6.2 Structural capital

While we have not dealt with it in any great depth structural capital relates to the knowledge that exists in the organisations’ systems, processes and culture (Bowles, 1999:66). Bontis has been a very strong advocate for structural capital centring on the mechanisms and structures of the organisation that support the optimum deployment of knowledge resident in humans for the productive benefit of the organisation (Bontis, 1998:66; Bontis, 2002:631). This ties closely with Human Capital (HC) focussing on individual level knowledge (formed from position specific capabilities) and structural capital the means deployed by the organisation to harness HC (Winter, 1987; Bowman & Ambriosini, 2001; Bontis, 2002:632).

Table 4 Comparing structural capital with other pools of knowledge across different levels

	Individual knowledge for individual task performance	Group knowledge and adaptive improvement	Organisational knowledge for competitiveness and futures
Structural capital	Value placed on physical assets that deliver product and service: Machinery, technology & land the province of owners & management Offices designed to reflect job roles	Links made with processes and people delivering product and service providers: Standardised processes Tools & systems that removal variations Removal of non-conforming systems and practices Philosophy and approach Environmental responsibility discussed not fully accepted (eg, greenhouse emissions, Environmental Impact Studies etc);	Links made with product and service providers and structures that realise improved value for: Customer goodwill Intellectual property Processes Systems Philosophy Partnerships Physical capital Environmental ecology Workforce health
Human capital	Economic rational value of individual linked to work outcomes Training for tasks Training occurs off-the-job Hierarchical management structure Work practices more Taylorist, production line	Contribution of individual respected and acknowledged Training for jobs Training increasingly on-the-job Flatter management structure Team work Work practices move to more team-based	Reintegration of HRD, training, work and wellbeing to enhance: Competencies Experience Commitment Craftsmanship Service ethic
Social capital	Craft and skills are respected Innate value of a 'skilled' workers Task efficiency Crafts hold responsibility for training	Peer and mentor systems to exchange knowledge within the organisation Talk OK if about work Talk outside work frowned upon	Construction of partnerships and learning communities able to advance: Culture Networks Well-being Community support Political stability

(Bowles, 1997:141)

From the preceding table, it can be seen how the three basic approaches to learning and the organisations adopting these approaches differs from each other. Along the left hand axis is listed the three types of capital - infrastructural, human and social. Readers are reminded that these pools of capital form the basis on which strategic Learning draws to enhance agility and productivity. That is, the three forms of capital are inputs, and flexibility and productivity are outputs:

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2. Type and structure of knowledge

3. Knowledge and learning

4. A knowledge management cycle

5. Conduct a knowledge audit

6. Organisational Knowledge Capital

7. Valuing forms of knowledge

8. Information management systems

9. Information capture and intelligence gathering

10. IT and E-commerce

11. IT and supply chain management

6.2 Structural capital