Running Head: Weekly Report 4 1

Table of Contents
Human Assets ................................................................................................................................. 2
Intellectual properties...................................................................................................................... 2
Human Capital............................................................................................................................. 3
Social Capital .............................................................................................................................. 3
Tacit knowledge .......................................................................................................................... 3
Implicit knowledge ...................................................................................................................... 4
How to manage human capital ........................................................................................................ 4
How to select the candidate ............................................................................................................ 5
Attracting Millennials ..................................................................................................................... 5
How to Develop Human Capital ..................................................................................................... 5
360 feedback system ....................................................................................................................... 6
The ways to retain staff ................................................................................................................... 6
How to enhance the Human Capital ............................................................................................... 6
The importance of social network and Social Tie in Job Success .................................................. 7
Closure and Bridging Relationships ............................................................................................ 7
Groupthink ...................................................................................................................................... 8
Electronic team ............................................................................................................................... 8
Protecting Intellectual Asset ........................................................................................................... 8
Running Head: Weekly Report 4 2

Human Assets

Companies should learn how to manage the human assets. The importance of this

strategy can be seen in the acquisition of Merrill Lynch by Bank of America, which the lack of

understanding caused several severe problems in the relationship of customers, dealers, and

banks. The book believes that we are living in the information age, and the information is power.

it can explain why about 50 percent of the USA’s GDP is based on knowledge. So the economy

can be described as a knowledge economy, and it is important how to manage the ideas, talents,

and knowledge in our business.

Intellectual properties

In a knowledge economy, companies such as Apple, Google and IBM who are

knowledge-based, use from intellectual properties assets (Figure 1) to create value, and this is

also considered as a competitive advantage for them. In this way, companies should understand

the concepts of human capital, social capital, tacit and implicit knowledge.
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Reputation

Experience & Employee

skills of loyalty &
employees commitment

intellectual
properties

Customer
Brand names
relationships

Company
values

Figure 1. Intellectual properties assets of an organization

Human Capital

This refers to those knowledge, skills, and experience that an employee has, and in this

companies are not only looking for better ways to protect this capital, but they also want to add

to their current human capital.

Social Capital

It is referring to the relationship and networks that are in the organization, and this can

cover all the relationships that a company that has both inside and outside the company. This

factor plays an important role in transferring both explicit and implicit knowledge in the

organization.

Tacit knowledge

It covers to that knowledge that can be easily recorded and transferred in the organization

(figure 2).
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Figure 2. Tacit and Implicit knowledge

Implicit knowledge

This kind of knowledge is formed through experiences in different tasks, and it is

difficult to codify. So, the social capital can facilitative the process of transferring of their

knowledge between individuals. In this way, it is important to see other concepts such as

leadership, trust, and culture which can be seen in the theory of socially complex process. the

transferability of knowledge can be considered as a competitive advantage for the company.

How to manage human capital

It is critical for an organization to not only attract the best talents but also retain them in

the long term. In my opinion, this can explain why those big corporations allocate a significant

amount of their budget to satisfy the needs of their employees. For some of them, the company

should increase their salary, and from a point, other factors should be considered in managing the

people. for example, for an employee with 15 years experiences in an organization, the self-

esteem and self-actualization are his/her first priorities. Moreover, we should consider the

different personality of individuals, and base on these difference, we should design a right

motivational strategy for them, this strategy can be monetary, non-monetary, or both of them.
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How to select the candidate

Managers and corporations are always searching for the best ways to Select the right

individuals for the right job’s position can be considered as the fundamental of building our

professional workforces. There are different strategies for this purpose; some companies tend to

use from the characteristics such as specific skills, communication skills for the candidate. In

fact, they want to hire an individual who fits the position and work the right way. Other company

consider the attitudes and care about the characteristics such as values, social skills, and general

knowledge, and they would prefer to train the candidate to achieve the required skills.

Attracting Millennials

This concept refers to the ways we can attract the people especially who are born after

1982. This concept wants to emphasize the difference between different generation, and the

importance of having a different strategy for managing these generations. For example, these

people care more about the balance or work-life, or they want more authority without a strict due

date.

How to Develop Human Capital

For this purpose, the company should consider the right training and development for

both short term and long term of the staff. this empowering can satisfy the needs of our

employees in this regard, and in my opinion, can help us to increase the organizational

citizenship. This means that by empowering our employees, they show more commitment toward

our organization and job. For this purpose, we should:

 Provide rooms for increasing the involvement of staff

 Mentoring and sponsoring our staff

 Controlling the development progress

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 Evaluation of our employees

360 feedback system

This kind of system is used for several purposes such as learning, evaluation, and

development purpose. Also, in the change process, we can use from this system to show our

employee the right behaviors. In other words, it can help us to transfer the visions to individuals.

Also, it can increase the employees’ participation in the future of the company as it is

anonymous. Also, this system helps us to have better communication between individuals from

different positions as managers also care about their rank.

The ways to retain staff

For this purpose, companies should use different strategies, and some of them are:

 Helping the staff to align with the mission and values that increase their

commitment.

 Designing a challenging workplace for employees: the model like Job

Characteristics Model is designed to increase the motivation and satisfaction of the employees by

providing a more desirable workplace and job.

 Monetary and non-monetary incentives: Different strategy should be used based

on different personality and individual’s attitudes. It means that similar strategy for the same

person cannot be useful again some years later.

How to enhance the Human Capital

One way to increase the value of human capital is building a more diverse individual in

the organization, which also helps them to achieve their social responsibility. This diversity can

help us to (1) manage the cost effectively, (2) being attractive place to attract talents because of

having an excellent reputation in recruiting women and minorities, (3) increasing marketing
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segment, (4) better creativity approach, (5) better ability in problem solving because of seeing

the problem from different side, (6) having a better flexible company which can adapt more

easily to change in the environment.

The importance of social network and Social Tie in Job Success

For attracting knowledgeable people, the company should know that these individuals

have a strong connection to each other, and in this way, the companies can take advantages of

this strategy in attracting them. It means that whenever we need new staff, we use from ‘social

tie’ can ask of our internal staff to suggest the right person for us. In this way, we can avoid not

only the high cost of identification of that person, but it is also convincing him/her to join the

company. We use from the social network analysis which a useful tool to recognize the pattern in

the social relationship of stakeholders of the organization.

The social network for individuals can help staff to increase the transferability of

knowledge among these persons which can help them to improve their skills, mindsets, and

knowledge. This also can help people to improve their communication skills with a different

type of people.

Closure and Bridging Relationships

This concept refers to the degree that member in the group forms a relationship together,

and this strategy will bring several benefits such as high trust’s level, more emotional support,

and more learning in the network. However, we should also consider the importance of bridging

relationships, which can help us to cover the structural holes that can be found within two

groups.
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Groupthink

This word refers to negative tendency that a group can have. In this situation, the team

members do not like critics another opinion, and they will agree with another opinion because of

this negative norm in the group. The failure of the bay of pigs invasion can be considered as a

good example for this problems.

Electronic team

Companies have been taking advantages of this type of with the help of the technology.

This can increase the ability of the company to connect its member in different places of the

world. This means that it can decrease the cost and increase the efficiency of the recourses in the

company. However, it is difficult to build the trust, and trust should be built in the first meeting;

otherwise, it could be a difficult job to build it during the teamwork. Also, it is difficult to

recognize the most suitable roles for individuals as we do not know which individual has a better

understanding and knowledge in that area.

Protecting Intellectual Asset

For protecting this kind of asset, the company should use from the following rights to

protect it. In this way, we can not only prevent others to use from our ideas, but we can also take

advantage of big amount of fine in the lawsuit case.

 Patents

 Copyrights

 Trademarks

 trade secrets