Intellectual Capital Assignment

Added on -2019-09-23

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Intellectual CapitalIntellectual capital is one of the important areas for developing the competitive advantage of organizations. It includes the knowledge, expertise and the skills of the employees of the company which can be used for achievement of the goals. It is an asset for the organization, and include all the informational resources that can be used to conduct the operations. Thus, in short, it can include, intangible assets of the company, employee's knowledge and expertise and the organizational process. There are several international institutes and bodies which have tried to define intellectual capital. The Organization for Economic Co-operation and Development indicates that the intellectual capital is the "economic value of various categories of intangible assets that an organization use for its progress." It has some of the important characteristics which are:Invisible- The aspect of intellectual capital is that it is invisible and therefore cannot be seen by the employees or the management.Sustainability- One of the important features of intangible assets is that it helps in the future growth of the organization. Thus companies with quality human capital and information capital have a higher chance of continuing their operations for the long term. Use of knowledge- One of the differentiating features of the intellectual capital is that it uses the knowledge of the employees and the technology to create growth for an organization. Aspects of intellectual capitalSome of the important aspects of intellectual capital include the following:Human capital- It a type of asset for the organization which is not provided on the balance sheet. It includes the economic value of the skills and the experience of the employees of an organization. Some of the human capital include loyalty, health, punctuality, the intelligence of the employees. The main idea is that all the employees are not equal, but the quality of this asset can be increased by investing in training, education, abilities, and experience of the employees. This capital is an important asset for an organization, as it can help to improve the profitability

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