Introduction
There are many valuable assets for any organisation including visible and invisible. The focus of contemporary organisations are on knowledge creation capacity that that strengthens the ability of such organisations to realise opportunities in every point of leveraging. Realistically, organisations draw insights from theories to analyse and evaluate the performance from both individual and organisational frameworks. Internal assets including intellectual capacity is deemed to be the most important. The paper focuses on the critical analysis of the intellectual capital model expounded by Burr and Girardi. Comparison with Williams’ theory of behavior as determinant of performance is addressed.
Burr and Girardi further developed Ulrich’s conception of intellectual capital demonstrated by the formula: intellectual capital = competence x commitment which takes into considerations a third integral element that is control, and provide an empirical causality between the variables which Ulrich fell short of doing. The authors contend that the settlement of the link between HR practices entrenched in organisational behaviours and the value of organisational intellectual capital must be a necessity. Intellectual capital is evident within two broad levels: individual and organisational. The interplay between ability, behaviour, effort and time to which the employees have the sole autonomy is said to be an important contributing factor for organisations. Deemed as ‘the backbone of the organisations’, structural capital, which is founded on intellectual capital, takes into account organisational ethos explicitly outlined in strategies, processes and policies.
Burr and Girardi concluded that intellectual capital has three core ideas integrated into i ...