Discussion 4.2: Measuring Intangibles


How can organizations measure intangible variables in such a way as to provide construct validity? In metrics many factors can be measured directly. In the Fitz-Enz text, we have learned for instance, that accountancy has matured to a degree in which companies can measure financial performance well. However, measuring intangibles or measures which do not allow for direct observation are more difficult. This perhaps is the reason there are many ways to measure leadership or organizational culture. The key to measuring these variables is to look at the direct impacts of associated phenomena. For instance, provide several ways in which you would measure love between people. Key: It cannot be measured directly.

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