question

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.

answer

True

question

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.

answer

FALSE

question

The more reliance a firm has on intellectual capital, the closer its book value will be to its market value.

answer

FALSE

question

The difference between the market value and book value of a firm is its social capital.

answer

FALSE

question

In the current economy, reliance on the three traditional financial statements (income statement, balance sheet, and statement of cash flow) has increased.

answer

FALSE

question

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.

answer

TRUE

question

Creation of new knowledge typically involves the continual interaction of explicit and tacit knowledge.

answer

TRUE

question

Knowledge workers are more loyal to their companies than traditional workers.

answer

FALSE

question

Technical skills are a necessary and sufficient condition for hiring an employee.

answer

FALSE

question

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.

answer

TRUE

question

Companies have found that referrals from their own employees are generally an effective approach to recruiting top talent.

answer

TRUE

question

The Millennial generation expects employers to provide incentives to attract and retain them. A company that does this will have a competitive advantage.

answer

TRUE

question

Millennials value hard work and will rarely use vacation time.

answer

FALSE

question

In most effective evaluation and reward systems employees only receive evaluation and feedback from their immediate supervisor.

answer

FALSE

question

360-degree evaluation and feedback systems address many of the limitations of traditional approaches of evaluating human capital.

answer

TRUE

question

360-degree evaluation systems are not useful due to the need to integrate large amounts of feedback.

answer

FALSE

question

The most effective method of improving retention of top talent at a firm is to intensify its hiring efforts.

answer

FALSE

question

An internal work opportunity market for employees is one means of increasing employee retention.

answer

TRUE

question

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.

answer

FALSE

question

Workforces that reflect demographic changes will become more homogeneous over the next few decades with regard to gender, race, ethnicity, and nationality.

answer

FALSE

question

Social capital is based on the network of relationships within a firm, not in the skills and abilities of an individual employee.

answer

TRUE

question

Social capital is found in the knowledge, skills, and abilities of individual employees.

answer

FALSE

question

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.

answer

FALSE

question

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.

answer

TRUE

question

Developing and protecting social capital requires independence, in which individuals must spend most of their time working individually.

answer

FALSE

question

In bridging relationships in social networks, one member is central to the communication flows in a group.

answer

FALSE

question

Closure, in contrast to bridging relationships, stresses the importance of ties connecting heterogeneous people.

answer

FALSE

question

From the individual perspective, social networks deliver three unique advantages: private information, access to diverse skill sets, and power.

answer

TRUE

question

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.

answer

FALSE

question

The role of technology in the recruitment of human capital has lowered individual reliance on the use of social networks.

answer

FALSE

question

The use of e-mail can be distracting to employees. Some firms limit the time that employees spend using email.

answer

TRUE

question

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.

answer

FALSE

question

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.

answer

TRUE

question

According to the text, effective e-teams identify group members with a proper balance of technical and interpersonal skills.

answer

TRUE

question

Explicit knowledge is generally known to everyone in the firm and is not a critical concern of management.

answer

FALSE

question

Intellectual property rights are easier to define and protect than property rights for physical assets (e.g., plant and equipment).

answer

FALSE

question

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 _____.

answer

knowledge

question

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 ____.

answer

intangible resources

question

Changes in our economy have forced firms to be more concerned with protecting their ______.

answer

all of these

question

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.

answer

be larger than

question

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 ________________.

answer

attracting and retaining knowledgeable workers

question

Which of the following firms would you expect to have the highest ratio of market value to book value?

answer

Apple

question

Human capital includes ________________.

answer

an individual's capabilities, knowledge, and skills

question

Creativity and problem solving ability are considered to be part of ____________.

answer

human capital

question

The network of relationships that individuals have throughout the organization is known as _____.

answer

social capital

question

Tacit knowledge __________________.

answer

can be accessed only with the consent of the employees

question

New knowledge involves the continual interaction between __________ and __________ knowledge.

answer

tacit; explicit

question

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.

answer

decreased

question

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:

answer

sorting/absorbing

question

Managing a knowledge intensive workforce is very challenging. The best way for a firm to manage its workforce is to __________.

answer

balance efforts in the attraction, selection, and retention of top talent

question

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 ____.

answer

use a pre-interview quiz

question

Many companies use referrals by current employees as a source for new hiring and even monetarily reward them because __________________.

answer

current employees are careful in their recommendations and it is less expensive than the fees paid to headhunters

question

ABC, Incorporated desires to have the most qualified people in every position throughout its organization. This is an example of a concern for _________.

answer

developing human capital

question

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 ____.

answer

throughout the firm at all levels

question

Maintaining a competitive workforce is very challenging in the current economy. The role of evaluating human capital, in recent years, has _____.

answer

increased

question

In a 360-degree evaluation and feedback system, which of these does not rate the skills and performance of an individual?

answer

direct reports

question

Attracting and retaining human capital is a challenge for many firms today. Firms experiencing high turnover should __________.

answer

adopt effective retention strategies

question

In order to take advantage of investment in human capital, a firm should ___________.

answer

establish practices that will enhance employee retention

question

The least effective way to retain human capital is to _________.

answer

require employees to sign agreements that prevent them from working for competitors in the future

question

Generally, employees are most likely to stay with an organization if _____________.

answer

the organization mission and values align with the employees mission and values

question

Many successful firms use internal labor markets. The most important reason for doing this is _____.

answer

they want to keep highly mobile employees motivated and challenged

question

All of the following are the benefits of diversity in the workforce of a firm except:

answer

similarity in perspectives argument

question

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 _____.

answer

encouraging the sharing of ideas between employees in the firm

question

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 _____________.

answer

the Pied Piper effect

question

What is a major reason for Nokia to lose its competitive edge in the cell phone business?

answer

The team consisted of only Finnish scientists.

question

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 ___________.

answer

the relationships among the employees of the firm

question

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 ______________.

answer

ensure that everyone has the same perspective on strategic and operational issues

question

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 ___________.

answer

bridging relationships

question

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 __________.

answer

closure

question

Advantages of effective social networks for career success include all of the following EXCEPT _____.

answer

greater redundancy in knowledge sources

question

Social capital has downsides. Which of the following is a downside?

answer

Social capital may both breed groupthink and the socialization processes to create it (orientation, training, etc.) can be expensive.

question

Social capital has many potential benefits. However, according to the text, social capital _________.

answer

may or may not be beneficial to a firm

question

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?

answer

Picasso had a wider range of social connections and bridging relationships.

question

The use of information technology (e.g., e-mail) has increased in recent years in many organizations. This has helped to ____________.

answer

communicate information efficiently

question

The creation of knowledge assets is typically characterized by ____________.

answer

high upfront costs and low variable costs

question

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 ___________.

answer

using explicit knowledge

question

The management of intellectual property involves all of the following EXCEPT _____.

answer

converting explicit knowledge to tacit knowledge

question

Dynamic capabilities include all of the following EXCEPT _________________.

answer

becoming more efficient in operational processes

question

Which of the following is not an example of an IP-related litigation?

answer

The United States sues to get access to physical plant assets in China.

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