Ch. 4 Flashcards
knowledge economy
wealth is increasingly created by effective management of knowledge workers instead of by the efficient control of physical and financial assets
intellectual capital
intellectual capital
the difference between a firms market value and book value - that is, a measure of the value of a firms intangible assets
- reputation, employee loyalty and commitment, customer relationships, customer values, brand names, and the experience and skills of employees
How do companies create value in the knowledge-intensive economy?
1- human capital - individual capabilities, knowledge, skills, and experience of company
2- social capital - network of relationships with individuals in organization
3- knowledge - explicit -codified, documented, easily reproduced; tacit - minds of employees are based off their experiences and backgrounds
human capital: three interdependent activities
attracting human capital, developing human capital, and retaining human capital
developing human capital can be done by ….
mentoring - valuable influence
360 degree evaluation and feedback systems
superiors, direct reports, colleagues, and even internal and external customers rate a persons performance
retaining human capital can be done by ….
- identifying with an organizations mission and values
- challenging work and a stimulating environment
- Financial and non financial rewards and incentives
Enhancing Human Capital can be done by ….
- managing diversity
- cost argument: have a cost advantage over firms that are not diverse
- resource acquisition argument: excellent reputation = top talent
- Marketing Argument: multinational firms - insight from members rooted in that company
- creativity argument: less emphasis on conformity to norms of the past and a diversity of perspectives will improve level of creativity
- problem solving argument: produce better decisions because of wide range of perspectives
- organizational flexibility argument: with effective programs to enhance workplace diversity, systems become less determinate, less standardize, and therefore more fluid
social network analysis
depicts the pattern of interactions among individuals and helps to diagnose effective and ineffective patterns
- identifies groups/clusters that comprise the network, diagnose communication patterns
closure
the degree to which all members of a social network have relationship with other members
birding relationships
stress the importance of ties connecting people; employees who bridge disconnected people
-contrast to closure
structural holes
social gap between two groups.
social network can provide:
private information, access to diverse skill sets, and power
private information
can give managers an edge, though it is more subjective than public information since it cannot be easily verified by independent sources
groupthink
a tendency not to question shared beliefs
- occur with networks with high levels of closure where there is little input from people outside the network