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Addis Ababa University, College of Business and Economics School of Commerce Master of
Business leadership Post graduate extension program Group assignment for the course of
Organizational Behavior

Submitted by: group four (4)

1. Lamesginew Mersha ID NO: GSE/ 0279/

2. Maeregu Eshetu ID NO: GSE/ 8707/

3. Mahilet Kebede ID NO: GSE/ 9405/

4. Kenawak Daniel ID NO: GSE /4215/

5. Meba Bezuneh ID NO: GSE/ 8467/

Submitted to: Dr. Bahran A. (PhD) March 25/

Addis Ababa, Ethiopia

Page i

Contents

1. Organizational Learning and Knowledge Management...............................

1. Characteristics about learning and organizations.................................

1. The ‘Learning Organization’..............................................

 1.2. Bi-modal world...................................................................

 1.2. Source of learning........................................................

  1.2. Culture and learning................................................................

 1.2. Organizations as homogeneous, structured systems.....................

 1.2. Learning style........................................................................

 1.2. Managerial focal point.........................................................

2. Approaches to Organizational Learning..................................................

2. Management Training....................................................................

2. Management Development.............................................................

2. Organization
Development.....................................................................................

3. Bank of Abyssinia learning portfolio....................................

3. Analyzing Learning Portfolios..............................

3. Learning Portfolio Management in Bank of Abyssinia..............................

3. Investment Dimensions to Learning...............................................

4. Knowledge Management....................................................

4. Purpose of learning and knowledge management at bank of Abyssinia.....

4. Methods/ process of Knowledge management and

implementation..........................................

4. Knowledge Management Processes and Goals..................................

o
 4. Benefits of knowledge management in bank of
Abyssinia.........................................................

4. Knowledge management practices in bank of

Abyssinia...........................................................

4. Knowledge management
framework.........................................................................................

4. Knowledge management
systems..............................................................................................

5. Knowledge Managing related gaps in the organization in case of bank of

Abyssinia........................

 Reference...............................................................................................................................
....................

THE STRUCTURE OF THE ASSIGNMENT i. Discuss the concepts of the assigned part –
from ORGANIZATIONAL BEHAVIOUR (for example: Decision Making and Creativity;
Power and Conflict; Organizational Change; etc.). The discussion should at least include
meanings, purpose, scope, important components, process, methods/approaches, etc. of your
assigned part/area of ORGANIZATIONAL BEHAVIOUR & DESIGN_. ii. Select real project
as a case and assess how that part/area of_ ORGANIZATIONAL BEHAVIOUR & DESIGN is
practiced in the organization. iii. Compare the practices to the concepts you have discussed and
identify gaps/problems in the organization. iv. Forward recommendations on how to solve the
problems regarding that particular area/part of ORGANIZATIONAL BEHAVIOUR &
DESIGN.

GROUPS AND THEIR ASSIGNED AREA/S

Group 4: Organizational Learning & Knowledge Management - book review

Practical analysis should focus on ‘Managing Knowledge as a System and related gaps in the
organization’

1. Organizational Learning and Knowledge

Management.......................................................................

The idea that an organization could learn and knowledge could be stored over time was the key
breakthrough, which was first articulated in the book by. Evidently the book was the product of
much discussion and debate which had been going on and it was foreshadowed, but not
explicitly, by Mark Easterby-Smith and Marjorie A. Lyles (2011). Organization learning as the
improving actions through better knowledge and understanding. Organizations are not merely
collections of individuals, yet there are no organizations without such collections. Similarly,
Organizational learning is not merely individual learning, yet organizations learn only through
the experience and actions of individuals. In addition, some authors have concentrated on
learning at the individual level.

Organizational learning as an inquiry into the patterns of organizing among two or more people,
which leads to new knowledge and a change in those patterns of organizing. Since everyone
creates their own experiences; everyone will have different experiences in every interaction, and
so learning from collective experience is a lot more difficult than simply discussing what
happened in the past in order to decide what people want to do in the future. Organizational
learning as the ‘practice of developing tangible activities; new governing ideas; innovation in
infrastructure, and new management methods and tools for changing the way people conduct
their work (Cangelosi, V. and Dill, W. 2009).

General theory of organizational learning as part of a model of decision making within the firm,
and emphasize the role of rules, procedures, and routines in response to external shocks and
which are more or less likely to be adopted according to whether or not they lead to positive
consequences for the organization. A number of specific ideas were outlined in their book, which
were subsequently developed further by other scholars. Noteworthy points in the book are: the
idea that it is through ‘organizational learning processes that the firm adapts to its environment
the view that ‘the firm learns from its experience and an early version of the distinction between
single and double-loop learning, to wit, ‘An organization changes its behavior in response to
short-run feedback from the environment according to some fairly well defined rules (Mark
Easterby-Smith and Marjorie A. Lyles 2011).

Learning and forms of intelligence that deviate from social norms. Much as individuals learn in
different ways (Kolb, 1979), so too is the case with organizations. To some extent these
differences are a function of the diverse environments in which organizations must operate. For
example, in business environment BoA launch Local Deposit like Saving Account Current
Account Fixed Time Account, International Banking, Loan and Interest Free Banking Service
what and how the bank learn will be very different from what occurs in industries that are
volatile and involve new services or evolving technologies, such as

 Abyssinia Online  Agent Banking  Card Banking  Mobile Banking  Virtual Banking 
Branch/ATM Location

Learning differences between organizations also occur as a result of differences in history,

culture, size, and age. New, entrepreneurial firms are apt to learn differently from larger,
established fi rms. This creates opportunities for firms, like Apple’s chance in the 1970s and
1980s to take market share away, more critically the social complexity of organizations supports
multiple cultural realities or segments (Van Maanen and Barley, 1985), and how learning occurs
in one segment will differ from how it occurs in another. Organizational learning style is a
function of how organizations learn as represented by the different learning activities that they
undertake. An organization’s pattern of learning activities reflects its learning style. Such styles
do not indicate how well an organization is learning nor judge the value of what is learned, but
they do indicate a great deal about what is learned and how learning takes place. In aggregate, a
complex organization is bound to support numerous learning practices that represent different
learning styles. These practices and styles constitute the raw elements of an organization’s
learning portfolio. By recognizing a range of learning styles within an organization, we can focus
on how certain styles are matched to work demands and provide complementary or strategic
advantages.

Learning styles represent an organization’s acquired capability. To use that capability for
competitive advantage, organizational members must first recognize what that capability consists
of Identifying current capabilities provides a starting point for strategic action to change,
augment, or enhance one’s style or portfolio of styles. Rather than presume no existing
competence and dictate its development top down, managers work with, and from what already
exists. Research has revealed that some organizations have a dominant learning style, while
many more use a variety of styles, each of which provide some learning capability (DiBella ,
1996). Companies with a large portfolio of styles are apt to have multiple competencies and a
greater capacity to adapt to change than companies that rely on a single learning style. By
focusing on a company’s learning portfolio in its entirety, learning advocates re-orient
themselves from wondering whether the company has the right learning style (or is, or is not, a
learning organization) to considering the complementarity of its styles. Instead of evaluating the
style of a particular part of a company, the learning advocate takes a systems view to consider
synergistic possibilities. Recognizing the presence of multiple styles within a company can also
explain inter-group conflicts and barriers to learning. If different parts of a company learn in
different ways, then it is highly unlikely that knowledge will be transferred across functional or
project boundaries. Once we recognize such differences, they can be managed as a potential
source of competitive advantage. One possible reason why managers often ignore existing
capabilities is their attention to the plea that organizations must first unlearn before they can
learn (Hedberg, 1981). However, to develop learning capability organizations must distinguish
between unlearning what they know and do and how they learn as represented by their learning
portfolio. Managers can then make more informed assessments about how present capabilities
realize or inhibit learning and whether barriers to improved performance exist because of what is
being learned versus how learning takes place. Hence the notion of the learning organization is
as redundant as the notion of hot steam or a breathing mammal. Organizations don’t have to be
developed so they can learn, they already do. Source of learning occurs through the natural social
interaction of people being and working together. Organizations as contexts for social interaction
naturally induce learning. Learning occurs through the very nature of organizational life.

Organizations are differentiated structures: - Different organizational units promote different

behaviors and forms of interaction. There is differentiation in behaviors and social interaction
both vertically and horizontally in organizations Types and forms of learning vary between these
different units. The cacophony of differences is consistent with a view of complex systems as
organized anarchies.
Learning styles: - Organizations learn in divergent ways. There is no one way to learn or better
ways for organizations to learn. Learning styles will vary across an organization that may house
multiple styles in different organizational units.

Managerial focal point: - Managers need to understand the nature of social interaction in their
organizations and how existing behavior and routines engender learning. Once management
understands how their organizations learn, they can direct those learning processes towards what
is strategically desirable.

1. The ‘Learning Organization’ In the 1990s, the learning organization became synonymous
with long-term success. Organization is a template for an organization that continually creates its
future by adapting to environmental change and pro-actively shaping its environment. The
learning organization is a powerful vision and metaphor for change (Mark Easterby & etal,
2011).

1.2. Bi-modal world

By conceiving of ‘learning organizations’ and advocating for their creation or development,

theorists effectively bifurcate the world of organizations. When learning is used as an adjective
to describe a particular type of organization, one underlying assumption is that some
organizations learn and others do not. Such a division suggests that learning is optional and not
indigenous.

1.2. Source of learning

Learning, as a mechanism to foster organizational improvement, does not occur through chance
or random action but through the development and use of specific skills. Without disciplined
action or intervention from their leaders, organizations fail to learn due to the impact of the many
forces that constrain learning. For example, five component technologies or disciplines to

establish a learning organization—personal mastery, mental models, shared vision, team

learning, and systems thinking.

1.2. Culture and learning

For organizations to learn, they must have the right culture; learning organization can be
recognized by the interdependence of language and culture. In a similar manner, Beckhard and
Pritchard (1992) discuss building a learning organization by creating a culture that values
learning and rewards progress not just results.

1.2. Organizations as homogeneous, structured systems

Duncan and Weiss (1979) explain that learning occurs when organizations match their structures
to their environments in order to maximize the understanding of members of action–outcome
relationships. Purser and Pasmore (1992) claim that learning is dependent on the design of
knowledge work. To maximize learning, the design of knowledge work must be formalized and
aligned with the influence of decision makers. These theoreticians base their argument on the
presumption that becoming a learning organization is predicated on having the right organization
structure or design.

1.2. Learning style An oft cited theoretical distinction in learning styles is Argyris and Schön’s
(1978) familiar contrast between single- and double-loop learning. More recently, ‘triple-loop
learning,’ learning about learning, has been identified as yet another learning style. Learning
organizations promote double and triple-loop learning since those styles are considered more
advanced. 1.2. Managerial focal point

Learning disabilities occur due to the fundamental ways in which individuals have been trained
to think and act (Argyris, 2003) and from organizational barriers to discover and utilize solutions

actualize staffs own potential, and encouraging managers to be more different than they are alike
along certain dimensions. As with training, BoA invest extensively into management
development programs. Examples of management development include the following: career
testing and counseling programs, in which the employees receives feedback based on test results
about their abilities, interests, and personality; university programs geared towards a continuing
education experience for the person, such as new ideas about management and advanced
technological advances the manager needs to know about; and personal growth experiences, in
which the person comes to an increased awareness and understanding of himself or herself and
how he or she affects other people. Each of these provides an experience aimed at developing the
individual’s unique potential. The focal point is on self-development. The assumption made here
is that increased self-awareness and understanding can lead to attitudinal or behavioral changes
that will increase an individual’s personal effectiveness and ultimately the effectiveness of the
bank.

1. Organization Development Conceptually, organization development is different from both

management training and management development. The latter two kinds of learning may,
however, be part of an organizational development effort. Burke (2006) stated that “although
persons may be involved in events that are properly labeled as organizational development
technology.

Organizational development can be defined as a planned process of cultural change utilizing

behavioral science knowledge as a base for interventions aimed at increasing the organization’s
health and effectiveness. As such, its focus is not solely on the individual person and his or her
growth in the organization. Rather, the focus is on how the individual relates to his or her own
work group and how his or her group interfaces with other groups in the organization. Again, to
use Burke’s words: “The primary reason for using organizational development is a need to
improve some or all of the system that constitutes the total organization.” Such a planned process
demands careful assessment or diagnosis of what is needed to increase overall effectiveness of
the bank, along with tailor-made changes or interventions, the goals of which are to satisfy those
felt needs. The key concern of behavioral science practitioners involved in organizational
development work is, of course, to create the kind of organizational climate where employees
meet their own needs and, at the same time, optimize the realization of organizational goals

Burke (2006).Team-building, learning how to diagnose needs, working through task and
interpersonal issues, creating structural and functional changes to facilitate effectiveness of the
bank

3. Bank of Abyssinia learning

portfolio.................................................................................................

Bank of Abyssinia, one of private commercial bank in Ethiopia the present-day bank of
Abyssinia was established on February 15, 1996 (90 years to the day after the first but defunct
private bank was established in 1906 during Emperor Menelik II) in accordance with 1960
Ethiopian commercial code and the Licensing and Supervision of Business Proclamation No.
84/1994. in 2020/21 approximately 520 manager and 1560 operation and business managers in
520 branches of all over the country, in BoA branch division responsible for the seek and recruit
new customers and make deposit, withdraw, money transfer issuance and pay special cashers
payment order (CPO) transactions, functional departments which each specialize in a particular
aspect of job , such as authorize transfer OBC and special transfers if the amount is greater than
or equal 200,000 Ethiopian birr make loan in head office approves letter of credit (LC). From the
outcome of research and surveys a new product development teams responsible for the new
product of a certain cost, e. Adey saving product from females minor saving product( below 18
years old) Afla saving product (18-29) and (above 50 years old) Balewileta saving product.
(Branch banking procedure 2020).

The marketplace changing due to different consumer tastes and expectations as well as
technology change, but the processes whereby the bank of Abyssinia designed and change
working conditions services were also rapidly changing. The bank became convinced that,
although BoA was having a successful for the last 25 year, unless it changed how it worked and
how it learned, it would lose its ability to compete with other commercial banks and financial
institutions. New service and product development teams now work together in co-location in
common, open work areas to facilitate communication and coordination. Staffs from the

engaged in transformative learning. Controlling maloperation in banking operations where

controls are needed to avoid disastrous outcomes. The other concern about learning portfolios is
the extent to which current practices or styles align with or match learning needs and work
demands. Consider a team or organization that is in the banking industry where innovation is
critical to success. If it has an overemphasis on learning practices that support formal
dissemination or incremental learning, then what’s getting learned (and the speed whereby that
learning is disseminated) is apt to be less than helpful to the firm’s competitiveness practices that
support transformative learning. In another scenario, if a firm wants to emphasize teamwork,
then it should give more support to learning practices that promote group rather than individual
learning. In the banking industry where technological innovation good customer handling is
becoming increasingly and pillar to success, bank of Abyssinia relative emphasis on learning
through good working ethics, hardworking practice should outweigh its investments in learning
through on the job training and sharing knowledge with other model branch staffs. The idea that
organizational learning portfolio might be misaligned with its learning needs or competitive
demands raises the possibility of portfolio management. How can organizations manage its
portfolio for maximum advantage? What criteria should be followed in making portfolio
management decisions? How would a managed learning portfolio differ from an unmanaged
one? These questions suggest that instead of blindly supporting learning practices or not
supporting them at all, companies allocate their learning resources within their portfolio in such a
way as to maximize their effectiveness. Learning capability and effectiveness must go hand in
hand.

2. Learning Portfolio Management in Bank of Abyssinia Managing a learning portfolio

requires a sensitivity and appreciation for outcomes; and traditionally in most business
environments, outcomes or outputs are examined in the light of inputs. Return on
investment, has been a key measure that reflects the ratio of outputs to inputs. Since bank
of Abyssinia aim to maximize the returns on their investments, it make management
decisions about investments using return on investment as a guiding indicator. To
determine the value of outputs and expected returns assumptions must be made about the
future; and these assumptions can turn out to be invalid. Assumptions are also made
about linear associations, that an investment (usually financial resources) will be
converted to some measurable amount of inputs (material, labor, process technology) that
will be converted to an expected set of outputs

(products, services, benefits). Over time unanticipated events or circumstances occur which
thwart the realization of the presumed causal linkage, as when the cost of material or labor
increases. Consequently, many management decisions end up being based on projections that
turn out to be inaccurate. This problem is especially prevalent with learning investments since
the period during which the returns from learning are realized can be quite lengthy; and the
lengthier the period of returns to be gained from an investment, the more tenuous our
assumptions. Also the usefulness of learning pertains to its timeliness. When employees learn
something in a formal training program, such as how to use new software for group
collaboration, it’s often because they expect to use those new skills right away. In that scenario,
the benefits and outcomes from the learning have immediate value. On the other hand,
employees sometimes learn behaviors (such as how to deal with angry customers or aggressive
competitors) that they hope they never have to use.
 2. Investment Dimensions to Learning From time dimension to the value of learning for
some practices the usefulness of what’s been learned is realized immediately in the short
term, while for other uses the benefit comes later on. In industry this contrast is reflected
in a manager’s choice between focusing on production activities that create valued
outcomes and benefits in the short term and investment activities that lead to benefits in
the long term. This contrast may be depicted in the following continuum:

Learning use: Immediate Future

The relative timeliness of when we use or apply what we have learned is an important criterion
to weigh up when choosing between alternative learning investments. Considering a practice in
the light of its learning use (immediate versus future) is a helpful marker. Learning impact it is
one thing to use or apply what we have learned, it is another to realize the benefits from that use.
Whenever learned attitudes or behaviors are used without controls or comparisons, there should
always be uncertainty over their impacts. Without controls, one cannot be sure whether the
outcomes should be attributed to what had been learned or some other factor, such as chance, a
change in the environment, or merely the passage of time, at other times the impact is unknown,

codified and expressed by speech. Tacit knowledge as the private knowledge that’s hardly
accessible and placed in the minds of people. Another classification scheme, categorized the
knowledge types to explicit, tacit and implicit knowledge (Kim, Y. Y, 1995). They defined
implicit knowledge as the type that can be externalized if needed but has not been externalized
yet.

Knowledge management is a process wherein, organizations produce wealth using their

knowledge or intellectual properties. The subject of knowledge management can be considered
from three different perspectives; information-based, technology based and culture-based (Kim,
Y. Y. (1995).

3. Purpose of learning and knowledge management at bank of Abyssinia Creating an

environment where learning is considered an asset will drive employees to continuously educate
themselves.

Incentivizing them to take advantage of knowledge management systems will result in up skilled
employees who are ready to take on leadership roles in bank of Abyssinia.
For this to happen, there must be structured and accessible learning and development technology
in place that employees can use.

 Motivated employees can develop themselves at will

 Training pathways can be set out

 The structure allows for easier discovery of subjects

3. Methods/ process of Knowledge management and implementation Knowledge creation,

sharing and its management is a dynamic process that might not be accomplished until some
societal and organizational conditions are not satisfied (Mark smith & Marjorie a. 2011).
Similarly, knowledge management cannot be undertaken in a vacuum as it requires effective
knowledge management strategy, a clear methodology and processes. In this regard, prior work
has given undue importance to knowledge management frameworks. In the literature, very few
researchers have discussed the underlying factors that are likely to facilitate the knowledge
creation process in the organization. In terms of societal and organizational conditions, the
knowledge management researchers have discussed the effects of managerial

support on the successful knowledge management application. For example, the top
management’s willingness and knowledge vision is likely to support knowledge management
strategy in the organization found top managers found middle managers to support the successful
knowledge management implementation. And knowledge-oriented culture played a vital role in
the efficacy of knowledge-based decisions. Although, there are equal growth opportunities to
employees during the knowledge management process implementation, it also provides a sense
of ownership between employees and enhances the level of trust that positively impacts on
knowledge creation, sharing and use (Mark smith & Marjorie a. 2011). The ability of knowledge
employees in capturing and utilizing knowledge to make strategic decisions is also crucial for
routine banking functions. For example, dealing with customers in the routine banking
operations requires an organizational structure that supports knowledge management activities in
the banks. In the same way, banks are also required to provide the necessary training to their
staff in order to handle complex banking jobs (Mark smith & Marjorie a. 2011).In response to
the changing environment, banks are required to implement a thorough knowledge management
system for managing knowledge in banking operations. In order to get the most value from their
intellectual assets, senior management showed willingness on knowledge sharing and transfer
and increased their access to knowledge databases. The process of managing knowledge in the
banking can be attained with the process improvement and amplification of knowledge (e. tacit

 explicit) management system. Therefore, the focus has been shifted towards quality of the
operations through the process improvement in view

3. Knowledge Management Processes and Goals Knowledge management is the planning,

organizing, motivating, and controlling of people, processes and systems in the organization to
ensure that its knowledge-related assets are improved and effectively employed. Knowledge-
related assets include knowledge in the form of printed documents such as patents and manuals,
knowledge stored in electronic repositories such as a “best-practices” database, employees’
knowledge about the best way to do their jobs, knowledge that is held by teams who have been
working on focused problems and knowledge that is embedded in the organization’s products,
processes and relationships. The processes of knowledge management involve knowledge
acquisition, creation, refinement, storage, transfer, sharing, and utilization. The knowledge
management function in the organization operates these processes, develops methodologies and
systems to support them, and motivates people to

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