KNOWLEDGE MANAGEMENT SYSTEMS
3.4 THE CONCEPT OF ORGANISATIONAL LEARNING
The term organizational learning refers to continuous improvement of existing approaches and processes and adaptation to change, leading to new goals and/or approaches. Learning needs have to be embedded in the way the organization works. The term embedded means that learning:
• Is a regular part of the daily work?
• Is practiced at personal, work unit, and organizational levels
• Results in solving problems at source
• Is focused on sharing knowledge throughout the organization
• Is driven by opportunities to affect significant c change and do better
Organizational learning is the capacity or processes within an organization to maintain or improve performance based on experience. Learning is a systems-level phenomenon, because it stays within the organization even if individuals change. Learning is as much a task as the production and delivery of goods and services. While companies do not usually regard learning as function of production, research on successful firms indicates that three learning-related factors are important for their success:
(a) Well-developed core competencies that serve as launch point for new products and services,
(b) An attitude that supports continuous improvement in the business’s value-added chain,
(c) The ability to fundamentally renew or revitalize business function based on need.
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(d) These factors identify some of the qualities of an effective learning organization that diligently pursues a constantly enhances knowledge base. This knowledge allows for the development of competencies and lead to incremental or transformational change. In these instances, there is assimilation and utilization of knowledge and some kind of integrated learning system to support such “actionable learning”. Indeed, an organization’s ability to survive and grow is based on advantages that stem from core competencies that represent collective learning.
These can be generalized as follows:
Knowledge acquisition. This stage deals with the development or creation of skills, insights and relationships.
Knowledge sharing. This stage involves the dissemination of the learning throughout the organization.
Knowledge utilization. This stage provides the integration of learning so that it is broadly available and can be generalized to new situations.
Sources for learning include learning at the individual level of an employee, employee ideas, research and development (R&D), customer input, best practice sharing and benchmarking.
Learning at individual level
Learning at the individual level can be conceptualized as the process of obtaining and retaining skills and information with relevant aptitude that leads to changes and improvements in action and decision making. The process of organizational learning is, however, less well understood than individual learning. All learning can be characterised as occurring at the individual level. The focus of an organization should be on improving the learning, skills and hence competitive advantage of individuals. However, to ensure their effectiveness, individuals have to be able to fully integrate with and be able to maximise the benefits of learning at the organizational level. In this way, the effective organization ensures that an individual’s actions and learning are both supported by, and providing support to, the organization as a whole. Acting together, the individuals that make up the organization are able to learn, work and compete better than they could on their own.
Skill sets needed by individuals for organizational learning 1. Ability to understand the culture of the organization 2. Ability to let go of old myths
3. Ability to notice new patterns- language as an indicator
• Multitasking
• Miniaturization
• Short-term memory overload
• Low level depression and increasingly angry culture
• Changes of speed
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4. Ability to develop a clear perspective/ open perspective• Ability to relax
• Sense of humor - ability to laugh
• Knowing your hishhtory
• Insulate hot buttons and fears
• Ability to scan for information
• Pretend you are an anthropologist and examine what leaders reward, evaluate, and control; what they are paying attention to; and what are they measuring 5. Ability to generate energy with coaching and building self-esteem; ability to bring
energy into a room.
6. Ability to learn forever
7. Ability to own your own career
8. Ability to create “safe” environment for others
9. Ability to see what’s coming and what’s leaving so you can make choices faster;
faster response time
3.4.1 Definitions for organizational learning
(a) “Organizational Learning occurs when the mental models, schemes or cognitive maps that guide behaviour are modified through recognition of a change in information concerning an organization’s environment”.
(b) “Organizational Learning occurs through shared insights, knowledge and mental models”.
(c) “Organizational learning occurring when individuals, acting from their own images and maps, detect a mismatch of outcomes to expectation which confirms or disconfirms organization theory-in-use”
(d) “The transformation process that translates individual learning into organizational domain is termed organizational learning”.
It is a process by which individuals share their insights, knowledge and ideas to develop a common understanding. Through this process of learning, organizations enrich their knowledge base, which helps them in knowledge generation and in the long run to face external challenges. An innovative or a product organization would strive to be a learning organization ‘skilled at creating, acquiring and transferring knowledge and modifying its behaviour to reflect new knowledge and insights’.
Organizational learning is the development of new knowledge and insights that have the potential to influence behavior. Organizational learning occurs when members of an organization share associations, cognitive systems, and memories. Learning by organizations relies on the people and groups to serve as agents for the transfer of knowledge. Over time, what is learned is built into the structure, culture, and memory of the organization.
Lessons (i.e., knowledge) remain within the organization even though individuals may change.
The phrases organizational learning and learning organizations are used interchangeably.
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3.4.2 Benefits of organizational learning Organizational learning can result in:
1. Enhancing value to customers through new and improved products and services;
2. Developing new business opportunities;
3. Reducing errors, defects, waste, and related costs;
4. Improving responsiveness and cycle time performance;
5. Increasing productivity and effectiveness in the use of all resources throughout the Organization; and
6. Enhancing the organization’s performance in fulfilling its public responsibilities and service as a good citizen
3.4.3 What is a ‘learning organization’?
A learning organization is an organization which has in place systems, mechanisms and processes that are used to continually enhance its capabilities and those who work with it or for it, to achieve sustainable objectives - for them and the communities in which they participate. Learning – both individual and organizational – is the process by which knowledge assets are increased over time. Every organization learns. But, to be successful, managers must seek to align both individual and collective learning with the strategic intent of the firm. This means that as executive design their business strategies, they need to determine what, specifically – and when – their firms need to learn, and create mechanism to do so.
For example, if an insurance firm is trying to make inroads into the investment management business, its executives will have to make sure that their firm learns the new business while continuing to advance its knowledge of the insurance business. A knowledge management strategy, therefore, may include hiring new talent, designing new projects, implementing job rotations, and altering organizational structures to facilitate the flow of the new knowledge between existing and new business.
Key characteristics of learning organization 1. Team work and team learning.
2. Systemic thinking and mental models.
3. Free vertical and horizontal flow of information.
4. Education and training of the whole workforce.
5. Learning reward system for employees.
6. Continuous improvement of work.
7. Flexibility of employees and company strategies.
8. Decentralized hierarchies and participative management.
9. Constant experimentation.
10. Supportive corporate cultures.