Measuring intellectual capital: Learning from financial history

Measuring intellectual capital: Learning from financial history Emerging evidence from scientific studies and specific organizations suggests that how people are managed significantly affects organizational success, and that certain patterns of human resource activities are associated with financial performance. Most human resource (HR) and line managers, however, find existing measures of human and intellectual capital woefully inadequate. In this article, we suggest that designers of HR measurement systems can learn from the success of well‐accepted measurement models in the financial and marketing arenas. We show that the historical development of these measurement systems suggests several lessons for the HR measures of the future. These lessons include articulating the links in the value chain, focusing on key organizational constraints, and using data to make “soft” intangible factors more tangible. © 1997 John Wiley & Sons, Inc. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Human Resource Management Wiley

Measuring intellectual capital: Learning from financial history

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Publisher
Wiley
Copyright
Copyright © 1997 John Wiley & Sons, Inc.
ISSN
0090-4848
eISSN
1099-050X
DOI
10.1002/(SICI)1099-050X(199723)36:3<343::AID-HRM6>3.0.CO;2-W
Publisher site
See Article on Publisher Site

Abstract

Emerging evidence from scientific studies and specific organizations suggests that how people are managed significantly affects organizational success, and that certain patterns of human resource activities are associated with financial performance. Most human resource (HR) and line managers, however, find existing measures of human and intellectual capital woefully inadequate. In this article, we suggest that designers of HR measurement systems can learn from the success of well‐accepted measurement models in the financial and marketing arenas. We show that the historical development of these measurement systems suggests several lessons for the HR measures of the future. These lessons include articulating the links in the value chain, focusing on key organizational constraints, and using data to make “soft” intangible factors more tangible. © 1997 John Wiley & Sons, Inc.

Journal

Human Resource ManagementWiley

Published: Sep 1, 1997

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