chapter 4 recognizing a firms intellectual assets

Step three: retaining human capital

-an organization can either force an employee to stay in the firm or try to keep them from jumping out by creating incentives. Leaders can provide the challenges, work environment, and incentives to keep productive employees and management from wanting to bail out or they can use legal means such as employment contracts and non-complete clauses. -firms must prevent the transfer of valuable and sensitive information outside of the organization. Failure to do so would be a neglect of the leaders responsibility to shareholders. Greater effort should be directed at the former but as we know the latter have their place. Identifying with an organizations mission and values: people who identify with and are more committed to the core mission and values of the organization are less likely to stray or boat to the competition. -tribal loyalty is another factor that links people to an organization. A tribe is not the organization as a whole rather it is teams, communities of practice, and other groups within an organization or occupation. Challenging work in a stimulating environment: Arthur Schawlow was asked what made the difference between highly creative and less creative scientist. He said the labor of love aspect is very important. The most successful scientist often are not the most talented. But they are the ones in palled by curiosity they've got to know what the answer is. -importance of intrinsic motivation: the motivation to work on something because it's exciting, satisfying or personally challenging. -firms can also keep highly mobile employees motivated and challenged through opportunities that lower barriers to an employees mobility within a company. Financial and non-financial rewards and incentives: Financial rewards are a vital organizational control mechanism. Money, whether in the form of salary, bonus, stock up and options or forward can mean many different things to people. Am I mean security, recognization, or sense of freedom and independence. -paying people more is seldom in an important factor in attracting and retaining human capital. Most surveys show that money is not the most important reason why people take or leave jobs and that money is not even in the top 10. -other non-financial reward is accommodating working families with children. Balancing demands of family and work is a problem at some point for virtually all employees.

random notes

-attracting talent is necessary but not sufficient condition for success. -it does not matter how big your stock of resources is. -what does is: How good is the organization at attracting top talent and leverage that talent to produce a stream of products that services valued by the marketplace?

Human capital; the foundation of intellectual capital

-employees at all levels with the proper set of skills and capabilities coupled with the right values and attitudes. Such attitudes and skills must be continually developed, strengthen, and reinforced, and each employee must be motivated and he's or her efforts focused on the organizations goals and objectives. -rise to prominence of knowledge workers as a vital source of competitive advantage is changing the balance of power in today's organization. Knowledge workers plays professional development and personal enrichment about company loyalty. -Attracting, recruiting, and hiring the best and the brightest is critical first step in the process of building intellectual capital. -hiring is the first of three processes in which all successful organizations must engage to build and leverage their human capital. They also must develop employees to fulfill their full potential to maximize their joint contributions. Also the first two processes are for not if firms can't provide for working environment and interested and extrinsic rewards to engage their best and brightesthiring is the first of three processes in which all successful organizations must engage to build and leverage their human capital. They also must develop employees to fulfill their full potential to maximize their joint contributions. Also the first two processes are for naught t if firms can't provide for working environment and interested and extrinsic rewards to engage their best and brightest. -these three processes are highly interrelated, they are like the imagery of a three legged stool if one leg is weak then it collapses. -defective retention efforts place additional burdens on hiring and development. Stepped up recruiting is poor substitute for weak retention.

ATracting human capital:

-first step in the process of building superior human capital is input control; attracting and selecting the right person. -human resource professionals often approach employee selection from a lock and Key mentality, feta key into the lock such approach involves a thorough analysis of the person and the job and only then can the right decision be made as to how well the two will fit together. -precise matching places it's emphasis on task specific skills and put less emphasis on the broad general knowledge and experience, social skills, values, beliefs, and attitudes of employees. Many have argued this approach that firms can identify top performers by focusing on key employee mindset, attitudes, social skills, and general orientation. If they get these elements right task pacific skills can be learned quickly.get these elements right task pacific skills can be learned quickly. -" hire for attitude, train for skill", organizations are increasingly emphasizing general knowledge and experience, social skills, values, beliefs, and attitudes of employees.ex : South west house employees based on values and attitudes. They use an indirect approach. Former are of Course favored. -recognizing geographic preferences of talent: Young professionals entering areas such as software in advance technologies isn't satisfying demand for them immobility one's willingness to uproot their life for a job and a new location has declined. -attracting millennials: they have been called impatient, demanding, or entitled. If employees don't provide incentives to attract and retain young workers somebody else will test they will be out of competitive disadvantage. Millennial generation was term generation Y or echo boom that includes people who were born after 1982. Within a few years the millennial generation will outnumber any other generation. They are more racially diverse than any prior generation, they have many of the requisite skills to succeed in the future workplace like text savvy Ness and the ability to innovate. Therefore they are better able to relate rapidly to different customs and cultures. -determine who they pursue and hire, technology plays in increasing important role.

Central role of knowledge in today's economy:p1

-for most of the 20th century, managers focused on tangible resources such as land, equipment, and money as well as intangibles such as brands, image, and customer loyalty. Efforts were more for efficient allocation of labor and capital, the two traditional factors of production. -in the last quarter century, employment in the manufacturing sector declined at a significant rate. Only 8.5% of the US workforce is employed in the sector compared to 21% in 1980. The service sector grew from 73% of the workforce in 1980 and 79.5% in 2017. -knowledge worker segment, is growing dramatically. It is estimated that knowledge workers currently outnumber other types of workers in the United States by at least 4 to 1. A quarter and a half of all workers and advanced economies. -due to increase speed and competitiveness of modern business, all modern employees are knowledge workers.due to increase speed and competitiveness of modern business, all modern employees are knowledge workers. -human capital is growing more valuable in virtually every business. This is going on for a few decades as ever fewer workers function as low maintenance machines. -intangible assets, mostly dried from human capital, have sword from 17% of the SMP's market value in 1975 to 84% in 2015. Even a manufacturer such as striker get 70% of its value from intangibles.intangible assets, mostly dried from human capital, have sword from 17% of the SMP's market value in 1975 to 84% in 2015. Even a manufacturer such as striker get 70% of its value from intangibles. -market values and book values have diverged significantly. -the gap between a firms market value and book value is far greater for knowledge and sensitive corporations then or firms with strategies based primarily on tangible assets. And firms where knowledge and management of knowledge workers are relatively important contributors to developing products and services-and physical resources are less critical-the ratio of market to book value tends to be much higher.the ratio of market to book value tends to be much higher. -firms such as Microsoft, Apple, and alphabet which is a parent of google, have very high market value to book value ratio is because of their high investment and knowledge resources and technological expertise. In contrast, firms in more traditional industry sectors such as Nucor or general motors have relatively low market to book ratio. This reflects the greater investment in physical resources andfirms such as Microsoft, Apple, and alphabet which is a parent of google, have very high market value to book value ratio is because of their high investment and knowledge resources and technological expertise. In contrast, firms in more traditional industry sectors such as Nucor or general motors have relatively low market to book ratio. This reflects the greater investment in physical resources and our investment in knowledge resources. A firm like in town has a market to book value ratio that falls between the above two groups of firms. This is because it's high level of investment and knowledge and resources is match by correspondingly huge investment and plant and equipment.

p4: Human Capitol (1)

-how do you companies create value in the knowledge intensive economy? The general answer is to attract and leverage human capital effectively through mechanisms that create products and services of value over time. First: Human capital: the individual capabilities, knowledge, skills, and experience of a company's employees and managers. This knowledge is relevant to the task at hand, as well as the capacity to add this reservoir of knowledge, skills, and experience through learning.

Social networks, implications for knowledge management and career success

-managers face many challenges driven by such factors as rapid changes in globalization and technology. Leading a successful company is more than a one person job. The move away from top down bureaucratic control to more open decentralized network models makes it more difficult for managers to understand how work is actually getting done, who is interactingmanagers face many challenges driven by such factors as rapid changes in globalization and technology. Leading a successful company is more than a one person job. The move away from top down bureaucratic control to more open decentralized network models makes it more difficult for managers to understand how work is actually getting done, who is interacting both within the organization and outside and the consequences of these interactions for the long-term health of the organization. -Glad well, use the term connector to describe people who have used many ties to different social world. It is not the number of people that connectors know that makes them significant, it is their ability to link people, ideas, and resources that wouldn't normally bump into one another. In business, connectors are critical facilitators for collaboration and integration. -social networks can also help one bring about important change in an organization or simply get things done -social network analysis is the analysis of the pattern of social interactions among individuals. It helps diagnose effective and ineffective patterns. And helps identify groups or clusters of individuals that comprise the network, individuals who link the clusters, and other network members. It helps diagnose communication patterns and consequently communication affectsocial network analysis is the analysis of the pattern of social interactions among individuals. It helps diagnose effective and ineffective patterns. And helps identify groups or clusters of individuals that comprise the network, individuals who link the clusters, and other network members. It helps diagnose communication patterns and consequently communication affectiveness. -such analysis of communication patterns is helpful because of the configuration of group members social ties with inside and outside the groups affects the accident to which members connect to individuals who: convey needed resources, have opportunities to exchange information and support, her motivation to treat each other in positive ways, have the time to develop a trusting relationship that may improve groups effectiveness. -developing social capital requires interdependence among group members. Social capital erodes when people in the network become independent and increase interactions between members aid in the development and maintenance of mutual obligations in a social networks. -formal relationships among individuals such as communication flows personal support and advice networks there may be some individuals with no linkage they are called isolate, however most people have some linkage with others. -there are two primary types of mechanism through which social capital overflow: closer relationships and bridging relationships. Inform our relationships one member is central to the communication flows in a group. And lotta relationships one person bridges or brings together groups that would've been otherwise un- connected. what closure and bridging relationships have important implication for affective flow of information in organizations and for management of knowledge.what closure and bridging relationships have important implication for affective flow of information in organizations and for management of knowledge. closure is the degree to which all members of a social networks have relationships or ties with the other group members. Through closure, group members develop strong relationships with that with one another, high levels of trust, and greater solidarity. High levels of trust help to ensure that informational firms or norms in the group are easily enforced and there's less free writing. Social pressure will prevent people from withholding effort or shrinking their opportunities. People and network are more willing to extend favors on a colleague's behalf because they're confident that their efforts will be reciprocated by another member and their group. Another benefit of a network with closure is the high level of emotional support this becomes primarily valuable went South back to curve that may destroy morale or an unexpected tragedy happens that my cause a group to lose focus. Social support helps a group to rebound from misfortune and get back on track. High levels of closure often come with a price. Groups we come to close and become insular, they cut themselves off from the rest of the organization and failed to share what they were learning from people outside of their groups. Bridging relationships: relationships in a social network that connect otherwise disconnected people. The closure perspective rest on assumption that there is high level of similarities among group members however members can be quite heterogeneous with regard to their positions in either the formal or informal structures of the group or the organization. this heterogenous occurs due to vertical boundaries and horizontal boundaries. -Bridging relationships stress the importance of ties connecting people. -employees who bridge disconnected people tend to receive timely, diverse information because other access to the wide range of information flows. Such bridging relationship span a number of different types of boundaries. -structural holes are social gaps between groups and a social network where there are a few relationships bridging the groups.ron Burt coined term when they occur and business managers typically refer to them as Silos or stove pipes. Examples are sales and engineering are two groups of members traditionally interact with peers rather than across groups. Implications for career success: effective social networks provide many advantages for the firm. They also play a key role in the individuals career advancement and success. One social network and potentially provide three unique advantages: private information, access to diverse skill sets and power. Manager see these advantages at work every day but might not consider how their networks regulate them. Private information; we make judgments using both public and private information. Public information is available for many resources, however since it's so accessible and offers less competitive advantage than a used to. Private information from personal contacts can offer some thing not found in publicly available sources such as the release date of a new product or knowledge about a particular interview or looks for in candidate. Private information gives managers in edge that is more subjective them public information since he cannot be easily I've verified by independent resources/ private information do you depends on how much trust exist in the networks of relationships. Access to diverse skill sets; well expertise have become more specialized during the past few decades, organizational, product, marketing issues have become more interdisciplinary. This means that success is tied to the ability to transcend natural skill limitation through others.Access to diverse skill sets; well expertise have become more specialized during the past few decades, organizational, product, marketing issues have become more interdisciplinary. This means that success is tied to the ability to transcend natural skill limitation through others. -highly diverse network relationships can help you develop more complete creative and unbiased perspectives on issues. Trading information or skills with people whose ex experience is different from your own provide you with unique exceptional value resources. If you can bring together problems and solution it will greatly benefit your career. Power: managers power was embedded in a firms hierarchy. When corporate organizations become flatter the power was repositioned in the networks brokers who could adapt to changes in the organization and develop clients and synthesize posing points of view. Most personal networks are highly clustered and individuals friends are likely to be friends with one another. Most corporate networks are made up of several clusters and I have links between them. Women and networking: Women have faced many challenges when it came to networking like Cheryl Samberg even though women are entering the US workforce at the highest number in decades gender party and senior executive roles is still far off, only one and five senior leaders are women. -networking is vital for career advancement, such numbers become the reason to why women have a more difficult time than men when it comes to networking relatively few women have positions in leadership, it becomes more difficult for women to find sponsors to make them introductions and referrals. Models of affective leader ship or tacky are typically geared towards men and organizations senior ratenetworking is vital for career advancement, such numbers become the reason to why women have a more difficult time than men when it comes to networking relatively few women have positions in leadership, it becomes more difficult for women to find sponsors to make them introductions and referrals. Models of affective leader ship or tacky are typically geared towards men and organizations senior reigns are populated by men. This principle means that women have to work harder to build relationships with decision-makers and influential stakeholders that they tend to become excluded from male dominated social gatherings.

enhancing human capital: redefining jobs in managing diversity

-organizations are now realizing the payoff from enhancing their human capital can be substantial. -because of the worldwide shortage that they suggested by 2020 some firms are taking steps to expand their talent pool by investing in apprenticeships and other training programs. Others have gone further, they are redefining the jobs of the experts and transferring some other tasks to lower skilled people inside or outside their companies as well as outsourcing work that requires less scar skills and not strategically importbecause of the worldwide shortage that they suggested by 2020 some firms are taking steps to expand their talent pool by investing in apprenticeships and other training programs. Others have gone further, they are redefining the jobs of the experts and transferring some other tasks to lower skilled people inside or outside their companies as well as outsourcing work that requires less scarce skills and not strategically important. Redefining high-value knowledge jobs not only can help organizations address skills shortages and can help lower cost and enhance job satisfaction. -Breaking high and knowledge into highly specialized pieces involves several processes, these include identifying the gap between the talent your firm has and what it requires, creating mirror, more focused job descriptions in areas where Talon is scars, selecting from various options to fill the skills gap, and rewiring processes for talent and knowledge management. Enhancing human capital: managing diversity: -combination of demographic trends and accelerating globalization of businesses has made the management of cultural differences a critical issue. Work forces which reflect demographic changes in overall population, will be increasingly heterogenous along dimension such as gender, race, ethnicity, and nationality.along dimension such as gender, race, ethnicity, and nationality. Search demographic changes have implications not only for labor pool but also for customer bases which are becoming more diverse. Let's create organizational challenges and opportunities that are important. -effective management of diversity can enhance the social responsibility of goals of an organization. There are other benefits as well, six other areas were sound management of diverse workforce is can improve in organizations effectiveness and carpet or competitive advantages are one cost to resource acquisition three marketing for creativityeffective management of diversity can enhance the social responsibility of goals of an organization. There are other benefits as well, six other areas were sound management of diverse workforce is can improve in organizations effectiveness and carpet or competitive advantages are one cost to resource acquisition three marketing four creativity, five problem-solving, and six organizational flexibility. -cost argument: as organizations become more diverse, firms effective in managing diversity will have a cost advantage over those that are not. -resource acquisition argument: firms with excellent reputations as perspective employers for women and ethnic minorities will have an advantage in competitive market for top talent. As labor pool shrink and change in composition such a vantages will become even more important. -marketing argument: for multinational firms, the insight and cultural sensitivity that members with roots and other countries bring to marketing efforts will be very useful. A similar rationale applies to sub populations within domestic operations. -creativity argument: less emphasis on conformity to norms of the past and diversity of perspectives will improve the level of creativity. -problem solving argument: heterogeneity in decision-making and problem-solving groups typically produces better decisions because of a wider range of perspectives as well as more thorough analysis.in decision-making and problem-solving groups typically produces better decisions because of a wider range of perspectives as well as more thorough analysis. -organizational flexibility argument: with a factor programs to enhance workplace diversity systems become less determine it, let's stand arise, and therefore more fluid. Such fluidity should lead to greater flexibility to react to environmental changes. Reaction should be faster and less costly. -most managers except that employees benefit from a diverse workplace however this can be very difficult to prove or quantify especially when it comes to determining how diversity affects a firms ability to innovate. New research provides compelling evidence that diversity enhances innovation and drives market growth. These findings should intensify efforts to ensure that organizations both embody and embrace powermost managers except that employees benefit from a diverse workplace however this can be very difficult to prove or quantify especially when it comes to determining how diversity affects a firms ability to innovate. New research provides compelling evidence that diversity enhances innovation and drives market growth. These findings should intensify efforts to ensure that organizations both embody and embrace power of differences.

The potential downside of social capital

-some of the limitations of social capital are: -some firms have been adversely affected by high levels of social capital because it may breed groupthink which is a tendency in an organization for individuals to not question shared believes. This may occur and networks with high levels of closure where there is little input from people outside of the network. Too many warm and fuzzy feelings among group members prevent people from rigorously challenging each other. People are discouraged from engaging and creative abrasion. If there are deep rooted mindsets, there would be a tendency to develop dysfunctional human resource practices. The organization will continue to hire, reward, and promote like minded people who tend to further identify organizational inertia and erode innovation.such homogeneity would increase overtime and decrease the effectiveness of decision making processes. Third the socialization processes can be expensive in terms of both financial resources and managerial commitments. Such investments represent significant opportunity cost that should be evaluated in terms of the intendant benefits of such expensive to become excess excessive profitability would be adversely affected. Finally individuals may use the contracts they develop to pursue their own interest and agendas which may be inconsistent with the organizations goals and objectives. They made a store or selectively use information to favor they are performed courses of action or withhold information is in their own self interest to enhance their power to the detriment of the common good. -and high closure groups, it is easier to watch each other to ensure that illegal or unethical acts don't occur. Bridging relationships make it easier for a person to play one group or individual off another with one being the wiser.

vital role of social capital

-successful firms are aware that attraction, development, and retention of talent is a necessary but not sufficient condition for creating competitive advantages. -and knowledge economy, is not the stock of human capital that is important but extent to which it is combined and leverage. Developing and retaining human capital becomes less important as key players take the role of free agents and bring them in the requisite skills in many cases. -develop of social capital, which is the friendships and working relationships among individuals within and outside the organization, gains importance because it helps Tie knowledge workers to given firm. Knowledge workers often exhibit greater loyalty to their colleagues and their profession then they are employing organization, which may be an amorphous, distant and sometimes threatening entity. Does a firm must find ways to create ties among its knowledge workers. -such ties are critical because knowledge base resources tend to be more tactic in nature. Therefore they're much more difficult to protect against loss than other types of capital such as equipment machinery or land. -competitive advantages tend to be harder for competitors to copy if they are based on unique bundles of resources. If employees are working effectively in teams and sharing their knowledge and learning from each other, not only will they be more likely to add value to the firm they will also be less likely to leave the organization because of the loyalty and social ties that they develop.

How social capital helps attract and retain talent

-the importance of social ties among talented professionals create a significant challenge for organizations. The increase in the type of "pied pepper effect" inwhich teams or networks of people are leaving one company for another. -the trend is difficult to recruit job candidates at the groups of social relationships in organizations, particularly if they are seen as having the potential to bring with them valuable colleagues this is referred to as hiring via personal networks. -another example of social relationships causing human capital mobility is the immigration of talent from organization to form start aventures. Microsoft is the best example of this with their baby bills.

Developing human capital: step 2

-training and development must take place at all levels of organization if you want high growth and high quality. Leaders who are committed to developing the people who work for them in order to bring their strengths out and enhance their careers will have committed followers. -in addition to training and developing human capital, firms must encourage widespread involvement, monitor and track employee development, and evaluate human capital. Encouraging widespread involvement; developing human capital requires the active involvement of all leaders at all levels. It won't be successful if it is viewed only as the responsibility of the human resource department. mentoring: mentoring is most often a formal or informal relationship between two people. It can potentially be a valuable influence and professional development in both the public and private sectors. it can provide many benefits: to the organization as well as the individual. For the organization it can help recruit qualified managers, decrease turnover, fail senior level positions with qualified professionals, enhance diversity initiatives with senior level management, and facilitate organizational change efforts. Individuals also benefit from effective mentoring programs. These include helpingto the organization as well as the individual. For the organization it can help recruit qualified managers, decrease turnover, fail senior level positions with qualified professionals, enhance diversity initiatives with senior level management, and facilitate organizational change efforts. Individuals also benefit from effective mentoring programs. These include helping newer employees transition into the organization, help develop relationships for people who lack access to informal mentoring relationships, and provide support and challenge to people on an organizations fast track to positions of higher responsibility. -traditionally viewed as a program to transfer knowledge and experience from more senior managers to up and comers. Many organizations have really invented to fit todays highly competitive knowledge extensive industry. EX: Intel initiated a mentoring program that involved it's technical assistance who work with senior executives. This is a concept referred to as reverse mentoring because senior executives benefit from the insides are professionals who have more updated technical skills but rank lower in the organizational hierarchy. Monitoring process and tracking development: whether you use on-site formal training or offsite training or on the job training, tracking individual process and sharing this knowledge with both the employees and the key managers becomes essential. Evalutating human capital: in our competitive environment collaboration and enter dependence are vital to organization success. Individuals much share their knowledge and work constructively to achieve collective not just individual goals. Traditional systems evaluate performance for my single perspective top down and generally don't address the softer dimensions of communication and social skills, values, beliefs, and attitudes. -when addressing limitation of the traditional approach organizations use the 360° evaluation and feedback system. That is where superiors, direct reports, colleagues, and even external and internal customers ray a persons performance. Managers raised themselves to have a personal benchmark. This system complements teamwork, employee involvement, and organizational flattening. As organizations continue to push responsibility down word, traditional top down appraisal systems become an efficient. -At times a firms performance assessment methods may get in the way of team success.

Protecting the intellectual assets of the organization: intellectual property and dynamic capabilities

-unpredictability and fast change dominate the business environment. Firms use technology, attract human capital or tap into research and design networks to get access to pretty much the same information as their competitors. So why would give firms a sustainable competitive advantage? Protecting a firms intellectual property requires a concerted effort on the part of the company. The management of intellectual property involved besides penance contracts with confidential Aliti and non-complete clauses, copyrights and the development of trademarks. Developing dynamic capabilities is the only avenue providing firms with the ability to reconfigure their knowledge in activities to build and protect a sustainable competitive advantage. Intellectual property rights: they are intangible property owned by a firm in the forms of patents, copyright, trademark's, or trade secrets. They are more difficult to defined and protect them property rights for physical assets. If these rights are not reliably protected by the state they will be less incentive to develop new products and services. Property rights have enshrined in constitution and rules of law in many countries. Knowledge and information are fundamentally different assets from the physical ones that property rights have been designed to protect. -protection of intellectual rights raises unique issues, compared to physical property rights. IP is characterized by significant development costs and low marginal cost. It may take substantial investment to develop a software program and idea or digital music town but once developed it re-production and distribution cost may be almost 0 especially if the Internet is used. Effective protection of intellectual property is necessary before any investor will finance such an undertaking. Appropriation of investors returns is harder to police since possession and deployment are not as readily observable. Unlike physical assets intellectual property can be stolen by simply broadcasting it. Part of the problem is that using an idea does not prevent others from simultaneously using it for their own benefit which is typically impossible with physical assets. New ideas frequently bill on all ideas and are not easily traceable. Legal battles over payments become common place and I pee heavyUnlike physical assets intellectual property can be stolen by simply broadcasting it. Part of the problem is that using an idea does not prevent others from simultaneously using it for their own benefit which is typically impossible with physical assets. New ideas frequently bill on all ideas and are not easily traceable. Legal battles over payments become common place and Ip heavy industries. -new technological developments, software solutions, electron it games, online services, and other products and services contribute to our economic prosperity and creation of wealth for those entrepreneurs who have the first idea and risk bringing it to the market. Dynamic capabilities: they are a firms capability to build and protect a competitive advantage, which rest on knowledge, assets, competencies, complementary assets, and technologies. Dynamic capabilities include ability to sense and sees new opportunities, generate new knowledge, and reconfigure existing assets and capabilities. Dynamic capabilities help to explain competitive vantage and vital industries. In ever-changing markets the functional and operational routines that drive competitive success in stable condition capabilities such as supply change management and access to distribution channels can quickly become obsolete. -even if a firms advantages are difficult to imitate due to experiences or knowledge, disruptive technologies can undermine the key driver of industry advantage, erode conventional advantages and become out of step with market conditions in consumer demands. Dynamic capabilities view maintains that success and volatile industries requires capabilities that enable companies to anticipate, shape, and adapt to shifting competitive landscapes. Although it excepts the importance of capabilities such as design product and manufacturing it argues the success of volatile industries require something more than baseline capabilities namely adaptive processes instructors that enable firms to challenge baseline capabilities predict chefs and consumer demands develop and integrate new technologies learn from market events and predict and capture new market opportunities -dynamic capabilities defined the firms ability to innovate adapt and faster change is favorable to customers and unbearable to competitors. It can be viewed as consisting of three primary activities: -identifying, developing, and assessing technological opportunities and threats that relate to consumer needs the sensing of uncertain futuresi -mobilizing resources to focus on needs and opportunities in order to capture value from doing so or seizing and -continuing the ongoing process of renewal transforming or shifting. -these three activities, sensing, seizing, and transforming our central if organizations want to sustain themselves in the longer-term as customers, competitors, and technologies change. -dynamic capabilities can include many different activities that a firm my undertake to create competitive advantage such as product development, strategic decision making and acquisition's. -as markets become increasingly volatile, traditional sources of long-term competitive advantage become less relevant. In such markets all that a firm can strive for is a series of temporary advantages. Dynamic capabilities enable a firm to create a series of temporary advantages through new resource configurations.

p3: intellectual capital

Intellectual capital: the difference between the market value of the firm and the book value of the firm, including assets such as reputation, employee loyalty and commitment, customer relationships, company values, brand names, and the experience and skills of employees. Or the difference between a firms market and book value, that is a measure of the value of a firms and tangible assets. The equation is: intellectual capital equals market value of the firm minus book value of the firm -

p5: social capital (2) concept of knowledge

Second: Social capital: the network of friendships and working relationships between talented people both inside and outside the organization. Relationships are critical and sharing and leveraging knowledge and and acquiring resources. Social capital can extend beyond the organizational boundaries to include relationships between the firm and suppliers, customers, and alliance partnersthe network of friendships and working relationships between talented people both inside and outside the organization. Relationships are critical and sharing and leveraging knowledge and and acquiring resources.

Using technology to leverage human capital & knowledge

Sharing knowledge and information throughout the organization can be a means of conserving resources, developing processing services, and creating new opportunities Using networks to share information: email is an effective means of communicating a wide variety of information as it's quick, easy and almost costless. But it can become a problem when employees used extensively for personal reasons. It can cause an embarrassment. It can be a means for top executives to communicate information effectively.n Technology can also enable much more sophisticated forms of communicating in addition to knowledge sharing. Electronic teams: using technology to enhance collaboration: Technology enables professionals to work as part of electronic or virtual teams to enhance the speed and effectiveness with which products are developed. Electronic teams are teams of individuals that complete tasks primarily through email communication. This helps to accelerate design and testing a new software modules that use the Windows based framework as their central architecture. It helps the firm learn how it's new technologies can be applied rapidly to the new business venture such as cable television broadcasting travel services and financial services. It helps the firm learn how it's new technologies can be applied rapidly to the new business venture such as cable television broadcasting travel services and financial services. What are electronic teens, there are two differences between eteams and more traditional teams: -E team members either work in geographically separated work places or may work in the same place but different times, they may have members working in different places in different time zones especially in multi national teams. -most of the interactions among members of the teens occur through electronic communication channels such as fax machines group where to such as email bulletin boards chat or video conferencing. The teams have expanded exponentially in the recent years organizations faze high levels of complex and dynamic change these teams are also effective in helping peoplemost of the interactions among members of the teens occur through electronic communication channels such as fax machines group where to such as email bulletin boards chat or video conferencing. The teams have expanded exponentially in the recent years organizations faze high levels of complex and dynamic change these teams are also effective in helping businesses cope with global challenges. Most each teams perform very complex task and most knowledge base teams are charged with developing new products improving organizational processes and satisfying challenging customer problems. Vantages: there are multiple advantages to e teams. -first they are less restricted by the geographic constraints that are placed on face-to-face teams. They have a potential to acquire a broader range of human capital or the skills and capacities that are necessary to complete complex assignments. These team leaders can draw upon a greater pool of talent to address a wider range of problems since they are not constrained by geographic spacefirst they are less restricted by the geographic constraints that are placed on face-to-face teams. They have a potential to acquire a broader range of human capital or the skills and capacities that are necessary to complete complex assignments. These team leaders can draw upon a greater pool of talent to address a wider range of problems since they are not constrained by geographic space. When they are formed, they can be more flexible in responding to unanticipated work challenges and opportunities as team members can be rotated out of projects when demands alter teams objectives. -E teens can be very effective in generating social capital which is the quality of relationships and networks that form. Search capital is he in network transactions and operations. Members and leaders generally have more access to wider range of social contacts then would be typically available and more face-to-faceE teens can be very effective in generating social capital which is the quality of relationships and networks that form. Search capital is he in network transactions and operations. Members and leaders generally have more access to wider range of social contacts then would be typically available and more face-to-face teams. Such contracts are connected to a broader scope of clients, customers, and other key stakeholders. Challenges: there are many challenges associated with making e teams effective . Success full action by both traditional teams and each team require that members identified who among them can provide the most appropriate knowledge and resources. Also these leaders and key members know how to combine individual contributions and mouse effective manner's for a coordinated an appropriate response. These are identification and combination activities which are when teams failed to perform to phase a process loss process losses prevent teams from reaching high levels of performance because of an efficient interaction dynamics among team members. Such poor dynamics required that some collective energy, time and effort be devoted to dealing with team efficiencies that's diverting the team away from its objectives. -the potential for process losses tend to be more prevailant in E team then in traditional teams because the geographic dispersion of members increases the complexity of establishing affective interaction and exchanges. Team suffer process lost because of low cohesion, low trust among members, a lack of appropriate norms or standard operating profit procedures or a lack of shared understanding among team members about their task. e team member are more geographically or temporally disbursed and the team becomes more susceptible to the wrist factors that can create process loss. Such problems when team members have less than ideal social skills this Ken a road problem-solving capabilities as well as effective functioning of the group as a social unit. -a variety of technologies, have facilitated the formation and effective functioning of the teams as well as a wide range of collaboration within companies. Such technologies enhance the collaboration abilities of employees and managers within a company at a reasonable cost despite the distances that separate them. Modifying knowledge for competitive advantage: -there are two different kinds of knowledge: tactic knowledge is embedded in personal experience and shared only with the consent and participation of the individual. Explicit knowledge is knowledge that can be documented Wiley distributor and easily replicated. -one of the challenges of knowledge intensive organizations is to capture and codify the knowledge and experience that in affect reside in the heads of its employees otherwise they will have to consistently reinvent the wheel which is both expensive and in efficient and also a new wheel may not be necessary to the overwhelm. -once a knowledge asset is developed and paid for it can be reused many times are very low cost assuming it doesn't have to be substantially modified each time. -the user community can be a major source of knowledge creation for a firm -questions that managers should consider in determining how affective their organization is and attracting, developing, and retaining human capital and how effective they are in leveraging human capital through social capital and technology.

p7: tacit knowledge (4)

fourth concept: tacit knowledge: knowledge that is in the minds of employees and is based on their experiences and backgrounds. It is shared only with the consent and participation of the individual. -new knowledge is constantly created through continual interaction of explicit and tactic knowledge. -role of socially complex processes, which include leader ship, culture, and trust. These processes play a central role in the creation of knowledge. They represent the glue that holds the organization together and helps to create a working environment where individuals are more willing to share their ideas, work in teams, and create products and services of Values at the end. -a firm may diversified the ownership of viral knowledge by emphasizing teamwork, guard against obsolescence by developing learning programs, and shackle key people with golden handcuffs. People are less likely to leave an organization if there are affective structures to promote teamwork and information sharing, strong leader ship that encourages innovation and cultures that demand excellence and ethical behavior.

p2: knowledge economy

knowledge economy: and economy where wealth is created through the effective management of knowledge workers instead of by the efficient control of physical and financial assets. -the growing importance of knowledge with the move by labor markets to reward knowledge work tells us that investing in a company is in essence buying a set of talents, capabilities, skills, and ideas. Intellectual capital not physical and financial resourcesthe growing importance of knowledge with the move by labor markets to reward knowledge work tells us that investing in a company is in essence buying a set of talents, capabilities, skills, and ideas.-Intellectual capital -not physical and financial resources Is the company worth,? Start with the three big financial statements; income statement, balance sheet, and statement of cash flow. If these statements tell a story that investors find useful, then a companies market value should roughly be the same as the value that accountants escrowIs the company worth,? Start with the three big financial statements; income statement, balance sheet, and statement of cash flow. If these statements tell a story that investors find useful, then a companies market value should roughly be the same as the value that accountants ascribe to it- the book value of the firm. -how do you companies create value in the knowledge intensive economy? The general answer is to attract and leverage human capital effectively through mechanisms that create products and services of value over time.

p6: explicit knowledge (3)

third concept: explicit Knowledge: knowledge that is codified, documented, easily reproduce, and widely distributed. Examples of this would be engineering drawings software code and patents.