HRO372 Culture and

Organisation

The Learning Organisation

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09/04/2018 1
 Session Objectives
• Have a clear understanding of the learning organisation
 Introduction
• A growing body of literature has emerged in relation to how the
Learning Organization model can help organizations develop
competitive advantage through innovation and knowledge
(Nahapiet & Ghoshal, 1998; Schulz, 2001).

• Emerging as a concept in the 1960’s by authors such as Arygris

(1964) and Cyert & March (1963) it has particularly gained
attention in the latter part of the 20th century.
 Introduction
• Easterby-Smith, Snell and Gherardi (1998) cite three key reasons
for the rapid growth in the literature on learning organizations,
namely;
• the speed of technological change,
• increased competitiveness and
• globalisation.

• As a consequence it is no longer enough for organizations to rely

on established practices. Instead opportunities must be created
to invent new ways of doing things.
• In response, many organisations are developing strategies to
empower employees and create a culture of shared learning and
decision making, moving away from the traditional functional
and bureaucratic management styles of the past (Johnson et al.,
2005).

• Kelleher (2007) and Turnbull (2004) particularly reflect upon the

adoption of models which encourage collective learning and
participatory working practices whilst reducing traditional
hierarchy.
 The Shift Towards Organisational Learning
• The Learning Organisation concept is closely related to the
evolution of management.

• Traditionally organisations: rigid rules, processes and systems e.g.

Taylor (1911) sought to establish one best way of doing things

• Similar approaches were adopted in bureaucracy.

• Following earlier shifts towards human relations and culture as a

focus for improvement there has now been a move towards
continual learning.
 The Shift Towards Organisational Learning
• Key elements in the change from Taylorism and bureaucractic
approaches include:

– Organisational improvement can come from all organisation

members (Kono and Clegg (1998))

– Knowledge can be generated from all organisational members

– Knowledge generation and improvement will only be realised

if the organisation is prepared to listen and learn – hence the
need for ‘the Learning Organisation’.
 Definitions
• "An organisation where all its people, at all levels,
continually seek knowledge, work and learn together for
continuous improvement, and a shared desire for
excellence". Rossiter (1997, p67)

• “An organisation with ingrained philosophy for

anticipating, reacting and responding to change,
complexity and uncertainty.” (Malhotra 1996)
 Definitions
• Daniels (1994) has gone on to identify the characteristics which identify the
learning organisation and has arrived at the following;

• “A learning organisation values individual and organisational learning as a

prime means of delivery of the organisational mission; A learning organisation
involves all its members through continuous reflection in a process of continual
review and improvement; A learning organisation structures work in such a
way that work tasks are used as opportunities for continuous learning.”
(Daniels 1994)
 The Learning Organisation
The concept of the ‘Learning Organisation’ is first made popular with
managers after the publication of Peter Senge’s book, The Fifth
Discipline: The Art and Practice of Learning Organizations (1990).

Senge highlighted:

• the kinds of changes managers need to make to help their organisations

adapt to an increasingly chaotic world.

• Seeing the Learning Organisation as an attitude or philosophy rather

than a structure or plan.
 The Learning Organisation
• The five disciplines on which Senge’s (1994) learning organisation model is
based are:

• Systems Thinking
• Personal Mastery
• Mental Models
• Shared Vision
• Team Learning
 The Learning Organisation
• Systems Thinking

• Senge (1992) believes that 'systems thinking' is the cornerstone of a learning

organisation.

• Presenting the argument that organisations traditionally blame outsiders for

problems within the company, systems thinking considers "you and the cause
of the problem are part of a single system. The cure lies in your relationship
with your enemy” Senge (1992, pl2l).

• This suggests a learning organisation will have systems in place to ensure

decision making is neither top-down or bottom-up but participative at all
levels, ie involvement and participation
 The Learning Organisation
• Personal Mastery

• "Is the discipline of continually clarifying and deepening our personal vision, of
focusing our energies, of developing patience and of seeing reality objectively."
(Senge, 1994, p193)

• Senge (1994) argues that business organizations will not succeed if employees
do not enjoy success themselves. Personal mastery is the discipline of
continually clarifying and deepening personal vision, of focusing energy,
developing patience, seeing reality objectively, and having the self-generated
incentive to take initiative.
 The Learning Organisation
• Mental Models

• It is considered mental models can facilitate or retard cooperation and

effectiveness of performance.

• Berger and Luckman (1980) define mental models as “the ways we cognitively
and socially construct reality”.

• Within organizations, mental models and the organizational metaphors which

embody them constitute integral elements of organizational cultures. The
mental models are, typically, reflected in the language and metaphors used by
individuals within organizations.
 The Learning Organisation
• Mental Models

• Reschenthaler and Thompson (1998) consider key mental models which inhibit
learning and collaboration are:

• A “them and us” culture whereby management are seen to dictate to staff and
remain removed from front line operations;
• An emphasis upon standardized systems and processes – ‘this is the way we do
things around here’;
• Promotion and reward is achieved through following procedures
• Physical barriers exist both departmentally and inter-departmentally.
• Outside stakeholder groups are seen as a threat rather than as a partner.
 The Learning Organisation
• Shared Vision

• Senge (1992, p206) states that a shared vision "is not an idea but a force in
people's hearts". The purpose of a shared vision is primarily to ask the
question, "what do we want to create?”.

• This involves creating opportunities for all across the organisation to shape
such a vision.

• Senge (1992, p212) suggests visions spread because of a reinforcing process of

increasing clarity, enthusiasm, communication and commitment. As people
talk visions grow clearer."
 The Learning Organisation
• Team Learning

• Senge (1992, p. 236) states: Team Learning "is the process of aligning and
developing the capacity of the team to create the results its members truly
desire".

• Senge (1994) particularly considers the creation of a team or task culture can
accelerate learning. He suggests, teams can encourage innovative and co-
ordinated action with a level of trust and understanding of everyone’s skills
and abilities.
• To give a summary of the key attributes of a Learning Organisation,
Lassey (1998) has developed a comparative model which illustrates the
key differences between the Learning Organisation and the Traditional
Organisation:
• In summary, Garvin (1993) suggested leaning organisations are
good at doing four things:

1. Systematic problem solving based on good and full information

rather than guesswork. This requires the input of many in the
decision making process.

2. Experimentation – this activity involves the systematic search

for new ideas and knowledge. Continuous improvement is an
essential feature of a learning organisation.
3. Learning from past experience – learning organisations review
their successes and failures, assess them systematically and
record the lessons learned in a way that employees find open
and accessible.

4. Transferring knowledge quickly and efficiently throughout the

organisation
• The conditions under which the learning
organisation is likely to work.

– Top management are committed to the concept of the learning

organisation and understand its principles.
– Line managers support the principles of the learning organisation
– There is a high involvement and participation culture in the
organisation.
– There is trust between management and employees (and vice versa)
– There are many opportunities for empowerment
– There are many opportunities for job rotation
– All employees are encouraged to learn from each other]
– Employees are encouraged to be creative
– There is continuous facilitation, mentoring and feedback
– Group working is the norm
– Double loop learning takes place
– Employees are rewarded for ideas.
 The role of a leader in the learning organisation
• Trust – leaders must trust their staff to make decisions
(empowerment, involvement and participation)

• Vision – leaders must provide employees with a clear vision through

information/objectives/appraisal and open door policy

• Foster a learning culture – leaders must create an internal

environment where employees are encouraged to learn from each
other and share ideas (team working, job rotation and office design)

• Support – leaders must adopt a supportive role through mentoring,

giving feedback and being accessible.

• Communication – leaders must encourage input of ideas, wide

dissemination of information and shared decision making.
 The Learning Organisation
Key features of the Learning Organisation:

• Everyone is engaged in identifying and solving problems (Robert Reich (1991))

• Problem solving, rather than efficiency as central value

• Culture change required for learning organisation to develop

• Employees must understand customers and the organisation to engage in decision

making

• The organization in this way adds value by defining new needs and solving them.

• This can lead to increased competitive advantage and employee motivation.

 Creating the Learning Organisation
• Hitt (1995) developed a further model of the learning organization in an
attempt to provide organizations with a series of characteristics designed to
assist in the move from traditional management approaches.
 Conclusion
Features of Learning Organisations:

• Encouragement to its employees to improve their personal skills.

• Employees treated equally and with respect

• Employees are encouraged to learn skills beyond their specific

job requirements.

• Effective communication to ensure knowledge flows

• Value of interdependence

• Such an approach, however, requires a well managed cultural change

process.
 Something to Watch

• YouTubeClip10mins:
http://www.bing.com/videos/search?q=you+tube+the+learning
+organisation+garvin&docid=1354420913677&mid=719A61B7F
7E3DEF6136D719A61B7F7E3DEF6136D&FORM=VIRE3#
• Argyris C. and Schon D. (1978) Organisational Learning : A Theory of Action Perspective. Addison
Wesley.

• Dale M (1994) Learning Organisations, Chapter Two in C. Mabey and P. Illes (eds). Managing
Learning. Open University Press.

• Kono. T and Clegg. S.R. (2001) Trends in Japanese Management, Palgrave

• Levitt B. and March J. (1988) Organisational Learning. Annual Review of Sociology. P319-340.

• Reich R. B. (1991) The Work of Nations. Vintage Books.

• Senge P. (1990) The Fifth Discipline : The Art and Practice of the Learning Organsation. Doubleday

• Taylor. F.W. (1967) Principles of Scientific Management, Harper. Original work published 1911)