Unit 3: Organizational Design &
Strategy
Lesson 8: Learning & Organization
Strategy
April 8, 2023RIMS, Bangalore | PGDM 2nd Year, Strategic Management
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What are Learning Organizations?
Organizations that facilitates the learning of its members and continuously transforms itself.
Organization with an ingrained philosophy for anticipating, reacting and responding to change, complexity and uncertainty.
Learning organizations develop as a result of the pressures facing modern organizations and enables them to remain competitive in the business environment.
Organizations need to maintain knowledge about new products and processes | Understand what is happening in the outside environment | Produce creative solutions using the knowledge and skills of all within the organization.
April 8, 2023RIMS, Bangalore | PGDM 2nd Year, Strategic Management
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April 8, 2023RIMS, Bangalore | PGDM 2nd Year, Strategic Management
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Characteristics of Learning Organizations
Systems Thinking An approach to problem
solving, by viewing "problems" as parts of an overall system, rather than reacting to specific part, outcomes or events
Learning organizations use this method of thinking when assessing their company and have information systems that measure the performance of the organization as a whole and of its various components
Personal Mastery Commitment by an individual to
the process of learning There is competitive advantage
for an organization whose workforce can learn more quickly than the workforce of other organizations
Acquired through staff training & development
Team Learning Accumulation of individual
learning | Individuals engage in dialogue, & discussions (Open communication & Shared Understanding)
April 8, 2023RIMS, Bangalore | PGDM 2nd Year, Strategic Management
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Characteristics of Learning Organizations
Mental Models Assumptions held by
individuals & organizations Learning organization needs
to challenge these mental models
Unwanted values need to be discarded in a process called ‘unlearning’
Organizations tend to have ‘memories’ which preserve certain behaviors, norms and values; it is important to replace confrontational attitudes with an open culture
Shared Vision Important in motivating the
staff to learn Learning organizations tend
to be flat, and decentralized structures
April 8, 2023RIMS, Bangalore | PGDM 2nd Year, Strategic Management
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The Learning Cycle
April 8, 2023RIMS, Bangalore | PGDM 2nd Year, Strategic Management
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Single & Double Loop Learning Systems
Single Loop Learning• Organization reviews performance against targets & takes corrective action
Double Loop Learning• Organization challenges governing assumptions• Employees reflect on behavior, identify ways they inadvertently contribute to organization’s problems, and then change how they act
April 8, 2023RIMS, Bangalore | PGDM 2nd Year, Strategic Management
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What is Knowledge Management?
Range of strategies and practices used in an organization to identify, create, represent, distribute, and enable adoption of insights & experiences.
Such insights & experiences comprise knowledge, either embodied in individuals or embedded in organizations as processes or practices
Knowledge Management typically focuses on organizational objectives such as improved performance, competitive advantage, innovation, sharing of lessons learnt, and continuous improvement
April 8, 2023RIMS, Bangalore | PGDM 2nd Year, Strategic Management
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Importance of Knowledge Management in Strategy
Market places are increasingly competitive and the rate of innovation is rising
Competitive pressures reduce the size of the workforce that holds valuable business knowledge
Reduction in staffing create a need to replace informal knowledge with formal methods
The amount of time available to experience and acquire knowledge has diminished
Early retirement & increasing mortality of workforce lead to loss of knowledge
Change in strategic direction may result in the loss of knowledge in a specific area
Need to manage increasing complexity as small operating companies are trans-national sourcing operations
April 8, 2023RIMS, Bangalore | PGDM 2nd Year, Strategic Management
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Knowledge Management Spiral
Tacit KnowledgeInternalized knowledge that an individual may not be consciously aware of, such as how he or she accomplishes particular tasks
Explicit KnowledgeKnowledge that an individual holds consciously in mental focus, in a form that can be easily communicated to others
Spiraling Knowledge Process (SECI)Knowledge follows a cycle in which implicit knowledge is ‘extracted’ to become explicit knowledge, and explicit knowledge is ‘re-internalized’ into implicit knowledge.
April 8, 2023RIMS, Bangalore | PGDM 2nd Year, Strategic Management
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Knowledge Management Spiral
Socialization: Process that transfers tacit knowledge in one person to tacit knowledge in another person | through direct interaction with customers and suppliers outside the organization and people inside the organizationExternalization: Process for making tacit knowledge explicit | During face-to-face communication people share beliefs and learn how to better articulate their thinking, though instantaneous feedback and the simultaneous exchange of ideasCombination: Explicit knowledgecan be conveyed in documents, email, data bases, as well as through meetings and briefings
Internalization: Process of understanding and absorbing explicit knowledge in to tacit knowledgeheld by the individual | Internalization is largelyexperiential, in order to actualize concepts and methods, either through the actual doing or throughsimulations.
April 8, 2023RIMS, Bangalore | PGDM 2nd Year, Strategic Management
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Challenges of Creating Learning Organizations
Problems of Leadership Leaders in the organization may already have mental models
that are entrenched and must be overcome in order to foster the openness and confidence required
Learning Organizations require leaders to be open to challenges about their vision and behavior, and to be prepared to change when necessary
Learning Organizations require a questioning approach that is contradictory to the cultural expectations of both leaders and the majority of organizations
Most leaders are promoted to their level because of their expertise at the previous level, they then fall into the ‘Expert Trap’, telling people what to do
April 8, 2023RIMS, Bangalore | PGDM 2nd Year, Strategic Management
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Challenges of Creating Learning Organizations
Long-Term Vision Learning Organizations must have a long-term vision, and be
focused on the learning and development of their workers in order to achieve development of the whole.
This requires many to make large changes and in a results driven, time pressured, business environment, the decision to look long-term is a hard one to take.
Training and Development required to move towards being a Learning Organization takes a lot of time that companies may not be able or willing to spend at the moment.
April 8, 2023
Thank you
Hardy AlexanderFounder & Director | Triune GlobalBangalore – 560077Contact: +91 96864 48698Email: [email protected] Blog: dayscore.wordpress.com
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