Strategic Management: Strategic Managment

Gregory G. Dess, University of Texas at Dallas
G.T. Lumpkin, University of Illinois--Chicago

Recognizing a Firm’s Intellectual Assets: Moving Beyond a Firm’s Tangible Resources

Multiple Choice Quiz


1	A company that is known for its inability to leverage human capital is Xerox. The relatively short tenure of Rich Thoman, CEO, is one example. One of the main reasons he was fired is that
		A)	Xerox restructured their sales force to meet local needs.
		B)	he did not have inside connections like other board members and executives had.
		C)	he did not have the skills required for the job.
		D)	Xerox became known for being too "loosely" organized.


2	If a large segment of a firm's value is in intellectual and human assets, the difference between the company's market value and book value in the knowledge economy should ___________ a company with mostly physical and financial assets.
		A)	be equal to
		B)	be smaller than
		C)	not be correlated with
		D)	be larger than


3	New knowledge includes the continual contact between ________________ and ___________ knowledge.
		A)	tacit; explicit
		B)	theoretical; practical
		C)	intellectual; pragmatic
		D)	detailed; tacit


4	Attracting and retaining human capital is a challenge for many firms today. Firms experiencing high turnover should
		A)	make their work environment less stimulating.
		B)	decrease money spent on human capital.
		C)	adopt effective retention strategies.
		D)	increase recruiting.


5	An essential part of maintaining a competitive advantage in today's knowledge economy is developing human capital. Efforts and initiatives to develop human capital should be directed
		A)	throughout the firm at all levels.
		B)	at top managers.
		C)	at human resource departments.
		D)	at the employees themselves.


6	______________ rate a person's skill and performance in a 360-degree evaluation and feedback system.
		A)	colleagues
		B)	direct reports
		C)	superiors
		D)	all of the above


7	In an attempt to secure key employees from competitors, firms may attract the symbolic leader of a group within a competing firm, hoping others will follow. This has been termed
		A)	the "Columbus effect."
		B)	strategically competitive hiring.
		C)	the "Pied Piper effect."
		D)	the "tech exit" effect.


8	There are elements of team building that have an impact on a team's success, according to the text. These include all of the following except
		A)	work. Work should be relevant and meaningful to group members.
		B)	titles. Titles are important to a team's success.
		C)	people bonding during the "heat of battle." Team members become more unified during a crisis.
		D)	teams taking care of their own. Team members look after each others' best interest.


9	The use of information technology (e.g., email) in many organizations has increased in recent years. This has helped to
		A)	restrict social network growth.
		B)	make more effective use of time in every situation.
		C)	increase social capital.
		D)	create smaller social networks.

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