Organization Learning Theories and Principles - Essay Example

Organization Learning Theories and Principles i. Introduction Organization strategy was at first envisioned as a kind of planning designed to create broad policies based on the understanding of an organization’s situation in relation to its markets, competitors, technologies, materials, and skills. However, as the area matures and the notion of strategy and perception of strategic game have become dynamic, effectual strategy now involves persistent development of new understanding, models, and practices. Today, consideration has shifted from planning to execution of plans and then to the “interaction of planning and implementing in a process explicitly described as organizational learning”1. Learning is a significant factor in an organization, which in order to survive and organization’s “rate of learning must be greater than or equal to the rate of change in the environment” (Revans (1980) as cited in Pedler et. al. (1997). This paper will discuss the validity of this statement and the relevance of organization learning in the 21st century using organizational learning’s theories and principles. 1 Chris Argyris, 1999, On Organizational Learning, Published 1999 Blackwell Publishing, ISBN 0631213090, p.2 ii. Organization Learning Theories and Principles Learning in social science is of great importance thus cognitive psychologist and educators explore how people obtain, arrange, and store information, ideas and knowledge. On the other hand, anthropologist and sociologist observe how cultural values, norms, and group identities are transmitted across groups and generations. In addition, economist and the business community study the development of new technologies, and how organizations survive, and become more efficient over time. As early as 1947, according to Brown et. al. (2006), a significant body of researchers focusing on the study of organizational learning, political learning, policy learning, and so forth has surfaced with one universal goal. They all wanted to discover how individual decision-makers, government bureaucracies, states, and societies derived upon experience, information, and knowledge to alter their perception of the world, their policies, and their behaviours. However, despite the common objective, there are inconsistencies in the meaning of organization learning, as researchers tend to focus on “various units of analysis, indicators, and measures of learning”3. The large number of ways in which organizational learning has been classified and used signifies an “organization learning jungle” which is becoming increasingly “dense and impenetrable”4. In our view, regardless of varying definition, organizational learning 2 Leann Brown, Michael Kenney, and Michael Zarkin , 2006, Organizational Learning in the Global Context, Published 2006 Ashgate Publishing, Ltd., ISBN 0754648427, p.1 3 & 4 Mark Smith, Luis Araujo, and John Burgoyne, 1999,  Organizational Learning and the Learning Organization, Published 1999 SAGE, ISBN 0761959165, p.24 is generally the acquisition of information, knowledge or skills, and the changes in organizational practice and procedures because of experience5. a. Learning from Experience, Rate of Discovery, and Capability to Learn According to Brown et. al. (2006), organizations not only learn from their own successes and failures but also may learn from the experience of others through vigorous investigation, policy reproduction, and the dissemination and transmission of ideas and technologies. Organizations may deliberately embark on primary and secondary research to generate information, knowledge, technologies, and policies as a part of problem solving and policy-making. The aim is to implement the most brilliant routines and policies from a pool of ‘alternatives’ thus the rate of discovery depends upon the “richness of the pool and the intensity and direction of search”6. In other words, an organizational learning objective is to recognize how the world works, and then discover the correct way to deal with a problem7. On the other hand, Brown et. al. (2006) points out, although a collection of knowledge is indispensable, some organizational process and structural characteristic may facilitate or prevent effective learning, including such factors as the quality of information storage systems and communications, existing social capital as well as levels of expectations and collaboration among employees, and “hierarchical versus horizontal patterns of authority and communication”8 . 5, 6, & 8 Leann Brown, Michael Kenney, and Michael Zarkin , 2006, Organizational Learning in the Global Context, Published 2006 Ashgate Publishing, Ltd., ISBN 0754648427, p.3 & p.10 7 Mark Smith, Luis Araujo, and John Burgoyne, 1999,  Organizational Learning and the Learning Organization, Published 1999 SAGE, ISBN 0761959165, p.32 The suggestion of Revans (1980) in the introduction of this paper is valid since slow-learning companies according to other authors like Schwandt and Marquard (2000), will not survive in the faster, “information-thick atmosphere of the millennium”9. The basis for such assumption is the reality that the environment is quickly changing and being huge is not enough to challenge the finer, agile, and creative learning capability of other organizations10. Organizations therefore need to learn faster and adapt to the rapid change in the environment or they simply will not survive. The demand of these changes requires any organization to learn thus delivery of information and knowledge to a ‘changing workplace’ and “mobile workforce” is crucial11. Some of the significant issues confronting today’s organizations are the streamlining and “reengineering of their strategies”12. The issues arising from shortage of skilled manpower, doubling of knowledge every 2 to 3 years, global competition from the world’s most powerful companies, the overwhelming advances of new and powerful technologies, and the “increasing need for organizations to adapt to change”13. Schwandt and Marquard (2000) referring to Dilworth (1998) remarks that change tends to “outdistance the organizations ability to learn”14, explains that the existing knowledge tends to misdirect inquiry rather than facilitate problem solution thus they need to learn new ways of coping with problems. In order to deal with change dynamics, an organization must enhance 9-14 David Schwandt and Michael Marquardt, 2000, Organizational Learning: From World-class Theories to Global Best Practices, Published 2000 CRC Press, ISBN 1574442597, p.2 & 3 their capability to learn and it must be “equal to or greater than the change outside the organization”15. Furthermore, an organization that continues to express only the ideas of the past is not learning thus ‘training systems’ may do little more than to make organizations “proficient in yesterday’s techniques”16. According to Greve (2003), searching for solutions when doing badly is one side of the coin, the other side is “the failure of successful organizations to search for ways to improve”17 (p.3). b. Performance Feedback, Learning Curve, and Information Processing The theory of performance feedback as a controller of organizational change is believed to be an indispensable tool in analyzing the behaviour of organizations firm a variety of circumstances. It is quite easy for a decision maker to segregate feedback into a division of success and failure. Therefore, a performance feedback construed as a failure could cause change in the organization18. In the behavioural theory of the organization as maintained by Greve (2003), the answer to the primary problem was to think that organizations make aspirations levels by fine-tuning the present aspiration level towards the most up-to-date accomplishment of the main organization and of similar organizations. This means organizations learn what outcome to expect by drawing on their experience and the experience of the similar organizations19. Sharing the same view is Argote (1999) who observed that the standard of 16 & 17 David Schwandt and Michael Marquardt, 2000, Organizational Learning: From World-class Theories to Global Best Practices, Published 2000 CRC Press, ISBN 1574442597, p.3 17, 18, & 19 Henrich Greve, 2003, Organizational Learning from Performance Feedback: A Behavioral Perspective, Published 2003 Cambridge University Press, ISBN 0521534917, p. 3, p.16, & p.17 measure of organization experience in the learning curve formulation is the collective number of units produced20. In her understanding, a classic learning curve believes that knowledge is cumulative that “once an organization acquires knowledge, it persists indefinitely through time”21. However, she added that organizations have structures, routines, and information systems that functions to capture knowledge but there are certain situations like ‘member turnover’ that may make it difficult to preserve knowledge. Therefore, transferring knowledge in an organisation is also essential, as efficiency acquired in one part of an organization can be use to benefit another22. This is aligned with the social perspective on organization learning fixed on the way people make sense of their experience at work, which derived from unambiguous sources as fiscal information, or derived from unconditional sources as the experience of a trained craftsperson or the insight of skilled strategies. Learning is therefore something arising from social interactions, typically in the ordinary work setting23. The emphasis on learning through ‘processing of information’ is also linked to organizational learning. The notion that information technology can be put to various purposes such as energizing employees by making more information accessible to all, or it can be used and retrieved selectively in order to “monitor and control behaviour of individuals”24. The technical analysis assumes that organization learning is about the efficient processing, understanding of, and reaction to, “information both inside and outside the organization”25. 20, 21, & 22 Linda Argote,1999,Organizational Learning: Creating, Retaining, and Transferring Knowledge, Published 1999 Springer, ISBN 0792384202, p.14 & p.15 23, 24, & 25 Mark Smith, Luis Araujo, and John Burgoyne, 1999,  Organizational Learning and the Learning Organization, Published 1999 SAGE, ISBN 0761959165, p.3 & p.4 iii. Relevance of Organizational Learning Today Today, in this dynamic environment, the search and carrying out of approaches that encourages individuals to “learn and challenge the existing orthodoxy are now dominant on the management agenda”26. For instance, the automotive sector is particularly relevant to organizational learning because it is characterised by globalization, aggressive competition, innovative technology and more. It is a competitive and changing environment and organizations operating within it progressively depend upon individuals who are motivated, adaptable, and competent enough to generate their own solution to the problem27. The focus is on practice whereby workers are placed in an environment that motivate them to “learn and how to learn rather than just on skills and knowledge acquisition and application”28 because the most important feature of a learning process is “learning how to learn”29. Not long ago, according to Argyris (1999), organizations wanted their employees to do exactly what they were told, and company leadership bought their assent with a “system of purely extrinsic rewards”30. Employees motivated by external factors that have constricted margins defined by the phrases such as “That’s not my job”31 and so on. Today, confronted by competitive demands an earlier generation could barely have imagined, manager now requires employees who think and learn persistently and productively about the requirements of the organization. 26, 27 & 28 Penny West, 2000, Organizational Learning in the Automotive Sector, Published 2000 Routledge, ISBN 0415219868, p.1, p.161, & p.164 29Georgios Doukidis, Nikolaos Mylonopoulos, and Nancy Pouloudi, 2004, Social and Economic Transformation in the Digital Era, Published 2004 Idea Group Inc (IGI), ISBN 1591401585, p.228 30 & 31 Chris Argyris, 1999, On Organizational Learning, Published 1999 Blackwell Publishing, ISBN 0631213090, p.238 They require people with as much as “intrinsic motivation and as deep a sense of organizational stewardship as any company executive”32. They at this time need everybody to be concerned, leaders, subordinates, and “those who ask and those answers”33. They all must start to strive with a new level of self-awareness, integrity, accountability, most of all, learning34. Learning is very important since it strengthens the knowledge created by individuals and develops it as part of the “knowledge network of the organization”35. In reality, today the relationship between organizational learning and innovation has become so significant that many enterprises regard organizational knowledge, combined with organization practice designed to improve information and communication channels constantly, as risk management. This is because they believed that involvement and transferring knowledge within and between organizations enables enterprises to augment organizational and operational precision, which in turn help lessen risk. Organization learning therefore enables access to sensible and pertinent information and conversion of that information into knowledge through receptive organizational channels of communications, which in combination enhance assessment on the functioning of an organization36. 32, 33, & 34 Chris Argyris, 1999, On Organizational Learning, Published 1999 Blackwell Publishing, ISBN 0631213090, p.238 35 & 36 Georgios Doukidis, Nikolaos Mylonopoulos, and Nancy Pouloudi, 2004, Social and Economic Transformation in the Digital Era, Published 2004 Idea Group Inc (IGI), ISBN 1591401585, p.228 iv. Conclusion Learning is of great importance thus social scientist and the business community studies how people acquire, organize, and store information. They also study the development of new technologies and how firms survive, and become more effective. Revans (1980) is right, as according to our research, organizations who cannot adapt to the rapid change in the environment will not survive. This is because the rapid change will outdistance the organizations existing knowledge and problem solving capability to the point where they can no longer cope. Therefore, organizations must improve their learning capability and constantly learn new ways of dealing with problems particularly in this dynamic environment. Organizational learning is crucial because the 21st century is all about globalization, innovations, technology, and aggressive competition. This is an era where organizational learning and innovation has become so critical and access to timely and relevant information is of great importance to the performance of the enterprise. v. Bibliography ARGOTE Linda, 1999, Organizational Learning: Creating, Retaining, and Transferring Knowledge, Published 1999 Springer, ISBN 0792384202 ARGYRIS Chris, 1999, On Organizational Learning, Published 1999 Blackwell Publishing, ISBN 0631213090 BROWN Leann, Kenney Michael, and Zarkin Michael J., 2006, Organizational Learning in the Global Context, Published 2006 Ashgate Publishing, Ltd., ISBN 0754648427 DOUKIDIS Georgios, Mylonopoulos Nikolaos, and Pouloudi Nancy, 2004, Social and Economic Transformation in the Digital Era, Published 2004 Idea Group Inc (IGI), ISBN 1591401585 GREVE Henrich, 2003, Organizational Learning from Performance Feedback: A Behavioral Perspective, Published 2003 Cambridge University Press, ISBN 0521534917 SCHWANDT David and MARQUARDT Michael, 2000, Organizational Learning: From World-class Theories to Global Best Practices, Published 2000 CRC Press, ISBN 1574442597 SMITH Mark, Araujo Luis, and Burgoyne John, 1999,  Organizational Learning and the Learning Organization, Published 1999 SAGE, ISBN 0761959165 WEST Penny, 2000, Organizational Learning in the Automotive Sector, Published 2000 Routledge, ISBN 0415219868   Read More