UNIVERSITY OF WARWICK

Organizational Learning
ES438 Quality Systems
Word Count: 2,999 1/12/2012

Contents
Introduction to Organizational Learning................................................................................................. 2 Theory behind Organisational Learning.................................................................................................. 4 How to generate a practical Advantage from Organizational Learning ................................................. 6 Correct Implementation of an Organizational Learning Structure ......................................................... 8 Building Block #1: A supportive learning environment ...................................................................... 9 Building Block #2: concrete learning processes and practices ........................................................... 9 Building Block #3: Leadership that reinforces learning .................................................................... 10 How Organizational Learning Impacts the EFQM Model...................................................................... 11

Introduction to Organizational Learning

Organizations are increasingly more disordered, unsettled and most importantly are becoming more unpredictable, these uncertainties can have a detrimental effect on quality within an organization. It is this tendency to unpredictability that is also declaring a demand within organizations to continuously stride for increased flexibility, adaptability and understanding1. As a direct result of these pressures organizations have reacted in a variety of ways; Investment in communications technologies has done much to improve organizational systems and bring knowledge closer to the individuals that need it. A drastic increase in human capital has shown to have positive effect of the combined knowledge throughout organizations and has also expanded the potential for future learning. Furthermore organizations have also redesigned internal structuring too allow rapid decision making by bringing the decision makers closer to the problem, this method has also been beneficial with increasing flexibility within an organization2 3. On further investigation of these key areas of activity, a key fundamental that is apparent in all, is the need for learning and having the ability to adapt to the ever changing environment throughout multiple levels of an organization. It has already been defined that learning can act as a key contributor enabling adaptation (Smith, Ford & Kozlowski, 1997). This same principle has been applied to organizational learning 4 and specifically developing the ability to adapt to change in their environments.

The Evolution of Organizational Environments

Shirley Terreberry Administrative Science Quarterly , Vol. 12, No. 4 (Mar., 1968), pp. 590-613 Published by: Johnson Graduate School of Management, Cornell University Article Stable URL: http://www.jstor.org/stable/2391535
2

Managing Knowledge in Organizations: An Integrative Framework and Review of Emerging Themes

Linda Argote Management Science , Vol. 49, No. 4 (April., 2003) Published by: INFORMS Institute for Operations Research and the Management Sciences (INFORMS), Stable URL: http://dl.acm.org/citation.cfm?id=970431
3

Human Capital: What it is and why people invest it

Thomas O. Davenport Jossey-Bass, 5 March 1999

4

A Behavioural Theory Of The Firm

R. Cyert, J. March 1963

Organizational Learning started out as a method of assessing organizational behaviour from a science eye but over the last decade has evolved into a multidisciplinary and diverse area of research. Organizational learning, defined as a concept in the 60s, has been widely theorized and has been applied to different levels of an organization throughout literature usually without specification to the particular level it is addressing. It can be viewed from a variety of different approaches; as a formal system that captures and assembles knowledge (the definition of what knowledge means can vary from organization to organization eg. Knowledge management 5 or information systems that bridge the business field with the well-defined computer science field). But also as an informal method of data procurement, such examples are; company mentoring systems, internal communities within an organization. The results of this broadness is an unclear and complex concept yet one that great appeal both academically from a research point of view and practically from a business implementation aspect.

The state of the Notion: Knowledge Management in Practice

R Ruggles Volume: 40, Issue: 3, (1998): Butterworth-Heinemann, Pages: 80-89 Stable URL: http://www.mendeley.com/research/the-state-of-the-notion-knowledge-management-in-practice/

Theory behind Organisational Learning

To further define what organizational learning is one must first understand what learning itself is defined by the English dictionary as The acquisition of knowledge or skills through experience, practice, or study, or by being taught. Using this definition it can be easy to question the organizational learning title, and consider learning as a process specific to the individual, or to state more clearly learning refers to the means by which an individual interprets and remembers. Traditionally, the study of cognitive processes, cognitive development, and the cultivation of educationally desirable skills and competencies has treated everything cognitive as being possessed and residing in the heads of individuals; social, cultural, and technological factors have been relegated to the role of backdrops or external sources of stimulation 6 Taking this approach it is difficult to see how learning can be of any benefit to organizations. However when we come to examine human behaviour in its everyday context and more strategically from an organizational point of view and we address real-life problem solving situations we observe a rather different set of cognitive procedures. People appear to think in conjunction or partnership with others and with the help of culturally provided tools and implements. Cognitions, it would seem, are not content-free tools that are brought to bear on this or that problem; rather, they emerge in a situation tackled by teams of people and tools available to them... What characterizes such daily events of thinking is that the social and artifactual surrounds, alleged to be outside the individuals heads, not only are sources of stimulation and guidance but are actually vehicles of thought. Moreover, the arrangements, functions, and structures of these surrounds change in the process to become genuine parts of the learning that results from the cognitive partnership with them. In other words, it is not just the person-solo who learns, but the person-plus, the whole system of interrelated factors. 7 Solomon was not the first to recognize the significance of the environment on learning but his work offers more relevance than others such as John Dewey or George Mead.

Distributed Cognitions

Gavriel Solomon (1993): xii New York: Cambridge University Press.

Distributed Cognitions

Gavriel Solomon (1993): xiii New York: Cambridge University Press.

In an organizational context adapting this theory proves to be fairly trivial. The model proposed by Argyris and Schon expresses that individuals within an organization construct his or her own representation of the theory-in-use of the whole. This personal representation is always incomplete and so individuals are continuously working to expand their own view of the picture. Hence, our inquiry into organizational learning must concern itself not with static entities called organizations, but with an active process of organizing which is, at root, a cognitive enterprise. Individual members are continually engaged in attempting to know the organization, and to know themselves in the context of the organization. At the same time, their continuing efforts to know and to test their knowledge represent the object of their inquiry. [Members] require external references. There must be public representations of organizational theory-in-use to which individuals can refer. This is the function of organizational maps. These are the shared descriptions of the organization which individuals jointly construct and use to guide their own inquiry. Organizational theory-in-use, continually constructed through individual inquiry, is encoded in private images and in public maps. These are the media of organizational learning. 8

Although there is little support to warrant an accepted template of a Learning Organization Garvins (1993) statement goes a long way to defining an ideal template. A learning organization is an organization skilled at creating, acquiring and transferring knowledge, and at modifying its behaviours to reflect new knowledge and insights. Changing the subject from what is Organizational Learning to what is a Learning Organization has had one dramatic change from previous in that it also incorporates into it the ability of a company to adapt its behaviours to what it has learnt. This adaptability is how the organization can benefit from becoming a more learning one.

Organizational Learning: Theory, Method and Practice

Chris Argyris & David A. Schon (1978): 16-17; Reading, Mass: Addison Wesley.

How to generate a practical Advantage from Organizational Learning

When discussing learning and its implementation into a practical sense organizations can benefit not only from internal learning but external also. The top organizations incorporate both internal and external learning into its very fundamentals. It is of vital importance here however that an organization understands its key proficiencies before it attempts to learn from others, these core proficiencies should become the backbone on which to build upon. An organization looking to implement Organizational Learning as a tool must understand some basic principles. The first conundrum faced is how to motivate employees to want to learn, there have been various debates surrounding how to generate motivation and many discuss various reward schemes to encourage such behaviour. The second issue that need to be addressed understands how employees learn; this is the key to implementing a beneficial organizational learning strategy but can also be the hardest to fully comprehend. Proactive learning styles often have the most obvious results as they engage the employee and generate motivation for wanting to learn. This proactive approach is also preferred because it not only empowers the individual to be able to generate change based on learning, but it also makes them eager to implement this. Team learning strategies are also a focal area of interest as this style of learning is productive in that it very often returns a very tangible and defined answer to problems but it also acts as an excellent vehicle for which to transport; knowledge, ideas and communications throughout an organization. In a 2008 interview David Garvin states that A learning organization is skilled at 2 things; Creating, acquiring, interpreting, transferring and retaining knowledge. And second acting, modifying its behaviour as a result of those new insights. 9

The Importance of Learning in Organizations

David Garvin & Amy Edmondson 15/12/2008 HarvardBusiness

http://www.youtube.com/watch?v=lUP4WcfNyAA

It can become quite apparent using this definition what practical advantages can be gained from becoming an organization that reacts to its surroundings. Jack Welch former CEO of GE widely considered to be one of the leading organizations wrote in his final letter to shareholders this extract, The initiatives are playing a critical role in changing GE, but the most significant change in GE has been its transformation into a Learning Company. Our true "core competency" today is not manufacturing or services, but the global recruiting and nurturing of the world's best people and the cultivation in them of an insatiable desire to learn, to stretch and to do things better every day. By finding, challenging and rewarding these people, by freeing them from bureaucracy, by giving them all the resources they needand by simply getting out of their waywe have seen them make us better and better every year. 10 This message does far more to describe the practical benefits to companies than any theoretical work so far. What welch defined is that the only true and unique way to stay ahead in a modern market (where everything from products to processes can be copied from one company to another) is to be the most innovative and creative company that takes calculated risks based on previous knowledge acquired, attained and spread throughout the entire organization. This highlights just how beneficial Organizational Learning can be to an organization. Welch goes on to define further benefits that have come as a direct result of them being such a learning organization such as; the organization becoming leaner and more agile, far more creative, and learning which risks are worth taking with far more efficacy.

10

Extract from Jack Welchs Last Letter to GE Shareholder (2001)

Jack Welch, former CEO GE Accessed: 03/12/2011

http://www.thenextorg.com/2010/09/extract-from-jack-welchs-last-letter-to-ge-shareholders-2001.html

Correct Implementation of an Organizational Learning Structure

As previously mentioned the concept of a learning organization has been around since the 60s and has received a great deal of publicity and attention especially in the 90s. These early discussions however were very abstract and had no concrete structure, templates or examples that could be practically followed. Until recently the gap between theoretical thinking and practical implementation was so great that the term Organizational Learning became little more than a buzzword companies would use to sound more engaging. Garvin, Edmondson and Gino in a 2008 publication 11set out to bridge this gap between theoretical thinking and practical implementation. They identified that the obstacles preventing implementation of the early theories were for three primary reasons; 1. As has been previously discussed early discussions were highly abstract and had little or no concrete strategies 2. The theories were often aimed at CEO or other C level executives, Garvin et al. describe organizational learning as a tool that needs to be implemented usually from the ground up and requires the local team leaders to be the driving force behind its success. 3. The distinct lack of any standards, tools or methods of assessment also prevented a direct practical implementation into working organizations. In the same publication Garvin et al. identify three key building blocks that are essential in developing a learning organization, these are defined as. 1. A supportive learning environment 2. Concrete learning processes and practices 3. Leadership that reinforces learning Garvin et al. go on to specify that although these three key blocks may appear to be simple they are in fact highly intricate and each encompass many different dynamics, as is further defined below.

11

Is Yours a Learning Organization?

David Garvin, Amy Edmondson, Francesca Gino Accessed: 01/12/2011

http://hbr.org/2008/03/is-yours-a-learning-organization/ar/1

Building Block #1: A supportive learning environment

A supportive learning environment is again subdivided up into four distinguished characteristics. Physiological safety To learn employees must feel comfortable expressing their personal thoughts about the work, regardless of whether they are correct or not. They must also feel comfortable in disagreeing with current systems and peers, and must be encouraged to do so. Appreciation of differences Comparisons between differing opinions can and do result in learning. It can also bring a fresh outlook into an old system/problem and can offer creative and innovative solutions. This appreciation can also avoid lethargy and drift within a group. Openness to new ideas Learning is not solely a tool used to solve problems or for correcting mistakes. It can also be used to sculpt innovation and employees must feel confident in taking new ventures and risks to explore the unknown Time for reflection The reflection process is often overlooked by organizations but acts as a time for individual employees to take a step back and assess the organization as a whole, and can identify key areas for improvements. It is a time where employees can assess what is around them without being encompassed by it.

Building Block #2: concrete learning processes and practices

Learning processes involve the collection, interpretation and embedding of information and knowledge. This segment requires the concrete definition of protocols, practices and processes that can harvest, share and embed such information or knowledge. This is to ensure that an organization is keeping track of the changes that are being made and can share, retain and learn from such information. Although by definition it appears very bureaucratic this system does need to be so, the methodologies used to acquire, share and retain such information can vary from organization to organization.

An example of a non-bureaucratic approach to this is the US armies After action reviews 12and is a post audit based around 4 questions. 1. 2. 3. 4. What were we here to do? What did we actually do? Why was there a difference? What do we do differently next time?

This style of system allows a non-bureaucratic yet informative means by which to achieve this goal.

Building Block #3: Leadership that reinforces learning

It is widely accepted that organizational learning is widely influenced by the attitudes and behaviours of leaders. When leaders act as a flatter entity within an organization and actively engage employees in discussion and debate people within the organization are more motivated to learn. Likewise when leaders show a keenness to seek out alternative viewpoints employees within such an organization feel more willing to offer new ideas and opinions. It has often been noted and perhaps personified in Harvey Golub (Former COB of AIG) that asking questions not to yield specific answers but to spark discussion and debate within a group or organization, often leads to a more appropriate solution. Having a leader that is able to not only facilitate learning but also encourage it is also a key building block to the implementation of organizational learning strategies.

12

The U.S. armys after action reviews: Seizing the chance to learn

David Garvin Accessed: 05/12/2011

http://www.wildfirelessons.net/documents/Garvin_AAR_Excerpt.pdf

How Organizational Learning Impacts the EFQM Model.

EFQM Model

The organizational learning structure provided by Garvin does have a relatively high level of correlation with the EFQM model shown above. Leadership As was previously described leadership plays a vital role in establishing, maintaining and developing organizational learning. It is required from leaders to engage learning throughout the organization but to also facilitate and encourage that knowledge and information is acquired, retained and shared throughout the entire organization in the correct way. People People are the driving body behind any organization and ultimately are where the vast majority of change will be defined and implemented (new working methods, assessment of current system implementations etc.). It is therefore of key importance that they are kept in tangent within the organization by correct leadership and management. Partnerships and Resources As previously stated companies can learn not only from internal activity but also from external bodies. Partnerships and Resources provide an opportunity for an organization to learn from others. Careful consideration must be taken when undergoing such ventures as what works for one organization may not work for another.

Policy, Strategy and Processes These two sections within the EFQM model can be combined for this interpretation as they each define the means by which the company will learn and adapt. Having correct policies, strategies and processes in place to acquire, share and retain the information is vital to the success of a learning organization. They are used to define the correct means by which information flows through the company and they must be of sound design and correctly implemented in order to fully benefit from the organizational learning concept. The Results The results of being a more learning organization will vary from sector to sector and from organization to organization, however there are guaranteed to be benefits for any organization that implements an appropriate learning strategy. One thing universal amongst different sectors and companies will be that the benefits gained from this concept will keep an institute at the forefront of its market, and give it the ability to quickly react to any changes the organization experiences.