ADMS 4900 Chapter Notes - Chapter 4: Intellectual Capital, Tacit Knowledge, Human Capital

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turquoiseherring192

25 Mar 2018

School

York University

Department

Administrative Studies

Course

ADMS 4900

Professor

John Spano

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Document Summary

In the past, also known as the machine age, managers were concerned with tangible resources such as land, equipment, and money. Intangible resources such as brands, image and customer loyalty were also of major importance to managers. Today, more than 50% of gdp in developed economies is knowledge based, which means they are based on intellectual assets and intangible people skills. Intellectual capital consists of intangible assets, such as human capital, social capital, intellectual property, brands and trademarks which contribute to a fir(cid:373)"s ability to create value through new knowledge. The only source of sustainable competitive advantage is through management of intellectual capital. There are three interdependent activities to human capital: attracting human capital, developing human capital, and retaining human capital. Many argue firms can identify top performers by focusing on key employee mindset, attitudes, social skills and general orientations and that the task specific skills can be learned in a short order.

Related Questions

The primary costs of FDI to host countries are:

		Loss of sovereignty and patriotism
		Adverse effects on competition and exports
		Capital outflow
		Loss of sovereignty, adverse effects on competition, and capital outflow

____ suggests that FDI, unrestricted by government intervention, will enable countries to tap into their absolute or comparative advantage by specializing in the production of certain goods or services.

		The radical view
		The free market view
		Pragmatic nationalism
		Expropriation

What are the benefits of FDI to home countries?

		Repatriated earnings from profits from FDI.
		Increased exports of components and services to host countries.
		Learning via FDI from operations abroad.
		All of these answers

When one firm enters a foreign country through FDI, its rivals are likely to follow by undertaking additional FDI in a host country to:

		Create knowledge spillover
		Discover a new market for its goods
		Overcome and combat market failure through FDI
		Acquire location advantages or neutralize the first moverâs location advantages

Most countries practice:

		Pragmatic nationalism
		Free market based FDI
		Government embracing radical view
		French patriotism

FDI may be viewed as a reflection of firm motivation to extend firm-specific capabilities abroad and their responses to overcome imperfections and failures.

		True
		False

Most countries practice a totally "free market" view.

		True
		False

8. Outsourcing is the process of turning over an organizational activity to an outside supplier, located in a foreign country, which will perform it on behalf of the local firm.

		True
		False

Financial, physical, and technological resources and capabilities are all tangible assets.

		True
		False

A firm's resources and capabilities are tangible assets a firm uses to choose and implement its strategies.

		True
		False

An example of low power distance would be when subordinates address their bosses on a first-name basis.

		True
		False

Benchmarking is an assessment as to whether a firm has resources and capabilities to perform a particular activity in a manner superior to competitors.

		True
		False

A country with low-masculinity has a more subtle differentiation between the gender roles.

		True
		False

Setting up subsidiaries abroad so the work can be performed in-house but in the foreign location is also called captive sourcing.

		True
		False

Managers in low uncertainty avoidance countries rely more on experience and training than managers in high uncertainty avoidance countries who rely more on rules.

		True
		False

Informal institutions include laws, regulations, and rules.

		True
		False

The United States is often classified as a collective society.

		True
		False

A pure market economy characterized by the "invisible hand" of market forces is noted by

		John Stuart Mill
		Adam Smith
		Aristotle
		Amatya Zen

Culture is defined in the text as:

		The communication between members of similar location.
		The collective programming of the mind, which distinguishes the members of one group or category of people from another.
		The main component of formal institutions.
		The attitudes and behaviors characteristic of a particular social group or organization.

When an expat employee returns to her or his current employer but the employer does not provide attractive opportunities, she/he often may be hired by a competitor firm. Why?

		Competitor firms are also interested in globalizing their business.
		Former expats bring instant expertise and experience.
		Competing firms will pay a higher premium for expertise.
		All of these answers

The government taking a "hands-off approach" is known as:

		Laissez faire
		Command economy
		Mixed economy
		Liberal approach

Expatriate managers make ideal candidates for top management positions.

		True
		False

____ are defined as rights associated with the ownership of intellectual property.

		Patents
		Copyrights
		Trademarks
		Intellectual property rights

In a collective society:

		Family units are highly valued.
		Being an entrepreneur is a popular mindset
		Being different than your neighbor is important.
		Outsiders are easily trusted.

Which of the following definitions best defines an expatriate manager?

		A manager who works outside his or her native country
		A manager of great expertise
		An ex-manager rehired for advisory purposes
		None of these answers

This is not plagiarism

Item 6

Original Source Material

Student Version

The philosophical position known as constructivism viewsknowledge as a human construction. The various perspectives withinconstructivism are based on the premise that knowledge is not partof an objective, external reality that is separate from theindividual. Instead, human knowledge, whether the bodies of contentin public disciplines (such as mathematics or sociology) orknowledge of the individual learner, is a human construction.

References:
Gredler, M. E. (2001). Learning and instruction: Theory intopractice (4th ed.). Upper Saddle River, NJ: Prentice-Hall.

Does knowledge exist outside of, or separate from, theindividual who knows? Constructivists hold that human knowledge,whether the bodies of content in public disciplines (such asmathematics or sociology) or knowledge of the individual learner,is a human construction (Gredler, 2001).

References:
Gredler, M. E. (2001). Learning and instruction: Theory intopractice (4th ed.). Upper Saddle River, NJ: Prentice-Hall.

Which of the following is true for the Student Versionabove?

Word-for-Word plagiarism

Paraphrasing plagiarism

This is not plagiarism

Item 7

Original Source Material

Student Version (written in 2002)

The technological tools available today for creatingcomputer-based learning materials are incredibly more powerful thanthose introduced just a few years ago. We can make our own movieswith camcorders in our homes; we can publish our own books. Soonteachers and students will be able to use computer-video technologyto produce their own learning materials. All it takes is time,know-how, and some funds.

References:
Frick, T. (1991). Restructuring education throughtechnology. Bloomington, IN: Phi Delta Kappa EducationalFoundation.

Frick (1991) suggested that teachers and students would becapable of using computer-video technology to make learningresources. Furthermore, Frick's observation regarding tools forcreating learning materials that leverage computers that are a lotmore powerful than technology used just a few years back remainstrue over a decade later.

References:
Frick, T. (1991). Restructuring education throughtechnology. Bloomington, IN: Phi Delta Kappa EducationalFoundation.

Which of the following is true for the Student Versionabove?

Word-for-Word plagiarism

Paraphrasing plagiarism

This is not plagiarism

Item 8

Original Source Material

Student Version

No matter how kindly voters treat the panderer in the votingbooth, the public overwhelmingly believes that candidates will sayone thing to get elected and then ignore their pledges once inoffice. This lack of sincerity, to the extent that happens, reducespublic confidence in government. Candidates should say what theybelieve. At the same time, the public should demand that candidatesspeak frankly and truthfully about issues of concern, and it mustunderstand that once a person is elected and looks at the fact inmuch greater detail, changes in attitude do and should occur.

References:
Simon, P. (2003). Our culture of pandering.Carbondale, IL:Southern Illinois University Press.

The relationship between voters and candidates is a complicatedone. For example, the vast majority of the public is convinced thatcandidates will promise anything to be elected and then pay noattention to their promises once elected (Simon, 2003). Such astate of affairs sets low expectations for those running foroffice.

Which of the following is true for the Student Versionabove?

Word-for-Word plagiarism

Paraphrasing plagiarism

This is not plagiarism

Item 9

In the case below, the original source material is given alongwith a sample of student work. Determine the type of plagiarism byclicking the appropriate radio button.

Original Source Material

Student Version

Overall findings revealed that the technology skills ofpreservice teachers participating in this study were relativelylow, while providing a basis upon which to identify prerequisiteskills and instructional objectives for teaching technology skillsand integration practices. In planning experiences fortechnology-rich teacher education programs, curriculum designerscould consider some skills as prerequisite, such as wordprocessing, basic computer operation skills, e-mail, and skillsassociated with the World Wide Web.

Reference 1
Brush, T., Glazewski, K. D., & Hew, K. F. (2008). Developmentof an instrument to measure preservice teachers' technology skills,technology beliefs, and technology barriers. Computers in theSchools, 25(1), 112-125.

Original Source Material 2
With regard to factors that contribute to the teachersâ readiness,computer proficiency took priority. Basically, if teacher computerproficiency increases, the teachersâ feeling to be more ready tointegrate technology into instruction alsoincreases.

Reference 2
Inan, F. A., & Lowther, D. L. (2010). Factors affectingtechnology integration in K-12 classrooms: A path model.Educational Technology Research and Development,58(2), 137-154.

Low computer proficiency may negatively affect the use oftechnology in schools (Inan & Lowther, 2010) To addresspotentially low technology skills among preservice teachers,teacher educators could consider some skills as prerequisite, suchas word processing, basic computer operation skills, e-mail, andskills associated with the World Wide Web. However, this approachwould require instructional options for students who lack suchskills.

Which of the following is true for the Student Versionabove?

Word-for-Word plagiarism

Paraphrasing plagiarism

This is not plagiarism

Item 10

Original Source Material

Student Version

Educational processes and systems are complex, and any attemptto measure them, especially at this level of aggregation, can onlylead to broad and general discussions. However, we contend thatthis discussion is necessary. Further, attempting to measure globalprocesses in education may provide another puzzle piece totheoreticians as well as national and local policy-makers, who areworking at understanding and, in the latter case, steeringeducational systems.

References:
Rutkowski, L., & Rutkowski, D. (2009). Trends in TIMSSresponses over time: Evidence of global forces in education?Educational Research and Evaluation, 15(2), 137-152.

In attempting to study and direct the future of complexeducational systems, theoreticians and policy-makers may findaggregated measures of global processes in education useful despitelimitations that may be associated with these measures (Rutkowski& Rutkowski, 2009).

References:
Rutkowski, L., & Rutkowski, D. (2009). Trends in TIMSSresponses over time: Evidence of global forces in education?Educational Research and Evaluation, 15(2), 137-152.

Which of the following is true for the Student Versionabove?

Word-for-Word plagiarism

Paraphrasing plagiarism

This is not plagiarism

pucehamster827

Background

Clothing sales have risen dramatically in recent years, thanks to several trends that appear likely to continue. It was reported that the global demand for clothing looks set to increase significantly over the coming decade as millions of people in developing countries enter the middle class and spend more on apparel. It also seems the demand for fast fashion will only continue to grow (Remy et al. 2016). This is further supported by a new research from Kurt Salmon, part of Accenture Strategy, one in eight younger consumers (18 to 24 year olds) shopping every week and buying a fashion item at least once a fortnight (Accenture 2017). Clothing production doubled from 2000 to 2014, and the number of garments purchased each year by the average consumer increased by 60 percent. Fast fashion has been a particularly hot segment and a source of enviable growth for some clothing companies (Remy et al. 2016). The process of making a piece of clothing involves multiple suppliers across the supply chain in the following processes including: farmers who grow the raw materials; ginners receive cotton from multiple growers and sell to the global market through traders; spinners use cotton from a variety of origins to produce yarn and fabric mills produce cloth. The manufacturing process begins which involves cutting, sewing, trimming, embroidery, orienting, and washing. Next, the manufacturers ship the garments wholesale to the brand that placed the orders who distributes garments globally to retail and online stores (Human Rights Watch 2017). At the end of its life, the apparel/garments may either be recycled or discarded and go to landfill. The manufacturing usually involves multiple suppliers in a very complex supply chain, which reduces transparency and visibility along the complex value chain. Brands therefore are not aware of what happen at their suppliersâ business along the supply chain. Brands also do not typically deal directly with all those suppliers, and many do not bother to dig deep into their supply chains (Gunther 2016). On the other hand, consumers are, attracted by the low cost and constantly update product ranges with new styles and designs. Consumers are buying these clothes much more often and in greater quantities, but often wearing them only a handful of times before discarding them. This fast-fashion industry and ecosystem consumes large amounts of natural resources in the production, which ultimately accelerating carbon emissions and global warming. The industry has also been linked to a number of cases of worker abuses in countries producing the garments. The workers were underpaid and exposed to unsafe and poor workplace conditions, particularly when handling materials like cotton and leather that require extensive processing (Remy et al. 2016). One example is the disaster at Rana Plaza, which is one of the deadliest accidents in the fashion industry happened on 24th April 2013. (The Economist 4th May 2013). Over 1,130 people were killed and 2,500 more were injured when the Rana Plaza factory complex collapsed in Dhaka, Bangladesh. It was reported that people crushed under those eight floors were working for dozens of familiar multinational brands and retailers. It is âone of the many negligent accidents that plague the garment industryâ (Fashion Revolution CIC 2015, p.4).

Assignment Tasks

Assume you are a newly appointed accountant in a local fashion company -RTXM Clothing Company (RTXM) - based in Melbourne, Australia. This is a private family business with 20 shareholders. Currently, the company has seven different departments, include Accounting and Finance, R&D (product design and development), Salesand Marketing, Human Resources, Information Technology, Distribution and Logistics, and Merchandising, with a total of 130 employees. Managers in each department are given the authority regarding operational decisions and their performance is measured based on the companyâs profit, and all the other employees receive the fixed salary package. The company pays taxes to Australia Taxation Office (ATO) on a regular basis. Originally, the business offered only t-shirts and jeans. As the business was trying to join the growing fast fashion industry, it expanded its product lines to include dress, trousers, shorts, hoodies & sweats, socks, shoes, and bags. The objective was to provide a wide selection of product lines in order to reach more fashion conscious consumers. A characteristic of them market is consumers are mainly attracted by low price, and frequent new styles and designs, so the company also seeks to find the suppliers with low prices. The business has retail stores in the major city across Australia and online store. Since the company expanded its product line, managers from different departments found the number of complaints received from customers have tripled. Most complaints are related to the product quality (products are either defective or damaged), items consistently out of stock, online shopping experience (delivery of wrong items and long response time to emails), and in-store experience (lack of attention from sales representatives), and some customers have posted complaints on RTXM social media. In order to enhance the overall performance, the company is considering using a range of key performance indicators in managing its performance. This is to ensure that the company keeps track of its performance and to achieve the objectives they set for the identified issues. In addition, the CEO and senior management decide to find new suppliers to improve the product quality, however, they encountered a dilemma. On the one hand, they found a supplier in Bangladesh, Super Cheap who can provide a large range of products to fit in their business expansion plan with a competitive price and all products can be supplied in a short time frame. However, after a careful investigation into this companyâs background, they found this supplier has a major issue with labor conditions throughout their supply chains, including the use of child labor, low wages, and health and safety hazards, and long working hours. In terms of the environmental aspect, Super Cheap consumes a few thousand litres of water to produce a cotton t-shirt and over ten-thousand litres to produce a pair of jeans, and wastewater discharge into the local river, and it did not take any action to solve this issue. The polluted water is no longer fit for drinking or laundry, fishes no longer exist in this river, and local residences complain that their homes are flooded by dirty water. On the other hand, RTXM has another potential supplier, called Green Fashion, who only provides limited product range with a higher price, and products can be supplied in a reasonable time frame. However, Green Fashion takes account of sustainability and makes it as part of their business, and their sustainability agenda has been presented on its website, including fashion designs that is kind to the environment, they also ethically source materials and labour, promote work-life balance of the employee in the retail business, and provide incentives to their local and outsourcing partners and their employees if their targets are met. The CEO and management of RTXM learnt that Green Fashion has very similar values and sustainability agenda. RTXM considers sustainability as part of the business. It is reported on their websites that the company wants to rethink fashion designs so that they are kind to the environment, to ethically source materials and labour, promote work-life balance of the employee in the retail business, and provide incentives to their local and outsourcing partners and their employees if their targets are met.

Required:

1. As an accountant of the company, you would like to have a better understanding of how the sustainability of the company will impact on the stakeholders. You believe the most efficient way is to identify important stakeholders. Refer to the case and identify five relevant stakeholder groups and discuss how different accounts could be used to satisfy each groupâs information requirements.

2. In order to enhance companyâs performance, the CEO thinks it might be insufficient to use profit as the only performance indicator, and is considering using a range of key performance indicators to manage the business. You believe the Balanced Scorecard is a useful performance measure framework that can be used, as it gives management an overall picture of companyâs performance. You have been asked to develop a Balanced Scorecard to assist RTXM in managing its overall companyâs performance and demonstrate how it works to the management and staff in next company meeting. You need consider ONE of the most important metrics that could be used for each of the four perspectives of performance and explain the reason why it has been selected and how it can be used to improve companyâs performance.

3. The CEO believes the company was attractive because of its previous low price strategy but has also noticed unprecedented awareness from customers on the companyâs social responsibilities. The CEO approaches you to discuss the selection of supplier, which supplier is better for companyâs strategic development. Provide an explanation to the CEO with reference to the potential costs and benefits of working with both Super Cheap and Green Fashion.

4. After your analysis above, the CEO starts realizing the importance of working with social and environmental friendly suppliers, however, still does not have a comprehensive understanding to the positive and negative impact his companyâs products might have both socially and environmentally. You decide to use the Life Cycle Analysis (LCA) for a product that the company offers to enhance their understanding. Draw the LCA, and select one or two stages of the LCA, identifying a total of four possible social and environment impacts. If the impact is detrimental either socially or environmentally, give suggestions to minimize the impact. If the impact is positive, give suggestions as to maximize the benefit. You are required to undertake some research to answer this question.

5. Subsequently the company decides to contract with the Green Fashion. Some important shareholders attempted to block this proposal. Their belief, as the owners of this company, is that the company should aim to maximize the value of their shares, however, the new business plan could significantly increase the costs and therefore reduce the profit. You are required to identify an organisation, business or industry and explain whether and how it could potentially increase the value of its shares in the long term by being accountable to its major stakeholders. You are required to undertake some research to answer this question.

ADMS 4900 Chapter Notes - Chapter 4: Intellectual Capital, Tacit Knowledge, Human Capital

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