2. Intellect -the power or faculty of the mind by which one knows or understands, by which one feels and by which one wills; the understanding; the faculty of thinking and acquiring knowledge.
3. Capital -a factor of production that is not wanted for itself but for its ability to help in producing other goods
4. Intellectual Capital:the intangible assets -Collective knowledge (whether or not documented) of the individuals in an organization or society.
5. Intellectual Capital It consists of the stocks & flows of knowledge, ability, skill & competence available to an organization. It consists of factors other than the physical ones that contribute to the value generating process of a firm. It incorporates the value of all relationships inside & outside the organization. It covers values such as Goodwill, Corporate image & Brands.
10. It’s what you can’t see that says the most about a company’s long-term health For the tree to flourish and bear high quality fruit well into the future… …it must be nourished by a strong, healthy root system Intellectual Capital!
13. Human Capital Can be ‘made’ or ‘bought’ It represents the ‘human factor’ in the organisation. It gives organisation its ‘distinctive character’. Ensures long-term survival of the organisation.
14. Human Capital Theory emphasises on the ‘added value’ Regards people as assets The theory encourages the philosophy of HRM.
15. Origin The idea of Human Capital was first developed by Adam Smith. The term was coined by Schulz. Davenport Model: Total Human Capital Investment = (Ability + Behaviour) * Effort * Time The innate abilities, behaviours & personal energy make up the human capital.
19. Measuring Human Capital Measures of human Capital have been strongly guided by what it is possible to measure, rather than by what it is desirable to measure.
20. Need for measuring Human Capital It constitutes a key element of the market worth of the company It will focus the attention of the organisation on what needs to be done It can provide basis for resource based HR strategies It can be used to monitor progress & evaluate effectiveness.
23. Social Capital Social Capital refers to the institutions, relationships & norms that shape the quality & quantity of a society’s social interactions.. Social Capital is not just the sum of the institutions which underpin a society- it is the glue that holds them together. -World Bank(2000)
24. Features It is the stocks & flows of knowledge developed by relationships A structure within which human capital is most effectively deployed It is an aspect of ‘the social structure’ It facilitates the actions of individuals It requires a collaborative organisational environment It enables Human Capital to realise its potential
25. Organisational Capital -the embedded or institutionalised knowledge which may be retained with the help of Information Technology on readily accessible & easily extended databases
26. Features It consists of the knowledge owned by the organisation. It is the supportive infrastructure, processes & databases of the organisation that enable human capital to function. It can include Explicit knowledge that has been recorded & also tacit knowledge which to some extent has been codified Risk of loss of Intellectual Capital It is seen as an ‘Information Management Activity’ rather than an HR activity.
