Abstract:

It is widely believed that in modern organizations, people are a strategic resource. To describe the products of human minds, the term intellectual capital is also used. These are the intangible resources of a company, such as knowledge, experience and technology, customer relationships, know how and other skills, which affect the value and quality of the company and provide opportunities for competitive advantage. Intellectual capital has a significant impact on a company's value and ability to succeed in the market [Pobrotyn 2012, p. 121].

For the most part, when analyzing the scientific literature on organization development, many researchers focus exclusively on enterprises, i.e., for-profit organizations, which are the ones that need to operate efficiently in order to gain a competitive advantage. However, it should be noted that, as in enterprises, intellectual capital is very important for the development of non-profit organizations. Such organizations that should operate effectively and efficiently are also local government units (LGUs). This article analyzes in the area of human capital the creation of appropriate conditions for the development of employees of such units.