2. The Central Role of Knowledge
in Today’s Economy
Knowledge economy
wealth is increasingly created by effective
management of knowledge workers instead
of by the efficient control of physical and
financial assets.
4-2
7. The Central Role of Knowledge
in Today’s Economy
Intellectual capital also includes assets such
as reputation, employee loyalty and
commitment, customer relationships,
company values, brand names, and the
experience and skills of employees
4-7
13. Attracting Human Capital
Sound recruiting approaches
Firms must take recruiting seriously
Challenge becomes having the right job
candidates, not the greatest number of them
4-13
14. An Excerpt from General Electric’s 360-
Degree Leadership Assessment Chart
4-14
Exhibit 4.4
15. Retaining Human Capital
Challenging work and a stimulating
environment
opportunities that lower barriers to an
employee’s mobility
within a company
4-15
16. How Three Companies Are Keeping Their
Best During Tough Times
4-16
Exhibit 4.5
17. The Vital Role of Social Capital
Attraction, development and retention of
talent is a necessary but not sufficient
condition for creating competitive
advantage
Knowledge workers often are more loyal
to their colleagues and profession than to
their employer
4-17
18. Social Networks: Implications
Social network analysis
depicts the pattern of interactions among
individuals and helps to diagnose effective
and ineffective patterns
helps identify groups or clusters of
individuals that comprise the network,
individuals who link the clusters, and other
network members.
helps diagnose communication patterns and
communication effectiveness
4-18
20. Protecting the Intellectual Assets of
the Organization
Dynamic capabilities
a firm’s capacity to build and protect a
competitive advantage, which rests on
knowledge, assets, competencies,
complementary assets, and technologies.
4-20
