The Role of Strategic Learning in Supporting Individual and Organisational Development - Research Paper Example

List of Figures

Figure 1: The strategic learning process7

1.0 Introduction

1.1 Background to the problem

In today’s era of global competitiveness, the need for organisational effectiveness is a very important requirement for growth of all firms and organisations (Chapman & Stone, 2010). It is against this background that most firms resort to individual development (ID) and organisational development (OD) programmes as these are known to involve planned and systematic approaches implemented by individuals and the firm as a whole to bring about organisational effectiveness (Whittington, 2001). Even though there may be several ways of going about ID and OD, Carliner (2012) noted that one of the most preferred modalities is through the use of strategic learning. Strategic learning involves the use of evaluation and specialised feedback to help individuals and organisations to learn quickly from their own work processes (Stewart, 1999). Vemic (2007), however, lamented about a situation where most firms in their effort to achieve ID and OD fail to apply theories and models to strategic learning in the most appropriate and acceptable ways to gain their intended goals.

1.2 Research purpose and scope

Based on the background to the problem given above, the study was conducted with the purpose of critiquing the different approaches taken by real world firms in the implementation of strategic learning as a way of supporting ID and OD. The rationale for this purpose is to help give account for instances where strategic learning supports and those instances when it fails to support ID and OD. As noted by Chalofsky (2014), ID and OD are under the broader topic of human resource development (HRD). It would however be noted that the topic of HRD is a broad concept including the integration of training, OD and career development efforts to bring about improvement to individuals, groups and organisations. Due to its broadness, a scope was set to ensure specificity in the data collection process for the study. The purpose was pursued by covering conditions for when strategic learning helps or hinders ID and OD. Best practices expected to be put in place by firms in order for them jointly promote ID and OD through the use of strategic learning were also covered.

1.3 Description of the paper structure

The paper is structured into five major chapters. The introduction chapter gives the background to the problem, while outlining the purpose for the intended study. In the literature review chapter, existing body of knowledge that are relevant and related to the topic are reviewed. The literature review draws a conceptual basis for the study. The third chapter is case study, where the researcher describes approach for collecting data from personal examples in the world of business of how strategic learning have been applied with the goal of attaining ID and OD. In the analysis chapter, the findings from the case study are presented with comprehensive analysis of how they illuminate what is already known in literature. The last chapter is conclusion, where general lessons derived from the case study is presented.

2.0 Literature review

2.1 Strategic learning defined

According to McWhorter (2010), strategic learning is the process of combining data and evaluative thinking into the work processes. The learning is then implemented in relation to the strategies formed by the organisation. In another definition, Adzido et al. (2015) noted that Strategic learning is the process of developing strategies through a continuous learning process and understanding of the goals of the organisation. Strategic learning is different from other forms of learning such as incidental, social and experiential. According to Carliner (2002), incidental learning occurs when the learner gets deviated from the learning objective and selects something that the environment offers. This type of learn is unplanned. On the other hand, in social learning individuals learn through the behaviour and attitudes of others, by observing them (Aguinis & Kraiger, 2012). Silberman (2007) has stated that experiential learning emphasizes an individual’s learning process.

From a study by Kumpikaite (2010), it was argued that among the numerous learning processes that may be used in an organisational setting, strategic learning is the most effective one as it focuses upon the organisational goals in a much organised manner and gives equal attention to the development of individuals. Incorporating strategic learning into a company’s processes helps enhance the value of the company. Olaniyan and Ojo (2008) argued that when strategic learning is present, it can be evidenced through its ability to bring about not only the development of an organisation but plays an important role in individual development. It is based on this that Smith and Sadler-Smith differentiated strategic learning from other forms of learning by explaining that the main focus of the process of strategic learning is to develop skills of people through better understanding of the organisational processes.

2.2 Strategic learning and human resource development

According to Wilton (2011), HRD is a multivariate concept which integrates organisational processes including training, organisational development and career development to achieve effectiveness among individuals, groups and the organisation as a whole. Singh (2007) agreed with this definition by explaining that HRD is part of human resource management which specifically focuses on training and development. By relating the definition of HRD with strategic learning, it would be perceived that strategic learning is actually an intervention that may be used to undertake HRD. But once HRD is implemented, it leads to ID as individuals get the opportunity to receive comprehensive development and training modules that make them more effective at what they do at the workplace (Smith& Sadler-Smith, 2006).Appropriate amount of training improves the communication, retention and proficiency of the employees (Singh, 2007). In order to increase job performance, it is vital to transfer the training skills and behaviour into the workplace environment, maintain it over time and generalize it for all situations. Individual and organisational development is interlinked. Thoroughly trained employees will better satisfy the needs of their customers. This in turn will benefit the organisation (Jehanzeb and Bashir, 2013).

In the context of this study therefore, the review has helped in creating the idea that when reference is made to ID, it is used in the context of HRD.In the definition of HRM by Wilson (2011), it was mentioned that HRD includes organisational development efforts. It can therefore be inferred that OD is not an outcome of HRD but a requirement for it to be implemented. That is, organisations do not perform HRD because they want to achieve OD. Rather, they perform OD programmes as part of HRD (Mintzberg, Ahlstrand& Lampel, 2001). With this understanding drawn, it is important to focus on the question of what organisations do in order in order attain HRD, which includes variables of ID and OD. In answering this query, Vemic (2007) emphasised that strategic learning is an important modality for undertaking HRD. In the previous section of the review, it was mentioned that strategic learning is necessary for both ID and OD. It was for this reason that Chopra (2015) posited that when used in the right way, strategic learning can be a tool for implementing human resource development (HRD). This is because the ultimate goal for implementing HRD is to attain ID through training (Khan, Khan & Khan, 2011).

The justification that strategic learning could be an intervention for undertaking HRD is highlighted in the fact that activities involved in strategic learning are actually those that are based on training and development (Kulkarni, 2013). Meanwhile, training and development have already been identified as the bedrock of HRD (Jehanzeb & Bashir, 2013). For example, Pietersen (2014) identified four stages of the strategic learning process, all of which can be seen as harbouring aspects of training and development. The four stages are illustrated in the figure below.

Figure 1: The strategic learning process

Source: Piertesen (2014)

At the first stage of conducting situational analysis, it is important to gain a proper understanding of the competitive situation in which the organisation finds itself (Piertersen, 2014), because better understanding helps in developing better strategies (Williams, 2014). After the situational analysis, strategic choices and vision ought to be defined based on the understanding of the situation that the organisation is facing. The third stage involves a collection of activities that constitutes configuration of the organisation (Piertersen, 2014). The configuration basically involves handling the implementation of these strategies. At the final stage, strategic learning is done by implementing and experimenting with strategies this involves the development of action plan that explains in specific terms, what needs to be done, and at what time (Piertersen, 2014).

Piertesen (2013) emphasised that when using the strategic learning process in the organisational context, its implementation of stages require comprehensive development of training processes for individuals and groups. This is an assertion that exemplifies the relationship between strategic learning and HRD, given the fact that training is integral for HRD. To ensure the success of the strategic learning process, Silberman (2007) admonished that it is important for the leader to understand the objectives of the strategic learning process, in order to show their commitment towards the organisational goals. Understanding the goals and objectives also puts the leaders in a position help people in achieving those objectives. They must act like role models when it comes to participating in the developmental activities.

3.0 Case study

3.1 Research method

In order to collect data to pursue the research purpose, a qualitative research method was adopted. Ridley (2012) explained qualitative research as the type of research in which the researcher explores certain human behaviour with the goal of understanding the reasons and motivations that cause people’s actions. By inference, qualitative research is conducted as an exploratory research, aimed at explaining certain human behaviour or conduct. Relating this to the purpose of the study, it would be said that the need to critique the different approaches taken by real world firms in the implementation of strategic learning was done with the perception that there are certain human behaviours or characteristics that influence how different firms implement strategic learning. The qualitative nature of the study was thus necessary in exploring some of these behaviours and characteristics so as to be able to give suggestions and recommendation on how the human resource, including managers of organisations can position themselves to get the best out of the implementation of strategic learning.

3.2 Research setting and participants

The case study was conducted with specific emphasis on the corporate world, i.e. businesses that operate as corporations. These are large companies that have legal entities different and separate from its owners. This setting was selected due to its unique organisational processes and practices, which includes HRD activities. The corporate world was also selected because of the unique organisational structure it has, including human resource managers and employees who have specially assigned roles in relation to human resource management. Finally, the corporate world was selected because of the availability of information on them. That is, these large companies readily publish information about their corporate operations and organisational activities for academic and business references. In the same manner, there are countless number of researchers conducted on some of these businesses, making it easier to identify secondary sources of information on them to undertake the case study. Within this research setting, data on their human resource managers and employees were collected, making these people the participants of the study.

3.3 Data collection approach

The case study was conducted in the form of document review. This is a secondary data collection process where the researcher collected data from existing body of knowledge on strategic learning within organisations. Secondary data collection method was selected because of the extent of availability of information it offers. Strategic learning is a very broad concept that is practiced among different business entities. Using the secondary data collection therefore did not limit the researcher to only a small area where data could be collected (O’Leary, 2006). To perform the literature review, a special literature search was first conducted. This involved using keywords such as human resource development, strategic learning, individual development, organisational development, strategic learning in the corporate world, and best practices with strategic learning to search for articles from electronic sources including MINTEL and Google Scholar. Once the articles were found, content analysis method was used to thoroughly read through, while identifying codes to be used for further analysis. The codes were clues to the research questions and objectives that were in the forms of words, phrases and sentences. The analysis of the codes collected for the case study has been presented in the next chapter of the study.

4.0 Analysis

Pietersen (2013) defined strategic learning as “a learning-based process for creating and executing breakthrough strategies.” In other words, strategic learning is the type of learning implemented at the workplace for the purpose of rolling out certain specifically identified business strategy. In order to fully explore how this strategic learning process takes place, the case study answered some specific questions. These included the conditions for when strategic learning helps ID and OD, condition for when strategic learning hinders ID and OD, and specific examples of good and bad examples of how companies have invested in learning. The outcome of the case study have been analysed in the sections of this chapter below.

4.1Factors that promote or hinder ID and OD from strategic learning

Vinesh (2014) posited that strategic learning in itself may not hinder ID and OD, but there are issues within the organisation, which when not addressed ahead of the implementation could lead to failed learning. These issues are related to finance, individual needs, inability to cope with rising expectations and lack of time. Other problems include lack of staffs and lack of policies for training and development. The organisation should provide attention to the training objectives and the learning needs of the employees (Suhasini& Suganthalakshmi, 2015). Misguided objective drives the whole training process in the wrong direction and the purpose of training goes unaddressed. A major problem that companies face is to update the training content. With the constantly changing environment and new skill sets gaining attention, it is important for the companies to update their content of training and development, failing which the straining may not be effective enough to achieve its objectives. The most important criteria for the development of the training program that should be done by the organisations are analysing the target criteria, and nature of training content (Jarzabkowski, 2005). This ensures the correct translation of the content. Developing consistent services globally is also an important aspect which the companies must take care of in order to maintain the quality of performance throughout. Web based conference training can be provided to trainees in a geographically diverse scenario.

There are a number of best practices that have been suggested on how companies can avoid failure with strategic learning. Increasing product or service knowledge amongst the employees is also an aspect that the organisations must pay attention to. The training process will be rendered unproductive in case there is an absence of complete knowledge amongst the trainees about the company. With basis in the strategic learning process in figure 1, it is recommended that in conducting an analysis of the situation, the company must be able to identify the real problem that is being faced by the organisation (Johnson, Scholes & Whittington, 2006). Developing the strategic learning procedure in order to address these problems is vital for the further development of the organisation (Olaniyan and Ojo, 2008). The training process will be effective only if the needs of the organisation are addressed using the skill sets of the employees. Developing an insight to understand the correct issue is important.

At the point of choosing the strategy around which learning will take place, the strategic choice must be chosen focusing on the vision of the organisation. Deviation from vision of the organisation will lead to diversion from the track. It is vital for the organisations to keep in mind that the strategy they choose to develop the training module must suit the needs of the trainees as well as the organisations (Easterby-Smith & Lyles, 2003). Finally, Dierkes et al. (2003) recommends that implementation and the evaluation process of the organisation must be done carefully in order to understand if the training module is efficiently serving its purpose. Only through proper evaluation the company will understand the changes that must be brought into the training module to prove its productivity.

4.2Good and bad examples of how companies invest in learning

Pietersen (2013) used the example of Shell to explain situations under which companies have had positive attitude towards the investment of learning. This is because Shell in its corporate growth report emphasises that as an organisations, Shell believes in investing in training and development of its employees as this helps in cost reduction due to reduced supervision and wastage of material. Less error means more productivity and improved quality. This benefits the company in the long run by providing it a competitive position in the market (Kulkarni, 2013).In the case of Shell, the company’s investment in learning can be said to be a good example that distinguishes from others because it focuses on the need to achieving sustainable learning. Sustainable learning as used in this sense refers to learning that can be transferred from generations within the organisation to others (Wilson, 2005). In order to do this, the company uses learning that is enforced in succession planning by preparing employees to be replaced into responsibilities of others who leave or retire (Chopra, 2015; Vinesh, 2014).

The sustainable nature of investment in learning at Shell has been credited as reason for which the company saves resources by not having to hire the required manpower from outside (Pietersen, 2013). Skills sets of employees are diversified through training and development. This helps the individuals to grow in their professional life and add value to the organisation. It also helps in generating employee loyalty towards the organisation and keeps them in the organisation for a long period of time. Reduced staff turnover is one of the major objectives of the organisations, which is partly addressed by training and development (Hameed& Waheed, 2011). Similarly, Apple has been found to be a company investing massively in learning. Even though Apple allows high level of employee engagement as an approach to allowing learning to take place, the under leadership of Steve Jobs till date maintains a superior workplace and work quality is a primary lookout for the organisation’s strategic learning goal (Bajarin, 2014). Training and development help Apple to address the needs of a superior work environment and this example of strategic learning has been described as continuity strategy (Bajarin, 2014).

There are other companies who have not succeeded with strategic learning like Shell and Apple. An example that readily comes out in literature is Motorola, Inc. Pitt (2013) reported on the case of Motorola implementing a new human resources system with the goal of saving of £2 million a year. The overall approach to the HRD which was implemented around the institutionalisation of strategic learning was however regarded as a failure. Among other things, the strategic learning investment at Motorola failed because of lack of uniformity across its representation in over 50 countries and 30 factories worldwide (Pitt, 2013). As seen in the literature review in figure 1, it is always important to define common strategic vision and choices that can run across the entire organisation. This is important because the strategic learning process must represent the common business model of the company (Hameed & Waheed, 2011). Even though it could not be denied that the different operational centres of Motorola had their unique problems, spending more on situational analysis would have made it possible for the company to identify unique strategic problems that cut across (Pitt, 2013). Failure to do this meant that learning took place but it was not consolidated enough to guarantee global growth. The bad learning investment at Motorola has partly been attributed to its years of decline in both revenue and profitability (Kharif and Crockett, 2008).

4.3 Aligning ID with OD

The growth of an individual and the development of the organisation are interrelated (Vemic, 2007). Employees are a part of the organisation. Development of the employees affects the growth of the organisation (Noe, 2010). The knowledge that individual acquire through strategic learning process is finally implemented in developing strategies for the organisation. Using the example of the outcomes that some modern organisations have attained from the implementation of strategic learning, Kirkpatrick (2006) held the view that strategic learning helps the individuals to understand the objectives of the organisation and relate to it. It also helps them in understanding the environment that the business is functional in. Understanding the environment is important for the employees in order to develop an understanding the competitive environment, which is essential in order to learn how to develop competitive advantage (Suhasini and Suganthalakshmi, 2015; Aguinis and Kraiger, 2012). It will also help the individuals to develop a deeper knowledge of the business processes and contribute to the objectives of the business Strategic learning also helps in developing confidence of the employees by teaching those proper techniques and methods to deal with various issues that the organisation faces. It also helps them in understanding the strategies of the business and what role they play in achieving them. It helps them in adapting to the strategic changes brought by the business as a result of the constantly changing environment (Noe, 2010).

Kirkpatrick (2006) also posited that strategic learning helps the organisations to focus on their objectives and develop clear understanding of the competitive environment. Knowledge of the competitive environment is one of the most vitals factors, which helps in contributing to the success of an organisation. Understanding how they can benefit people through their products and services and what can be done to improve their productivity in order to serve the needs better, will help them in surviving in the market for the longer run (Noe, 2010). Understanding changes and then transforming accordingly is one of the most important factors that help an organisation in surviving the harsh competitive environment. Strategic learning helps the businesses in keeping a track of the changing trends in the business environment. This helps them in adapting to the changing trends of the environment, for performing well in the market.

5.0 Conclusion

This study was conducted with the purpose of critiquing the different approaches taken by real world firms in the implementation of strategic learning as a way of supporting ID and OD. The approach used in addressing this purpose was a case study involving real world companies and other academic research conducted in this area. Using the good examples of Shell and Apple, it has been established that organisations consider it to be an important investment to train the employees and help them grow along with the organisation. The bad example of Motorola has also helped in deducing that the ambition to use strategic learning does not automatically mean ID and OD will be supported. This is because there are some factors that can hinder the success of strategic learning. When such factors are not corrected, it becomes impossible to achieve ID and OD through strategic learning. Strategic learning has become one of the basic methods of training and development that the organisations use these days in order to handle the changing requirements of the industries. It is the process of development that helps the organisations in understanding the dynamic nature of the industry and work accordingly to gain a strong position in the industry.

The study has further showed that strategic learning helps the organisations in creating a framework to train the employees keeping in mind the strategic objectives of the organisation. Combining the objectives of the organisation and that of the employees will helps them both in realising their goals. It is essential for the employees and the organisations to understand how they can support each other in realising their goals. This is a very important factor that determines employee retention for the organisations. Training and development must focus on individual as well as organisational development. An appropriate training program helps the employees in developing the personal as well as professional skills develop confidence and expertise in their areas of interest, helps them in understanding the objectives of the organisation and realise their role in achieving them.