UNIT 19 LEARNING ORGANISATIONS

Objectives After going through this unit, you should be able to: understand the concept of learning organisation and its different dimensions; consider how principles of learning are to be incorporated in an organisation;

Learning Organisations

identify various factors that normally facilitate and hinder organizational learning.

Structure 19.1 19.2 19.3 19.4 19.5 19.6 19.7 19.8 19.9 19.10 19.11 Introduction Concept and Definition Learning Organisation - An Active Philosophy Characteristics of Learning Organisation Application of Learning in Organisations Learning Disabilities Developing the Learning Organisation Facilitating and Hindering Factors Summary Self-Assessment Questions Further Readings

19.1

INTRODUCTION

The importance of learning was first put forward by a Chinese philosopher, Confucius (551-479 BC) in these words: "Without learning, the wise become foolish; by learning, the foolish become wise". Learning refers to relatively permanent changes in behaviour occurring as a result of experience. The concept of learning organisation is not new; many authors have talked about it from others and their own past experiences. Probably Garratt was the first to publish a book on the subject in 1987. But the concept was popularised by Senge when his famous book "The Fifth Discipline" was released in 1990. Senge's book triggered a great deal of interest in the subject of learning organisations. A large number of publications appeared on the subject during the current decade.

19.2

CONCEPT AND DEFINITION

In 1970s Argyris proposed the concept of a different qualitative learning. Contrasted with traditional learning, or the `single-loop' learrning (involving incremental change within an existing framework), `double-loop' learning emphasised testing of the underlying assumptions and achieving transformational change. Senge contrasted adaptive learning with generative learning. David Garwin defines a learning organisation as "an organisation skilled at creating, acquiring, and transferring knowledge, and at modifying its behaviour to reflect new knowledge and insights." Peter M. Senge in his book, "The Fifth Discipline: The Art and Practice of the Learning Organization", described a learning organization as "a place where people

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Organisational Processes

continually expand their capacity to create results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free and where people are continually learning how to learn". Ross, Smith, Roberts and Kleiner advocate this definition: "Learning in an organization means the continuous testing of experience, and the transformation of that experience into knowledge - accessible to the whole organization, and relevant to its core purpose". Organisational learning means the process of improving actions through better knowledge acquisition, clearer understanding, and improved performance. It is a method of detecting and correcting errors. The main issues in organisational learning are (three Ms): Meaning: Well-grounded definition of learning organisations; it must be actionable and easy to apply. Management: Clearer guidelines for practice, filled with operational advice rather than high aspirations. Measurement: Better tools for assessing an organisation's rate and level of learning to ensure that gains in fact have been made.

19.3

LEARNING ORGANISATION- AN ACTIVE PHILOSOPHY

A learning organisation Is an active philosophy; not merely an organisational system. Believes that its only competitive advantage is learning. Encourages people to learn to produce the results they desire. Nurtures creative and innovative patterns of collective learning. Develops fresh organisational capabilities all the time.

New ideas are essential if learning is to take place. Whatever their source, these ideas trigger organisational improvement. However, creating or acquiring new knowledge is not enough; what is more important is the successful application of knowledge in one's own activities. Learning organisations are skilled at five main activities: 1. Systematic Problem-solving: - Relying on the scientific method rather than guesswork for diagnosing problems, - Insisting on data rather than assumptions, as background for decision-making. - Depending on simple statistical tools-to organise data and draw inferences. 2. Experimentation: - Systematic searching for and testing of new knowledge. - Continuous improvement in new methods and technologies. - Successful ongoing programmes to ensure a steady flow of new ideas, even if imported from outside the organization.

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- Demonstration of organisational capabilities by introducing self-managing t teams and high level of worker autonomy.

3.

Lerning from PastExpeience: - Companies must review their success and failures assess them systematically; and record lessons in a form that employees find open and accessible.

Learning Organisations

4.

Learning from Others: - Sometimes, the most powerful insights come from one's immediate outside environment. - Even companies in completely different businesses can be fertile sources of ideas and catalysts for creative thinking. - Best industry practices are to be uncovered, analysed, adopted, and implemented. - The greatest benefits come from studying practices; the way work gets done rather than results.

5.

Transferring Knowledge: - Knowledge must spread quickly and efficiently throuhgout the organisation. - Make use of mechanisms such as written and oral communications, site visits and tours, personnel rotation programmes, education and training programmes for transferring knowledge. - Transfer may be from .division to division, department to department, or facility to. facility; they may involve senior, middle, or first level managers.

19.4

CHARACTERISTICS OF LEARNING ORGANISATION

Some of the common operational practices of learning organisations dealing with people are openness, systematic thinking, creativity, awareness of personal and organisational values, empathy, aid sensitivity. Senge who popularised the term learning organisation states that such organisations have the following five common characteristics: 1. 2. Personal Mastery: Creating an organisational environment, which encourages all its members to develop themselves toward goals and purposes, they choose. Mental Models: Reflecting upon, continually clarifying, and improving internal pictures of the world,:. and seeing how they shape our actions and decisions. Shared Vision: Building a sense of commitment in a group, by developing shared images of the future and guiding principles and practices. Team Learning: Transforming conversational and collective thinking skills,so that groups of people can reliably develop intelligence and ability greater than the sum of individual members' talents. Systems Thinking: Thinking about; and a language for describing and understanding forces and interrelationships that shapes the behaviour of systems.

2. 4.

5.

A learning organisation is characterised by: Openness: The learning organisation has to be open to enquiry and tolerant of criticism and debate. Innovation: The learning organisation has an organic structure and culture which permits it to evolve rapidly. It liar a deep skill base and capacity to deal internally with complexity and uncertainty. Strategic Orientation: The learning organisation cares both for its customer and its

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Organisational Processes

Traditional Versus Learning Organisation

Source: Luthans, F., Organisational Behviour (seventh ed.), p. 45.

19.5 APPLICATION OF LEARNING IN ORGANISATIONS

Three systematic approaches to incorporating learning in organisations involve training, organisational behaviour management, and discipline. Training: Training is the process through which people systematically acquire and improve the skills and knowledge needed to better job performance. Many executive training programmes systematically attempt to develop the skills of their top managers. This is accomplished either by bringing in outside experts to train personnel in-house, or by sending them to specialised programmes conducted by onside agencies. The principles that help in the effectiveness of training are: 1. 2. 3. 4. Participation: People not only learn more quickly, but also retain the skills longer when they have actively participated in the learning process. Repetition: The benefits of repetition for learning new skills or performing a task need not be emphasised. Transfer of training: What is learned during training sessions must be applied on the job. Feedback: It is extremely difficult for learning to occur in the absence of feedback-that is, knowledge of the results of one's actions. Feedback provides information about the effectiveness of one's training.

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Organisational Behaviour Management: It implies systematic application of positive reinforcement principles in organisational settings for the purpose of raising the incidence of desirable organisational behaviours. To be effective in using organisational behaviour management programmes, managers should:

1. 2. 3. 4. 5. 6.

Pinpoint the desired behaviour. Determine exactly how will people perform the behaviour they wish to change. Determine exactly what performance goal is being sought. Decide exactly how the desired behaviour will be rewarded. Facilitate learning by rewarding behaviours that come closer to the criterion. Revaluate the programme periodically.

Learning Organisations

Discipline: Just as organisations systematically use rewards to encourage desirable behaviour, they also use punishment to discourage undesirable behaviour. There are innumerable problems in an organisation such as absenteeism, late coming, theft, alcoholism, substance abuse, which cost companies vast sums of money. The companies manage such situations by timely administration of punishment. Activity 1 Does the company you work for act like a learning organisation? Explain your rationale.

19.6

LEARNING DISABILITIES

Senge in his book has identified a number of learning disabilities. Some of them are listed below: (a) (b) The myth of teamwork (i.e., most teams operate below the level of lowest IQ in the group), The delusion of learning from experience (i.e., attempting to understand the future by relying on the past, which means we solve the same problem over and over again, hence we make the problem worse). To offset the learning disabilities, he has enunciated laws of the Fifth Discipline: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Today's problems come from yesterday's solutions. The harder you push, the harder the system pushes back. Behaviour grows better before it gets worse. The cure can be worse than the disease. The easy way out usually leads back in. Faster is slower. Cause and effect are not clearly related in form and space. Small changes can, produce big results but the areas of highest learnings are often the least obvious. You can have your cake and eat it too, but not alone. Dividing the elephant in half does riot produce two small elephants. There is no blame.

(c)

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Organisational Processes

19.7

DEVELOPING THE LEARNING ORGANISATION

There are three primary tasks toward developing the learning organisation. 1. 2. 3. First, leaders and managers must create opportunities for learning. Second, they must foster desirable norms and behaviours. Third, they must personally lead the process of discussion, raise questions, listen attentively, and provide feedback.

Organisations learn only through individuals who learn. Individual learning does guarantee organisational learning, but without it no organisation learning occurs approach that needs to be taken is that learning must be continuous and integrate that employees understand and accept the need for change which finally results ii improved work culture. Learning organisations are not built overnight. It is a slow and steady process of cultivated attitudes, commitments, and management processes. Any company that wishes to become a learning organisation can begin by taking a few simple steps first step is to foster an environment that is conducive to learning. The second step is to open up boundaries and stimulate the exchange of ideas. The third step is to eliminate barriers that impede learning and assign learning a higher position in the organisational agenda.

19.8

FACILITATING AND HINDERING FACTORS

Based on a large number of case studies, Ramanarayan and Bhatnagar (1993) la the following factors that facilitate organisational learning: 1. 2. 3. 4. 5. Commitment to well-defined organisational priorities. Effective HRD systems. Mechanisms of collective thinking. Flexible and participative leadership styles. Collaboration and teamwork.

They also found the following factors that hinder organisational learning: 1. 2 3. 4. Culture of complacency arising from past successes. Excessive bureaucratic and centralised methods of working leading to delay Narrow definition of roles of organisational members in hierarchical organi leading to loss of creativity among employees. Due to preoccupation with day-to-day firefighting functions, less attention usually given to important issues of change and innovation.

THE TIMES OF INDIA GROUP - A LEARNING ORGANISATION The Times of India Group has business in publishing, internet, banking, music, television, multi-media, retailing, radio, and charitable trusts to serve the social and literary causes.

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It is a diversified fast growing consumer services company of about Rs. 1,000 crores gross profit of about Rs. 130 crores.

Efforts made by it to become a learning organisation are:. Revisioning the organisation by shifting from a publishing company to a fast moving distributed consumer product company and a complete infotainment company with information and entertainment as the basic constituent. Restructuring the organisation from a monolithic bureaucratic organisation to a concentric matrix based organisation with customer in the centre. Closing down all loss making products and keeping only the profitable ones. Challenging every existing paradigm to create few innovative products and services with large brand identities. Mission statement for each publication and function through a participatory process. Communicating and clarifying the vision, creating shared value and cultural shift in the mind-set of people, and willingness to change and accept change. Redeploying the people so that the right person is put on the right job. Bringing in systems thinking by creating boundaryless innovative organisation and by instituting very strong performance appraisal system through a participatory process. Developing a consensus building style of management, with emphasis on creativity. Developing knowledge and competencies of the employees by conducting relevant in-house and external training programmes.

Learning Organisations

Source: Company literature.

19.9

SUMMARY

A learning organisation is one that is successful at acquiring, cultivating, and applying knowledge that can be used to help it adapt to change. Learning organisations are skilled at experimenting with new approaches, learning from the experiences, and best practices of others. A learning organisation specifically tries to develop new skills; new knowledge, new cultural norms, and new insights. Moreover, one of its key characteristics is how an organisation can unlearn previous behaviours and develop new cognitive frameworks. Training, organisational behaviour management, and discipline are the three systematic approaches of learning organisation. It has Culture based on the notion that learning is central to success and effectiveness.

19.10 SELF-ASSESSMENT. QUESTIONS

1. 2. Learning organisation can be promoted by a transformational leadership, and empowerment. Discuss conducive climate,

How does a learning organisation differ from a traditional organisations? What is the impact of these differences in managing people in an organisation?

19.11 FURTHER READINGS

Greenberg, J., Baron, A.R., Behaviour in Organizations, Prentice Hall International Ltd., New Jersey, 1997. Luthans, F., Organizational Behaviour, McGraw-Hill Inc., 1995.

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