Knowledge Management and the Importance of Learning to Organizations - Essay Example

Knowledge management and the importance of learning to organizations Table of contents Introduction The revolution in information technology and the diverse workforce environment have been rapidly accelerating the global transformation of the competitive business environment, hence raising the need for organisations to pursue the competitive advantage that lies in learning and knowledge. Organisational learning and effective knowledge management in organisations help in generating and sustaining competitive advantage and lead to the creation of new markets and niches. Knowledge management refers to the planning, organising, motivating, and managing of people, procedures and systems in an organisation so that the organisation’s knowledge-related resources are improved and utilised in an effective manner (Wang & Ellinger, 2011, p. 512). On the other hand, the action of obtaining, integrating, disseminating and creating information as well as knowledge among an organisation’s members is called organisational learning. The relationship between organisational learning and knowledge management can be viewed in various ways. Wang and Ellinger (2011, p. 512) consider knowledge management to focus on the content and organisational learning to focus on the process. Organisational learning can also be viewed as a goal of knowledge management. Whichever way, organisational learning is complementary to knowledge management and has several benefits to an organisation. This paper examines the importance of learning in organisations. To understand this better, it will be prudent to briefly examine the concept of organisational learning. The concept of organisational learning The concept of organisational learning simply focuses on the process of acquisition of knowledge or skills through formal or informal means in the workplace. This includes both informal workplace learning and formal on-the-job training. As Panagiotakopoulos (2011, p. 351) explain, organisational learning is the practical approach to developing relevant knowledge and skills for the benefit of individuals and the organisation. It is a corroborative model whereby management and employees in organisations jointly address skills development through the process of social dialogue. In its full development form, organisational learning implies carrying out training needs analysis and establishment of individual development plans from the training needs analysis. Thereafter, employee development can meaningfully be aligned with organisational development. Ideally, the concept of organisational learning does not focus on the correction of short-term job-performance problems. Rather, the real benefits of organisational learning align workers’ skills development goals with organisational objectives of achieving a sustainable learning organisation and developing a culture of continuous improvement (Malloch 2010, p. 348). This leads to a significant improvement in an organisation’s performance in the long-term. The importance of organisational learning Organisational learning has numerous benefits to any organisation. To start with, it helps to improve the quality of skills of the workforce, leading to an improvement in service delivery performance. According to Eraut (2010, p. 8), learning in organisations leads to an increased feeling of professionalism among the personnel and a greater probability of their career progression. This increases efficiency in service delivery, leading to better utilisation of resources. Further, it enhances workplace relationships leading to improved team cooperation, coordination and performance. This can well be illustrated by the performance of the Taylor’s Fish, a small organisation based in the UK. It employs 14 persons and sells fish and chips (The Conference Board of Canada, 2009, p. 11). Several years back, a lack of skills among the employees made it difficult for the organisation to produce high quality products and services and to compete effectively in its industry. The two patrons of the organisation recognised the critical shortfall in skills and took the responsibility to introduce the relevant training to the workers. Consequently, customer satisfaction increased and the organisation recorded lower operational costs and a tremendous improvement in sales (The Conference Board of Canada, 2009, p. 11). The training contributed considerably to employees’ confidence, resulting in them being accorded greater respect and contributing to an improved feeling of self-esteem among workers and customers. Secondly, organisational training leads to better matching of employees’ skills to customer needs (Ryan, 2009, p. 34). This is due to the fact that employees gain a broader variety of skills which enhance their capacity to work with customers with more demanding or intricate service needs. Further, learning results in a better comprehension of the rights of consumers and thus assures them a higher degree of protection. It helps to reduce the gap between expectations of the workers and the reality of the job. This enables the workers to appreciate their duties and to be better prepared to perform the required tasks. Cavaleri (2004, p. 159) further noted that organisational training helps to improve indirect service delivery of an organisation. It also leads an enhanced level of community sustainability as it offers individuals a chance to work and attain qualifications in areas which do not have proper training institutions. Another benefit of organisational learning is that it helps to increase the quantity of skilled workers in an organisation (Rothwell, Sanders & Soper 1999, p. 215). According to The Conference Board of Canada (2009, p. 11), the need for a positive working environment for the workers was the propelling force for Taylor’s Fish interest in and investment in training in the workplace. Before the training, communication and solving problems among employees was limited and skiving was a major issue in this small firm. As a result, there was a general lack of self-worth all over the organisation, which impacted negatively on productivity and performance of the organisation. To address this problem, Taylor’s Fish came up with training programs to improve employee communication skills. The benefits of the training were significant for both Taylor’s Fish and its workers. The organisation gained greater capability to attain its business objectives of safety, enhanced compliance results and recorded improvement in quality and productivity gains. Significantly, there was a decline in non-attendance of work and workplace mishaps (The Conference Board of Canada, 2009, p. 12). As well, there was greater understanding and more positive attitudes towards the current working environment of the company. Most remarkable, there was considerable improvement in staff retention in the company. In general, the training enabled Taylor’s Fish to solve various associated problems such shortage of skilled workers, staff turnover and issues related to ageing of the workforce. Burrow and Berardinelli (2003, p.7) further note that workplace learning increases the ability to attract higher-capacity candidates for available positions. According to Burrow and Berardinelli (2003, p. 7), organisational learning helps to improve management and leadership skills. Specifically, it helps to improve leadership competencies and delegation of duties at the management level. At Taylor’s Fish, the introduced training mainly focused on management of people, addressing recruitment and staff retention issues and increasing productivity (The Conference Board of Canada, 2009, p. 12). Specifically, the organisation put emphasis on developing its management and leadership capability and improving the level of cooperation, communication and networking within the organisation. There was increased commitment to investment in people and skills and establishing a workplace culture that appreciated and cherished good work. Consequently, Taylor’s Fish enhanced its reputation for delivering high quality food products and services. In addition, there was a substantial reduction in material wastage. Another point is that organisational learning improves efficiency in an organisation’s operational performance. In particular, it helps to improve the organisation’s competitive capacity and to develop capacity for growth, improve culture and attitudes, manage global competition, address changing market trends, control costs and use new expertise and machinery and adapt to new regulations. At Taylor’s Fish, training was meant to improve staff skills so as to achieve a high level of efficiency and to have more secure working environments. According to The Conference Board of Canada (2009) this enabled the workers of this organisation to understand and apply fatigue management strategies, acquire basic first aid skills, coordinate breakdown and emergencies, shift the products safely by employing manual handling procedures and work cordially with others. The patrons ensured that the quality of training offered met the needs of the organisation and that appropriate delivery and assessment techniques were used. As a result of the training, employees were able to adapt to new skills very quickly as the learning was centred on their routine activities. Accidents in the organisation and the number of customer complaints reduced significantly. Organisational learning also enhances a team-based culture in an organisation (Bratton et al 2003, p. 35). This brings a variety of benefits to an organisation, including the ability to be able to uphold quality service delivery even when unforeseen inconveniences arise. It leads to better and quicker response to customers when service needs change. Further, team working characterised by a high level of trust within the team and between team members and the management reduces the feelings of seclusion and creates a sense of unity within the organisation. It results in a change in service management roles away from focus on fire fighting and roistering to more emphasis on quality assurance. According to Ryan (2009, p. 34), organisational learning enhances the sense of worth and leads to greater job fulfilment among the staff. Also, employees gain confidence in recognising the skills that they already have. Ryan (2009, p. 34) further noted that organisational learning is associated with efficiency gains and promotes better utilisation of the few resources available. Employees with better skills are able to execute some duties that they could not afford before, especially around service coordination and mentoring of staff in the lower ranks. All these benefits resulting from organisational training contribute to organisational performance through enhanced service delivery. Generally, they enhance the ability of an organisation to compete effectively in competitive tendering procedures and delivery of services as regards contractual requirements (Biech, 2008, p. 117). However, Cavaleri (2004, p. 159) argues that offering greater job responsibilities is vital in protecting organisational training investment by reducing the possibility that workers may search for other job offerings to utilise their new skills. Conclusion In conclusion, organisational learning generally refers to the process of obtaining, integrating, disseminating and creating knowledge and information among the members of an organisation. As noted, organisational learning helps in generating knowledge which in turn helps in sustaining competitive advantage and leads to the creation of new markets and niches. When it is managed well, the knowledge or information gathered through the process of learning helps in enhancing better performance of an organisation in general. As noted in this essay, learning in an organisation helps to improve the quality of skills of the workforce. Also, it helps to increase the quantity of skilled workers in an organisation. Third, workplace learning helps to improve management and leadership skills. Further, it helps to improve efficiency in an organisation’s operational performance. Finally, it enhances the sense of confidence and leads to greater job fulfilment among the staff. Generally, all these benefits describe the importance of learning in organisations. References Biech, E 2008, ASTD handbook for workplace learning professionals, American Society for Training and Development, Washington DC. Bratton, J; Mills, J C H; Pyrch, T & Sawchuk, P 2003, Groups, work teams and learning, workplace learning: A critical introduction, University of Toronto Press. Toronto. Burrow, J & Berardinelli, P 2003, “Systematic performance improvement – refining the space between learning and results,” Journal of Workplace Learning, Vol. 15, Issue 1, pp. 6-13. Cavaleri, S A 2004, “Leveraging organizational learning for knowledge and performance,” The Learning Organization, Vol. 11, Issue. 2, pp. 159-176. Eraut, M 2011, “Informal learning in the workplace: evidence on the real value of work-based learning (WBL),” Development and Learning in Organizations, Vol. 25, Issue. 5, pp. 8-12, Malloch, M 2010, The SAGE Handbook of workplace learning, Sage Publications Ltd, London. Panagiotakopoulos, A 2011, “Workplace learning and its organizational benefits for small enterprises: Evidence from Greek industrial firms,” Learning Organization, Vol. 18, Issue. 5, pp. 350 – 360. Rothwell, W J; Sanders, E S & Soper, J G 1999, ASTD models for workplace learning and performance: Roles, competencies, and outputs, American Society for Training and Development, Washington DC. Ryan, R 2009, “Improving Workforce Development and Organisational Performance”, [Accessed 7 October 2012], http://www.angoa.org.nz/angoa_docs/Liz-Stephenson-Careerforce-Report.pdf The Conference Board of Canada 2009, “Workplace learning in small and medium-sized enterprises: effective practice for improving productivity and competitiveness” [Accessed 7 October 2012], http://www.ccl-cca.ca/pdfs/OtherReports/CBofC-WorkplaceLearning-SME-OverviewReport.pdf Wang, Y & Ellinger, A D 2011, “Organizational learning Perception of external environment and innovation performance”, International Journal of Manpower, Vol. 32, Issue (5/6), pp. 512-536. Read More