Challenges in Transforming Bankco into a Learning Company - Case Study Example

1. Based on the facts that the case study presents, Bankco's upper management and HR department needs perform several appropriate actions in order to transform it into a learning organisation. I would say that Bankco prematurely executed its objective of becoming a learning organisation. It is a requisite for a company undergoing a culture shift to evolve into a learning organisation. Bankco, in my own opinion, has overlooked several aspects in introducing changes in training and learning development strategies to its employees, particularly line managers. Let me explain why. Probably due to the pressures in the industry and due to the aspiration of the company to gain competitive edge over its competitors, Bankco enforced culture shift from being operation-oriented to sales-oriented company. With the introduction of advanced technological developments to the organisation that considerably improves productivity, computers and other state-of-the-art gadgets have replaced huge numbers of labourers. The implementation of modern business strategies and techniques also contributed to the considerable downsizing of its labour force. Because of the implementation of these two innovations, Bankco's has been restructured from 7 regions and 54 districts to 3 regions and 21 areas. This culture shift requires a collateral implementation of enhanced training strategies for the remaining employees to improve their skills in using computers and other technological devices to become more productive. Bankco's upper management realised the necessity of this move. It then increased the company's budget on training and development, which is a good move. We are now seeing Bankco as a company that is really serious in infusing technological developments in its operations. However, I believe that this move prematurely done since the HR department has not made any preparatory moves that will introduce the change into the organisation. Instead of orienting the managers and staff on the impending changes in the company first, what the HR department did was to assert the training methods that it deems fit for the organisation without any initial consultation. What resulted was a conflict of views regarding the appropriate training and learning methods. In the HR department's standpoint; interactive, modular, and computer-based learning methods are more effective training methods. According to the HR department it is the individual who would actively seek to further his or her own development and would take responsibility for this. Bankco's HR Department's philosophy with when it comes to learning is that the desire for learning comes from one's own initiative. What the whole organisation, must do is "to move to a situation where it is not the business training the staff, but it is the business providing opportunities within which the staff can learn and grow.' On the other hand, experiential, on-the-job, practical learning coupled with regular courses and traditional teaching methods that engender the 'back-to-school' effect are the methods favoured by the managers. For them, it is the experiences not the simulated realities found in training that will improve learning. "Individuals learn," they say, 'by absorbing information, by making it interesting, relating it to real life situations, absorption involving recollection, using key words, revisions, competition, and reward in the end.' These differences in learning philosophy between HR and the managers should have been considered before implementation of new training methods took place. Despite the favourable impression of the managers on efforts of the organization in encouraging training and learning based on the evaluation of training and learning methods (a large portion of Bankco's managers believed that the organisation encouraged them to learn and to develop themselves), on a closer look, however, they considered this effort as an 'expectation' of the upper management for them to learn, to always be updated and to be prompt in responding to the new requirements set upon them. Instead of treating it as personal and career empowerment experiences, they look at it as a tool for performance appraisal that will measure their salary level and will protect them from demotion and job termination. Peter Senge, the author of The Fifth Discipline: The Art and Practice of the Learning Organization defines a learning organization as an: organization where people continually expand their capacity to create the 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 to see the whole together (Smith, 2001). By this statement from the author who took the concept of Learning Organizations to the limelight, we can point out that the main challenges that Bankco is facing, first of which is the poor interaction between the upper management, HR department and the line managers when it comes to introducing change. With the definition given by Senge above one of the aims of a learning organization is for an organisation to reach to a point where the unified aspiration of the group is "set free" (Smith, 2001). This requires open and assertive communication line among the upper management, HR department and line managers. By bragging its rights to implement new set of training methods without prior consultation and orientation to the managers, Bankco's upper management and HR department denies the opportunity of paving the road towards a harmonious and smooth implementation of the revised training and learning methods. Involving and garnering support from people within the organisation (Chapman, 2006) is key principle in change management that has been ignored by Bankco's upper management and HR department. Another challenge that we have seen in transforming Bankco into a learning company is the manager's negative view on the transition presented by the HR department. Fresh from the shock that the culture shift has produced, the managers has become cautious on their status of their position. As a defence mechanism, they would find out ways to shun away from any manoeuvres that they deem as detrimental to the security of their position. This is the reason they consider most of the actions made by the upper management as palliatives that would merely alleviate the tension and not to genuinely solve the issue. Presentation of the new technology in improving training and learning efficiency and effectiveness to unprepared subjects is another challenge to the organisation. They are likely to stick to the traditional methods that they have learned through the years. Infusion of state-of-the-art technologies into the system has not been properly initiated. Proper introduction of new technologies, especially on emphasizing the advantages and benefits one can get from utilising these gadgets and systems. As a result they have been given equipments that, instead of improve their productivity, would just add to clutter they have in the office. 2. Facing these challenges the upper management, in coordination with the HR department, should devise an action plan that will: a. Re-instate and/or revise the company's vision in a clear and simple manner that all the managers and staff can apprehend. b. Explain the rationale behind the necessity of implementing a culture shift of Bankco from being an operations-oriented to sales-oriented organisation. c. Orient the managers and the staff on the relevance of transforming Bankco into a learning organisation and conduct the proper consultation with the managers regarding the planned transition. d. Improve the communication channels linking the upper management to the line managers. With these objectives enumerated let me now map out the proposed action plan. Creation of a Clear Vision Change Management has gained popularity following the massive influx of technological advancements in the business community. One of the business authors who pioneered its term and concept, John Kotter (Chapman, 2005) identified eight steps to a successful change. Getting the company's vision for change right is one of the most critical steps that an organisation undergoing change must do. This is the guiding light that shines upon all the members of the organisation. In Bankco's case I believe that the first critical aspect that the upper management overlooked is the communication of the company's vision with regards to change. They immediately restructured the organisation without being clarifying the bases on why the changes should be implemented. As a result, any succeeding change that the management does will be treated as manipulative manoeuvres just to allay their fears of being fired. To re-instil the trust and passion for work by the managers and staff of Bankco, an official vision statement of the company written in a short paragraph should be made visible to all. This clarifies the company's direction, encourages unity in purpose, and motivates the whole organisation to continue in giving their best (Importance of Vision, 2006). Explaining the Need for Implementing a Culture Shift There's nothing permanent in this world but change. This is a maxim that should be addressed by the upper management and HR to the managers and staff. And one of the changes that they would likely experience is the introduction of new, more effective business practices. During the early part of the last century when the invention of new devices drove consumers to haphazardly avail the latest technologies without expecting much on the quality and features of the product, pioneer businesses were more concerned on its supply. Now that competition is so fierce, companies shifted its focus on developing innovative marketing strategies for the business to, at least, subsist. With this business phenomenon, organisations should expect the culture shift. Though this would really create a considerable stir in the organisation, yet by cautiously explaining the latest business climate with the aid of the latest figures and case studies in the banking industry, Bankco's HR department could recapture employees' confidence despite the stressful and unnerving cultural shifts in that the company has undergone. Orientation on the Transition Towards Becoming A Learning Company Now that Bankco has a clear vision and is knowledgeable in the need and requisites in a culture shift, the upper management should now prepare its staff to become a learning company. A primary qualification for an organisation to be considered a learning company, its members should aim for continuous learning. Expected as continuous learners, each Bankco employee: has core life values and clear-cut work priorities. is an action person. He continually apply fresh information and skills allots time for questions and reflections about life. gathers updated feedback, and useful information about himself and his experiences has an objective and proactive stand in accepting feedbacks is brave and humble enough to change (McNamara, 1999). The first step for the transition to take place is the consultation of the managers and staff on the ways to synergise its efforts to create a working atmosphere that is conducive to learning. Based form the case study, both the side of HR and of the managers exhibit parts of Peter Senge's idea of a learning organisation (Smith, 2001). The theoretical, modular approach of the HR to learning should have been compensated by the practical, hands-on approach by the managers. What Bankco lacks is a healthy interaction between the two approaches to learning. Thus, having a win/win contract coming from this consultation will spell the success of Bankco's transformation. Improving the Communication Line The effectiveness of organisations largely depends on having an effective communication among its members. Hence, the upper management should take the responsibility of opening up the internal communication channels of the group. As McNamara (1999) wrote in his article Basics in Internal Organizational Communication: "Unless management comprehends and fully supports the premise that organizations must have high degrees of communications (like people needing lots of water), the organization will remain stilted." Realising its importance, enhancing internal communications is very essential. To attain effectiveness in communication, the four basic communication skills (i.e. listening, speaking, writing, and reading) should be improved (McNamara. 1999). Another key ingredient that will fine tune communication effectiveness of an organisation is the willingness of each of its members to take responsibility in asserting the improvement of the communication skills of the other parties. This is very crucial particularly in listening to someone. It takes huge amount of humility to empathically and sincerely listen to others. In case of Bankco, upper management's communication flaw is very evident in its waiving of responsibility in listening to what the managers should have said with regards to its reaction to training and learning enhancement policies. As what the case study show, there was no company meeting of convention that could have consulted the sentiments of the managers and staff. It is a huge requirement for a learning company to proactively take the necessary steps to ensure that the members of an organisation would learn from his co-members, not only through traditional teaching methods but by generating and accepting feedbacks from his colleagues. The goal of Peter Senge's concept of a continuous learning is to employ all methods of learning for the development of a person and organisation. This can only be realised if Bankco's communication line is open. References Chapman, A (2005) Change Management Retrieved Aug 09, 2006 from http://www.businessballs.com/changemanagement.htm McNamara, C (1999) Basics in Internal Organizational Communications Retrieved Aug 08, 2006 from. http://www.managementhelp.org/mrktng/org_cmm.htm McNamara, C (1999) Continuous Learning Retrieved Aug. 09, 2006 from, http://www.managementhelp.org/trng_dev/design/cont_lrn.htm Smith, M.K. (2001) Peter Senge and the Learning Organization. Retrieved Aug. 07, 2006 from, http://www.infed.org/thinkers/senge.htm The Importance of Vision (2005) Retrieved Aug. 07, 2006 from, http://www.pilgrimbethesda.org/our_cong/vision/vision_01.htm Read More