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On brain power. Man-made competitive advantages replaces the comparative advantage of Mother Nature (natural-resources endowment) or history (capital endowments)” (p. 16). Human Capital Theory. Becker’s (1993) classic book, Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, illustrates this domain. Becker implores the reader: I am going to talk about a different kind of capital. Schooling, a computer training course, expenditures on medical care, and lectures on the virtues of punctuality and honesty are capital too, in the true sense that they improve health, raise earnings, or add to a person’s appreciation of literature over a lifetime.

These goods and/or services units of performance are typically measured in terms of features of production quantity, time, and quality. Chasing after individual or organization change without first specifying a valid unit of performance is foolhardy and a waste of time. This is because change can take place while “real” performance decreases! One example is to pursue employee satisfaction with the assumption that production will increase. Numerous studies have demonstrated that employee satisfaction can increase while actual production decreases or remains the same.

SS: Well, as you can imagine, the best decision is to have the exact item the customer wants. ” We’re hoping all the other changes we’re doing, including training, will radically cut back on the number of substitutions. We also are realistic enough to know that there will always be some substitutions. So, our big concern is to make the most reasonable substitute. We don’t want to do anything dumb, you know—that will just cause more problems than it solves. PS: What do you mean by “cause more problems”?

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