Glossary:
47. How to Audit and Measure Intellectual Capital
| Term | Definition |
|---|---|
Human Capital | Human capital is the human resource capital of an organisation, made up of its culture, its values and the combination of competences, skills, creativity, innovation and relationship capacity of its employees. |
Intangible Assets | An intangible asset is an asset that lacks physical substance, with non-monetary nature (e.g. are ideas, patents, copyright, goodwill, trademarks, etc). |
Intellectual Capital | Intellectual capital encompasses all forms of intangibles and is the combination of an organisation's human, structural, and relational resources of an organisation (customer capital). |
Intellectual Capital Measurement/ Audit Methods | Usually, there are two types of auditing considered: auditing by competence, and auditing individual or a spectrum of items. There are several methods for auditng these types, such as Market Capitalization Methods (MCM), Scorecard Methods (SC),Direct Intellectual Capital Methods (DIC), Return on Assets Methods (ROA). |
Knowledge management | The process of capturing, organising, managing, and sharing an organisation's knowledge to improve efficiency, effectiveness, and innovation. |
Organisational Capital | Organisational capital is one of the three components of structural capital, itself a component of intellectual capital, it is the value that an organisation derives from its processes and organisational philosophy, which capitalise on the organisation's capacity to provide goods and services. Organisational Capital is divided into process capital and innovation capital (the company's capacity for renewal). |
Relational Capital | Relational capital is one of the components of intellectual capital. It is an intangible asset formed by the network of relationships a business has with its stakeholders, including customers, suppliers, employees, and shareholders, which are built over time through trust, mutual respect, and shared values. |
Structural Capital | Structural capital is understood as the value that is left in the organisation by its human capital each day of its activity (e.g. databases, customer lists, software, patents, etc). |
Sustainability | The ability to meet the needs of the present without compromising the ability of future generations to meet their own needs. |
Team Management | Team management focuses on motivating employees to work together by setting common goals, in which it should be connected with the organisation strategy. |
