Intellectual Capital: Collective Brainpower or Shared Knowledge of a Workforce Used to Create Value

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CH 1 – Introducing management

Intellectual capital is the collective brainpower or shared knowledge of a workforce that can be used to create value. (Competency x Commitment) A knowledge worker is someone whose mind is a critical asset to employers. Diversity

Workforce diversity describes the composition of a workforce in terms of differences among people according to gender, age, race, ethnicity, religion, sexual orientation, and capabilities. Prejudice is the display of negative, irrational attitudes toward members of diverse populations. Discrimination actively denies minority members the full benefits of organizational membership (ex: glass ceiling effect). Globalization – the worldwide interdependence of resource flows, product markets, and business competition Technology- technology is an crucial part of everyday business and helped with globalization communication. It has also added flexibility to workplaces through things like, telecommuting. Ethics – set of moral standards of what is “good” and “right” in one’s behaviour. Careers – skills should be portable and always of value. Portfolio workers are people who always have the skills needed to readily shift jobs and even careers. Some critical skills include mastering, networking, entrepreneurship, tech-savvy, marketing and passion for renewal

Organizations in the new workplace
What is an organization?
Organizations are collection of people working together to achieve a common purpose. All organizations share a purpose of providing goods or services of value to customers and clients.

Organizations as systems: organizations are open systems (they transform resource inputs from the environment into product outputs) that interact with their environments in the continual process of obtaining resource inputs and then transforming them into outputs in the form of finished goods and services for their customers.

Organizational performance: When operations add value to the original cost of resource inputs, then 1) a business organization can earn a profit or 2) a non-profit organization can add wealth to society. A way to tell is through productivity which measures the quantity and quality of outputs relative to the cost of inputs. Performance effectiveness is an output measure of task or goal accomplishment. Performance efficiency is an input measure of the resource costs associated with goal accomplishments. Productivity = effective and efficient performance.

Changing nature of organizations:
Organizational trends and transitions:
Renewed belief in human capital: demands of the new economy place premiums on high-involvement and participatory work settings that rally the knowledge, experience, and commitment of all members. Demise of “command-and-control”: traditional hierarchical structures with “do as I say” bosses are proving too slow, and costly to do well in today’s competitive environment. Emphasis on teamwork: driven teamwork which pools talents for creative problem solving. Pre-eminence of technology: new opportunities appear with each development in computer and information technology; they continually change the way organizations operate and how people work. Embrace of networking: organizations are networked for intense, real-time communication and coordination, internally among parts and external with partners, contractors, suppliers and customers New workforce expectations: a new generation of workers brings to the workplace less tolerance for hierarchy, more informality, and more attention to performance merit than to status and seniority. Concern for work-life balance: As society increases in complexity, workers are forcing organizations to pay more attention to balance in the often-conflicting demands of work and personal affairs. Focus on speed: everything moves fast, so those who get products to market first have an advantage, work is now expected to be done both well and in a timely manner.

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