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 _____________.

61.

Many successful firms use internal labor markets. The most important reason for doing this is _____.    A.  they want to encourage job rotation B.  they want to keep highly mobile employees motivated and challenged C.  if employees remain in the same department for too long, they would become indispensable D.  an employee who moves too much can be identified as unreliable and then eliminated One way firms keep highly mobile employees motivated and challenged is through opportunities that lower barriers to an employee's mobility within a company. For example, Shell Oil Company has created an open sourcing model for talent. Jobs are listed on the Shell intranet and with a two-month notice employees can go to work on anything that interests them.

AACSB: Analytic Blooms: Understand Learning Objective: 04-02 The importance of recognizing the interdependence of attracting; developing; and retaining human capital. Level of Difficulty: 2 Medium Topic: Human Capital: The Foundation of Intellectual Capital

62.

All of the following are the benefits of diversity in the workforce of a firm except:    A.  creativity argument B.  problem-solving argument C.  similarity in perspectives argument D.  resource acquisition argument Six areas where sound management of diverse workforces can improve the effectiveness and competitive advantages of an organization are: (1) cost, (2) resource acquisition, (3) marketing, (4) creativity, (5) problem-solving, and (6) organizational flexibility.

AACSB: Analytic Blooms: Understand Learning Objective: 04-02 The importance of recognizing the interdependence of attracting; developing; and retaining human capital. Level of Difficulty: 2 Medium Topic: Human Capital: The Foundation of Intellectual Capital

63.

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 _____.    A.  requiring workers to work independently of each other B.  decreasing the interaction of departments within the firm C.  structuring the firm with rigid departmental and employee divisions D.  encouraging the sharing of ideas between employees in the firm In the knowledge economy, the development of social capital (the friendships and working relationships among talented individuals) gains importance, because it helps tie knowledge workers to a given firm. The interaction, sharing, and collaboration will create a situation in which a worker will develop firm-specific ties and be less likely to bolt for a higher salary offer.

AACSB: Analytic Blooms: Understand Learning Objective: 04-03 The key role of social capital in leveraging human capital within and across the firm. Level of Difficulty: 2 Medium Topic: The Vital Role of Social Capital

64.

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 _____________.    A.  the Columbus effect B.  knowledge integration C.  the Pied Piper effect D.  strategically competitive hiring In The Wall Street Journal, Bernard Wysocki described the increase in a type of Pied Piper effect, in which teams or networks of people are leaving one company for another. The trend is to recruit job candidates at the crux of social relationships in organizations, particularly if they are seen as having the potential to bring with them valuable colleagues.

AACSB: Analytic Blooms: Remember Learning Objective: 04-03 The key role of social capital in leveraging human capital within and across the firm. Level of Difficulty: 1 Easy Topic: The Vital Role of Social Capital

65.

What is a major reason for Nokia to lose its competitive edge in the cell phone business?    A.  The team consisted of scientists from around the world. B.  The team consisted of only Finnish scientists. C.  All of the work required diverse skill sets. D.  Each scientist worked alone, separate from colleagues. When given the choice, people will often choose to collaborate with others they know well or who have similar backgrounds, yet static groups breed insularity and may suffocate innovation. Take the former executive team at Nokia as an example. The team was 100 percent Finnish and had worked closely together for more than a decade. Many believe this homogeneity explains why Nokia failed to see the smartphone threat emerging from Silicon Valley.

AACSB: Analytic Blooms: Remember Learning Objective: 04-03 The key role of social capital in leveraging human capital within and across the firm. Level of Difficulty: 1 Easy Topic: The Vital Role of Social Capital

66.

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 ___________.    A.  the individual abilities of employees B.  the allocation of the financial resources of the firm C.  the relationships among the employees of the firm D.  the knowledge of an individual In the knowledge economy, the development of social capital (the friendships and working relationships among talented individuals) gains importance, because it helps tie knowledge workers to a given firm.

AACSB: Analytic Blooms: Remember Learning Objective: 04-03 The key role of social capital in leveraging human capital within and across the firm. Level of Difficulty: 1 Easy Topic: The Vital Role of Social Capital

67.

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 ______________.    A.  convey needed resources B.  have the opportunity to exchange information and support C.  ensure that everyone has the same perspective on strategic and operational issues D.  have the motivation to treat each other in positive ways The configuration of group member social ties within and outside the group affects the extent to which members connect to individuals who convey needed resources; have the opportunity to exchange information and support; have the motivation to treat each other in positive ways; and have the time to develop trusting relationships that might improve group effectiveness.

AACSB: Analytic Blooms: Understand Learning Objective: 04-04 The importance of social networks in knowledge management and in promoting career success. Level of Difficulty: 2 Medium Topic: The Vital Role of Social Capital

68.

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 ___________.    A.  closure B.  bridging relationships C.  redundancy D.  social supports Bridging relationships, in contrast to closure, stresses the importance of ties connecting people. Employees who bridge disconnected people tend to receive timely, diverse information because of their access to a wide range of heterogeneous information flows. Such bridging relationships span a number of different types of boundaries.

AACSB: Analytic Blooms: Understand Learning Objective: 04-04 The importance of social networks in knowledge management and in promoting career success. Level of Difficulty: 2 Medium Topic: The Vital Role of Social Capital

69.

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 __________.    A.  bridging relationships B.  intellect C.  closure D.  diverse knowledge Groups that become too closed can become insular. They cut themselves off from the rest of the organization and fail to share what they are learning from people outside their group. Research shows that while managers need to encourage closure up to a point, if there is too much closure, they need to encourage people to open up their groups and infuse new ideas through bridging relationships.

AACSB: Analytic Blooms: Understand Learning Objective: 04-04 The importance of social networks in knowledge management and in promoting career success. Level of Difficulty: 2 Medium Topic: The Vital Role of Social Capital

70.

Advantages of effective social networks for career success include all of the following EXCEPT _____.    A.  access to private information B.  access to diverse skill sets C.  greater redundancy in knowledge sources D.  greater power Effective social networks can play a key role in the advancement and success of a personal career. A personal social network potentially can provide three unique advantages: private information, access to diverse skill sets, and power.

AACSB: Analytic Blooms: Understand Learning Objective: 04-04 The importance of social networks in knowledge management and in promoting career success. Level of Difficulty: 2 Medium Topic: The Vital Role of Social Capital

71.

Social capital has downsides. Which of the following is a downside?    A.  High social capital may breed groupthink, that is, a tendency to question shared beliefs. B.  Socialization processes is inexpensive. C.  Individuals may become more willing to collaborate on joint projects. D.  Social capital may both breed groupthink and the socialization processes to create it (orientation, training, etc.) can be expensive. There are several downsides to social capital. Some firms have been adversely affected by very high levels of social capital because it may breed groupthink, a tendency not to question shared beliefs. Additionally, the socialization processes (orientation, training, etc.) can be expensive in terms of both financial resources and managerial commitment.

AACSB: Analytic Blooms: Understand Learning Objective: 04-04 The importance of social networks in knowledge management and in promoting career success. Level of Difficulty: 2 Medium Topic: The Vital Role of Social Capital

72.

Social capital has many potential benefits. However, according to the text, social capital _________.    A.  is always beneficial to a firm B.  usually restricts the productivity of employees C.  may or may not be beneficial to a firm D.  always hurts firm performance Social capital is not always beneficial. For example, in firms with deep-rooted mindsets, they may continue to hire, reward, and promote like-minded people who tend to further intensify organizational inertia and erode innovation. Such homogeneity would increase over time and decrease the effectiveness of decision-making processes.

AACSB: Analytic Blooms: Understand Learning Objective: 04-04 The importance of social networks in knowledge management and in promoting career success. Level of Difficulty: 2 Medium Topic: The Vital Role of Social Capital

73.

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?    A.  Picasso had a wider range of social connections and bridging relationships. B.  Van Gogh had a wider range of social connections. C.  Picasso was a solitary node with few connections. D.  Van Gogh was a hub who embedded himself in a vast network that stretched across various social lines. These two artists enjoyed sharply contrasting levels of success during their lifetimes. Effective social networks provide many advantages for the firm. They can play a key role in the career advancement and success of an individual. A personal social network potentially can provide three unique advantages: private information, access to diverse skill sets, and power. Bridging relationships in a social network connect otherwise disconnected people. Employees who bridge disconnected people tend to receive timely, diverse information because of their access to a wide range of heterogeneous information flows. Such bridging relationships span a number of different types of boundaries.

AACSB: Analytic Blooms: Understand Learning Objective: 04-04 The importance of social networks in knowledge management and in promoting career success. Level of Difficulty: 2 Medium Topic: The Vital Role of Social Capital

74.

The use of information technology (e.g., e-mail) has increased in recent years in many organizations. This has helped to ____________.    A.  make more effective use of time in every situation B.  communicate information efficiently C.  restrict social network growth D.  create smaller social networks E-mail is an effective means of communicating a wide variety of information. It is quick, easy, and almost costless. Sharing knowledge and information throughout the organization can be a means of conserving resources, developing products and services, and creating new opportunities.

AACSB: Analytic Blooms: Understand Learning Objective: 04-05 The vital role of technology in leveraging knowledge and human capital. Level of Difficulty: 2 Medium Topic: Using Technology to Leverage Human Capital and Knowledge

75.

The creation of knowledge assets is typically characterized by ____________.    A.  high upfront costs and subsequent high variable costs B.  high fixed costs and high variable costs C.  high upfront costs and low variable costs D.  low upfront costs and high variable costs One of the challenges of knowledge-intensive organizations is to capture and codify the knowledge and experience that resides in the heads of its employees. Once a knowledge asset (e.g., a software code or processes) is developed and paid for, it can be reused many times at very low cost, assuming that it doesn't have to be substantially modified each time.

AACSB: Analytic Blooms: Understand Learning Objective: 04-06 Why "electronic" or "virtual" teams are critical in combining and leveraging knowledge in organizations and how they can be made more effective. Level of Difficulty: 2 Medium Topic: Using Technology to Leverage Human Capital and Knowledge

76.

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 ___________.    A.  inefficient use of information management B.  using explicit knowledge C.  using tacit knowledge D.  using replicated knowledge Explicit (or codified) knowledge, on the other hand, is knowledge that can be documented, widely distributed, and easily replicated. Here, Mary was able to use knowledge assets created by previous employees to complete the work.

AACSB: Analytic Blooms: Apply Learning Objective: 04-06 Why "electronic" or "virtual" teams are critical in combining and leveraging knowledge in organizations and how they can be made more effective. Level of Difficulty: 3 Hard Topic: Using Technology to Leverage Human Capital and Knowledge

77.

The management of intellectual property involves all of the following EXCEPT _____.    A.  patents B.  converting explicit knowledge to tacit knowledge C.  contracts with confidentiality and noncompete clauses D.  copyrights and trademark The management of intellectual property (IP) involves, besides patents, contracts with confidentiality and noncompete clauses, copyrights, and the development of trademarks. The development of dynamic capabilities is the only avenue providing firms with the ability to reconfigure their knowledge and activities to achieve a sustainable competitive advantage.

AACSB: Analytic Blooms: Remember Learning Objective: 04-07 The challenge of protecting intellectual property and the importance of a firm's dynamic capabilities. Level of Difficulty: 1 Easy Topic: Protecting the Intellectual Assets of the Organization: Intellectual Property and Dynamic Capabilities

78.

Dynamic capabilities include all of the following EXCEPT _________________.    A.  learning and innovating B.  becoming more efficient in operational processes C.  the ability of an organization to challenge the conventional industry in its industry and market D.  continuously adopting new ways of serving the evolving needs of the market Dynamic capabilities are about the ability of an organization to challenge the conventional wisdom within its industry and market, learn and innovate, adapt to the changing world, and continuously adopt new ways to serve the evolving needs of the market.

AACSB: Analytic Blooms: Remember Learning Objective: 04-07 The challenge of protecting intellectual property and the importance of a firm's dynamic capabilities. Level of Difficulty: 1 Easy Topic: Protecting the Intellectual Assets of the Organization: Intellectual Property and Dynamic Capabilities

79.

Which of the following is not an example of an IP-related litigation?    A.  Apple and HTC sue each other based on patent infringement. B.  Apple sues smartphone makers running Android, Google's mobile operating system. C.  China is sued by U.S. manufacturers of video games. D.  The United States sues to get access to physical plant assets in China. Intellectual property rights are the intangible property owned by a firm in the form of patents, copyrights, trademarks, or trade secrets.

AACSB: Analytic Blooms: Understand Learning Objective: 04-07 The challenge of protecting intellectual property and the importance of a firm's dynamic capabilities. Level of Difficulty: 2 Medium Topic: Protecting the Intellectual Assets of the Organization: Intellectual Property and Dynamic Capabilities