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Organizational Learning Capability


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Review of Organizational Learning Capability

Published in: Leadership & Management
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Organizational Learning Capability

  1. 1. Organizational Learning Capability Arthur Yeung David Ulrich Stephen Nason Mary Ann Glinow 1999 3/7/2015 1(c) Sachidananda
  2. 2. About the Authors 3/7/2015 (c) Sachidananda 2 Arthur Yeung David Ulrich Stephen Nason Mary Ann Glinow
  3. 3. Author’s thesis 3/7/2015 (c) Sachidananda 3 Evolution of Management Thinking Change initiatives Variation Experimentation Culture change through learning capabilities Stats Quo Individual learning Learning without diffusion Extent to which learning organization exists Extenttowhichchangeinitiativeisadopted low High Highlow
  4. 4. Author’s thesis 3/7/2015 (c) Sachidananda 4 Learning capability = ability to ( generate x generalize ideas with impact)= “g x g” Organizational Learning comes down to the ability to generate and generalize new ideas with impact • Learning organizations not only focus on Learning – but also meet their goals • Learning organizations follow a systems logic • Organizational learning is connected to – but not limited to – individual learning • Learning occurs along continuum, from superficial to substantial • Learning comes from many small failures • Learning often follows predictable set of processes • Organizations learn through two basic sources •Organizations learn for two basic purposes Experience of others Direct Experience Exploration Exploitation Competency acquisition Benchmarking Experimentation Continuous Improvement The Learning Styles
  5. 5. Author’s thesis 3/7/2015 (c) Sachidananda 5 Generation of Ideas: 1. Experimenters/Innovators 2. Competent workers/Skill Acquirers 3. Copiers/Benchmarkers 4. Experts/Continuous Improvers Generalization of Ideas: 1. Recognize that boundaries exist, can be specified and can be negotiated 2. Ideas should be tied to strategy 3. Requires contingent thinking 4. Requires organizations mater capability beyond single experiments 5. Requires shared ideas have impact Identifying Learning Disabilities: 1. Blindness 2. Simple-mindedness 3. Homogeneity 4. Tight coupling 5. Paralysis 6. Superstitious learning 7. Diffusion Deficiency Industry Characteristics: 1. Market Concentration 2. Customer Relationship 3. Supplier Relationship 4. Technological interdependence 5. Environmental predictability 6. Industry type Organization Culture: 1. Clan culture 2. Adhocracy culture 3. Hierarchical culture 4. Market culture Business Strategy Business Performance: 1. Competitiveness 2. Innovativeness
  6. 6. Author’s thesis 3/7/2015 (c) Sachidananda 6 Business Context Learning Capability Business Performance • Industry Characteristics • Business Strategy • Business Culture • Generation of Ideas ( Ability to generate ideas via different learning styles) • Generalization of Ideas (Ability to move ideas cross boundaries) • Learning Disabilities (Barriers to generate and generalize ideas) • Innovativeness • Competitiveness The Integrated Model Primary relationship Secondary relationship
  7. 7. Author’s thesis • Insights on Generating ideas with impact – A company’s LS is affected majorly by business strategy & culture – Most companies adopt competency acquisition & continuous improvement – Experimentation however is most strongly associated with business performance – more so in new product introduction – Benchmarking not correlated with performance and may be the style least likely to generate new ideas – True learning organization often have culture that continually reinforce the importance of new ideas or emphasize learning/education – Learning cultures are systematically reinforced by and aligned with a set of HR processes – Adhocracy cultures – (in high-tech) use competency acquisition to good effect – Proper executive support, specific management practices, continuous improvement as a learning style – help change companies culture over time. 3/7/2015 (c) Sachidananda 7
  8. 8. Author’s thesis 3/7/2015 (c) Sachidananda 8 Insights on Generalization of ideas for impact Managers Tool Kit 1. Create a generalization culture 2. Ensure Individual competencies necessary for generalization 3. Provide the right incentive for generalization 4. Organize work for generalization 5. Create Information tools for generalization 6. Develop Leaders who generalize ideas 7. Diagnose you generalization pattern by creating a learning matrix •Not just creative - match new ideas with business strategy and context and them implement them in a practical, effective manner •Once implemented the knowledge gained should be retained, shared across boundaries •Key aspects • Implementation • Boundary Crossing • Organizational Learning doesn’t happen when the generalization is low L.A. = (g x g)
  9. 9. Author’s thesis 3/7/2015 (c) Sachidananda 9 L.A. = (g x g) – (LD1 + LD 2 ...) • Over coming Learning Disabilities in organizations – Seven basic learning disabilities – 4 in idea generation; 3 in generalization – Presence of even a single LD could block org learning – Homogeneity has more of a negative impact on biz performance compared to unsophisticated analytical procedures – Firms with product differentiation strategy appear to be better at minimizing the disabilities that firms with cost competitiveness strategy – Strong clan & market cultures are more effective in reducing learning disabilities, adhocracy + blindness, hierarchical – superstitious learning, homogeneity, paralysis – strong clan/market culture, top management commitment and employee involvement – can overcome most disabilities – Homogeneity can be a real problem is idea generation is only limited to one or a few managers – Companies suffer from diffusion deficiencies when they don’t rapidly and systematically document new procedures and solution
  10. 10. Architecture 3/7/2015 (c) Sachidananda 10 CULTURE: To what extent is our culture/mind-set focused on learning COMPETENCE To what extent do we have individual, team and organizational competencies for learning? CONSEQUENCE To what extent does our performance management system encourage learning for individuals, teams and processes? GOVERNANCE To what extent do our organization structure and communication process encourage learning? CAPACITY FOR CHANGE THROUGH WORK PROCESS & SYSTEMS To what extent do our work process & systems encourage learning? STAFFING TRAINING/ DEVELOPMENT APPRAISAL REWARDS ORGANIZATIONAL DESIGN COMMUNICATION CHANGE INITIATIVES WORK PROCESS & SYSTEMS LEADERSHIP: To what extent do leaders throughout the organization demonstrate a commitment to learning?
  11. 11. QUESTIONSTHANK YOU 3/7/2015 11(c) Sachidananda