Learning Organizations: Strategic Management

Unit 3: Organizational Design &

Strategy

Lesson 8: Learning & Organization

Strategy

April 8, 2023RIMS, Bangalore | PGDM 2nd Year, Strategic Management

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What are Learning Organizations?

Organizations that facilitates the learning of its members and continuously transforms itself.

Organization with an ingrained philosophy for anticipating, reacting and responding to change, complexity and uncertainty.

Learning organizations develop as a result of the pressures facing modern organizations and enables them to remain competitive in the business environment.

Organizations need to maintain knowledge about new products and processes | Understand what is happening in the outside environment | Produce creative solutions using the knowledge and skills of all within the organization.


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Characteristics of Learning Organizations

Systems Thinking An approach to problem

solving, by viewing "problems" as parts of an overall system, rather than reacting to specific part, outcomes or events

Learning organizations use this method of thinking when assessing their company and have information systems that measure the performance of the organization as a whole and of its various components

Personal Mastery Commitment by an individual to

the process of learning There is competitive advantage

for an organization whose workforce can learn more quickly than the workforce of other organizations

Acquired through staff training & development

Team Learning Accumulation of individual

learning | Individuals engage in dialogue, & discussions (Open communication & Shared Understanding)


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Characteristics of Learning Organizations

Mental Models Assumptions held by

individuals & organizations Learning organization needs

to challenge these mental models

Unwanted values need to be discarded in a process called ‘unlearning’

Organizations tend to have ‘memories’ which preserve certain behaviors, norms and values; it is important to replace confrontational attitudes with an open culture

Shared Vision Important in motivating the

staff to learn Learning organizations tend

to be flat, and decentralized structures


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The Learning Cycle


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Single & Double Loop Learning Systems

Single Loop Learning• Organization reviews performance against targets & takes corrective action

Double Loop Learning• Organization challenges governing assumptions• Employees reflect on behavior, identify ways they inadvertently contribute to organization’s problems, and then change how they act


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What is Knowledge Management?

Range of strategies and practices used in an organization to identify, create, represent, distribute, and enable adoption of insights & experiences.

Such insights & experiences comprise knowledge, either embodied in individuals or embedded in organizations as processes or practices

Knowledge Management typically focuses on organizational objectives such as improved performance, competitive advantage, innovation, sharing of lessons learnt, and continuous improvement


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Importance of Knowledge Management in Strategy

Market places are increasingly competitive and the rate of innovation is rising

Competitive pressures reduce the size of the workforce that holds valuable business knowledge

Reduction in staffing create a need to replace informal knowledge with formal methods

The amount of time available to experience and acquire knowledge has diminished

Early retirement & increasing mortality of workforce lead to loss of knowledge

Change in strategic direction may result in the loss of knowledge in a specific area

Need to manage increasing complexity as small operating companies are trans-national sourcing operations


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Knowledge Management Spiral

Tacit KnowledgeInternalized knowledge that an individual may not be consciously aware of, such as how he or she accomplishes particular tasks

Explicit KnowledgeKnowledge that an individual holds consciously in mental focus, in a form that can be easily communicated to others

Spiraling Knowledge Process (SECI)Knowledge follows a cycle in which implicit knowledge is ‘extracted’ to become explicit knowledge, and explicit knowledge is ‘re-internalized’ into implicit knowledge.


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Knowledge Management Spiral

Socialization: Process that transfers tacit knowledge in one person to tacit knowledge in another person | through direct interaction with customers and suppliers outside the organization and people inside the organizationExternalization: Process for making tacit knowledge explicit | During face-to-face communication people share beliefs and learn how to better articulate their thinking, though instantaneous feedback and the simultaneous exchange of ideasCombination: Explicit knowledgecan be conveyed in documents, email, data bases, as well as through meetings and briefings

Internalization: Process of understanding and absorbing explicit knowledge in to tacit knowledgeheld by the individual | Internalization is largelyexperiential, in order to actualize concepts and methods, either through the actual doing or throughsimulations.


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Challenges of Creating Learning Organizations

Problems of Leadership Leaders in the organization may already have mental models

that are entrenched and must be overcome in order to foster the openness and confidence required

Learning Organizations require leaders to be open to challenges about their vision and behavior, and to be prepared to change when necessary

Learning Organizations require a questioning approach that is contradictory to the cultural expectations of both leaders and the majority of organizations

Most leaders are promoted to their level because of their expertise at the previous level, they then fall into the ‘Expert Trap’, telling people what to do


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Challenges of Creating Learning Organizations

Long-Term Vision Learning Organizations must have a long-term vision, and be

focused on the learning and development of their workers in order to achieve development of the whole.

This requires many to make large changes and in a results driven, time pressured, business environment, the decision to look long-term is a hard one to take.

Training and Development required to move towards being a Learning Organization takes a lot of time that companies may not be able or willing to spend at the moment.

April 8, 2023

Thank you

Hardy AlexanderFounder & Director | Triune GlobalBangalore – 560077Contact: +91 96864 48698Email: [email protected] Blog: dayscore.wordpress.com

RIMS, Bangalore | PGDM 2nd Year, Strategic Management 14

mailto:[email protected]

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Learning Organizations: Strategic Management