Asked by chikatimalla bhargavi on Jul 15, 2024
Verified
One major consequence of the planning fallacy is that
A) people may spend more resources to insure themselves against rare events, but leave themselves uninsured against more common events.
B) someone could persist in pursuing a failed policy despite overwhelming evidence of the failure.
C) major business projects may create bottlenecks in the organization because they are not completed as scheduled.
D) some people may wrongly believe in their forecasting ability to predict future outcomes of risky investments.
Planning Fallacy
The tendency for people and organizations to underestimate the time, costs, and risks of future actions and overestimate the benefits.
Bottlenecks
Points of congestion or blockage in a production process or system that lead to inefficiencies and delays.
Major Business Projects
Significant initiatives undertaken by businesses that involve considerable investment and are aimed at achieving specific strategic goals.
- Appreciate the consequences of the planning fallacy on the administration of projects and personal scheduling.
Verified Answer
JW
Justin Webster
Jul 18, 2024
Final Answer :
C
Explanation :
The planning fallacy often leads to underestimating the time, costs, and risks of future actions, which can result in projects not being completed on schedule, thereby creating bottlenecks in an organization.
Learning Objectives
- Appreciate the consequences of the planning fallacy on the administration of projects and personal scheduling.