According to the text, for most of the 20th century, managerial efforts were directed more toward the efficient allocation of labor and capital, which are the two traditional factors of production.
The importance of human capital has decreased in recent years. For this reason, many firms have placed greater attention on attracting talent, but not on developing or retaining it.
The more reliance a firm has on intellectual capital, the closer its book value will be to its market value.
The difference between the market value and book value of a firm is its social capital.
In the current economy, reliance on the three traditional financial statements (income statement, balance sheet, and statement of cash flow) has increased.
Firms such as Apple and Google will tend to have a higher ratio of market value to book value than industrial companies such as Nucor Steel.
Creation of new knowledge typically involves the continual interaction of explicit and tacit knowledge.
Knowledge workers are more loyal to their companies than traditional workers.
Technical skills are a necessary and sufficient condition for hiring an employee.
One of the most important elements in a good employee is his or her attitude. Firms should follow the adage: hire for attitude, train for skill.
Companies have found that referrals from their own employees are generally an effective approach to recruiting top talent.
The Millennial generation expects employers to provide incentives to attract and retain them. A company that does this will have a competitive advantage.
Millennials value hard work and will rarely use vacation time.
In most effective evaluation and reward systems employees only receive evaluation and feedback from their immediate supervisor.
360-degree evaluation and feedback systems address many of the limitations of traditional approaches of evaluating human capital.
360-degree evaluation systems are not useful due to the need to integrate large amounts of feedback.
The most effective method of improving retention of top talent at a firm is to intensify its hiring efforts.
An internal work opportunity market for employees is one means of increasing employee retention.
The text suggests that talented professionals are typically most concerned about financial rewards. Money is the top reason why such employees take and leave jobs.
Workforces that reflect demographic changes will become more homogeneous over the next few decades with regard to gender, race, ethnicity, and nationality.
Social capital is based on the network of relationships within a firm, not in the skills and abilities of an individual employee.
Social capital is found in the knowledge, skills, and abilities of individual employees.
Developing social capital is risky for an organization because social capital is specific to individuals and remains with the employee, if he or she leaves the organization.
Social network analysis can be used to help identify groups or clusters of individuals that comprise the network, individuals who link the clusters, and other network members.
Developing and protecting social capital requires independence, in which individuals must spend most of their time working individually.
In bridging relationships in social networks, one member is central to the communication flows in a group.
Closure, in contrast to bridging relationships, stresses the importance of ties connecting heterogeneous people.
From the individual perspective, social networks deliver three unique advantages: private information, access to diverse skill sets, and power.
One potential downside of building social capital in an organization is groupthink. This means everyone in the group thinks on his or her own and comes up with new ideas.
The role of technology in the recruitment of human capital has lowered individual reliance on the use of social networks.
The use of e-mail can be distracting to employees. Some firms limit the time that employees spend using email.
Since electronic teams (e-teams) seldom meet face-to-face, it is NOT important for them to be concerned with how to combine individual contributions effectively.
Once a knowledge asset (e.g., a software code) is developed and paid for, it can be used many times at very low cost as long as it does not have to be substantially modified each time.
According to the text, effective e-teams identify group members with a proper balance of technical and interpersonal skills.
Explicit knowledge is generally known to everyone in the firm and is not a critical concern of management.
Intellectual property rights are easier to define and protect than property rights for physical assets (e.g., plant and equipment).
The makeup of goods and services in the Gross Domestic Products of developed countries has changed over the last decade. More than 50 percent of the value of GDP of developed countries is based on _____.
As the competitive environment changes, strategic management must focus on different aspects of the organization. Recently, strategic management has moved from focusing on tangible resources to ____.
Changes in our economy have forced firms to be more concerned with protecting their ______.
all of these
In the knowledge economy, if a large portion of company value is in intellectual and human assets, the difference between the market value and book value of the company should ___________ a company with mostly physical and financial assets.
be larger than
According to the text, intellectual capital is the difference between the market value and the book value of a firm. Intellectual capital can be increased by ________________.
attracting and retaining knowledgeable workers
Which of the following firms would you expect to have the highest ratio of market value to book value?
Human capital includes ________________.
an individual’s capabilities, knowledge, and skills
Creativity and problem solving ability are considered to be part of ____________.
The network of relationships that individuals have throughout the organization is known as _____.
Tacit knowledge __________________.
can be accessed only with the consent of the employees
New knowledge involves the continual interaction between __________ and __________ knowledge.
Today, the loyalty of a knowledge worker to his or her employing firm has __________ compared to his or her loyalty to his or her profession and colleagues.
The text discusses three areas a firm must be concerned with in order to keep their best and brightest employees from leaving. These include all of the following EXCEPT:
Managing a knowledge intensive workforce is very challenging. The best way for a firm to manage its workforce is to __________.
balance efforts in the attraction, selection, and retention of top talent
Firms must compete for top talent. When attracting and selecting employees, firms must strive to select the best fit for both the employee and the firm. In an effort to reduce wasted time and effort in interviewing too many candidates while assuring a good candidate pool, a firm should ____.
use a pre-interview quiz
Many companies use referrals by current employees as a source for new hiring and even monetarily reward them because __________________.
current employees are careful in their recommendations and it is less expensive than the fees paid to headhunters
ABC, Incorporated desires to have the most qualified people in every position throughout its organization. This is an example of a concern for _________.
developing human capital
Developing human capital is essential to maintaining a competitive advantage in the current knowledge economy. Efforts and initiatives to develop human capital should be directed ____.
throughout the firm at all levels
Maintaining a competitive workforce is very challenging in the current economy. The role of evaluating human capital, in recent years, has _____.
In a 360-degree evaluation and feedback system, which of these does not rate the skills and performance of an individual?
Attracting and retaining human capital is a challenge for many firms today. Firms experiencing high turnover should __________.
adopt effective retention strategies
In order to take advantage of investment in human capital, a firm should ___________.
establish practices that will enhance employee retention
The least effective way to retain human capital is to _________.
require employees to sign agreements that prevent them from working for competitors in the future
Generally, employees are most likely to stay with an organization if _____________.
the organization mission and values align with the employees mission and values
Many successful firms use internal labor markets. The most important reason for doing this is _____.
they want to keep highly mobile employees motivated and challenged
All of the following are the benefits of diversity in the workforce of a firm except:
similarity in perspectives argument
Human capital and social capital are vital for superior firm performance. If a firm has strong human capital, the firm may exploit this by building social capital. This can be accomplished by _____.
encouraging the sharing of ideas between employees in the firm
In an effort to capture key employees from competitors, firms may attract the symbolic leader of a group within a competing firm and hope others will follow. This has been termed _____________.
the Pied Piper effect
What is a major reason for Nokia to lose its competitive edge in the cell phone business?
The team consisted of only Finnish scientists.
Social capital is a source of strength to many firms. Firms leverage their social capital in an effort to create competitive advantages. The social capital of a firm is based on ___________.
the relationships among the employees of the firm
Social network analysis is helpful because the configuration of the group member social ties within and outside the group affects the extent to which members connect to individuals who do all of the following EXCEPT ______________.
ensure that everyone has the same perspective on strategic and operational issues
In social network analysis, the importance of ties connecting heterogeneous people that help to ensure a wide range of diversity in information and perspective is known as ___________.
In social network analysis, groups can become too insular and fail to share what they have learned with people outside the group. This is a result of __________.
Advantages of effective social networks for career success include all of the following EXCEPT _____.
greater redundancy in knowledge sources
Social capital has downsides. Which of the following is a downside?
Social capital may both breed groupthink and the socialization processes to create it (orientation, training, etc.) can be expensive.
Social capital has many potential benefits. However, according to the text, social capital _________.
may or may not be beneficial to a firm
Which of the following reasons explains why painter Vincent van Gogh died penniless, while painter Pablo Picasso left a $740 million estate upon this death?
Picasso had a wider range of social connections and bridging relationships.
The use of information technology (e.g., e-mail) has increased in recent years in many organizations. This has helped to ____________.
communicate information efficiently
The creation of knowledge assets is typically characterized by ____________.
high upfront costs and low variable costs
Mary Stinson was required to take over a project after the entire team left the company. She was able to reconstruct what the team had accomplished through reading e-mails exchanged by the members of the team. This is an example of ___________.
using explicit knowledge
The management of intellectual property involves all of the following EXCEPT _____.
converting explicit knowledge to tacit knowledge
Dynamic capabilities include all of the following EXCEPT _________________.
becoming more efficient in operational processes
Which of the following is not an example of an IP-related litigation?
The United States sues to get access to physical plant assets in China.
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