Organizational Learning

1. Concept2. Types3. Levels

By Gheethu Maria Joy

MBA(FT)SMS CUSAT

Organizational Learning“Process through which managers seek to improve organization members desire and ability to understand and manage organization and its environment so that take decisions that continuously raise organizational effectiveness”

Vital process --- Rapid Pace of change affecting every organizationLearn New adaptive BehaviorsUnlearn Inefficient and outdated

Organizational Learning Process

LEARNING

REFLECT CONCEIVE

ACT

What Organizational Learning Includes?

1. R&D activities.

2. Formal & informal education of employees.3. Involves the means that org. uses to disseminate information throughout its ranks

4. The way that this information is processed & stored.

What It Should Result?

1. Technological innovation.2. Efficiency improvement.3. Increase reliability & corp. adaptability.

=> Higher level of competitiveness.=> Required element for long-term success.

Low Level Of OL

1. Stagnant organization that cannot adjust to environment changes or competitive challenges.

2. Limits the firm ability to reduce costs.

3. Limits the firm ability to change markets or product lines.

Organizational Learning

Two noteworthy contributors to the field of Organizational learning

Chris Argrys Donald Schon

Organizational LearningAccording to Argrys and Schon organizational learning is (1976):

“A product of organizational inquiry”

(i.e. Whenever expected outcome differs from actual outcome, an individual /group will engage in inquiry to understand and if necessary , solve this inconsistency)

In the process the individual will interact with other members of the organization and learning will take place.

Learning is therefore, a direct product of this interaction

Organizational LearningArgrys and Schon emphasize that interaction often goes well beyond defined organizational rules and procedures.

Their approach to organizational learning theory is based on the understanding of two (often conflicting) modes of operation:

1. Espoused theory2. Theory-in-use

Espoused theory Refers to the formalized part of the organization

Every firm will tend to have various instructions regarding the way employees should conduct themselves in order to carry out their jobs

These instructions are often specific and narrow in focus, confining the individual to a set path.

Example :"if the computer does not work, try rebooting it and then contact

the IT department."

Theory-in-use Actual way things are done

Individuals will rarely follow espoused theory and will rely on interaction and brainstorming to solve a problem.

Theory in use refers to the loose, flowing, and social way that employees solve problems and learn.

Example: The way someone actually solves a problem with their computer by

troubleshooting solutions, researching on forums, asking co-workers for opinions, etc.

Organizational LearningBrown and Duguid , (1991) "The Bridge Between Working And Innovating”

Dogsdon , 1993“It involves the ways firms build, supplement and organize knowledge and routines around their activities and within their culture and adapt develop organizational efficiency by improving the use of the broad skills of their workforce”

Organizational Learning

Levitt and March (1996)

Their view presents the organization as :1.routine-based,2.history dependent, and 3.target oriented.

Types of Learning

Argrys and Schon identify three levels of learning which may be present in the organization: 1. Single loop learning2. Double loop learning3. Deuterolearning

James March proposed 2 principal types of organizational learning strategies :4. Exploration5. Exploitation

Types of LearningBy Argrys and Schon

Single Loop Learning Consists of one feedback loop Look for solutions within organization’s policies, plans, values,

and rules Strategy is modified in response to an unexpected result Error-and-correction process Promotes adaptive learning

ExampleWhen sales are down, marketing managers inquire into the cause, and tweak the strategy to try to bring sales back on track.

Double Loop Learning Learning that results in a change in theory-in-use. The values, strategies, and assumptions that govern action are changed

to create a more efficient environment. Closes gap between desired and actual states of affairs by questioning Modifies organization’s policies, plans, values, and rules to guide action Promotes generative learning

ExampleManagers might rethink the entire marketing or sales process so that there will be no (or fewer) such fluctuations in the future.

Single Loop Learning & Double Loop Learning

Governin

g variables

Action strategy Consequences

Single Loop Learning

Observe, Reflect , Decide And Do

Double Loop LearningReconsider, Reconnect, Reframe and Reflect

Deuterolearning This occurs when organizations learn HOW to CARRY OUT Single-loop

learning and Double-loop Learning.

Being aware of ignorace motivates learning.

Identification of LEARNING STYLES and FACILITATING FACTORS required to promote learning.

This is composed of structural and behavioral components which determine how learning takes place.

Essentially deuterolearning is therefore "Learning How To Learn."

Types of LearningBy James March

ExplorationOrganizational members searching for and experimenting with new kinds/forms of organizational activities & procedures to increase effectiveness

Involve new ways to manage environment (such as experimenting the use of strategic alliances and n/w organizations)

-- or--Inverting new kinds of organizational structure for managing organizational resources

(such as :product team structuresCross- functional teams)

ExploitationOrganizational members learning ways to refine and improve existing organizational activities & procedures to increase effectiveness

May involve implementation of TQM (Total Quality Management) program.(to promote continuous improvement of existing operating procedures/ developing improved set of rules to perform specific kinds of functional activities more effectively)

Exploration & Exploitation

Exploration is therefore a more radical learning strategy than exploitation

“Both must be used to increase organizational effectiveness”

All this can be closely linked to Senge's concept of the :

Learning Organization

Learning Organization

“An organization that purposefully designs and constructs its structure , culture and strategy so as to enhance and maximize the potential for organizational learning to take place”

Learning OrganizationHow do managers create a learning organization ? (one that is capable of allowing its members to appreciate and respond quickly to changes taking place around it)

Increase ability of the employees at every level in the organization.

Question & analyze the way organization currently performs its activities

--- to experiment New ways to change them to increase effectiveness

Learning Organization

Very significant movement in organization development was popularized by Peter Senge in his landmark book

"The Fifth Discipline: The Art and Practice of Learning Organization”.

Components of Learning Organizations

Systems Thinkin

g

Personal Mastery

Mental Models

Shared Vision

Team Learnin

g

Systems Thinking

Systems thinking states that all the characteristics must be apparent at once in an organization for it to be a learning organization.

If some of these characteristics are missing then the organization will fall short of its goal

Personal Mastery

The commitment by an individual to the process of learning

There is a competitive advantage for an organization whose workforce can learn more quickly than the workforce of other organizations

Mental Models

The assumptions held by individuals and organization

To become a learning organization, these models must be challenged

Shared Vision

Development of a shared vision is important in motivating the staff to learn, as it creates a common identity that provides focus and energy for learning

Team Learning

Accumulation of individual learning constitutes team learning.

Staff grow more quickly and the problem solving capacity of the organization is improved through better access to knowledge and expertise

Levels Of Organizational Learning

Inter organizational

Organizational

Group

Individual

IndividualManagers need to do all they can to facilitate the learning of:1. New skills2. Norms3. Rules4. Values

Þ Individuals can increase their own personal abilitiesÞ help to build organizations Core competences

Personal Mastery (empower all employees and allow them to experiment and create what they want)Mental models (used to challenge them to find new/better ways of performing a task)

Group Learning by promoting the use of various kinds of groups (Self – Managed / Cross-Functional teams)

Þ Employees can share/pool their skills and abilities to solve problems

Setting a synergy to develop

Team learning (even more important than individual learning because most important decisions are made in subunits such as groups, functions and divisions)

Organization Managers create learning through the way they create its structure and culture.

Organizations structure – used to facilitate communication/cooperation b/w functions and divisions.

Mechanistic Structure (facilitate exploitative learning)Organic structures (facilitate explorative learning)Þ Organization must strike balance b/w a mechanistic and organic structure to take

advantage of both types of learning

Building Shared vision (creating an ongoing MENTAL MODEL that all organizational members can use to frame problems/opportunities and binds them to an organization)

Organization In a study of 207 companies , John kottler and James Heskett distinguished b/w Adaptive cultures (cultures that value innovation and encourage and reward experimentation and risk taking by middle and lower –level managers)AndInert cultures (Cultures that are cautious and conservative and do not encourage risk taking by middle and lower level managers)In terms of their ability to facilitate organizational learning

Organizational learning is higher in organizations with adaptive culture => Organizations with adaptive culture are more likely to survive in a changing environment and have higher performance than organizations with inert cultures

InterorganizationalOrganizations with organic, adaptive cultures are more likely to recognize, manage and take advantage of new linkages than mechanistic, inert culture organizations

Interorganizational learning is important because organizations can improve their effectiveness by imitating each others distinctive competences.

Nature of interorganizational learning is likely to be effected by the kind of learning going on at the organization and group levels

Systems Thinking (Managers must recognize the effects of one level of learning on the others)

Thank you