The Role Of HR Managers In Developing Intellectual Capital: A Comparative Case Study And Viewpoints On Some Selected Companies

Abstract

In modern times, the role of human resource (HR) managers has changed as HR policies are planned in accordance with the changing global environment. Their role has expanded to include team building and development of intellectual capital (IC). Workforce diversity has driven many CEOs and HR directors to develop a systematic method for dealing with and ensuring cooperation from the workforce in order to maintain organizational discipline. Rapid advancement, innovations, and changing business trends provide a platform for HR managers to formulate strategies and develop IC to lead the organization in a better manner. This case study research proposes two models - Employees’ Commitment Model (ECM) and Organizational Commitment Model (OCM) - which explain the methodology and techniques for developing IC in modern companies. Further, these models are applied to some selected companies. ECM pertains to developing an individual’s IC, while OCM presents the organizational strategy for adopting and developing IC in modern companies. In a rapidly changing global environment, service-oriented activities are in high demand across sectors. Consequently, HR managers are willing to innovate and invest in IC. Management tools of training, coaching, dealing, and instilling a sense of ownership best develop a company’s IC. Until a few decades back, companies invested in the production processes; later, the focus shifted to technology. Today, the focus is on workers’ knowledge or investment in IC.