Question 1

According to the resource-based view of the firm,competitive advantages are ________ for competitors to copy,if they are based on unique bundles of resources.

Accepted Answer

According to the resource-based view of the firm, competitive advantages tend to be harder for competitors to copy if they are based on unique bundles of resources.

Question 2

Professionals frequently leave Microsoft en masse to form venture capital and technology start-ups,called Baby Bills,built around teams of software developers.This is an example of ________ causing human capital mobility.

Accepted Answer

Professionals frequently leave Microsoft en masse to form venture capital and technology start-ups, called Baby Bills, built around teams of software developers. This is an example of social relationships causing human capital mobility.

Question 3

Training and development at all levels of the organization are necessary if employees are to remain current throughout the duration of their employment.Which of the following activities would also be necessary?

Accepted Answer

It is not enough to hire top-level talent and expect that the skills and capabilities of those employees remain current throughout the duration of their employment. Rather, training and development must take place at all levels of the organization. Leaders who are committed to developing the people who work for them in order to bring out their strengths and enhance their careers will have committed followers. Whether a firm uses on-site formal training, off-site training (e.g., universities), or on-the-job training, tracking individual progress-and sharing this knowledge with both the employee and key managers-becomes essential.

Question 4

Data analytics add new information that helps predict who will leave and who will make the best employee according to Deloitte,the HR consulting company.A key advantage of the new analytics techniques over traditional approaches is that they are ________ rather than ________.

Accepted Answer

A key advantage of the new analytics techniques over traditional approaches (such as exit interviews with departing employees) is that they are predictive, rather than reactive. And, they definitely provide more objective information than the more qualitative findings that one would get with a one-on-one discussion.

Question 5

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

Accepted Answer

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.

Question 6

Attracting and retaining human capital is a challenge for many firms today.Firms experiencing high turnover should

Accepted Answer

Stepped-up recruiting is a poor substitute for weak retention. Leaders can either provide the work environment and incentives to keep productive employees and management from wanting to bail out, or they can use legal means such as employment contracts and non-compete clauses.

Question 7

Companies that take hiring seriously must also take ________ seriously because having the right job candidates is important.

Accepted Answer

Companies that take hiring seriously must also take recruiting seriously. The number of jobs that successful knowledge-intensive companies must fill is astonishing. Ironically, many companies still have no shortage of applicants. The challenge becomes having the right job candidates, not the greatest number of them.

Question 8

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

Accepted Answer

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.

Question 9

Employers must provide ________ to attract and retain young workers because otherwise they will be at a competitive ________.

Accepted Answer

If employers do not provide incentives to attract and retain young workers, somebody else will. Thus, they will be at a competitive disadvantage. This is necessary to attract Millennials who will make up 40 percent of the workforce by 2020, according to the U.S. Bureau of Labor Statistics.

Question 10

The effective management of diversity can enhance the social responsibility goals of an organization.Other areas where sound management of diverse workforces can improve the effectiveness of an organization and its competitive advantages include all but one of the following

Accepted Answer

The effective management of diversity can enhance the social responsibility goals of an organization. However, there are many other benefits as well. Six other areas where sound management of diverse workforces can improve organization effectiveness and competitive advantages are (1) cost, (2) resource acquisition, (3) marketing, (4) creativity, (5) problem solving, and (6) organizational flexibility.

Question 11

In order to take advantage of investment in human capital,a firm should

Accepted Answer

Since attracting and developing talent represent an investment to a firm, it is necessary to ensure the third step is also done to fully leverage the human capital. A firm must also retain the talent.

Question 12

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

Accepted Answer

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.

Question 13

Boomerang employees,according to a study published in Personnel Psychology,are statistically more likely to leave a firm if they experienced a negative life event or if they

Accepted Answer

Traditional thinking about employment views employee turnover as an end state, where those who leave never want to return. However, this study suggests that this needn't be the case. There may be value in keeping in touch with employees who leave. These findings indicate that employees' willingness to return in the future is influenced by the reasons they left in the first place:Boomerangs were statistically more likely to leave initially for two main reasons. First, they experienced a negative life event, such as taking care of a sick parent that necessitated a change in employment. Second, they received an alternate job offer deemed too good to turn down. The research did find, however, that boomerangs are more likely to accept those alternate jobs in the same industry.

Question 14

In a 360-degree evaluation and feedback system,which of these does not rate the skills and performance of an individual?

Accepted Answer

To address the limitations of the traditional approach, many organizations use 360-degree evaluation and feedback systems. Here, superiors, direct reports, colleagues, and even internal and external customers rate the performance of an employee.

Question 15

Another example of social relationships causing human capital mobility is the ________ of talent from an organization to form ________.

Accepted Answer

Another example of social relationships causing human capital mobility is the emigration of talent from an organization to form start-up ventures.

Question 16

Maintaining a competitive workforce is very challenging in the current economy.The role of evaluating human capital,in recent years,has

Accepted Answer

In the current environment, collaboration and interdependence are vital to organizational success. Individuals must share their knowledge and work constructively to achieve collective, not just individual, goals. Traditional systems evaluate performance from a single perspective (i.e., top down) and generally do not address the softer dimensions of communications and social skills, values, beliefs, and attitudes.

Question 17

It is anticipated that the worldwide shortage of highly skilled,college-educated workers will increase significantly by 2020,according to research by McKinsey Global Institute.Some companies are going as far as to redefine the jobs of their experts and are transferring some of their tasks to lower-skilled people inside and outside of their companies.By redefining these ________ knowledge jobs,they address ________ shortages and ________ costs while enhancing job satisfaction.

Accepted Answer

Recent research by McKinsey Global Institute suggests that by 2020, the worldwide shortage of highly skilled, college-educated workers could reach 38 to 40 million, or about 13 percent of demand. In response, some firms are taking steps to expand their talent pool, for example, by investing in apprenticeships and other training programs. However, some are going further:They are redefining the jobs of their experts and transferring some of their tasks to lower-skilled people inside or outside their companies, as well as outsourcing work that requires less scarce skills and is not as strategically important. Redefining high-value knowledge jobs not only can help organizations address skill shortages but also can lower costs and enhance job satisfaction.

Question 18

If employees are committed to the core ________ and ________ of the organization,they are less likely to leave for the competition.

Accepted Answer

People who identify with and are more committed to the core mission and values of the organization are less likely to stray or bolt to the competition.

Question 19

The least effective way to retain human capital is to

Accepted Answer

For retention of talent, greater efforts should be directed at a good work environment and incentives, although employment contracts and non-compete clauses may sometimes have their place.

Question 20

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

Accepted Answer

It is not enough to hire top-level talent and expect that the skills and capabilities of those employees remain current throughout the duration of their employment. Rather, training and development must take place at all levels of the organization, which is considered developing human capital.

Quiz 4: Recognizing a Firm's Intellectual Assets: Moving Beyond a Firm's Tangible Resources