Concept of

Intellectual Capital
& Learning
Orientation in the
Organization…


 INTELLECTUAL

CAPITAL…..
The term Intellectual capital collectively refers to all
resources that determine the value and the
competitiveness of an enterprise. Collective
knowledge (whether or not documented) of the
individuals in an organization or society. This
knowledge can be used to produce wealth, multiply
output of physical assets, gain competitive advantage,
and/or to enhance value of other types of capital.
 The value of an enterprise is made of physical assets,
various financial assets and, finally, intangible assets,
i.e., intellectual capital (IC).
--The intangibleness refers to the fact
that IC is not easily translatable in
financial terms. All other assets of a
company, such as a piece of real
estate or a credit note, can be
monetized:
i.e., there exist standard criteria for
expressing their value in currency. IC,
instead, is mainly made of elements
(such as the quality of employees or
the reputation of a brand among
consumers) for which there is no
consensual model for monetary
expression.
Components of Intellectual Capital
—
Intellectual capital is divided into 3 categories—
+MARKET ASSET-are potential an organization has
due to market-related intangibles. Example-various
brands, customer and their loyalty, distribution
channels, various contracts and agreements such
as licensing ,franchises and so on.
+HUMAN ASSET-comprises the collective
expertise, creative and problem solving capability,
leadership, entrepreneurial and managerial skills
embodied by the employees of the organization.
It is the job of the good manager to
ensure that each human asset has
access and opportunity to mechanisms
which enable the employee to achieve
their full potential within the
organization.

+INFRASTRUCTURE ASSET-infrastructure
asset are those technologies,
methodologies and processes which
enables the organization to function.
Basically the elements which make up
 LEARNING
ORGANIZATION….
Organizations do not organically develop
into Learning Organizations; there are
usually factors prompting their change.
It has been found that as organizations
grow, they lose their natural capacity to
learn as company structures and
individual thinking becomes rigid. When
problems arise in the company, the
solutions that are proposed often turn
out to be only short term and re-emerge
in the future. In order to remain
competitive, a lot of organizations have
faced restructurings which have resulted

 Modern organizations need to maintain
knowledge about new products and processes,
understand what is happening in the outside
environment and produce creative using the
knowledge and skills of all employed within the
organization. This requires co-operation between
individuals and groups, free and reliable
communication, and a culture of trust[5]. These
needs can be met through embracing the tenets
of the Learning Organization.
LEARNING ORGANIZATION—Definition
Organization that acquires knowledge and innovates fast
enough to survive and thrive in a rapidly changing
environment.

Learning organizations-

(1) create a culture that encourages and supports

continuous employee learning, critical thinking, and risk
taking with new ideas,

(2) allow mistakes, and value employee contributions,

(3) learn from experience and experiment, and

(4) disseminate the new knowledge throughout the

organization for incorporation into day-to-day activities.
Benefits of being a Learning
Organization…
There are many benefits for improving learning
capacity and knowledge sharing within an
organization. The main benefits are-

+ Maintaining levels of innovation and remaining

competitive.

+ Being better placed to respond to external

pressures.

+ Having the knowledge to better link resources

to customer needs.

+ Improving quality of outputs at all levels.