Enhancing Intellectual Capital and Organizational Performance Through Talent Management

In a knowledge economy, organizations are hard-pressed to perpetuate the process of idea creation. Consequently, intellectual capital has replaced physical capital to be the main source of competitive edge. Intellectual capital is mainly determined by the employees of the organization. Therefore, firms in the twenty-first century need to be attractive to employees so they can hire, develop, and retain them. The chapter recognizes the significance of talent management for the intellectual capital of an organization. It attempts to explain the mechanism of how talent management practices have been assisting intellectual capital development and organizational performance in the current turbulent business environment. It also draws cases from the corporate world to facilitate readers’ understanding. This chapter shows that the role of talent management is paramount to attract, develop, value, motivate, and retain human capital. The effective management of human capital improves organizational and relational capital. Subsequently, adding value and enhancing the performance of an organization.