Question

Critically discuss the role of emotional capital in shaping the human, social and intellectual capital

Answer 1

Human capital is basically the skill, knowledge and competencies possessed by an entity or the overall organization. Human capital forms the foundation on which the competitive advantage of the organization can be established. Social capital is the depth and extensiveness of network possessed by an entity or organization. Social capital facilitates in creating harmony in organization and overall society and facilitating the implementation of business smoothly. Human capital is actually a subset of Intellectual Capital. Intellectual Capital basically defines the data and informational resources available with the organization. The value creation of business is based on the combined intervention of human, social as well as intellectual capital. Emotional capital is the entity which binds these 3 capitals and facilitate the overall functionality of business. Emotional capital helps in maintaining a synergy and camaraderie in the resources, human asset as well as social network, thereby facilitating easy execution of business. Hence we can say that emotional capital acts as a binding agent for human, social as well as intellectual capital.