Answer to Question 1
Cognitive dissonance is the state of discomfort or anxiety that a person feels when there is an inconsistency between his or her beliefs and actions. According to cognitive dissonance theory, decision makers try to maintain consistency between their images of themselves, their attitudes, and their decisions. Managers seek or interpret information that confirms and reinforces their beliefs, and they ignore information that does not. Managers also tend to seek information that is only incrementally different from the information they already possess and therefore supports their established position.
Cognitive dissonance theory explains why managers tend to misinterpret the real threats facing an organization and attempt to muddle through even when it is clear to many observers that the organization is in crisis. The desire to reduce cognitive dissonance pushes managers to adopt flawed solutions.
Answer to Question 2
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