IMPORTANCE OF HR AS AN INTANGIBLE ASSET IN ORGANIZATIONS: DEVELOPMENT OF THE CONCEPT(1)

A recent study has concluded that Human resource is an intangible asset and it can now be measured in value terms. A study by NASSCOM suggests that Indian IT industry needs 2.3 million software engineers, but is falling short by 23 per cent for want of talented human resources.

Touching upon such interesting details, S. Gopalakrishnan, CEO and Managing Director of Infosys Technologies, said that the intangible assets of a company enhance its market value.

Delivering the keynote address at the HR Conclave conducted by the AP chapter of the Confederation of Indian Industry (CII) there, Mr. Gopalakrishnan said that the intangible assets could be classified into four major categories – human resources, intellectual property assets internal and external assets.

In the new economy, human capital was the foundation of value creation and 85 per cent of a corporation’s value was based on intangible assets.

Mr. Gopalakrishnan said that his company used Lev & Schwartz to compute the value of human resources and it was found that the total value for fiscal 2008 was Rs. 98,821 crore and the value of human resources per employee was estimated at Rs. 1.08 crore against Rs. 80 lakh the previous year.

He also stressed the importance of reducing the hierarchy in a company for better team work. Infosys was adding 30,000 employees across the world every year after screening a million people. He underscored the need for developing a talent pipeline by imparting training to associates by every company.

CII’s southern region chairman B.V.R. Mohan Reddy said that the HR wings of corporates should work in sync with business development and address cross-border cultures owing to growing global trade.

G. Prasada Rao ,Sr. vice-president (HR) of Reliance Industries Ltd G. Prasada Rao also spoke and others also spoke.