Learning Chaos

7/31/2019 Learning Chaos

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UNIT EC449

STRATEGIC MANAGEMENT

Semester 1 2000

Lecturer: K. Hinde

Room: 427 Northumberland BuildingTel: 0191 2273936Email: [email protected] Page: http://www.unn.ac.uk/~egv8

WEEK4


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Kevin Hinde. 1999/2000. C:\WINDOWS\DESKTOP\MSc\SMLECTURE3INTRO.doc

IntroductionIn this lecture we will examine the concept of a learningorganisation and organisational learning. I will also talk aboutorganisations as chaotic systems. Thus we are trying toexamine the organisation in a dynamic environmentundergoing dramatic changes. This is different from aplanning perspective or viewing the organisation as evolving

incrementally. Here environmental change is seen as lessturbulent. This, of course, means that we are examining thedifficulties arising when managing change, something I comeback to in later lectures but which needs addressing now.

So by the end of this lecture you should have a preliminaryunderstanding of the concepts relating to organisational

learning and chaos.

Please read the attached slides and take notes from the on-line articles. These should enhance your understanding of theconcept of the learning organisation. For those of you whohave knowledge of the learning organisation concept fromyour work experiences please share it with us.

On Line Activities

Task 1

Go to the following website:

The Society for Organisational Learning at MIT.

It contains a variety of papers on the concept of organisationallearning (particularly the research section).

Examine the papers by Schein and Senge and consider thefollowing questions.

1. What does organisational learning mean?

2. How are learning and organisational culture linked?

3. How are leaders supposed to facilitate organisationallearning?

Task 2

Use a search engine to find other papers on the concepts ofthe Learning Organisation.
http://learning.mit.edu/res/kr/index.htmlhttp://learning.mit.edu/res/kr/index.htmlhttp://learning.mit.edu/res/kr/index.html


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Learning Organisations

Definition

Varies from author to author (see sheet)

What is the distinction between learning organisationand organisational learning?

The LO is an aspiration - a view of what might bepossible.(End)

OL is the activity and the process by which organisations

reach their ideal. (Means) Note we are examining organisations undergoing

transformational change.


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Learning Organisations - re: Morgan

Do organisations have Brains (Morgan, 1997)?

With bounded rationality managers have to searchfor solutions, perhaps randomly, with rationalexplanations being sought after the event.

Garbage Can model of decision making develops.(March)

Borrowing from cybernetics organisational theoristshave developed the ideas of single and doublelooped learning.


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Step 1

Step 3 Step 2

Single Loop Learning: Making sense of the existing

paradigm and correcting resulting errors


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Step 1

Step 3 Step 2

Step 2a

Key

Step 1 = the process of sensing, scanning and monitoring the

environment.

Step 2 = the comparison of this information against the

operating norms.

Step 2a = the process of questioning whether the operatingnorms are appropriate

Step 3 = the process of initiating the appropriate action.

Double Loop Learning: Taking a double look at the situation

and questioning the paradigm


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Negative and positive feedback are important

aspects of the learning process. It is only byaccepting errors are possible that managers canensure that strategic direction involves inclusive

ownership.

Thus, there is a need for managers to

encourage the emergent organisation create designs that facilitate learning.

Learning organisations involve all members of theorganisation sharing information and knowledge.


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PSOs and the LO

What factors encourage moves towards a LO inpublic services?

Pressures from without

Pressures from within

Legitimisation - treating citizens as clients?


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Chaos

organisations are complex systems in a constantstate of flux and transformation; they are complexnon-linear systems. (Stacey, 1997)

despite all the unpredictability, coherent orderalwaysemerges out of the randomness and surfacechaos (Morgan, 1997).


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Chaos (2) An important aspect of chaos is that we need to

understand the concept of attractors. Some pull a

system into equilibrium or near equilibrium; forexample, as a result of negative feedback loopswhich counteract destabilising fluctuations.

Other attractors flip a system into completely newconfigurations. The system is then pushed far from

its original equilibrium point. These departures arebifurcation points.


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Chaos (3)

To manage in the midst of complexity it is important

to rethink what we mean by organisation, especiallythe nature of hierarchy and control

to learn the art of managing and changing contexts learn how to use small changes to create large

effects

to live with continuous transformation and emergentorder as a natural state of affairs

So are we ever in control?


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Chaos (4) Ordinary management can only be practised in closed or

contained change situations (Stacey, 1997, p.71).

This requires knowledge of rational processes to secureharmony, fit, or convergence to a configuration that can onlyproceed incrementally.

Where a change of strategic direction is required ExtraordinaryManagement must be practised.

This requires the use of intuitive, political, group learning modes

of decision-making control in situations of open-ended change,Stacey (1997, p.72).

Managers have to understand and develop the shadowsystem.


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Author(s)(Year)

Definition of OL Who? (subject ofOL)

What? (content ofOL)

When?(incentives forOL)

With what results?(Efficiency of OL)

How? (Processes ofOL)

Cyert andMarch(1963)

OL is adaptive behaviour oforganisations over time

Aggregate level oforganisation

Standardoperatingprocedures andorganisationalrules

SlackResources

Adaptation tochangingenvironmental states;improved adaptationas prerequisite forsurvival

Adaptation of goals,attention, andsearch rules;learning fromexperience.

Cangelosi and Dill(1965)

OL consists of a series ofinteractions between adaptationat the individual, or subgroup leveland adaptation at theorganisational level.

Individuals andsubgroups inorganisations

Complexmanagementdecisions

Stressstimulateslearning, bothsubsystemlearning andtotal systemlearning,separately and

together.

Reduction of stress,and improveddecision-making

Adaptation toconflicting patternsof behaviour causedby stress


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Argyris

andSchon(1978)

OL is the process by which

organisational memebers detecterrors or anomalies and correctthem by restructuringorganisational theory-in-use.

Individual learning

in organisations

Organisational

theories-in-use ortheories-of action

Match or

mismatch ofexpectedoutcomes whichconfirms ordiscreditsorganisationaltheories-in-use

Link between learning

and improved action

Assumption sharing;

individual andcollective enquiryconstructs andmodifies theories-in-use; exact processremains unclear.

DuncanandWeiss(1979)

OL is defined as the processwithin the organisation by whichknowledge about action-outcomerelationships and the effect of theenvironment on these

relationships is developed.

The individual is theonly entity who canlearn. However,they must be seenas a part of a

system of learningwith exchanges ofwhat is learnedamong individuals

Organisationalknowledge base

Slack resources Depends on availableorganisationalknowledge for decisionmaking; adaptation tochanging

environmental states

Development ofaction-outcomerelations via

(a) sharing

(b) evaluation(c) integration

Fiol andLyles(1985)

OL means the process ofimproving actions through betterknowledge and understanding

OL is not simply thesum of individuallearning

Patterns ofcognitiveassociationsand/or newresponses or

actions (cognitivevs. behaviouralchange)

Tensionbetweenconstancy andchange; crisis(especially for

higher levellearning)

Environmentalalignment; futureperformanceimprovement

Lower level learningas repetition of pastbehaviour, higherlevel learning asdevelopment of

complexassociations


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Levitt and

March(1988)

Organisations are seen as

learning by encoding inferencesfrom history into routine behaviour

OL is more than

individual learning,that there is anemergentcomponent

Routines (which

include: rule,procedures,frameworks,cultures, beliefstructures,paradigms, etc.)

Outcomes in

response toaspiration level

Adaptation to

changingenvironmental states;balance betweenexploration andexploitation

Learning from direct

experience; learningfrom the experienceof others, learningof paradigms forinterpretation.

Huber(1991)

An entity learns if, through theprocess of information, the rangeof its potential behaviours is

changed (L)et us assume thatan organisation learns if any of itsunits acquires knowledge that itrecognises as potentially useful tothe organisation

Concept of entity,which includesindividuals, groups,

organisations,industries, society.

Information/knowledge

Probably notintended asauthor aims at

describing awhole range oflearningsubcategories

Range of potentialbehaviour change, notnecessarily resulting in

observable results

InformationProcessing:acquisition,

distribution,interpretation andstorage ofinformation; therelated proceses ofOL remainunspecified

Weickand

Roberts(1993)

OL consists of interrelatingactions of individuals, that is their

heedful interrelation whichresults in a collective mind

Connectionsbetween

behaviours ratherthan people

Behaviour/actions Necessity fornearly, error-

free operations,e.g. aircraftcarriers

Decrease oforganisational errors

Heedful interrelatingvia

(1) contribution(2) representation(3) subordination

Source: Prange C (1999) Organisational Learning Desperately Seeking Theory?, in Organisational Learning and the LearningOrganisation. Developments in Theory and Practice, edited by Easterby-Smith M, Burgoyne J and Araujo L, Sage, London.

Learning Chaos

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