Strategy and Organizational Learning - Term Paper Example

 Strategy And Organizational Learning Contents Introduction 2 Emergence of Knowledge/ Learning Organizations 2 Building a Learning Organization 3 Social Complexity and Organizational Learning 3 Developing Learning Mangers within Learning Organizations 4 Learning in Practice 5 The Relationship between Individual and Organizational Learning 5 Basic Aspects of learning organizations 6 Relationship of OL with Learning Capability Dimensions 7 OL frame work from intuition to institution 8 Leading a Strategic Learning Agenda 9 Organizations that Learn and Learning Organizations 9 Case Study 12 Conclusion 13 References 15 Introduction In this globalized world, with ever accelerating pace of change, only those organizations can survive and achieve long term sustainable growth that continuously evolve and adapt to the changes in the environment and take initiative. This is only possible if the organization is a learning organization. Flow of information, knowledge, technology and capital has transcended geographic and national boundaries due to globalization. With such fast, easy and fluid flow of information, knowledge and technology the major asset of an organization has become knowledge and not production. Rate of an organizations ability to learn and adapt is considered to be the only real source of competitive advantage. How organizations can become a learning organization? Does individual learning and social learning has any relationship with organizational learning? What is the difference between an organization that learns and a learning organization? Is it just mastery of words or there is some substance in it? This paper aims at answering all these questions with the help of theory and its critical analysis along with the examples from the business world. Emergence of Knowledge/ Learning Organizations Charles Darwin said “It is not the strongest of the species who survive, nor the most intelligent; as a matter of fact, it is the ones who are the most agile to change”. The same point stands valid for organizations too. The organization who wishes to remain relevant and thrive in the long run, learning better and faster is the solution or the technology. Learning is not only the key to success but perhaps vital for survival for today’s organizations. For this purpose organizations must strive to enrich knowledge through continuous internal and external learning. A learning organization is one that encourages and values learning and realizes the role learning can play in enhancing organizational effectiveness. This attitude and importance of learning is reflected in the vision of the organization and a learning strategy that supports the inspiring vision for learning. Building a Learning Organization A learning organization depends on a lot of internal and external factors. External environment includes economy, society, polity and technology. The subsystem of learning organization includes organization, people, knowledge and technology. Each subsystem not only interacts with each but also support for learning to permeate all across the organization. The importance of learning is communicated by leaders. An effective communication system is developed to avoid the development of silos and ensure smooth lateral flow of knowledge across structural boundaries. Both planned and emergent learning needs are emphasized. For building effective learning organization following steps must be taken, strategy development, collaboration mechanism, knowledge sharing and learning, management techniques and knowledge capture and storage (Serrat, 2009). Social Complexity and Organizational Learning Organizational learning is a very complex social phenomenon. Emergent and fluid nature of organizational learning makes it more complex. The two most important determinants of complexity science are schemas of diversity and interaction interdependence. Presence of both in learning organizations makes it a complex. Tensions within and between internal and external forces provides the foundation of emerging conditions and interconnectivity. Hence tensions re-conceptualized in learning organizations, are taken as measure of elasticity rather than conflict. Tensions combined together not only create contradictions, conflicts and inconsistencies but also creates new opportunities. Hence organizational learning as a source of tension keeps the organizations in tension which prepare them better to capture the dynamics of learning and organization. Hence viewing organizational learning as a dynamic, complex process improves organizational learning. It still remains a fundamental challenge to organizations to understand and engage with the social complexity of organizations. Instead of trying to simplify these complexities or identifying different variables that has influence on social learning and studying their impact in isolation the social complexity should be taken as it is. This practice approach provides a new dimension for engaging with the fluidity of the organizations. This ambiguity, uncertainty provides the basis of emerging organizations and hence the concept of learning organizations. (Antonacopoulou, 2007) Developing Learning Mangers within Learning Organizations As an individual in this fast paced world if we want to be successful we have to keep track of all technological developments, world events and development of ideas. Successful people have the ability to adapt, change and learn. Similarly successful organizations are learning organizations. A learning organization encourages learning at all levels. First of all it needs to develop managers and turn them into learning mangers themselves first. Managers generally oppose change but learning managers not only accept change but lead to organizational change as well by leading the employees to innovation, adaptation and responsive to change. Learning mangers ensure minimization of error by learning from their mistakes and adapt working practices instead of punishing. Such managers train and develop their employees and in the process take risks instead of playing safe. Managers not just supervise and monitor but coach and develop its staff by encouraging experimentation and staff suggestions (Antonacopoulou, 1998) Learning in Practice Generally learning is viewed as some acquisitional process based on the accumulation of knowledge, skills and experience over a passage of time. The social complexity of learning as discussed above highlights new dimensions of learning in the context of work organizations. The four dimensions of learning are interconnectivity, diversity, self organization/emergence, and the fourth is power and politics. These dimensions of learning emphasize the concept of spontaneity and surprise. This element of surprise is considered the central theme behind the informal learning that goes beyond the formal and deliberate learning. This practiced centered approach provides the concept of strategic leaning. Through practice and attempts the connections of social network can be mapped. These connections between learning practices provides the foundation of learning in practice. This continuous process of experimenting and practicing and exploitation of multiple possibilities gives learning its strategic role (Antonacopoulou, 2006). The Relationship between Individual and Organizational Learning The relationship between individual and organizational learning (OL) is one of the contested topics. Individual learning is rooted in particular social context. Organizational learning is reflected in organizational routines and in accepted collective organizational behavior. Organizational learning is dependent on individual learning and that may bring changes in the collective understanding of the organization. An analysis of the individual and organizational learning revealed many interlocking contexts that outlines and determines the content and process of learning in organizations. The extent of learning at work and the institutional identity of individual’s learning is a reflection of the extent of organizational learning (Antonacopoulou, 2006). Basic Aspects of learning organizations A learning organization learns collaboratively, openly and across boundaries. Special emphasis and value is given to what it learns and how it learns. A learning organization is proactive and takes the initiative in learning and even makes investment to stay ahead of the learning curve of the industry. Its learning ability is the competitive advantage for the organization; learning faster and smarter is the source of competitive edge. It has the ability to translate data into useful knowledge efficiently and quickly and hence availability of useful knowledge at the right time and place. Learning organizations use learning to reach their goals (Morecroft et al 2000). Learning organizations bring change by making individuals realize the importance of their learning in changing the organization. They build a data base of knowledge to avoid repeating their mistakes. They learn from their mistakes by owning their mistakes. An analysis of the consequences is done and the reason of occurrence of mistake is also identified so that corrective measure can be taken. Individual performance is linked with organizational performance to encourage the environment of learning. To foster the environment of learning, special procedures and structures are designed such as linking reward with learning and encouraging risk (Cummings et al, 2009). Relationship of OL with Learning Capability Dimensions How organizations learn depends on the adaptive and manipulative interaction between organizations and the environment. It also determines the learning capability dimensions. Organization learning includes both the offensive and defensive process which the organization uses to adapt to the environment. Defensive process, when organizations adapt defensively to the reality, while offensive process when organizations use knowledge to improve or find the best fit between organizations and the environment (Hedberg, 1981). In the organizations where individuals continuously strive to expand their capacity to achieve the desired result, it increases their dimension of learning. In such organizations new and expansive pattern of thinking are encouraged to foster learning. The approach of learning is collective and people continuously learn how to learn together (Senge, 1990). Learning capacity is also determined through institutional learning. Institutional learning is a process through which mangers and teams change their perceptions, shared mental models of the organization, relevant markets and competitors (De Geus, 1988) Organizational learning dimension has four major aspects. It includes knowledge acquisition, information distribution, information interpretation and organizational memory. Further longitudinal studies need to be conducted to develop a better understanding of the mechanism and measure the OL. The measurement of OL can help managers identify areas and develop their capability accordingly. With measurement of OL standards can be set through benchmarking to rank an organization as a learning organization (Crossan, 2000). OL frame work from intuition to institution Organizational learning has always been present but not in its current form. There are many theories of organizational learning with varying domains ranging from learning viewed as information processing to product development to the cognitive limitations of managers effecting learning. However the new institutional approach views OL as a principle source of achieving strategic renewal. That is the also the basic difference from traditional intuition based approach to new institution of learning. It is also the defining line between learning organizations and organizations that learn. This strategic renewal demands that organizations not only focus on the exploration of the new possibilities but also concentrate on exploiting or utilizing what organization has already learned. These two factors exploiting and exploration are the two basic requirements of strategic renewal. Exploration of new opportunities and possibilities that exist in the environment, and maximum exploitation of the resources and knowledge that the organization has already achieved is the key to successful learning and strategic renewal (March, 1991). For any renewal to be strategic it should not be restricted to a particular individual or group but should include the whole organization. The framework for the process of organizational learning consists of four steps namely, intuiting, interpreting, integrating and institutionalizing. These four steps link the individual, group and organizational level (Crossan, et al 1999). Leading a Strategic Learning Agenda Any organization can lead through strategic learning by aligning all its activities. Strategic learning is applied to create adaptability. Strategic learning cycle consist of situation analysis, defining strategic choices and vision, development of structure and process which includes people, culture, measure and rewards and the last is implementation and experimentation. Situational analysis gives the insight about implications and strategic choices based upon them strategic choices are defined. It tells the winning proposition, priorities and identifies any gaps between them. All the activities, practices regarding culture, people, rewards and benefits are aligned with the strategic choices and vision. This action plan is then implemented and experimented. Again situation analysis is conducted to identify learning loops and this cycle continues in this way. Hence strategic learning is a continuous process (Petersen, 2010). Organizations that Learn and Learning Organizations Many organizations try to build learning organizations but it sometimes proves to be a difficult task. Traditional methods of training which organizations use for learning are based on identifying training need or deficiency in an employee and then impart training through structured class room sessions prove to be too slow and ineffective in comparison of the dynamic learning approaches utilized by learning organizations. Learning organization take a proactive approach and design and implement a strategic learning strategy by encouraging employees to experiment and take risk. Learning organizations are always ahead of the learning curve of the industry. The knowledge and learning of learning organizations is the source of their competitive advantage, whereas organizations that learn have a reactive approach and they try to learn from their experiences and learning is done only when the need arrives. Learning organizations believe in learning as a continuous process. Learning organizations value learning, by making it part of their strategy. Corporate strategy derived from the vision identifies strategic learning and hence it is reflected in all activities and practices of the organization. This strategic learning and the ability and preparedness for future changes earn them their competitive advantage over other organizations that only learn from them. Strategic learning involves risk but these learning organizations are willing to take that risk.(Anderson, 2000). Corporate Strategy Today’s highly competitive world demands commitment to change and a clear and well defined direction charted out through strategy. There are four basic approaches to strategy namely Classical, evolutionary, processual and systematic. These four approaches of strategy are mapped against some critical elements of strategy. These critical elements identified are leadership, decisions, planning, innovation, diversification, internationalization, organization and strategic change. Hence organizational learning that lead to change is part of the strategy. Learning organizations plan for strategic learning and hence the needs of innovation, diversification and strategic change that can be brought through knowledge are identified in the corporate strategy. It is argued that learning leads to change. Learning brings change in the organizational culture, structure, and in the strategic direction. When learning is part of the strategy then it can be used to achieve organizational goals. Integrating individual and organizational learning ensures sharing of information that prompts action.(Whittington, 2001). The corporate strategy of any organization is very complex process and it defines the future direction of the organization. With globalization and ever accelerating pace of change most organizations have to deal with highly turbulent, complex and competitive environment. To cope with the challenging tasks posed by the environment organizations need to develop a sound understanding, for this purpose organizations conduct external environment analysis. External environment analysis is a difficult task but important activity which includes scanning, monitoring, forecasting and assessing. The main objective of external analysis is to identify the opportunities and threats in the environment. Identifying and exploiting the opportunities and minimizing the threats, which are hindering performance can help the organization achieve its strategic competitiveness. Learning organizations are quick to identify the changes in the environment and are much better equipped to deal with such changes. The strategic learning of the learning organizations help them to be ahead of their competitors and hence can respond to external environment changes more quickly and efficiently. PESTEL analysis help identify the future opportunities in the environment as well as presence of threats. Learning organizations with their wealth of knowledge can grab the opportunities to gain competitive advantage and minimize threat for long term sustainable growth (Johnson et al, 2006). Case Study Adele Lynn was a fortune 500 company that was faced with the dilemma of succession planning. Their employees mostly consisted of highly skilled technical engineers but the average age of employees was 49. They had to plan for the future and create a learning organizational culture for skills transfer. For this purpose they created Lynn Leadership Group. The workforce was highly talented, experienced, independent minded and they were individual achievers. There was some degree of biasness as well against young engineers. The learning curve for the skill set and the type of work these accomplished engineers were doing was also very long. The solution identified for this problem was to shorten the learning curve and creating a culture conducive of knowledge transfer. A mentorship program was developed for knowledge transfer complete with plans of data transfer, progress measurement and evaluation. Senior engineers were taken into confidence to ensure their participation. Without their support it could not succeed. The mentors were given due respect and their contribution valued. Mentors and mentees were fully equipped with the tools required for success. The tools included, building of trust, transfer of learning, respect for varying learning styles and respect for generational differences. This program has succeeded in the organization with the induction of 100 new engineers and the learning ensured through mentoring program. All the senior engineers are assigned mentors and regular discussions are held between mentors and mentees to evaluate the progress of knowledge transfer. Status of mentor has worked as an effective motivator for senior employees and has reduced the turnover rate both in new and old employees signifying job satisfaction. Hence in this way the company has developed a process of developing talent for the future by ensuring collective learning and building a culture of learning. It has integrated individual learning with organizational learning very successfully (Adele Lynn, 2011). Conclusion In this fast changing globalized world only those organizations can succeed that has the ability to adapt to the continuous changes in the environment. In this globalized world organizations even use their knowledge and learning as a source of their competitive advantage. This is only possible in the learning organization. Learning organizations have the culture of continuous learning and they not only encourage learning but also are willing to take risks. A learning organization develops and improves by integrating individual and organizational learning and learning from their mistakes. Strategic learning is part of organizational strategy for long term sustained growth. Whereas an organization that learns does not take learning as a continuous process and does not realize its strategic importance as a source of potential competitive advantage. Learning is restricted to the need basis. Learning organizations are the future for long term sustainable growth. Learning organizations focuses on strategic learning through strategic renewal which requires exploration and exploitation of the resources and opportunities. Through their corporate strategy they lead their strategic learning agenda which ensure strategic success. References Antonacopoulou, E. and Chiva, R. (2007) ‘The Social Complexity of Organizational Learning: The Dynamics of Learning and Organizing.’ Management Learning 38(3): 277-295. Antonacopoulou, E.P. 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