IHRM

Intellectual Capital and International Assignments

Introduction1

Intellectual Capital2

Human Capital2

Relational Capital3

Structural Capital3

Characteristics of Intellectual Capital4

International Assignments5

Functional and Technical Assignments6

Strategic Assignments6

Development Assignments7

Benefits of International Assignments7

Impacts of Intellectual Capital on Business7

Impacts of International Assignments on Business8

Intellectual Capital as a Measuring Tool for International Assignments8

Conclusion11

References12

Appendix16

Intellectual Capital and International Assignments

Introduction

Intellectual capital is process of creating and collecting the knowledge that can provide market value leverage. The core idea is theorized in this paper. It is referred as the difference in the value between market value and tangible assets (financial and physical). Based on empirically and theoretically robust theories of human capital, intellectual capital may be define as the complementary capacities of individual employees of an organization to generate value that is also known as added value that will lead to wealth creation (Carpenter et.al, 2000, pp.277-285). It is often observed that, this information can be utilized to create wealth, multiply or increase output of physical resources, achieve competitive benefit and to improve the value of other kinds of capital. In business terms, intellectual capital may include structural capital, intellectual property, human capital and customer capital.

International assignments offer an opportunity to the organizations to develop global talent for management and transfer knowledge. It is considered as the most important aspect of people development. International assignments provide the opportunity to the employees to get advantages by getting international experiences (Firer & S, 2003, pp.348-360). This may allow the employees of the organizations to grow in a professional and personal manner.

The intellectual capital is a measuring and appreciating tool for the international assignments for the organization as well as for the individuals. We will discuss the technicality of these tools in this paper.

Intellectual Capital

Intellectual capital is referred as the knowledge or information that can be utilized for several useful purposes like money making purpose. Intellectual capital is considered as one of the greatest tools for any business or organizations, in order to enhance and improve their business procedures. It may significantly help the business or organizations in expanding their business. Intellectual capital may help the organizations in investing the economic resources in order to produce more services and goods. It is often observed that, intellectual capital incorporates the knowledge and skills that an organization or business has developed, regarding the manufacturing of services or goods. This may help the organizations and businesses to develop and expand their revenue (Lars & Truls, 2001, pp.127 - 135).

The performance or progress of any business or organization is directly linked or associated with the intellectual capital. Therefore, it is necessary for all the organizations to emphasize or focus on its intellectual capital. It is often observe that intellectual capital is classified as human capital, structural capital and relational capital (Gupta & Azzopardi, 2013, pp. 182). All these classifications are briefly described as follows:

Human Capital

Human capital is referred as the significance that the employees of an organization offer through the expertise, knowledge and skills. Human capital of any organization is referred as the collective human capabilities which are used to solve the problems and issues ...