Explanation:

Intellectual capital $($IC$)$ refers to the intangible assets of an organization that contribute to its value creation and competitive advantage. These assets are not typically found on the balance sheet but are vital drivers of organizational success. Intellectual capital can be categorized into three main sub$-$categories: human capital, structural capital, and relational capital. Each of these sub$-$categories encompasses different types of intangible assets and contributes to the overall characteristics of IC$.$ In this discussion, we will critically examine each sub$-$category of intellectual capital and explore their respective characteristics.

Human Capital: Human capital refers to the knowledge, skills, competencies, and capabilities of individuals within an organization. It encompasses factors such as education, experience, expertise, creativity, and innovation. Human capital is characterized by the following key attributes:

Expertise and Knowledge: Human capital includes the specialized knowledge and expertise possessed by employees, which enable them to perform their roles effectively and contribute to organizational success. This expertise can range from technical skills to industry$-$specific knowledge. Creativity and Innovation: Human capital drives innovation and creativity within organizations by fostering an environment where employees are encouraged to think critically, solve problems, and generate new ideas. Innovative employees can develop new products, services, processes, or business models, giving the organization a competitive edge. Continuous Learning and Development: Human capital is dynamic and evolves over time through continuous learning and development. Organizations that invest in employee training, professional development programs, and knowledge$-$sharing initiatives enhance the capabilities of their workforce and adapt to changing market conditions. Employee Engagement and Motivation: Human capital thrives in environments where employees are engaged, motivated, and empowered to contribute their best efforts. Organizations that prioritize employee well$-$being, recognition, and career advancement opportunities foster a positive work culture that enhances productivity and performance. Retention and Talent Management: Effective management of human capital involves strategies to attract, retain, and develop top talent. Organizations that prioritize employee retention, talent acquisition, and succession planning build a sustainable talent pipeline to support future growth and innovation.

Structural Capital: Structural capital encompasses the systems, processes, procedures, technology, intellectual property, and organizational culture that support knowledge creation, dissemination, and utilization within an organization. It includes both explicit and implicit knowledge embedded in organizational routines, systems, and artifacts. The characteristics of structural capital include:

Organizational Systems and Processes: Structural capital consists of the formal and informal systems, processes, and procedures that facilitate knowledge sharing, collaboration, and decision$-$making within the organization. These systems may include information management systems, communication platforms, project management tools, and quality management processes. Intellectual Property and Innovation Assets: Structural capital includes the intellectual property assets of an organization, such as patents, trademarks, copyrights, and trade secrets$.$ These assets protect the organization's innovations, inventions, and proprietary technologies, providing a competitive advantage and revenue$-$generating opportunities. Organizational Culture and Values: Structural capital is influenced by the organizational culture, values, norms, and beliefs that shape how knowledge is valued, shared, and leveraged within the organization. A culture that promotes transparency, trust, diversity, and collaboration fosters effective knowledge management and innovation. Technological Infrastructure and Platforms: Structural capital encompasses the technological infrastructure, platforms, and tools that enable knowledge creation, storage, retrieval, and dissemination. This includes hardware, software, networks, databases, and digital platforms that support communication, collaboration, and information exchange. Best Practices and Lessons Learned: Structural capital includes organizational knowledge assets such as best practices, lessons learned, case studies, and historical data that inform decision$-$making, problem$-$solving, and performance improvement initiatives. By capturing and sharing organizational wisdom, structural capital helps avoid reinventing the wheel and accelerates learning and innovation.

Step $2$

Relational Capital: Relational capital refers to the relationships, networks, partnerships, and alliances that an organization builds with stakeholders, including customers, suppliers, partners, investors, and c