MAF661 Chap 4 & Chap 5

Knowledge workers are more loyal to their companies than traditional workers

• TRUE

• FALSE

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

• fixed capital

• working capital

• investment capital

• intangible resources

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.

• TRUE

• FALSE

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 the

• individual abilities of employees

• allocation of the financial resources of the firm

• knowledge of an individual

• relationships among the employees of the firm

Technology can be used successfully to leverage human capital and knowledge within organizations as well as with customers and suppliers beyond their boundaries

• TRUE

• FALSE

____ is the network of relationships that individuals have throughout the organization.

• Human capital

• Intellectual capital

• Tacit knowledge

• Social capital

The development of intellectual capital (that is, the friendships and working relationships among talented individuals) gains importance because it helps tie knowledge workers to a given firm.

• TRUE

• FALSE

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

• at human resource departments

• at top managers

• at the employees themselves.

• throughout the firm at all levels

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

• intellectual; pragmatic

• theoretical; practical

• detailed; tacit

• tacit; explicit

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

• TRUE

• FALSE