MIDDLE EAST TECHNICAL UNIVERSITY
DEPARTMENT OF CIVIL ENGINEERING
CE 726 – STRATEGIC MANAGEMENT OF CONSTRUCTION
COMPANIES
LEARNING ORGANIZATIONS
Nizami ÖZÇELİK - 1623156
Can Barış AĞBAY - 1492974
OUTLINE
• Learning Notion
• What is Learning Organization?
• Basics of Learning in Learning Organizations
• Founders of Learning Organization Concept
• Organizational Learning in Construction Industry
• How Construction Companies Learn
• Strategic Role of Organizational Learning
• Obstacles to Becoming a LO in Construction
Sector
• The Learning Organization Audit
INTRODUCTION
A world of rapid and accelerating change in today’s
markets
These organizations must learn as fast as their
environment changes in order to stay relevant and
competitive.
Learning organization develops due to changes and
pressures of modernization of the human and
organizational life cycle
Being better placed to respond to external pressures
Having the knowledge to better link resources to
customer needs
Learning Notion
Gaining experience and taking lessons from
experiences
Chris Argyris
A relatively permanent change in behavior that results from practice
Atkinson et al.
Learning process could be achieved by various methods with different percentages of retention.
The National Training Laboratories created a learning pyramid illustrates the percentage of learning retention
Learning Notion
Learning approaches were shifted in the latter half of
20th century that is giving rise to existing new fields
such as;
• Active learning
• Collaborative learning
• Organizational learning
“This shift eliminates the separation of teacher
from student and replaces it with dialogue between
teacher and student to encourage joint responsibility
for learning and growth.”
Burkey
(1997)
Learning Notion
Shana Ratner (1997) explains that this shift, from thinking of learning as a transaction to learning as process.
Old Answers (~1980s) New Answers (~2000s)
Knowledge is a “thing that is
transferred from one person to
another.
Knowledge is a relationship b/w the
knower and the known
We all learn in the same way. There are many different learning
styles.
We learn best passively, by listening
and watching.
We learn best by actively doing and
managing our own learning.
We learn alone, with our minds, based
on our innate abilities.
We learn in social contexts, through
mind, body, and emotions.
Our “intelligence” is based on our
individual abilities.
Our intelligence is based on our
learning community.
What is Learning Organization?
A company that facilitates the learning of its members
and continuously transforms itself
People are in a continuous search for new and better
ways to adapt to change and improve performance.
Learning organization enables organizations to
sustain competitive position in the business
environment.
What is Learning Organization?
According to Peter M. Senge, an organization where;
People continually expand their capacity to create the
results they truly desire
New and expansive patterns of thinking are nurtured
Collective aspiration is set free
Anwhere people are continually learning how to learn
What is Learning Organization?
Rowden (2001) states that a organization in which;
Everyone is engaged in solving problems, enabling
the organization to continuously experiment, change,
and improve
Increasing its capacity to grow, learn, and achieve its
purpose
What is Learning Organization?
Garvin (1993) tells that learning organizations are
specialists at 5 activities:
Systematically problem solving
Testing for new approaches
Learning from own past experiences
Learning from others’ experiences and successful
applications
Transferring knowledge to each member of
organization rapidly
Basics of Learning in Learning Organizations
The smallest elements of organizations are persons
and learning process starts from persons.
Individual learning is the basic of the learning by
group. Individuals turn towards a common aim and
share personal knowledge.
After personal learning, learning by groups comes into
play.
Further, the results reached by group learning should
be transmitted to all members of organization and OL
could be achieved.
Founders of Learning Organization Concept
Sandra Courter states that in literature and
conversations with practitioners, the authors whose
names came up again and again as "founders" of this
approach are;
• Chris Argyris,
• Donald Schön,
• Margaret Wheatley , and
• Peter Senge
Chris Argyris and Donald Schön
Chris Argyris The father of organizational
learning
Donald Schön Harvard scholar of Chris Argyris
They identified two methods as the theories of action.
The theories of action are divided into two parts:
• Espoused Theory: Are essentially the words
individuals use to convey what it is we do or would
others to think we do in a particular situation.
• Theories-in-use: Are the theories that govern the
actual behavior of what we do in a particular
situation.
Chris Argyris and Donald Schön
Argyris and Schön addressed the issue of learning by
developing two distinctions which involve the methods
individuals solve problems.
• Single Loop Learning: Routine learning which
involves individuals solving problems within
structured guidelines.
• Double Loop Learning: Questioning the structured
guidelines and determining if they are indeed the
best method for resolving the issue.
Chris Argyris and Donald Schön
Argyris states “double loop learning is necessary if
organizations are to make informed decisions in
rapidly changing and often uncertain contexts”
With the purpose of illustrating this view, Argyris and
Schön developed two models:
• Model I: Inhibiting double loop learning
• Model II: Enhance double loop learning
Chris Argyris and Donald Schön
Model I: Making inferences about behaviors without
checking whether they are valid and advocating one’s
view without explanation.
Model I is found harmful to organizations in that it
leads to defensive routines which are governed by 4
basic principles:
1) To remain in unilateral control;
2) Maximizing “winning” and minimize “losing”;
3) Suppressing negative feelings; and
4) To be as rational as possible.
Chris Argyris and Donald Schön
Model II: Calling upon good quality data and to make
inferences. It looks to include the views and
experiences of participants rather than seeking to
impose a view upon the situation.
Argyris argues that Model II fosters productive
reasoning. Despite the challenges of breaking
individuals away from defensive reasoning, it is not
impossible.
Chris Argyris and Donald Schön
To sum up, Argyris and Schön call for;
The adjustment of the thinking and behavior to ensure
that the best possible outcome is achieved at the
individual level.
Individuals must not fear failure or become defensive
when encountering new challenges
Persons should question old theories and must instead
embraces the possibility of learning.
Margaret Wheatley
Wheatley offers these core ideas:
1. Everything is a constant process of discovery and
creating.
2. Life is intent on finding what works, not what is
right.
3. Life is attracted to order.
4. Life organizes around identity.
5. Everything participates in the creation and
evolution of its neighbors.
Margaret Wheatley
Using a spider's web as a metaphor, Wheatley
demonstrates how organizations are living entities and
that learning strengthen their structure.
“... feeling its resiliency, noticing how slight
pressure in one area jiggles the entire web. If a web
breaks and needs repair, the spider doesn't cut out a
piece, terminate it. She reweaves it, using the silken
relationships that are already there, creating stronger
connections across the weakened spaces. We have not
yet learned how to be together.”
Peter M. Senge - FIFTH DISCIPLINE
System Thinking
Personal Mastery
Building Shared Vision
Mental Models
Team Learning
Systems Thinking
• Challenging since integrate new tools than simply apply them separately. That is the reason why system thinking is the fifth discipline.
• Brings and integrates other disciplines.
• Create an assemble logic for theory and practice.
• Focusing on whole pattern of change instead of snapshots of isolated parts of the systems. In fact, not only manage the results, it manages the the process as well.
System thinking requires; the disciplines of building
shared vision, mental models, team learning, and
personal mastery to realize its potential. Building shared
vision helps to think, plan, act, and behave in the long term.
Mental models focus on the openness required to root out
drawbacks in our present ways of seeing the world. Team
learning improves the skills of groups of people to look for
the whole picture that lies beyond individual perspectives.
And personal mastery fosters the personal motivation to
continually learn how our actions influence our world.
Systems Thinking
System thinking makes understandable the elusive and
subtle aspect of the learning organization. Individuals
perceive themselves and their world. A shift of mind is the
critical point of learning organization such as from seeing
ourselves as separate from the world to connected to the
world, from seeing problems as caused by someone or
something "out there" to seeing how our own actions
create the problems we experience.
Systems Thinking
• The key to seeing reality systemically is seeing circles of influence rather than straight lines.
• Breaking out of the reactive mindset that comes inevitably from "linear" thinking.
• Every circle tells a story. Any change made to the faucet position will alter the flow of water. As the water level changes, the perceived gap (between the current and desired water levels) changes. As the gap changes, my hand's position on the faucet changes again.
• When reading a feedback circle diagram, the main skill is to see the "story" that the diagram tells:
• how the structure creates a particular pattern of behavior (or, in a complex structure, several patterns of behavior) and how that pattern might be influenced.
How To Read System Diagram
Individual learning does not guarantee organizational learning. But without it organizational learning would not occur.
Kazua Inomari, says whether it is research and development, company management, or any other aspect of business, the active force is "people." And people have their own will, their own mind, and their own way of thinking. If the employees themselves are not sufficiently motivated to challenge the goals of growth and technological development, there will simply be no growth, no gain in productivity, and no technological development.
continually expanding ability to create the results in life we look for and want.
Personal Mastery
Personal mastery goes beyond competence and skills
It goes beyond spiritual unfolding or opening.Approaching one's life as a creative work, living life
from a creative as opposed to reactive viewpoint. A series practices and principles such as personal
vision, holding creative tension, structural conflict, commitment to truth, using subconscious.
Personal vision comes from within. We have goals and objectives, but these are not visions. The ability to focus on ultimate desires, not only on secondary goals, is a cornerstone of personal mastery as having vision. Therefore, idea of purpose is important to understand the real vision.
Most directly a result of living consistently with your purpose. This is a critic for personal mastery.
Personal Mastery
The principle of creative tension is the central principle of personal mastery.
Creative tension can appear when you bring the vision and a clear picture of current reality to juxtaposition. The significance of personal mastery is learning how to generate and sustain creative tension in our lives.
not mean acquiring more information, but expanding the ability to produce the results .
Need lifelong generative learning.
learning organizations are not possible unless they have people at every level who practice it.
Personal Mastery
Many people, even highly successful people, harbor deep beliefs contrary to their personal mastery.
these beliefs are below the level of conscious awareness.
hold one of two contradictory beliefs that limit our ability to create what we really want.powerlessness—our inability to bring into
being all the things we really care about. unworthiness—that we do not deserve to
have what we truly desire.
Personal Mastery
Robert Fritz uses a metaphor to describe how contradictory underlying beliefs work as a system, counter to achieving our goals.
Imagine, as you move toward your goal, there is a rubber band, symbolizing creative tension, pulling you in the desired direction.
But imagine also a second rubber band, anchored to the belief of powerlessness or unworthiness. Just as the first rubber band tries to pull you toward your goal, the second pulls you back toward the underlying belief that you can't (or don't deserve to) have your goal. Fritz calls the system involving both the tension pulling us toward our goal and the tension anchoring us to our underlying belief "structural conflict," because it is a structure of conflicting forces: pulling us simultaneously toward and away from what we want.
Personal Mastery
Commitment to the truth often seems to people an inadequate strategy.
not mean seeking the "Truth," the absolute final word or ultimate cause.
root out the ways we limit or deceive ourselves from seeing what is.
It means continually broadening our awareness.
When personal mastery is realized as a discipline—an activity we integrate into our lives—it involves two underlying movements. The first is continually clarifying what is important to us. We often spend too much time coping with problems along our path that we forget why we are on that path, in the first place. The second is continually learning how to see current reality more clearly. We've all known people have in counterproductive relationships, who remain stuck since they behave as pretending everything is all right.
Personal Mastery
mastery means a special level of proficiency.
People with a high level of personal mastery are able to consistently realize the results that matter most deeply to them in effect.
They approach their life as an artist would approach a work of art, by becoming committed to their own lifelong learning.
The discipline of personal mastery starts with clarifying the things that really matter to us, of living our lives in line with our highest aspirations.
Personal Mastery
Many brilliant ideas do not get put into practice most of time. Best ideas and strategies fail to get translated into action. This is not due to weak intention, wavering will or non systematic understanding but from mental models. Particularly, new insights fail to get put into practice because they conflict with deeply held internal images of how the world works. Those images limit us to familiar ways of thinking and acting. Therefore, managing mental models as a discipline -surfacing, testing and improving our internal pictures of how the world works- promises to be a major breakthrough for building learning organizations.
Why are mental models so powerful in affecting what we do? In part, they affect what we see. As Albert Einstein once wrote, "Our theories determine what we measure." For many years, physicists ran experiments that contradicted classical physics, yet no one "saw" the data that these experiments eventually provided, leading to the revolutionary theories—quantum mechanics and relativity—of twentieth-century physics.
Mental Models
The inertia of deeply entrenched mental models can overwhelm even the best systemic insights.
To illustrate, business skills and interpersonal issues, sides of the discipline, are very important. On the other hand, most of managers are inherently pragmatic. They are motivated and willingness to learn when they need to learn in business context. Training them in mental modeling or "balancing inquiry and advocacy," with no connection to pressing business issues, will often be rejected. On the other hand, without the interpersonal skills, learning is still fundamentally adaptive, not generative. Generative learning requires managers with reflection and inquiry skills, not just consultants and planners. Then, the individuals with groups in whole organization realize the learning within an assemble cycle.
Mental Models
To sum up, mental models are deeply ingrained assumptions, generalizations, or even pictures of images that influence how we take action. Very often, we are not consciously aware of our mental models or the effects that they have on our behavior.
Many insights into new markets or outmoded organizational practices fail to get put into practice because they conflict with powerful, tacit mental models.
Institutional learning is the process whereby people change their shared mental models of the company, their markets, and their competitors.
Mental Models
A shared vision is not just an idea. It is like attractive force in people's hearts, a
force off impressive power. Once it is realized, then it is no longer an
abstraction. It is concrete. People begin to see it as if it exists.
Few, if any, forces in human affairs are as powerful as shared vision.
Answer to the question, "What do we want to create?"
Create sense of commonality that permeates the organization and gives coherence to diverse activities.
truly share a vision common aspiration. creates energy with focusing on the things. While adaptive learning is possible without
vision, generative learning occurs only when people are striving to accomplish something that matters and carries a meaning deeply to them. In fact, the whole idea of generative learning—"expanding your ability to create"—truly want to accomplish. will seem abstract and meaningless until people become excited about some vision they
Building Shared Vision
Encourage members to develop their personal visions as building shared vision. Knowing that if individuals do not have their own vision, they can only adapt and sign up for someone else’s vision. This causes a result which is compliance, not commitment.
As a metaphor, hologram, can be given. if you cut a photograph in half, each part shows only one part of the whole image. But if you divide a hologram, each part shows the whole image intact. Similarly, as you continue to divide up the hologram, no matter how small the divisions, each piece still shows the whole image. Likewise, when a group of people come to share a vision for an organization, each person sees his own picture of the organization at its best. Each shares responsibility for the whole, not just for his piece. But the component "pieces" of the hologram are not identical. Each represents the whole image from a different point of view
Building Shared Vision
Senge states that “visions spread because of a reinforcing process of increasing clarity, enthusiasm, communication and commitment.
As people talk, the vision grows clearer. As it gets clearer, enthusiasm for its benefits builds. And soon, the vision starts to spread in a reinforcing spiral of communication and excitement. Enthusiasm can also be reinforced by early successes in pursuing the vision”. It is represented in the below figure. If the reinforcing process continues, it would lead to growth in clarity and shared commitment toward vision as more people join.
Building Shared Vision
However, any kind of limiting factors can come into play to slow down this cycle.
To illustrate, as the number of people increases, number of different views grows as well. This would generate unmanageable conflict. This is called as a classic "limits to growth" structure, where the reinforceing process of growing enthusiasm for the vision interacts with "balancing process" that limits the spread of the visions, due to increasing diversity and polarization.
Building Shared Vision
Relatively unaligned team waste energy.
Aligned with commonality of direction, individuals’ energies harmonize. As a result, there would be much less wasted energy.
There is commonality of purpose, a shared vision, and understanding of how to complement one another's efforts.
Alignment as a whole team is the requirement condition before empowering the individual.
Empowering the individual when there is a relatively low level of alignment worsens the chaos and makes managing the team even more difficult.
Team Learning
Need for mastering team learning in organizations.
Individual learning, at some level, would not be so important for organizational learning. But if teams learn, they become a microcosm for learning throughout the organization. However, it is known that team skills are more challenging to develop than individual skills. This is why learning teams need "practice fields," ways to practice together so that they can develop their collective learning skills.
The almost total absence of meaningful "practice“ is probably the predominant factor that keeps most management teams from being effective learning units.
Team Learning
Team learning has three critical dimensions.
1. thinking insightfully about complex issues. Teams ought to know that potential for many minds is more intelligent than one mind.
2. need for innovative coordinated action. Outstanding teams in organizations develop the same sort of relationship—an "operational trust," where each team member remains conscious of other team members and act in ways that complement each others' actions.
3. role of team members on other teams. For example, most of the actions of senior teams are actually carried out through other teams. Thus, a learning team continually fosters other learning teams through inculcating the practices and skills of team learning more broadly.
Team Learning
The discipline of team learning involves mastering the practices of dialogue and discussion, the two distinct ways that teams converse.
In dialogue, there is the free and creative exploration of complex and subtle issues, a deep "listening" to one another and suspending of one's own views. Moreover, to a large degree, the skills that allow dialogue are identical to the skills that can make discussions productive rather than destructive. These are the skills of inquiry and reflection, originally discussed, "Mental Models." In fact, one of the reasons that dialogue is so important is that it offers a safe environment for honing these skills and for discovering the profound group learning that they can lead to.
By contrast, in discussion different views are presented and defended and there is a search for the best view to support decisions that must be made at this time.
Dialogue and discussion are potentially complementary
Team Learning
It is important to mention about team learning and fifth discipline together .
the tools of systems thinking are significant because virtually all the prime tasks of management teams—developing strategy, shaping visions, designing policy and organizational structures—involve wrestling with enormous complexity.
Perhaps the single greatest difficulties of management teams is that they confront these complex, dynamic realities with a language designed for simple, static problems. Management consultant Charles Kiefer says it this way: "Reality is composed of multiple-simultaneous, interdependent cause-effect-cause relationships. From this reality, normal verbal language extracts simple, linear cause-effect chains. This accounts for a great deal of why managers are so drawn to low leverage interventions." For example, if the problem is long product development times we hire more engineers to reduce times; if the problem is low profits we cut costs; if the problem is falling market share we cut price to boost share.
This occurs due to fact that we see the world in simple obvious terms, and we believe in simple, obvious solutions. This leads to searching for simple solutions and fixes.
Team Learning
The outputs of construction works are unique projects that involve the integration of different subsystems and components by a range of participants such as clients, advisors and subcontractors who come together for a temporary cooperation (Barlow, 2000).
Having a project-based nature, characterized as short-term and task-oriented, construction industry does not allow a culture for continuous learning. For this reason, construction companies should be more careful in developing and measuring OL so as to benefit from OL principles (Kululanga et al., 2001).
A learning organization in construction should be skilled at five main activities as Garvin (1993) suggests: systematic problem solving, experimentation with new approaches, learning from their own experience and past history, learning from the experiences and best practices of others and transferring knowledge quickly and efficiently throughout the organization (cited in Love et al., 2000).
A construction company learns from its internal resources as well as from the other organizations through partnerships and benchmarking. (Özorhon, 2004)
Organizational Learning in Construction Industry
As Nevis et al. (1995) state learning is concerned about the production and delivery of goods and services. Since in construction works, the unit of production or service is the project then, the most important source of learning is the project-related activities. Project knowledge includes;
the technical knowledge concerning the product, its parts and technologies,
procedural knowledge concerning producing and using of the product and
organizational knowledge concerning communication and collaboration between the work teams (Kasvi et al., 2003).
How Construction Companies Learn
Love et al. (2000) argue that lean production, concurrent engineering, benchmarking, partnering and supply-chain management can be effectively implemented when construction companies learn.
Benchmarking is a popular means of learning the best practices used by other companies, including the competitors (Mann, Samson and Dow, 1998 cited in Robey et al., 2000).
Cooperative strategic alliances encourage partners to commit resources to the relationship. By the help of alliances, companies learn from each other, compensate their lacks in the market.
How Construction Companies Learn
OL can influence performance, long-term effectiveness and survival
Ability of searching, encoding, distributing, and interpreting the external information (cited in Hong, 1999).
More attention to sharing, interpretation and utilization of knowledge to integrate this asset in their daily activities.
Effectively used techniques and technologies such as; the telephone, Internet/intranet/e-mail and documents and reports for knowledge sharing among employees in construction organizations
Face-to-face meetings and interaction with the supply chain (Egbu and Botterill, 2002).
Strategic Role of Learning Organization
Becoming a learning organization is an evolution in
mind and system; therefore some obstacles arise:
Project based teams
Limited time and budget in construction industry
No allowance for continuous learning culture in
construction industry
Taught thinking way and communication habits
Obstacles to Becoming a Learning Organization
in Construction Sector
Obstacles to Becoming a Learning Organization in Construction Sector
Limited support from top management
Apparently given lessons, not practical and
applicable lessons
Upright hierarchy in many companies
Lack of collaboration due to competition
Not having an innovative company culture
Not sharing personal knowledge with other
members
Measuring and evaluating those learning organizations
are important.
Mainly two evaluating methods are proposed;
• Organizational Learning Profile (OLP)
• Learning Organization Questionnaire (DLOQ)
The Learning Organization Audit
Organizational Learning Profile (OLP)
This approach measures 4 factors that describe
important elements of LOs:
a) information-sharing patterns,
b) inquiry climate,
c) learning practices, and
d) achievement mindset.
The OLP consists of 34 items about these 4 factors
Respondents agree or disagree by using a six-point
scale
Learning Organization Questionnaire (DLOQ)
Rather than focus on learning processes, focus on
primary characteristics of a LO.
Watkins and Marsick (1997) identified 7 dimensions of
a LO: (a) creates continuous learning opportunities,
(b) promotes dialogue and inquiry,
(c) promotes collaboration and team learning,
(d) empowers people to evolve a collective vision,
(e) establishes systems to capture and share learning,
(f) connects the organization to its environment, and
(g) provides strategic leadership for learning.
Learning Organization Questionnaire (DLOQ)
(DLOQ) consist of 55 statements about organization
practices. Respondents indicate the degree by using a
6-point scale (almost always to almost never).
Learning Organization Questionnaire (DLOQ)
DLOQ is applied for a project-based construction organization
No success in being a LO in this case.
Conclusion
An excessive literature study about LO is shared with
you.
LO have important benefits such as maintaining levels
of innovation, remaining competitive, being better
placed to respond to external pressures.
In spite of mentioned obstacles, construction LOs
could be achieved by following the guidelines proposed
by the founders of the concept.
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