1© 2013 by Nelson Education Ltd. CHAPTER TWO Organizational Learning

1© 2013 by Nelson Education Ltd.

CHAPTER TWO

Organizational Learning


LEARNING OUTCOMES

Define organizational learning and describe a learning organization

Explain the five disciplines of a learning organization Discuss the principles of a learning organization Discuss the four key dimensions that are critical for

creating and sustaining a learning organization Define a learning culture Define knowledge and give examples of explicit and

tacit knowledge


LEARNING OUTCOMES

Describe the meaning and types of intellectual capital Define knowledge management and explain how knowledge

is acquired, interpreted, disseminated, and retained in organizations

Define communities of practice and describe what organizations can do to create them

Define workplace learning, informal learning, and formal learning

Describe what organizations can do to facilitate informal learning

Describe the multilevel systems model of organizational learning

INTRODUCTION

Organizations that are going to thrive – survive – and be globally competitive need to embrace a culture where learning is fostered – and is experimented with – at all levels in the organization



ORGANIZATIONAL LEARNING

Organizational learning is a process of creating, diffusing, and applying knowledge in organizations

• Focuses on continuous learning and a systems approach to distributing and sharing knowledge

• Dynamic process of creating and sharing knowledge


LEARNING ORGANIZATION

A learning organization:Acquires, organizes, and shares information and knowledgeUses new information and knowledge to change its behaviour in order to achieve its objectives and improve its effectivenessIs able to transform itself by acquiring and disseminating new knowledge and skills organization-wide and at all levels



A learning organization:Has an enhanced capacity to learn, adapt, and change its cultureHas the ability to make sense of and adapt and respond to its environment – internal/external

Learning results in continual improvements in:• Work systems• Products and productivity• Services• Management and employee behaviour• Efficiency and effectiveness



Five Disciplines:

1. Personal Mastery

2. Building a Shared Vision

3. Mental Models

4. Team Learning

5. Systems Thinking



Principles• Everybody is considered a learner• People learn from each other• Learning is part of a change process• Continuous formal and informal learning• Learning is an investment




KNOWLEDGE

Sum of what is known; a body of truths, information, and principles

• Synthesis of information – facts, theories, and mental representations

• Can be found in employee minds or transferred/stored in organization systems

• Can be tacit or explicit


KNOWLEDGE

More than just information! It is:

Information that has been edited Put into context Analyzed in a way that makes it meaningful,

and therefore valuable to the organization


EXPLICIT KNOWLEDGE

Things that you can buy or trade:• Patents or copyrights and other forms of

intellectual property• Can be written into procedures or coded into

database• Is transferred fairly accurately• Only 20% of corporate knowledge is explicit


TACIT KNOWLEDGE

Learned from experience and insight – intuition, know-how, little tricks, judgment, and wisdom:• 80% of corporate knowledge• Almost impossible to transfer• Well-known example: Decision-making

behaviour of dealers in financial markets• Is said to be instinctual


INTELLECTUAL CAPITAL

An organization’s knowledge, experience, relationships, process discoveries, innovations, market presence, and community influence


INTELLECTUAL CAPITAL

Is like intelligence• The source of innovation and wealth production• Has to be formalized, captured, and leveraged to

produce a more highly valued asset• Knowledge of value• Not like other assets – it grows with use

–Contributes to continued learning• Is recognized by many organizations as a

valuable asset


INTELLECTUAL CAPITAL – TYPES

Human Capital • Knowledge, skills, and abilities of employees

Renewal Capital • Intellectual property



Structural Capital • Formal systems and informal relationships

–Allow employees to:

–Communicate, solve problems, and make decisions

Relationship Capital • Organization’s relationships with suppliers,

customers, and competitors:–Influence how they do business


Customer Capital • Value of an organization’s relationships with its

customers



INTELLECTUAL CAPITAL CYCLE

“As more investments are made in human capital, the employees are more capable and committed to increasing renewal and structural capital, leading to more productive relationship capital, resulting in better financial performance.”


KNOWLEDGE MANAGEMENT

Creation, collection, storage, distribution, and application of compiled “know what” and “know how”

Knowledge management/infrastructure refers to systems and structures that integrate people, processes, and technology

• Why is this important?


WHY?

To ensure that important knowledge is:

Coded Stored Is readily available Not lost


MANAGING KNOWLEDGE

AcquisitionEnvironment scanning:

• External: External information from other organizations, customers, industry watchers, marketplace

• Internal: Internal individuals, teams, departments


MANAGING KNOWLEDGE

InterpretationMental modelsLearning occurs when employees form views of the organization and its environment

• Deeply engrained assumptions, generalizations, or images that influence how we understand and take action


MANAGING KNOWLEDGE

DisseminationProviding task information and know-how to:•Help and collaborate with others to solve problems•Develop new ideas•Implement policies and procedures Use formal systems grounded in technology•Easily transmitted•Exchange ideas quickly and efficiently


MANAGING KNOWLEDGE

Intranet: Critical component for managing knowledge• Employee questions can be answered in

hours instead of weeks• Can be like an instant coach


MANAGING KNOWLEDGE

RetentionImportant to compile, store, and retrieve information residing in employee’s minds and systems

• Intellectual Inventory (knowledge repositories)

• Built to encourage use and facilitate interaction


COMMUNITIES OF PRACTICE

Groups of employees who:Share similar concerns and problems Meet regularly to share their experiences and knowledgeLearn from each other and identify new approaches for working and solving problems



Wenger & Lave identify three characteristics:

1.Domain (shared interest)

2.Community (interaction, discussion, sharing, exchanging, and mutual assistance)

3.Practice (practitioners with resources and tools they use to solve problems)

Are typically informal, self-organizing, and form naturally – but can be created, fostered, and nurtured in organizations



Three things to focus on if COPs to be nurtured:

Identify potential COPs that will enhance organization’s strategic capabilities

Develop an infrastructure to support and enable members to share their expertise

Assess the value of the organizations COPs


WORKPLACE LEARNING

Workplace learning:• Process of acquiring job-related knowledge and

skills through both formal training programs and information social interactions among employees

Informal learning:• Learning that occurs naturally as part of work and

is not planned or designed by the organization Formal learning:

• Learning that is structured and planned by the organization


WORKPLACE LEARNING

Formal learning (training and development):• Key part of the knowledge-acquisition process• Approximately 30% of how employees learn

Informal learning:• Approximately 70% of how employees learn• By trial & error • Spontaneous, immediate, and task-specific


WORKPLACE LEARNING


MULTILEVEL SYSTEMS OF ORGANIZATION LEARNING


SUMMARY

Discussed learning and knowledge management Described the five disciplines and principles of a learning

organization as well as the four dimensions necessary for creating and sustaining a learning organization

Discussed different types of knowledge in organizations and intellectual capital

Described knowledge management practices Described multilevel systems model and connection of

organizational learning to training and development

Documents

1© 2013 by Nelson Education Ltd. CHAPTER TWO Organizational Learning