Problem
A. If a firm requires that its employees invest in a mix of skills that is very specific to that firm, will there be any cost to the firm? Should a firm ever try to design jobs so that employees develop readily marketable skills? Explain.
B. You are negotiating with a potential new employer. One issue is whether the firm will pay your tuition in an evening MBA program. What arguments would you make to convince your employer? If you were the employer, what counter-arguments would you make?
C. Your job is to oversee R&D for a large pharmaceutical company. A new blockbuster drug can mean enormous profits for your firm, partly because of many years of patent protection. New drug development is an extremely large financial investment. Mistakes can be very costly, because new drugs might harm customers, and damage the firm's brand name. Finally, the government's Food and Drug Administration imposes its own very stringent oversight (decision control) of your drugs at the last stage, before they are approved as new products. Describe the decision making process that you would recommend. Would it vary with different stages of new product development (e.g., basic exploratory re-search compared to final drug development)?