The contribution of intellectual capital management to minimize the hidden costs in public administration

Abstract

This research demonstrates how proper management of intellectual capital can improve the management of hidden costs in public entities, providing the concept of intellectual capital and hidden costs and exploiting the existing intellectual capital measurement models, especially the Queiroz model (2003) which proposes the analysis of five variables for the public sector (human capital, internal organization, external relations, quality and transparency). This research presents a case study at the Fluminense Federal University - Niterói (Brazil) with the application of a questionnaire based on the Queiroz model, in order to highlight the contribution that the management of intellectual capital can provide as an auxiliary tool in the detection, prevention and administration of the hidden costs. The results allow the identification of existing dysfunctions, from poor management of intellectual capital, which contribute to the construction and perpetuation of a negative culture for existence of inefficient procedures and lack of regulation and control. Replication of this study in other institutions will check on the management of intellectual capital and what points need to be taken care to control existing dysfunctions and thus minimize, or even not generate hidden costs.