Final answer:
Intellectual capital refers to the combined expertise and determination of an organization's employees, correctly defined as competency times commitment. The correct option is A.
Step-by-step explanation:
Intellectual capital is an intangible asset or value of an organization. It's not the physical money, equipment, or buildings that a company owns, but rather the collective knowledge, competence, skills, and innovative potential of its employees. In the context of this question, the correct definition of intellectual capital is a) Competency × Commitment.
Human capital, a closely related concept, encompasses the skills, knowledge, and health that workers possess, enabling them to be productive and generate economic value. For example, investments in education enhance an individual's human capital, increasing their productivity and earnings potential, as they apply their advanced skills to their work. In this regard, intellectual capital goes a step further by combining these individual competencies with a commitment to apply this expertise effectively within an organization. Such dedicated application of human capital results in innovations and greater capacity for organizational growth and success. It's a key ingredient in the recipe for robust economic growth alongside physical capital and technology.
The idea that intellectual capital is comprised of competency and commitment resonates with the shared experiences of workers, educators, and innovators who understand that knowledge alone isn't enough. It must be paired with a determined effort to apply that knowledge effectively. Intellectual capital is thus a reflection of both what employees know and how determined they are to utilize that knowledge towards the organization's goals.