Intangible assets and human capital

Intangible Assets and Human Capital

What is intangible asset?

intangible assets are Identifiable long-term assets of a company having no physical existence. They include goodwill, patents, copyrights, etc.

Intangible Assets

Human capital

Is the Life experiences, knowledge, inventiveness, energy and enthusiasm that the company’s employees invest in their work

Gary S. Becker - the term “human capital” he says that “the basic resource in any company is the people”

Customer capital

Refers to the value of relationship with persons or other organizations outside the company to achieve the goals of the company

Social capitalrefers to the relationship in the

company

Intellectual capital

It is the codified knowledge that exist in a company.

Human Capital Customer Capital Social Capital Intellectual Capital

Tacit Knowledge Customer relationships

Corporate culture Patents

Education Brands Management practices

Copyrights

Work- related competence

Customer loyalty Management philosophy

Trade secrets

Distribution channels

Intellectual Property

• Today, more and more companies are interested in intangible assets and human capital.

To Cultivate the company’s Competitive advantages

They must: Identify who are the

high-performers and high-potentials

• Identify low performers and take effective steps to address their performance.

• Develop all your employees so they embody your culture and values, and possess the knowledge, skills and experience your organization needs.

• Align your workforce so they are effectively working together to achieve the organization's strategic goals.

• Ensure every employee clearly understands what is expected of them and how they contribute to the organization's success.

Know what strategic knowledge, skills and experience your organization needs to acquire or develop in order to remain competitive

Recognize and reward high-performance and

key contributions.

• Recruit new employees who have the knowledge/ skills/experience you need, and "fit" your organizational culture.

• Keep all employees engaged and productive.

Why is it Important to Know How to Value Human Capital?

• Human resources, like other resources, are

finite. What makes them especially unique,

is that they are intangible.

It contributes to the company’s advantages because it is difficult to duplicate or imitate

• It helps in Developing The relationship among the customers

• To STAY on top

Remember that:

The most successful companies and the most successful countries will be those that manage human capital in most effective and efficient manner

• Whether you are a small business or family owned business the competition is so fierce.

• To stay on top in global economy, they need to place more and more emphasis on developing and retaining their people.

Any expenditure in training, development, health and support in investment is not just an expense.

We should just keep moving forward

To be the best among the competitors

Thank YOU! :D