Online published on 10 January, 2012.
In an emerging knowledge economy, the organizations can grow, develop and compete if equal importance is given to effective measurement and efficient management of intangible assets along with other physical assets. There is paradigm shift from viewing traditionally, human capital as cost to considering it as source of value. The knowledge, experience, employee performance are the driving forces for the organization’s profitability and growth. With companies realizing that people give them the winning edge, valuing the human capital has become a need of an hour. The organizations can enjoy added advantage by valuing and measuring their most precious assets that is human capital. In order to identify the impact of intellectual capital on firm’s is performance, the researchers and academicians started exploring and drafting newer models of valuation of the components of Intellectual capital which are Human Capital, Customer Capital and Process Capital. Thus this research is an attempt to highlight that human capital is the key to business success.
