Concept of Intellectual Capital Management
The rapid growth of knowledge economy in the last two decades has changed management styles. Organization's knowledge strategy should be driven from business strategy to ensure development of knowledge culture. Such a culture ensures knowledge activities, namely acquiring, sharing, creating, transforming and its utilization. The knowledge environment will encourage and promote innovative processes.
The term “Intellectual Capital” collectively refers to all resources that determine the value of an organization, and the competitiveness of an enterprise. Understandably, the term “intellectual capital” from a human resources perspective is not easily translatable into financial terms. For all other assets of a company, there exist standard criteria for expressing their value. Intellectual capital can include the skills and knowledge that a company has developed about how to make its goods and services. It also includes insight about information pertaining to the company’s history; customers; vendors; processes; stakeholders; and all other information that might have value for a competitor that, perhaps, is not common knowledge. Intellectual capital consists of three elements Human capital, Structural capital (or organizational capital), Relational (customer) capital.
Intellectual capital is therefore, not only organizational knowledge, it is also industry knowledge. It is the combination of both cognitive knowledge and intuitive/experience-related knowledge.
This paper presents a general review of intellectual capital literature, which includes Intellectual Capital in Human Resources Perspective, definitions, components are like Human capital Structural capital (or organizational capital) Relational (customer) capital and The Importance Of Implementing Intellectual Capital Processes, Strategies for Implementing Intellectual Capital Knowledge.
Keywords - Intellectual Capital, Knowledge Economy, Cognitive Knowledge, Experience-Related Knowledge, Human Capital Structural Capital, Relational capital, Intellectual Capital Processes.