ORGANIZATION LEARNING

Organisational learning can be described as the ability of an organisation to develop an

understanding and gain insight from experience through experimentation, observation and
analysis and thus make it more efficient and effective in competition to other organisations.
Organisational learning thus studies models and theories about the way an organization learns
and adapts. Effective organisational learning entails modifying the procedure themselves and
may be even the assumptions, values, and objectives on which they were based to not only
solve current problems, but to prevent their recurrence in the future (Coffey et al, 1997).It not
only contributes to resolving organisational issues, but promotes individual development of
knowledge and skills. Organisational learning is also related to organisational change as it can
contribute and is conducive to organisational change.

Scope of learning organization

The scope of the Learning Organization includes the continuous and sustainable development,
and also adjustments to the demolition of existing changes in the organization and be able to
create goals and/or new approaches. This learning should be embedded in the way
organizations carry out their activities. Learning in this case means:

1) That learning in an organizational transformation of knowledge in it is part of their daily work

activities.

2) Application of Learning Organization is applied to the individual or, in the work unit of a
company or overall organization.

3) Learning Organization as a whole will be able to solve the problem at the root and solve the
problem as a whole.

4) The spread of knowledge throughout the organization structure can be beneficial where each
person in the organization has the same knowledge so that they also have the same skill

5) Driven by the opportunity to acquire a significant change and do better.

Thus, the scope of Learning Organization covers a lot of things, especially in individuals within
the organization, for example, employees in the company, including educational institutions in
the form of employee training success is highly dependent on obtaining the opportunity to
learn and practice new things and skills. Companies invest in education, training and a variety of
other opportunities that are given to employees to grow and develop. The opportunity could be
job rotation, salary increases to employees who excel and/or trained. On-the-job training is an
effective way to train and draw a line better relationship between the interests and priorities of
the company. Education and training programs can be conducted on advanced technologies
such as computer-based training on the airways and the Internet and via satellite. Thus,
learning is not only improving the quality of products and services produced by the
organization. But also, an increase in work environments more responsive to the situation,
adaptive, innovative and efficient, which in turn will improve performance and further
strengthen the position of the organization.

Why companies need a learning organization

Learning organizations conceptually have great benefits in the management process.For

example,in the 1980s introduced Total Quality Management that emphasizes the quality of
ongoing improvement, while the 1990s popularized Reengineering and Benchmarking for the
improvement of business management strategy. In the 1990s also contributed to the
organization of learning for management to look for innovative ways to deal with change and
win the business competition. In a market-based economic development (market-based
economy) where the competition to win the market is very tight, we cannot rely on the
comparative advantage with the mass and cheap labor. Instead we began to focus on the
competitive advantage with educated workforce (well educated), trained (well trained) and
control of information (well informed).

A rapidly changing environment is actually a learning organization supports individuals and

organizations to adapt to environmental changes. With the easy flow of information into the
fabric of people's lives as a result of increasingly sophisticated information technology, then the
employee is required is that people who have knowledge (knowledge people). Therefore,
knowledgeable employees who work in a company should be considered as a major asset.

The company is in dire need of knowledge as an intangible asset whose value continues to
grow. Thus, the company has a knowledge base that is optimal not only serve as a business
organization that is profit but also as a learning organization that fosters all members of the
organization. The company should consider the efforts of the development of human resources
as a strategic option to improve competitiveness, and not just as expenditure.

In terms of management decision making, then organizational learning will help executives and
managers to be able to make decisions, especially decisions not programmed more creative.

Organizational learning is seen as an attempt to maximize the ability of managers to think and
behave effectively and maximize its potential. That is, the manager can motivate and empower
employees to make decisions independently.

In order to transform knowledge to all employees in the context of the learning organization,
competence, and effective leadership are needed. The new competencies will equip employees
to improve constantly their knowledge. In member organization in learning activities.

The concept of a learning organization that has raised the experts mentioned above is ideal, but
the concept of organizational learning is still far from reality and less "grounded". In reality
there has been no framework and concrete measures to improve the effectiveness and
efficiency of management, such as how the company has managed to become aware of
learning organizations, whether executives and managers clearly understand the function and
role in running a learning organization?

Types of learning in Organizations

An organisation in the process of learning may utilise any one of the three learning styles, viz.,

(i) single loop learning,

(ii) double loop learning and
(iii) deuteron learning.
i) Single loop learning mainly deals with the identification and rectification of errors. This is the
fundamental level of organisational learning where the effectiveness of rules and policies in the
organisation are focused on. One disadvantage of this style is that, the organisations may focus
only on the errors and not ondevelopmental aspects. This style can be most effective when
solving problems with high level of urgency.

ii) Double loop learning when compared to single loop learning is in-depth. It is normally used
in an organisation when there is a need to focus on norms, structures and identify the root
causes of an error. The use of this learning style may lead to certain changes that may impact
the values, beliefs and strategies

in an organisation. Double loop learning directly deals with the root cause of the problem thus
may require a long period of time and cannot be utilised for dealing with immediate problems.
Double loop learning is definitely more advantageous to any organisation compared to single
loop learning. However, there is hesitation on part of the organisations to use it because of its
complexity, time consuming process and also because it involves disclosure of errors and
questioning of values, beliefs and strategies in an organisation.

iii) In deuteron learning, not only there is an in-depth analysis of error and questioning of
values, beliefs and strategies as in double loop learning, but it goes one step further and also
attempts to evaluate and analyse the whole process of learning. This style thus enhances the
learning practice in the organisation.

The above are the three learning styles that might be adopted in an organisation. However, it is
not that only a single style is utilised. A successful organisation will apply each of these learning
styles depending on the demands of the situation. Organisational learning is based on five core
areas, namely, system thinking, team learning, shared vision, mental models and personal
mastery. Of these five areas, system thinking is the most important. These five core areas also
distinguish a learning organisation from a bureaucratic organisation.

Principles of Learning Organization

Learning Organization based on some of the ideas and principles which integral into the
organizational structure. It is said to have the characteristics of a learning organization if that is
where the organization is continuously expanding the capacity of the knowledge of the five
disciplines. These are namely Personal Mastery, System Thinking, Shared Vision, Learning Team
and Mental Models;

1. Personal Mastery: Discipline that encourages an organization to continually learn how to

create the future, which will only be formed if the individual members of the organization are
willing and able to continue to learn to make himself a master in the field of science. The
discipline of personal mastery is formed characterized by the growth of individual skills of the
members of the organization contemplation (reflection) themselves; the skills to understand
the strengths and weaknesses of intellectual competence, emotional and social herself; as well
as the skills to do a revision of personal vision, and then the skills to build the working
conditions in accordance with a state organization.

2. Systems Thinking: Discipline systemic thinking, the skills to understand the structure of the
relationship between the various internal and external factors that affect the existence of the
organization, the skills to think integrative and complete, the skills to think comprehensively, as
well as the skills to build an organization that is adaptive, the discipline needed to build the
discipline of systemic learning.

3. Building Shared Vision: Learning organization requires a shared vision, a vision that is agreed
upon by all members of the organization. This shared vision will be a compass and
simultaneously triggers passion and commitment to staying together, so the motivation for
employees to learn and continue to learn to improve their competence. Skills to adjust the
personal vision with the organization's vision, as well as the skills of shared vision in order to
achieve personal goals contained in a shared vision of the organization, an individual discipline
needed to build a shared vision discipline. That is, for a sense of commitment and high
performance of all employees, should start from the shared vision.

4. Learning Team: The discipline of team learning can be effective if the members of the group
have a mutual need for each other to act in accordance with a common plan. The ability to act
is a prerequisite for creating the value-added organization, because, without a plan of action, it
is just an illusion. The problem is the ability to act in accordance with a common plan often
hampered simply because we are not able to communicate and coordinate properly with the
other party. To that end, the spirit of dialogue, team collaboration skills, ability to learn and
adapt, as well as efforts to increase participation, was the discipline needed to build the
discipline of team learning.

5. Mental Models: Organizations will have difficulty to accurately be able to see the different
realities that exist, if the members of the organization are not able to formulate assumptions
and values that are appropriate for use as a base way of thinking and way of looking at the
problems of the organization. Discovering the principles and shared values skills and the growth
of share value to foster the spirit of mutual confidence and commitment to strengthen the
spirit of togetherness, are important disciplines to build a mental model of organizational
discipline.

Strategies for Organisational Learning

Varied strategies are employed to promote organisational learning.

They are as follows:

i) Action learning: It is process carried out by a group of people with different levels of skills and
experience to analyse a real problem and develop an action plan. Learning here takes place by
actually working on the problem or carrying out the problem related work activity. The group
also supervises the implementation of the action plan and may make changes throughout the
implementation process.This strategy is mainly used to deal with complex problems, to identify
root cause of the problem and derive a suitable solution and to develop new strategic plans and
increase developmental opportunities.

ii) Cross-functional teams: It is composed of people with varied levels of skills and experience
who are brought together to accomplish a task. Cross functional teams help deal with an
impending problem in organisations referred to as ‘functional silos problem’, that occurs when
the employees in an organisation focus only on the matters concerning their department or
function and interact minimally with other departments or units in the organisation. This leads
to effective functioning of a single department but not of the organization as a whole as there is
no much communication and coordination between the difference departments and units of
the organisation.With the help of cross functional teams, employees from different
departments or units come together, interact, discuss and share their point of view with regard
to a particular issue or problem. This not only provides with a number of alternatives for
dealing with a single issue but also enhances organizational learning as the employees with
varied skills, knowledge and expertise are involved in sharing and learning from each other.
They may also use action learning as one of their strategies.

iii) Work-outs: These are meetings of employees representing all levels and functions of the
organisation or unit, except management, to identify ways the organization can work together
more efficiently and effectively. Work outs can be effectively used to facilitate organisational
change and to ensure active participation of all employees in change process, to develop
creative and practical strategies of dealing with varied problems in an organisation. It can also
be used to redesign work practices and processes.

iv) Groupware: It is technology used to facilitate a group’s communication, problemsolving, and

decision-making processes. The group members here may come from different geographical
locations. It is extremely useful as it makes communication effective and fast thus accelerating
the problem solving a and decision making process.

v) Benchmarking: It is a process through which the performance, best practices and

achievements of other organisations are compared with one’s own organisation. It can be
mainly used to identify the areas in an organisation where improvements can be carried out. It
also helps an organisation learn from the performance and achievements of other
organisations.

vi) Parallel learning structures: Also known as communities of practice, parallel learning
structures, promotes innovation and change in large bureaucratic organisations while retaining
the advantages of bureaucratic design. These structures are also effective in bringing about
organisational change.