Knowledge Management Systems and Processes in the AI Era, 3E Irma Becerra-Fernandez,
Rajiv Sabherwal, Richard Kumi
Chapters 1-16
Chapter 1
Introducing Knowledge Management
True-False Questions
1. Knowledge management may simply be defined as doing what is needed to get the most out
of your employees.
Answer: False Difficulty: Medium
2. The most vital resource of today’s enterprise is the telecommunication infrastructure that
enables intraoffice and interoffice communication.
Answer: False Difficulty: Medium
3. Knowledge management may be applied to both individuals and organizations.
Answer: True Difficulty: Easy
4. Organizations face employee turnover due to voluntary and involuntary reasons.
Answer: True Difficulty: Easy
5. Knowledge intensive companies around the world are valued at twice their financial capital.
Answer: False Difficulty: Medium
6. A company’s human capital may reside in the minds of its employees, vendors and
customers.
Answer: True Difficulty: Hard
7. Intellectual capital is synonymous with human capital.
Answer: False Difficulty: Medium
8. Knowledge management focuses on making knowledge available wherever and whenever it
is needed.
Answer: True Difficulty: Easy
9. Although intellectual capital is ubiquitous, there are no standard tools to manage it as an
, asset.
Answer: True Difficulty: Medium
10. The swiftness with which decisions are implemented in today’s economy provides for
tolerance in making incorrect or unclear decisions.
Answer: False Difficulty: Easy
11. Rapid changes in KM have to a great extent resulted from progress in IT.
Answer: True Difficulty: Easy
12. Today, the growth of knowledge is linear. A five- year- old company will double its
knowledge in just five more years.
Answer: False Difficulty: Medium
13. Knowledge management mechanisms are the organizational or structural means used to
support KM.
Answer: True Difficulty: Easy
14. The applications resulting from the synergy between the latest technologies and an
organization’s social/structural mechanisms are known as knowledge management systems.
Answer: True Difficulty: Medium
15. Experience management includes requiring employees to take in-house training as well as
motivating external continuing education.
Answer: False Difficulty: Medium
16. A difference between the development of traditional IT systems and KM systems is that end-
users need to be more actively involved in KM system development.
Answer: True Difficulty: Easy
17. Knowledge may be created in individuals’ minds or in corporate databases (electronic and
paper).
Answer: False Difficulty: Medium
18. According to an old adage, 80 percent of effective KM is related to organizational culture
and human factors.
Answer: True Difficulty: Easy
19. Highly effective KM systems implementations are pure technological solutions.
Answer: False Difficulty: Easy
, 20. Successful KM systems not only require users to utilize the system, but also to contribute to
the knowledge encoded in the system.
Answer: True Difficulty: Easy
Multiple Choice Questions
21. The increasingly important discipline of KM promotes which of the following?
a. Personal recognition.
b. Personnel longevity through group/team satisfaction.
c. The systematic evaluation of an organization’s business strategy rules.
d. The creation, sharing, and leveraging of organizational knowledge.
e. None of the above.
Answer: d Difficulty: Medium
22. Which of the following is not a benefit of managing organizational knowledge?
a. Increasing information storage capacity.
b. Leveraging core business competencies.
c. Accelerating time to market.
d. Strengthening organizational commitment.
e. Improving cycle times.
Answer: a Difficulty: Hard
23. How does intellectual capital affect the balance between a corporation’s balance sheet and
investor’s estimation of corporate worth?
a. The balance sheet and estimated corporate worth are now equal.
b. The balance sheet value exceeds estimated corporate worth.
c. Estimated corporate worth exceeds the balance sheet value.
d. Intellectual capital has no effect on any difference between the balance sheet and
estimated worth.
e. Intellectual capital makes it easier to justify the balance sheet.
Answer: c Difficulty: Easy
24. Which of the following are considered common standard tools for managing intellectual
capital as an asset?
a. ERP systems and data warehouses.
b. Spreadsheets.
c. Voicemail and email.
d. All of the above.
e. As of yet, there are no standard tools.
Answer: e Difficulty: Medium
25. What are the components of intellectual capital?
a. IT infrastructure and employees.
, b. Human and structural capital.
c. Email and databases.
d. Training, innate skills, and experience.
e. Management and business culture.
Answer: b Difficulty: Hard
26. Which of the following trends does not increase the stakes in decision making?
a. Accelerating market volatility.
b. Increasing domain complexity.
c. Faster speed of responsiveness.
d. Diminishing individual experience.
e. None of the above.
Answer: e Difficulty: Easy
27. Due to increasingly dynamic and complex business domains, what are professional recruiters
looking for in new recruits?
a. Excellent education.
b. Professional experience.
c. Good communication skills.
d. Group collaboration skills.
e. All of the above.
Answer: e Difficulty: Easy
28. According to the text, with their diminishing experience how do corporate decision makers
make their decisions?
a. Rely on personal experiences.
b. Delegate decision making to others.
c. Refuse to make decisions.
d. Rely on externally provided information.
e. Design metrics to evaluate their decisions.
Answer: d Difficulty: Medium
29. What is a negative KM side effect of the downsizing trend of the late twentieth century?
a. Loss of knowledge resources.
b. Rapid cost reduction.
c. Better survivability against competitors.
d. Decreased productivity.
e. Accelerating market volatility.
Answer: a Difficulty: Easy
30. What is the major influence that is enabling the implementation of KM applications?
a. Learning in social mechanisms.
b. Improved information technology.
c. Newly developed structural mechanisms.
d. A growing knowledge sharing business culture.
e. Increasing rate of knowledge availability.