Embedded Intellectual Capital Assets Of The Service Industry Management And Control System

With the coming of knowledge-based economy, intellectual capital becomes the source of growth in a company, the guarantee of a stable and developing business and the basis of accomplishing strategic objectives of the company. The management control from financial staff over intellectual capital is supposed to be an important part of financial management.This paper contains a practical research about Fenghua Group where the author used to work, in combination with some academic study and summary on intellectual capital and management control systems. Fenghua Group is a service sector enterprise that is engaged in logistics transportation, thus based on characteristics of the service industry, this paper redesigns the evaluation system, which is the most important part in an asset management control system, with factors about intellectual capital. Discarding financial indexes that are not suitable for service industry such as inventory turnover ratio and current ratio, the author introduces indexes used for market assets evaluation, including market share, new business growth index, customer residence rate, as well as indexes for the evaluation of human assets such as per capita profit growth rate, employee satisfaction index and training coverage. This enables a combination between the asset evaluation system and the real situation of a company, relates the outcome of asset evaluation to the manager's yearly salary, and as a result forms an integrated asset management control system guaranteed by asset management systems and salary systems.This paper's main conclusion is that the management control of intellectual capital can improve a company's core competence and an asset management control system which is embedded with intellectual capital factors is able to reflect a company's real situation more comprehensively and objectively and thus build a good foundation to achieve the company's strategic objectives. There are several creations in this paper:1.Established a convenient asset management control model embedded with intellectual capital that is applicable to service industry.2.Studied asset management control issues when embedded with intellectual capital in a financial perspective.3. Explored and established a new mode on modern enterprise financial management to make an organic integration of tangible assets and intellectual capital and provide a new way of collectivized financial management.