SM Chapter 4 Book
The first step in the process of building superior human capital is input control or ______ the right person.
attracting and selecting
Millennial workers are attracted to positions that offer _______.
challenging and flexible work options
True or false: Human capital is a measure of the value of a firm's intangible assets.
false
Which of the following type of worker outnumbers other types of workers in the United States by at least four to one?
knowledge
The phenomenon in which teams or networks of people leave one company for another is known as ______.
the Pied Piper effect
Social capital is defined as ______.
the friendships and working relationships among talented individuals
The gap between market value and book value for knowledge-intensive firms is far greater because ______.
these firms use far fewer tangible assets to create value
True or false: American companies are becoming more culturally diverse.
true
Which of the following are ways of developing a firm's human capital? (Check all that apply.)
Attracting human capital. Retaining human capital. Developing human capital.
Which of the following statements about a knowledge economy are true?
Effective management of knowledge workers creates wealth. Intellectual capital is more heavily valued than physical and financial resources.
______ is a tendency in an organization for individuals not to question shared beliefs.
Groupthink
______ capital is the difference between the firm's market value and the book value.
Intellectual
What are the characteristics of "reinventing the wheel" when a knowledge-intensive organization does not capture and codify the knowledge possessed by its employees? (Check all that apply.)
It is expensive. It is inefficient.
Which of the following processes create most of the value for firms in large service industries like medical care and education?
Knowledge and information
Which of the following are ways in which sharing knowledge and information benefits organizations? (Check all that apply.)
Organizations are able to develop products and services. Organizations are able to create new opportunities. Organizations are able to conserve resources.
Which of the following statements about firms about knowledge and the management of knowledge workers is true?
Physical resources are less critical.
______ information is not available from public sources and is usually communicated in the context of personal relationships.
Private
______ capital is the network of friendships and working relationships between talented people both inside and outside the organization.
Social
The relationships in a social network that connect otherwise disconnected people are known as ______.
bridging relationships
Which of the following are ways companies manage their intellectual property in addition to patents? (Check all that apply.)
employee confidentially contracts employee noncompete clauses
The 360-degree evaluation and feedback system complements which of the following? (Check all that apply.)
employee involvement teamwork organizational flattening
Which of the following is a recruiting strategy being used by some large companies, such as GE Medical Systems, to attract highly qualified job candidates?
encouraging employees to refer former colleagues or friends who may be a good fit
Recent trends in recruiting rely on social capital by ______.
hiring individuals who have large social networks of potentially valuable contacts in other organizations who may follow them to the new company
Social network analysis helps to identify which of the following? (Check all that apply.)
individuals who link the clusters groups or clusters of individuals that comprise the network other network members
Intellectual property rights are ______.
more difficult to protect than property rights for physical assets
Heterogeneity in decision-making and solution-oriented groups generally produces better decisions because of a wider range of perspectives. This supports the ______ argument of the effective management of diversity.
problem-solving
Which of the following statements regarding social capital playing a vital role for companies are correct? (Check all that apply.)
Developing and retaining human capital becomes less important as key employees become "free agents". Knowledge workers are often more loyal to their colleagues and their profession than their employer. It helps tie knowledge workers to a given firm.
Which of the following are examples of how a diverse workforce improves an organization's effectiveness and likelihood of developing a competitive advantage? (Check all that apply.)
Diverse companies are better at problem-solving due to heterogeneity. Companies that effectively manage diversity enjoy a cost benefit over those that do not. Diverse companies are more flexible to environmental change. Companies that are diverse have better insight and cultural sensitivity that can help in marketing efforts.
Which of the following statements regarding intellectual property rights are true? (Check all that apply.)
Expensive legal challenges concerning intellectual property are common. Intellectual property often represents significant development costs and very low marginal production costs. Effective protection is difficult due to the fact that possession and deployment are not as readily observable.
______ knowledge is knowledge that is documented, widely distributed, and easily replicated.
Explicit
______ knowledge is codified, documented, easily reproduced, and widely distributed, and ______ knowledge is in the minds of employees and is based on their experience and backgrounds.
Explicit; tacit
Which of the following companies is likely to rely more on knowledge resources and thus have a high market value to book value ratio?
Which of the following are benefits of closure? (Check all that apply.)
Group members develop strong relationships with each other. Closure leads to high levels of trust.
______ is(are) intangible property owned by a firm in the forms of patents, copyrights, trademarks, or trade secrets.
Intellectual property
Which of the following is a benefit of bridging relationships?
It can provide timely and diverse information.
Which of the following statements about mentoring are correct? (Check all that apply.)
It consists of a formal or informal relationship between a senior employee and a junior protégé. It provides many benefits, such as decreased turnover and filling senior-level positions. It helps new employees transition into the organization.
Which of the following is a difference between knowledge-intensive firms and firms in more traditional industry sectors?
Knowledge-intensive firms have very high market-to-book value ratios, and traditional firms have low market-to-book ratios.
Which of the following statements about structural holes are true? (Check all that apply.)
Managers refer to them as silos or stovepipes. Sales and engineering typically do not interact across groups. They are common in organizations.
Which of the following are preferred ways to retain human capital? (Check all that apply.)
Provide employees with financial and nonfinancial rewards and incentives. Hire employees who are likely to be committed to the organization's mission and core values. Provide employees with challenging work and a stimulating environment.
Which of the following are potential downsides of social capital? (Check all that apply.)
Socializing employees can be expensive. Employees develop groupthink with their network. Dysfunctional human resource practices.
Which of the following best describes the 360-degree evaluation and feedback systems?
Superiors, direct reports, colleagues, and customers rate a person's performance.
______ knowledge is personal experience and shared only with the consent of the participation of the individual.
Tacit
Which of the following statements about the ratio of market-to-book value of a company are true? (Check all that apply.)
The ratio tends to be higher when physical resources are relatively less critical to the company. The ratio tends to be higher for knowledge-intensive companies.
Which of the following statements regarding the three human capital activities is correct?
The three activities are highly interrelated.
Which of the following are challenges to using electronic (virtual) teams? (Check all that apply.)
There is a potential for lower group cohesion and trust among members. Geographical dispersion increases the complexity of establishing effective interaction and exchanges, thus leading to a potential for process loss. There is a potential for poor communication of critical information that may lead to wasted time and energy.
Which of the following are advantages of electronic (virtual) teams? (Check all that apply.)
They are less restricted by geographical constraints. There is the potential for them to acquire a broad range of human capital or important skills. They develop high-quality relationships and networks.
Demographic trends and the globalization of business have had which of the following human capital-related effects on U.S. businesses?
They have made the management of cultural differences a critical issue.
Which of the following statements about electronic (virtual) teams are correct? (Check all that apply.)
They work in geographically separated work places. They sometimes work at different times. They may use fax machines, videoconferencing, and chat.
______ teams are comprised of individuals who complete tasks primarily through electronic communications. (Check all that apply.)
Virtual Electronic
Social capital extends beyond the organizational boundaries and includes which of the following? (Check all that apply.)
alliance partners customers suppliers
Which of the following do most Millennials consider most important for staying with an employer? (Check all that apply.)
an employer that provides flexible working hours a job that provides opportunities to give back to their community a work environment that offers a work-life balance
Which of the following are ways to develop human capital? (Check all that apply.)
by monitoring and tracking employee development by encouraging widespread involvement by evaluating human capital
One of the challenges of knowledge-intensive organizations is to ______.
capture and codify the knowledge and experience that resides in its employees' heads, so it does not have to constantly reinvent the wheel
The degree to which all members of a social network have relationships (or ties) with other group members is called ______.
closure
A firm's capacity to build and protect a competitive advantage, which rests on knowledge, assets, and the ability to sense and seize new opportunities, is known as ______.
dynamic capabilities
New knowledge is constantly created through the continual interaction of ______.
explicit and tacit knowledge
True or false: Knowledge workers give company loyalty the highest priority.
false
True or false: Paying employees a larger salary than competitors is the most important factor in attracting and retaining human capital.
false
Which of the following are likely to be sources of public information? (Check all that apply.)
industry newsletters the Internet government reports
Organizations are able to create new opportunities and develop products and services by leveraging technology with ______.
knowledge and human capital
Groupthink can happen in networks that have ______.
little input from people outside of the network
Which of the following is a formal or informal relationship between a senior employee and a junior protégé in which the senior manager transfers knowledge to the junior employee and provides support.
mentoring
Companies have come to question traditional hiring approaches and now try to identify potential employees on which of the following factors? (Check all that apply.)
mind-sets attitudes social skills
Which of the following do today's knowledge workers focus on above company loyalty? (Check all that apply.)
personal enrichment professional development
In a knowledge economy wealth is created by the effective management of knowledge workers instead of the efficient control of ______.
physical and financial assets
Social networks can potentially provide which of the following unique advantages to a firm? (Check all that apply.)
private information power access to diverse skill sets
Electronic teams that fail to perform "identification and combination" activities face a(n) ______ loss.
process
Information that is readily available to everyone from various sources such as the Internet is known as ______ information.
public
Dynamic capabilities include the ability to ______. (Check all that apply.)
reconfigure existing assets and capabilities sense and seize new opportunities generate new knowledge
By providing private information, access to diverse skill sets, and power, effective _ networks can play a key role in a manager's career advancement and success.
social
The fact that individuals may use contacts they develop to pursue their own interests and agendas is an example of a potential downside for companies concerned with ______.
social capital
The pattern of social interactions among individuals is called ______.
social network analysis
The social gaps between groups in a social network where there are few relationships bridging the groups are called ______.
structural holes
One reason training and developing employees has become critical to sustaining a competitive advantage is because ______.
technology changes so quickly
Traditionally, companies looked for individuals who had ______.
the right skills for a particular job