Chapter 4 - Firm's Intellectual Assets Flashcards
o Knowledge economy:
an economy where wealth is created through the effective management of knowledge workers instead of by the efficient control of physical and financial assets.
o Explicit knowledge:
knowledge that is codified, documented, easily reproduced, and widely distributed.
o Tacit knowledge
knowledge that is in the minds of employees and is based on their experiences and backgrounds.
- 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. Measure of the firm’s intangible assets.
o Human capital
individual capabilities, knowledge, skills, and experience of the company’s employees and managers
o Social capital
network of relationships that individuals have throughout the organization.
- Explain the role of knowledge in today’s competitive environment.
a. a company’s value is based in the knowledge, innovation and intellectual assets held by a firm’s personnel. wealth is increasingly created by effective management of knowledge workers
b. It is very important for firms to understand the competitive environment because there are always advancements being made. Other companies are always thinking one step ahead. It is important for firms to understand their own management style. It is important for firms to pay attention to competitor’s substitutes, their suppliers, and possible other entrant companies. This is important to pay attention to because other companies could be achieving at their style which puts them ahead of your own company. Another reason why it’s important to know the knowledge of the competitive environment is to understand competitor’s human capital, their tactics and their social capitol. Social capital can be known as the competitor’s relationships within their society.
- Why is it important for managers to recognize the interdependence in the attraction, development, and retention of talented professionals?
a. Hiring talented professionals is only the first step. firms need to develop those talented individuals to maximize their joint contributions and take steps to retain that talent by providing compensation, recognition, and a quality work environment. poor hiring impedes the effectiveness of developmental and retention processes
- What are some of the potential downsides for firms that engage in a “war for talent”?
a. an organization focuses on attracting and retaining talented professionals by offering competitive salaries. this is likely to be expensive and limiting. professionals take a lot of factors into consideration when accepting a positon and salary is usually not the most important. therefore it makes sense to attract and retain human capital using appeals besides pay.
- Discuss the need for managers to use social capital in leveraging their human capital both within and across their firm.
a. Social capitalism recognizes that workplace interactions involve friendships and mutual respect that motivate professionals, encourage loyalty and human capital development. Because social capital also characterizes interpersonal relationships across firms, it helps the firm to work with suppliers, buyers, and other partners through joint projects and information exchange.
- Discuss the key role of technology in leveraging knowledge and human capital.
a. technology can be used to share information, increase collaboration, and codify knowledge. videoconferencing is mimicking face-to-face interactions across large distances. this can lead to electronic teams that can span geographic regions, departments within the organization or even enable collaboration with suppliers or buyers
