or organizations continue to invest time, money, or resources into a failing endeavor rather than cutting their losses. People often rationalize their decisions to persist, believing that their initial judgments were correct or that abandoning the effort would result in admitting a failure.

Understanding this concept is crucial for managers and leaders, as it highlights the importance of recognizing when to change course or pivot from a strategy that is not yielding the desired results. In many cases, past investments create a psychological barrier that makes it difficult to make rational decisions about moving forward.

The other choices refer to different psychological concepts. Confirmation Bias involves favoring information that confirms preexisting beliefs, Cognitive Dissonance relates to the discomfort experienced when holding conflicting thoughts or beliefs, and Decision Paralysis describes a situation where an individual is unable to make a decision due to a multitude of choices or overwhelming options. While these are relevant concepts in understanding decision-making, they do not specifically capture the act of persisting with a failing action, which is why "Escalation of Commitment" is the appropriate term.