Final answer:
Organizations retain intellectual capital by transforming human capital into structural capital, not by encouraging early retirement or hindering communication among employees. Thoughtful investment in workforce development and retraining policies are essential.
Step-by-step explanation:
Organizations can retain intellectual capital by transferring human capital into structural capital. This entails codifying knowledge and information held by employees into company resources such as databases, policies, and procedures, ensuring that the intellectual capital remains within the company even if employees leave. Strategies like encouraging employees to take early retirement or discouraging communication among employees do not support the retention of intellectual capital and can actually result in its loss.
Bureaucracies must make thoughtful investments in human capital, continue to train and develop the workforce, and facilitate the flow of information about jobs. Policy interventions that retrain workers whose skills are no longer in demand can help them reenter the labor force and secure employment. These efforts collectively support the accumulation and retention of intellectual capital within an organization.