STRAMA QUIZ 4 (Module 4).

Recognizing a firm's
internal assets
TRUE or FALSE
Read and understand the statements. If the statement is correct then choose TRUE for your answer. If the statement is
incorrect then choose FALSE for your answer.

Knowledge workers are more loyal to their companies than traditional workers *
1 point

TRUE
FALSE

Knowledge workers place professional development and personal enrichment (financial

and otherwise)above company loyalty.

In the US, companies have found that referrals from their own employees are generally an
effective approach to recruiting top talent. *
1 point

TRUE
FALSE

True; GE Medical Systems has found that current employees are the best source for new ones. Referral
bounties are small compared to the fees that GE typically pays to headhunters for each person hired. Also,
when someone refers a former colleague or friend for a job, his or her credibility is on the line. Thus,
employees will be careful in recommending people for employment unless they are reasonably confident that
these people are good candidates.

Millennials value hard work and will rarely use vacation time. *
1 point

TRUE
FALSE

Millennials strive for more work-life balance, so liberal vacations become very important.
They alsowant assurances that they can use it. At KPMG, 80 percent of employees used
40 hours of paid time offin the first six months of a recent year

Human capital mobility caused by social relationships occurs when talent emigrates from an
organization to form start-up ventures *
1 point

TRUE
FALSE

TRUE Another example of social relationships causing human capital mobility is the
emigration of talent from an organization to form start-up ventures. Microsoft is perhaps
the best-known example of this phenomenon.

The difference between the market value and book value of a firm is its social capital *
1 point

TRUE
FALSE

FALSE
Social capital is the network of relationships that individuals have throughout the
organization.
According to the text, for most of the 20th century, managerial efforts were directed more
toward the efficient allocation of labor and capital *
1 point

TRUE
FALSE

For most of the 20

th
century, managers focused on tangible resources such as land, equipment, andmoney as
well as intangibles such as brands, image, and customer loyalty. Efforts were directed
moretoward the efficient allocation of labor and capital, which are the two traditional
factors of production.

In the current economy, reliance on the three traditional financial statements (income
statement, balance sheet, and statement of cash flow) has increased. *
1 point

TRUE
FALSE

In 1978, the book value for U.S. companies was 95 percent of market value. However,
market valuesand book values have diverged significantly. Within 20 years, the S&P
industrials were, on average,trading at 2.2 times book value. Robert A. Howell, an expert
on the changing role of finance andaccounting, suggests that the big three financial
statements are about as useful as an 80-year-old LosAngeles road map.

The gap between company market value and book value is far greater for knowledge
intensive corporations than for firms with strategies based primarily on intangible assets. *
1 point

TRUE
FALSE

FALSE
The gap between company market value and book value is far greater for knowledge-
intensivecorporations than for firms with strategies based primarily on tangible assets.

The Millennial generation expects employers to provide incentives to attract and retain them.
A company that does this will have a competitive advantage *
1 point

TRUE
FALSE

This generation has also been termed Generation Y or Echo Boom and includes people
that were bornafter 1982. Many call them impatient, demanding, or entitled. However, if
employers do not provideincentives to attract and retain young workers, somebody else
will. Thus, they will be at a competitivedisadvantage

Closure, in contrast to bridging relationships, stresses the importance of ties connecting

heterogenous people *
1 point

TRUE
FALSE
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 theiraccess to a wide range of heterogeneous information flows.

MULTIPLE CHOICE.
Answer what is asked. Choose your response from the answer options.

The use of information technology (e.g. email) has increased in recent years in many
organizations. This has helped to _____. *
1 point
_make more effective use of time in every situation
_communicate information efficiently
_restrict social network growth
_create smaller social networks
(Email 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.)

The ___, ___, and ___ talent is a necessary but not sufficient condition for creating
competitive advantages. *
1 point
_attraction; laissez-faire;retention of
_observance; laissez-faire; regard of
_attraction; development; retention of
_observance; development; hands-off approach to

Knowledge based resources tend to be more ____ in nature and therefore they are ___
difficult to protect against loss (i.e. the individual quitting the organization) than other types
of capital, such as equipment, machinery, and land. *
1 point
_explicit; less
_explicitly; more
_tacit; less
_tacit; more
(Knowledge-based resources tend to be more tacit in nature and therefore they are much
more difficult to protect against loss (i.e., the individual quitting the organization) than other types
of capital, such as equipment, machinery, and land.)

The dangers of email include all of the following except *

1 point
_spreading of rumors
_almost costless
_uncontrollable distribution
_personal time waster
(As we all know, email is an effective means of communicating a wide variety of information.
It isquick, easy, and almost costless. Of course, it can become a problem when employees use it
extensivelyfor personal reasons. We all know how fast jokes or rumors can spread within and
across organizations.Email can also cause embarrassment, or worse, if one is not careful.)

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 *
1 point
_at top managers
_at human resource departments
_throughout the firm at all levels
_at the employees themselves
(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.)

Firms must compete for top talent. In attracting and selecting employees, firms must strive
to select the best fit for both the employee and the firm. In an effort to reduce wasted time
and effort in interviewing too many candidates while assuring a good candidate pool, a firm
should *
1 point
_run employment ads in the newspaper
_use a pre-interview quiz
_only let lower level employees interview job candidates
_refrain from hiring by referrals from present employees
(Alan Cooper, president of Cooper Software, Inc., cleverly uses technology to hone in on the
problem-solving ability of his applicants and their attitudes before an interview even takes place.
He has devised a Bozo Filter, an online test that can be applied to any industry. Before you spend
time on whether job candidates will work out satisfactorily, find out how their minds work.)

With the ____ lever, the emphasis is on getting the right people to collaborate on the right
projects *
1 point
_network
_unification
_social
_people
(With the people lever, the emphasis is on getting the right people to collaborate on the right
projects. This means cultivating what may be called T-shaped management: people who
simultaneously focus on the performance of their unit (the vertical part of the T) and across
boundaries (the horizontal part of the T). People become able to collaborate when needed but are
disciplined enough to say no when it's not required.)

Advantages of effective social networks for career success include all of the following
except *
1 point
_access to private information
_greater redundancy in knowledge sources
_access to diverse skill sets
_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 todiverse skill sets, and power.)

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 *
1 point
_requiring workers to work independently of each other
_decreasing the interaction of departments within the firm
_structuring the firm with rigid departmental and employee divisions
_encouraging the sharing of ideas between employees in the firm
(In the knowledge economy, the development of social capital (the friendships and working
relationshipsamong 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.)

Managing a knowledge intensive workforce is very challenging. The best way for a firm to
manage their workforce is to *
1 point
_retain knowledge workers
_attract the brightest employees
_balance efforts in the attraction, selection and retention of top talent
_ensure that it pays higher salaries than its rivals
 (Attracting, developing, and retaining human capital are highly interrelated activities, like a
three-leggedstool. If one leg is weak or broken, the stool collapses. To illustrate such
interdependence, poor hiringimpedes the effectiveness of development and retention processes. In
a similar vein, ineffectiveretention efforts place additional burdens on hiring and development.)