Learning Organizations in the USA - Research Proposal Example

Learning Organizations A learning organization is one where there is a continuous process of adaptation going on which is characterized by the learning of new skills and abilities to enable the organization to respond in a changing, challenging environment. This report will examine one organization, the European headquarters of Teleflex Medical, which is a global supplier of medical devices, surgical instruments, and disposable medical products. The Company has an annual turnover of $2.5 billion, with 14,000 employees in more than 23 countries. Teleflex Medical also recently acquired Arrow International, for the sum of $2 billion, which has strengthened its global position as a supplier of medical products (Reuters, 2007). The Company also has branches in the United States. There are a total of 90 employees in the organization under study. This report will attempt to determine the extent to which Teleflex is a learning organization and what measures could be introduced in order to improve its capacities as a learning organization. Learning Organization: The concept of a learning organization was developed by Peter Senge, who described it 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” because this is necessary to make organizations flexible in a changing environment and for this to happen, it is necessary to discover “how to tap peoples’ commitment and capacity to learn at all levels.” (Senge, 1990:4) A learning organization may therefore be characterized as one where people are responsive to a changing environment and are able to survive because they are continually changing and learning in order to adapt to it. Additionally, the learning is not merely geared towards survival, it needs to move beyond that to learning that “enhances our capacity to create.” (Senge, 1990:14). For example, Senge argues that one of the problems inherent in organizations is the tendency to look for simplistic solutions to what are complex problems. Hence the focus seems to be directed towards deriving short term, readily applicable solutions to problems rather than looking for the kind of solutions that would reduce long term costs. Senge provides the example of research and development costs which are often cut down as a part of a short term financial solution, but which can often be detrimental to the organization in the long term, because all short term improvements in systems will also be accompanied by significant long term costs and small changes will tend to build upon themselves; “a small action snowballs, with more and still more of the same, resembling compound interest.” (Senge, 1990:81). Senge has therefore advocated systems thinking as being an integral part of a learning organization, coupled with the need for constant innovation and adaptation of an organization to cope with the changes in the external environment. The blueprint of a learning organization: A learning organization is characterized by the following features: (a) Responsiveness to changes in the environment (b) The ability to develop innovative solutions to problems (c) Modification of learning in accordance with feedback (d) Open communications so that individual experiences spread out into organizational learning (e) Building a shared vision (f) Teamwork and the ability to function in groups. The discussion below illustrates how Teleflex Medical conforms to all these characteristics of a learning organization. Teleflex medical as a learning organization: Teleflex Medical is a manufacturer of medical equipment and has branches all over the world, including the United States and Europe (www.enterprises-ireland.com). The organization focuses upon transforming ideas for medical products into market ready solutions. Teleflex Medical is in the business of designing and manufacturing specialised medical instruments. The company specialises in engineering talent combined with production expertise in order to process products through their various stages beginning from design all the way through to the packaging and delivery stages, as well as providing advice on biocompatibility issues. Argyis and Schon based their model of organizational learning on single and double loop learning. Argyris (1982:7) suggests that when the actual outcomes of a particular process or task do not match up to the expected outcomes, it gives rise to complaints and these form the basis for the modification of those processes. This leads to a questioning of the goals of personnel function (Argyris, 1982:19) and this allows for the identification of new goals and processes (Argyris, 1982: 106). The modification of learning processes on the basis of feedback is referred to as double loop organizational learning, which is the basis of the Argyris and Schon (1974) model of organizational learning. This model was further developed by March and Olsen, who proposed that individual actions and learning, which in turn could spread out into organizational learning (Morris and Pinto, 2007:180). In further supplementing the knowledge about learning derived from the models mentioned above, Kim(1993) analyzed all the breakdowns that occur in the information flow, which in turn lead to a breakdown of organizational learning. The organizational focus at Teleflex is upon people, who are viewed as the source of the organization’s strength. Teamwork is valued and employees and supervisors treat each other with respect and dignity. Since the organization encourages open communication, it demonstrates a learning organization in action with the belief that individual actions could spread out into organizational learning. The focus is upon the individual and thereby promotes an atmosphere of individual learning, which in turn could lead to organizational learning. Senge’s model is still the prevalent one that is in use, however other organizational models are also being developed. One of these is the learning at scale model, which involves a shift away from the efficiency that occurs from economies by scale to organizations that make scalable learning feasible. This model poses that near constant innovation is the only way to respond to the near constant disruption posed by changes in the global environment (www.blogs.harvardbusiness.org). The application of this model is evident at Teleflex, because innovation has become a cornerstone of the business and the organizational policy is to strive for continuous improvement and innovation. The Company’s policy is to excel today, yet build further on it to improve even more tomorrow. One example is Teleflex’s participation in the Innovation Partnership programme. Teleflex based in Ireland, has entered into a partnership with NUI Galway’s National Centre for Laser applications in developing a new kind of cardiac catheter. Standard catheters are thin, flexible tubes that can be inserted into a vein or artery and threaded into the heart in order to diagnose heart health. However, one of the problems that occur in standard catheters is related to high pressure, because when the catheter is inserted into the heart at high pressure, it tends to whip out. Teleflex in Ireland developed an innovative solution – drilling holes at the other end of the catheter. This enables a release of pressure and thereby alleviates the problem. This solution was however an expensive one for the company to implement all on its own because it required specialist equipment and people skills to drill the tiny holes into the other end of the catheter. But by entering into a partnership with the NUI laser centre which already has the equipment and trained personnel to tackle such a job, Teleflex has been able to develop this new product in a manner that is not counterproductive in terms of financial investment and people training required. Hence, Teleflex has produced a product for which there is likely to be considerable demand because it satisfies a vital need within the medical world. But the manner in which the desired objective has been achieved shows the operation of a learning organization, firstly in (a) the drive towards innovative solutions and thinking outside the box in order and (b) building a shared vision, not only within the Company but also by entering into partnership with like minded organizations in order to achieve cost effective and innovative solutions to problems. Health care is becoming an increasingly important issue the world over and there is a growing need for specialised equipment by hospitals to deal with a variety of complicated health problems. For many years, Teleflex has focused upon the development and delivery of various kinds of medical equipment on time and within the limitations of budget. This has been achieved through a focus upon quality (www.tfx.xom) and the process of constant refining of the quality of the products demonstrates the application of the Argyris and Schon (1974) model where the learning process has been refined through feedback received from consumers. In a global world, there is also increased competition from other companies in the business of manufacturing medical equipment and Teleflex needs to be constantly on the edge of innovation and refine its learning in order to offer its customers products and equipment that are superior to their competitors in terms of quality and marketability. The nature of the business of manufacture of medical equipment is such that innovation is a vital aspect to the company’s competitiveness since it must be ready to respond to the demands for design of new products. This involves the optimum application of knowledge. Noneka and Takeuchi (1995) have developed a four stage spiral of organizational learning, wherein they identify two kinds of knowledge – tacit and explicit. The latter comprises knowledge that may be easily coded and set out in manuals which can be circulated throughout the Company and all employees. On the other hand, tacit knowledge refers to knowledge that is latent or comprises personal, specific, subjective knowledge. Tacit knowledge can form a vital part of organizational success because it is based upon the underlying knowledge that is known only to those within the organization and provides a competitive edge of informational learning which other organizations may find difficult to supplicate. In the manufacture of medical equipment, it is the tacit knowledge that is of tremendous benefit to the Company in designing prototypes and final versions of its products and developing them through the intervening stages. The development of innovation may be especially receptive to the five elements that Senge has suggested as a part of a learning environment. These five elements of a learning organization are as follows: (a) systems thinking (b) personal mastery (c) mental models (d) building shared vision and (e) team learning. According to Senge, all of these five areas are concerned with “a shift of mind from seeing parts to seeing wholes, from seeing people as helpless reactors to seeing them as active participants in shaping their reality, from reacting to the present to creating the future’ (Senge 1990: 69). As a result, the approach is focused upon getting people within the organization to think differently and in an innovative fashion about the problems and environmental situations they are faced with in order to help them to contribute to improvements in their organization. In all of these aspects, Teleflex appears to demonstrate the characteristics of a learning organization. In a study carried out by Purcell and Milner in hospitals (2005), the findings showed that duplication of agencies and multiplication of roles has produced tensions which are counter-productive to the achievement of organizational efficiency. In such circumstances, the net result has been an organization characterized by bureaucracy, which in turn has hindered the streamlined, efficient operations of the firm. This shows that centralized structures within health care organizations do not contribute to an ideal environment because people within the organization cannot develop a clear and accurate picture of the organization and its goals. Centralized, bureaucratic structures within organizations tend to produce politics within the organization and a formalized manner of doing things which in turn may not be conducive to creativity or the ability to think outside the box. Developing innovative thinking requires individuals within the organization to be broadly aware of the business of the Company, its overall goals and the functioning of all the various departments. Centralized structures on the other hand, focus more on the formal modes such as maintenance of paperwork and hierarchy of authority, which impedes such systems of thinking. Teleflex Medical does not appear to have an organizational system that is strictly hierarchical; rather teamwork is valued and employees demonstrate respect and dignity in their relationships with each other. Networking and maintaining a flow of information within the entire organization with less reliance on formalized structures, achieves the objective of building a shared vision within the Company, which is one of the characteristics of a learning organization. This has also included building a shared vision by entering into partnerships with other Companies. Allowing employees to share in information about the Company, its goals and its operations, produces a higher level of motivation in them. Sharing of information about company strategy and performance provides employees with the sense that they are trusted. Additionally, it also enables employees to use the knowledge residing within the firm to its fullest potential (Pfeffer, 1998).Thirdly, team working among employees is likely to be more successful if workers are provided a base of information on which to base their suggestions and make contributions to improve organizational performance and productivity.(Marchington and Wilkinson, 2005:77). This characteristic of a learning organization is also exemplified in Teleflex. The vision statement of the Company has been spelt out as follows: “Create a world leader in disposable medical products for critical care and surgical applications”, while its medical mission statement is to “enhance patient outcomes by providing products that are less invasive, reduce infections and improve patient safety.” (www.teleflexmedical.com). Since all employees are aware of the organizational vision and its medical mission statement, they are able to work towards the achievement of this overall objective rather than being restricted to the operations within their own department. If employees are to be successful in thinking outside the box to develop innovative solutions, they would also need to be motivated effectively. Motivated employees feel valued and are able to work in a manner that is conducive to organizational needs.(Beardwell, 2007). Maslow’s needs based theory of human resource management is based upon the premise that an unsatisfied need creates a state of disequilibrium, hence in order to restore the balance, an appropriate goal must be set and a pathway created towards achieving that goal. (Armstrong, 2003:219). The atmosphere within an organization is vital to ensuring employee satisfaction. According to Baron and Kreps (1999), a high commitment human resource policy is characterized by three kinds of goals. First, employees need to clearly understand what the best interests of their organization are and work towards the achievement of those ends. Secondly, in order to achieve these best interests, employees should also be flexible enough to take on assignments that may be different from the normal work routines. Thirdly, employees must engage both mental and motor skills in the performance of their jobs; they should not hesitate to exercise their own judgment where necessary in determining what needs to be done and contribute any ideas he or she may have for improvement in his or her organization (Baron and Krepps, 1999:189). Since the level of professional expertise is now the pivotal aspect that determines whether or not a firm can enjoy a competitive advantage, human resources must play a new strategic role in order to ensure that the knowledge resources of a firm are effectively used (Schuler et al, 1984). In the present competitive, global environment, skilled workers are in strong demand. As a result, an organization that fails to keep its workers happy, satisfied and motivated is likely to lose them to other firms; hence institutions’ recognize the importance to ensure retention of those employees (Dibble 1999). The knowledge that such employees possess is of inestimable value in the development and design of new products, especially like the medical products that Teleflex develops. In the case of skilled employees, who are few in number, one of the most common methods used by employers to attract the best candidates to their firm is to offer good monetary rewards, such as high salaries, signing bonuses and attractive benefits (Pfeffer, 1998). Providing high compensation that is contingent on the performance of the employee has two component aspects; higher salary than what is normally paid for a comparable job and specific performance related incentives, such as bonuses. A total rewards program comprises all the tools that an employer would use in order to attract, motivate and retain employees and would include both high salaries and other incentives, such as bonuses. In the manufacture of medical equipment, the development of innovative solutions often requires advanced knowledge of engineering and health care. Hence, the motivation and retention of skilled employees is especially important at Teleflex. In practice however, employee development is one area where the organization is experiencing a shortfall. The Company does not actively seek to motivate its employees. The Performance management program for employee development is linked to the overall development of the firm; however as a part of this process, managers are expected to meet with employees every three to six months but this just does not happen. There are no internal promotions within departments and there are insufficient incentives for employees to foster their career development. In this aspect, Teleflex lags behind as a learning organization. Another important aspect of being a learning organization is the ability for team learning, wherein learning within the organization occurs in groups. This is especially important within a globalized framework where operations on a global scale are expensive and often require partnerships with diverse individuals and companies. Senge has characterized team learning as “the process of aligning and developing the capacities of a team to create the results its members truly desire.” (Senge, 1990: 236). Team discipline commences with all the members of a group setting aside their assumptions and pre-conceptions in order to sit down together and come up with new ideas through free flowing dialogue between the various members. Training is an important pre-requisite of a learning organization and helps team members to learn to work together effectively. It also helps to offset a shortage of skills and is vital in today’s environment where new technologies are being developed and working practices are becoming increasingly flexible. Hence, the kind of skills and abilities required to cope with the demands of a changing workplace also need to be refined through training, which helps to address these shortages by reducing or eliminating them. Teleflex also has a training program in place, wherein skills needs are identified and training imparted to Company employees to cope with the changes in the environment and work together in teams to come up with innovative solutions. The Company carried out in house training, as well as induction and on-the-job training. The Company also pays for professional membership body fees for its employees as well as study assistance to help its employees improve their skills and their ability to cope within a competitive global environment. Conclusions and recommendations: From the above, it may thus be noted that a learning organization is one where there is flexibility and an open minded approach, with employees working in teams to develop innovative new solutions. Teleflex appears to demonstrate many of the characteristics of a learning organization, especially in fostering team work and promoting a unified vision for the organization. This vision also includes participation with other Companies where necessary and thereby demonstrates the ability to be innovative and flexible in responding to challenges in the environment to sustain profitability. Moreover, the Company has combined its resources in the various departments with its engineering department, thereby enabling the application of specialized knowledge in an innovative fashion. This also aids in the development of prototypes. There is one significant area where Teleflex is lacking and this is motivation of employees. The Company has no effective measures in place to promote a feeling of stability and appreciation in employees. There is no succession planning, hence an effective retention policy must be in place if the knowledge possessed by skilled employees is not to be lost. Unfortunately however, this is not the case and especially in the current recessionary environment, employees may not enjoy a feeling of job security. Therefore motivation and retention of employees is an area where the Company may need to pay closer attention. In a competitive global environment, the lack of effective motivation techniques could make it difficult for the Company to retain skilled employees and the organization would thus lose valuable skills and knowledge when employees retire or when they choose to accept more attractive offer with other firms. Teleflex may benefit from the introduction of measures within the Company that are geared towards enhancing the tacit knowledge inherent within the firm. This may be achieved through the development of manuals or by encouraging some of the more skilled employees to jot down or record on audio tapes, their knowledge. In this way, such tacit knowledge will not be lost when employees leave the Company but will be retained within the firm. It may also benefit from effectively enforcing the performance management processes for employee development. Managers should actively meet with employees on a regular basis in order to effectively promote employee development and incentive schemes should be introduced to encourage employees to remain with the firm, so that the constant drive for innovation in the firm can be actively encouraged and continued. Since one of the characteristics of a learning organization is for individual learning to lead to organizational learning, organizational growth and innovation can be fostered only through a focus on the individual and effectively motivating them. As Pfeffer (1998) has recommended, providing employees with monetary benefits and a sense of being valued by the organization would help to improve their motivation. This would also contribute towards moving Teleflex more in the mould of a learning organization. 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