The competitive market and the rapid changes that occur almost dally require organization to stay abreast with learning and adaptation - Intellectual Capital introduction. The need to get the right personnel whether through recruiting or training is crucial in attaining the goals of an organization. The quest to assemble the necessary expertise needed in the various parts of the organization has become a daily strive for managers because of the demands of the consumer.
According to Duncan (1 979), there are internal environmental components that need to be satisfied depending on a particular tutorial specification so as the output will conform to the necessary expectations. The composition of an organization remains critical to the realization of goals and achieving the expectations of stakeholders. In sustaining competitive advantage, the need to identify, enhance, and distribute the core competencies or the knowledge of an organization is critical (Passer & Rene, 2011).
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The knowledge or expertise needed to run an organization should be made available whether internally or by acquiring outside help. Internally, coaching, training and consistent supervision can transfer Information from one person to the next and that must be made as part of the business culture. The knowledge one attains through years of experience on the Job can be said to be invaluable, Xx (2013) shares that, human beings are endowed with different qualities and as such particular attention have to be paid to human resource especially in this knowledge-based economy.
It is therefore imperative for organizations to develop mechanisms that will retain employees with knowledge that is Inherent. The knowledge and the skills of an individual or the collective brainpower f workers In an organization combined with the ability of the firm to create, collect, coordinate, retrieve, leverage, and collaborate forms the basis of Intellectual capital (Guppy & Sporadic, 2013). There can be diverse array of skills, expertise and knowledge across a given organization due to the differences in the type of work one is assigned to or the department an employee belongs.
Employees have to meet set job requirements in order to be hired in the first place, however, the adjustments and adaptation of each person Is different and with time the level of knowledge fifers based on one’s ablest. Definition of Intellectual Capital According to Stewart (1997), there are three forms of intellectual capital; the human capital comprises of skills, competencies, and abilities of individuals and groups.
This type of capital relates directly with a person’s knowledge or talent whether acquired on the Job or technical expertise from special training. The human capital therefore Is Inherent and organizations may not be able to claim ownership. An example of human capital is interpersonal skills, this may be listed as a core competence of a reticular position, but the degree of how each person exhibits may differ and as such there will be employees considered as star performers when it comes to that.
Transferring such capital is a task on its own sense it takes the consent as well as the ability to communicate effectively by the individual. Whereas human capital deals the company such as patents, copyrights, and trademarks, processes, methodologies, models, documents, computer networks and software (Steward, 1997). This can be said to be tangible knowledge and the organization can rely in the execution of their strategic plans. Customer capital deals with the value an organizations put on relationships with suppliers, allies, and customers (Steward, 1997).
The image and reputation of organizations can be measured using relationships it has built over the years and the premium it places on customer service. Role In assessing intellectual capital, there is no one size fits all because organizations vary in their emphasis due to their past, the market, and their strategy to achieve their goals. The dynamics of the global economy with the rapid changes and advancement of technology makes intellectual capital an important factor for the success of an organization.
Employing the different parts of an intellectual capital as a key system in an organization can function as the precursor to dealing with external changes that may impact the business. As stated above, the three parts of intellectual capital when managed can helped with issues from, employee training and that is utilizing the human component, building a strong culture through structural adherence and managing customer base and achieving the goals of the organization with the attendant profitability.
Daisies (2013) in defining intellectual UAPITA stated that, organizations use the attributes of the intellectual capital as a resource to secure competitive advantage, and create Focusing on the intellectual capital of an organization can enhance the development of a competent workforce which has the capacity for action and creativity. So internally, this gives the organization the area to invest more in terms of promotion or getting it to desired levels. Externally, the management of intellectual capital conforms to changes in market and the public perception of the image of organization (Daisies, 2013).
There s therefore a significant value that can be assessed for an organization’s intellectual capital which will correlate to the position and how investors make decision about the organization. The ability to have a quantitative value to intellectual capital as an asset drives the competitive advantage in the market place. Value Even though the term has been there for decades (since the sass’s), the competitive global market brought about by the changes of the economic indicators from an agrarian to a knowledge or information based economy has made intellectual capital more relevant now than ever.
According to Guppy and Sporadic (2013), the idea that the knowledge repository of an organization is the driving force behind its ability to survive, grow, and sustain its competitive advantage in the global marketplace has a long rich history. However, intellectual capital is now seen as key area where creativity, innovations are borne to sustain the competitiveness of the organization. Learning Organization The strategy of an organization to achieve its mission and goals depends on several factors.
The direction of an organization to remain competitive given the market may all for an aspect of knowledge management that is intellectual capital. The use of intellectual implies the deployment of human resources, information technology, business strategy and employees participation in order to transfer the imperative experiences across the company (Be]inurn & larches, 2011). The onus is on recognize with distinct roles for such transfer to happen. The responsibility of facilitating this information sharing can be Herculean since it needs the buy in of the said individual and also the capability to teach others.
Conclusion The dynamism of today’s world such as high customer expectations, calls for organizations to stay abreast with changes in technology and evolution of new competitive ideas, with a workforce that has the skills and knowledge to adapt these changes. This concept of intellectual capital which promotes creativity and innovation is attractive to modern day organizations because of the value it brings in comparison to the competition. The saying that knowledge is power is indeed manifested with various mechanisms been put in place by organizations to enrich heir workforce to stay ahead of the game.