Ch. 4 Flashcards Preview

Strategic Management Exam 1 > Ch. 4 > Flashcards

Flashcards in Ch. 4 Deck (24)
Loading flashcards...
1
Q

knowledge economy

A

wealth is increasingly created by effective management of knowledge workers instead of by the efficient control of physical and financial assets

intellectual capital

2
Q

intellectual capital

A

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
3
Q

How do companies create value in the knowledge-intensive economy?

A

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

4
Q

human capital: three interdependent activities

A

attracting human capital, developing human capital, and retaining human capital

5
Q

developing human capital can be done by ….

A

mentoring - valuable influence

6
Q

360 degree evaluation and feedback systems

A

superiors, direct reports, colleagues, and even internal and external customers rate a persons performance

7
Q

retaining human capital can be done by ….

A
  • identifying with an organizations mission and values
  • challenging work and a stimulating environment
  • Financial and non financial rewards and incentives
8
Q

Enhancing Human Capital can be done by ….

A
  • 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
9
Q

social network analysis

A

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
10
Q

closure

A

the degree to which all members of a social network have relationship with other members

11
Q

birding relationships

A

stress the importance of ties connecting people; employees who bridge disconnected people

-contrast to closure

12
Q

structural holes

A

social gap between two groups.

13
Q

social network can provide:

A

private information, access to diverse skill sets, and power

14
Q

private information

A

can give managers an edge, though it is more subjective than public information since it cannot be easily verified by independent sources

15
Q

groupthink

A

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
16
Q

Social Capital Limitations

A

1 - groupthink
2- deep rooted mindsets - develop dysfunctional HR practices
3- socialization process can be expensive ( Orientation, training)
4- person using contacts to pursue their own interests and agendas

17
Q

electronic teams

A

a team of individuals that completes tasks primarily through email communications

18
Q

Two main differences between E-teams and more traditional teams

A
  • e-teams- work at different times, working in different spaces, multinational team
  • e-teams- interactions through electronic communication channels such as fax machines and groupware tools such as email and chat
19
Q

advantages of e-teams

A
  • less restricted by geographic constraints like face to face teams – have potential to acquire a broader range of human capital
  • effective in generating social capital - quality of relationships, wider range of social contacts
20
Q

challenges of e-teams

A
  • members identify who among them can provide the most appropriate knowledge and resources
  • e-team leaders and key members know how to combine individual contributions in the most effective manner for a coordinated and appropriate response

aka communication amongst the team is crucial to the function

and increases complexity of establishing effective interaction and exchanges

21
Q

tacit knowledge

A

embedded in personal experience and shared only with the consent and participation of the individual

22
Q

Explicit Knowledge

A

or codified - knowledge that can be documented, widely distributed, and easily replicated

23
Q

intellectual property rights

A

more difficult to define and protect than property rights for physical assets (ex: plant, equipment, and land)

-significant development costs and very low marginal costs

24
Q

dynamic capabilities

A

a firms advantage to build and protect a competitive advantage

  • rests on knowledge, assets, competencies, and complementary assets and technologies as well as to generate new knowledge
  • adapt to the changing world and innovate