paper lithuania seoul 2009
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Towards a Learning Organization: the Role of Core Competencies as an Internal
Factor for Transformation
Jrat Palas!ait" #ai$a %ze$i&it" 'i$il (tar!e$i&it
The purpose of this paper is to present the case study, which was aimed to identify whether
decision to transform an organization into a learning organization may be triggered by internal rather
than external factors) The hypothesis: to identify which factors (internal, such as decision to develop
competencies of members of an organization, or external, such as pressures of competitive market,
globalization, technological advancement) trigger the transformation of an organization to learning
organization is possible while identifying members attitude to their own core competence and the
need to develop them
*e+ words: !ore competencies, learning organization, "uality of services, front#officepersonnel
Introdction
$ccording to %auzackas & ('b), the development of core competencies could be
defined as the development of *knowledge, abilities, skills, attitudes and value orientations that are
being used for a long period of time and have the impact on comprehensive development of
personality, professional flexibility and mobility+ (p -) The significance for the development of the
learning organization and community, organization and states economy has been declared in
internationally recognized documents: $ .emorandum on %ife %ong %earning ('/), %isbon
0trategy ('), and in various documents of the 1uropean 2arliament and !ommission
$ state financed organization providing non#commercial services was chosen for the empirical
study of the paper $s Targamadze and 0imonaitien3 note (''), external factors are "uite often
relied on triggering transformations towards a learning organization 4ue to the fact that non#
commercial organizations are less susceptible for the external factors for transforming into learningorganizations, such as the rapidly changing markets in comparison with profit#making organizations,
it is likely that situation will reflect reflective and conscious choice of members of an organization
(internal factors) rather than reaction to forces of market (external factors) to implement
transformation 5on#commercial organizations should find other sources for transformation than
merely reaction to external pressures, and namely some internal triggers or factors The prpose of
this paperis to present the case study, which was aimed to identify whether decision to transform an
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organization into a learning organization may be triggered by internal rather than external factors The
h+pothesis: to identify which factors (internal, such as decision to develop competencies of members
of an organization, or external, such as pressures of competitive market, globalisation, technological
advancement, etc) trigger the transformation of an organization to learning organization is possible
while identifying members attitude to their own core competence and the need to develop them Theo,-ect of the paper covers attitudes of organizations members towards the development of
personnels core competences The following o,-ecti$es have been raised:to characterize the concept
of core competences, to define content of a concept of "uality of services, to reveal the relation
between front#office personnels core competences and the "uality of services6 to identify the
perceived significance of development of 7 organizations personnels core competences for the
transformation of an organization into a learning organization .sed methods include critical and
systemic analysis of references6 also case study that included internal documents analysis, also a two#
stage "uantitative research, which was completed in '8#'9 The following methods for an
empiric study were used: analysis of recent internal and strategic documents and "uestionnaires
comprising open and closed type "uestions Research limitations only clients and members of one
non#commercial, service orientated organization in one of ten counties in %ithuania were approached
This must be seen as a limitation of the study
Core Competencies / the Concept and Classification
The relevance of core competencies in professional activities was influenced byglobalization and constant changes covering various areas (economical, political, social,
technological, etc) ;lobalization caused the need for discussing what are the competencies with the
help of which one could flexibly adapt to changes occurring in professional, personal and other
activities $ certain value of core competencies is definitely gained within the area of services, which
is based both on technology and a certain form of relationship between a service provider and a client
$domaitiene et al('
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development, active citizenship, social integration and employment of all citizens 8 core
competencies (and their elements) are enlisted !ommunication in mother#tongue is defined as ability
to both in written and orally express and explain notions, feelings, facts and opinions !ommunication
in foreign languages is based on ability to understand a foreign language, express one#self, explain
notions, thoughts, feelings, facts and opinions within a certain society or cultural environment.athematical abilities and core competencies in research and technological areas (mathematical
abilities for developing and applying mathematical thinking when solving different every day
problems) !ompetencies in science area stand for a persons ability and willingness to apply
knowledge and methodology when explaining nature, trying to raise "uestions and draw evidence#
based conclusions 4igital literacy deals with reliable and critical appliance of ?T at work, for leisure
or when communicating %earning to learn competence (ability to study insistently and to arrange
ones learning process both in groups and individually, by effectively managing information) 0ocial
and civic competencies, initiative and entrepreneurship 0ability to turn ideas into actions1 creativity,
innovation, readiness to risk, pro@ect planning and managing in the pursuit of goals raised), cultural
consciousness and expression(perception of the significance of different creative ideas, music, stage
and visual art and literature) finalize the list
?n the AB (2aulauskait3, '9) core competencies are defined as a complex of abilities
providing the basis of any kind of effective activity They are necessary for successful work, learning
and other activities The structure of core competencies is comprised of communication (participation
in discussions, application of visual aids etc), mathematical literacy (data collection, recording andprocessing), ?T (preparation of information, processing, presentation etc), personal (personal learning
and professional improvement), problem solution (naming the problems, decision making etc), and
competencies of foreign languages (listening, speaking, reading and writing)
$ny organization, including a learning organization, has to perform certain functions such as
recruitment of employees and support for the development of competencies as well as career
planning ?n addition to technical competencies (knowledge and skills characteristic to a certain
profession), other important competencies may be identified, including communicational (ability to
start and sustain relationship with customers), organizational (ability to organize ones work activities,
plan them and set priorities), managerial (ability to organize activities of others, inspire and motivate
them), strategic (ability to communicate within a system and interact with other participants),
educational (ability to explain, consult and support learning of others), cognitive (ability to develop
new competencies), recognition of clients environment (ability to recognize a client, discover his=her
needs and expectations) and those of common culture (an important part of holistic competence)
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(Birby, /999, here from 2aulauskaite, '9) $ccording to the number of authors and references, core
competencies are identified as comprehensive and applicable within different spheres of life and
professional activities Curthermore, they play an important role in the context of constant economical
and social, as well as technological changes !ore competencies (and their elements) are the result of
lifelong learning
O$er$iew of the Concepts of (er$ices
0ervices have certain characteristics: heterogeneity, unsteadiness, clients participation in the
process of service provision, the unity of service provision and consumption (Dagdoniene, Eopeniene,
') There is a variety of ways to classify services $ccording to ;rFnroos ('/), non#commercial
services are not aimed at profit6 rather they are aimed at meeting community needs 0uch services are
provided by governmental non#commercial organizations and private non#profit organizations
Asually, state budgetary funds comprise a large proportion of budget of such organizationsCurthermore, such kind of an organization faces harsher restrictions (laws, regulations) Asually,
private non#profit organizations are not entitled to share profit between members or managers 0uch
kind of organizations promote voluntary work and their profit is not always expressed in terms or
forms of money
The #ariet+ of 2alit+ Concepts
There is also a variety of concepts of "uality $ccording to Gesterhei@den ('), every
definition of "uality is a matter of agreement The sub@ectivity of the concept of "uality comes from
three interacting parts: benefit (features, form and tune), value (economical, intellectual) and
suitability (amount and timely performance) The above enlisted may be perceived differently by each
individual $ccording to %ok and !rawford ('), an ob@ective (visible, measurable features) and
sub@ective (immeasurable, experienced via consciousness) "uality may be distinguished ?n addition,
there are internal and external perceptions of "uality ?nternal "uality is related to organizational
culture, history and structures as well as the "uality level of the way its inner elements function
(mission, human resources, and monetary resources) .eanwhile, an external "uality deals with thesatisfaction of client needs and re"uirements The latter one may be influenced by political regulations
as well
?t may be concluded that there is no universal definition of "uality $ccording to .isiHnas
('8), the diversity of concepts comes from the fact that there are several "uite different perspectives
of "uality Iuality is rather a socially negotiated construct than a definite constant ?t is dynamic and,
nevertheless, the contents of the concept serves as a starting point for activities in any organization
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2alit+ of (er$ices and Core Competencies in a Learning Organization
To add to the complexity, the concept of the "uality of services and its models are widely
analyzed in management and marketing literature ?t is impossible to evaluate "uality of services and
the "uality of products applying the same criteria $ccording to 1riksson et al (/99J), services may be
defined as a product resulting from experience that may be evaluated only through consumption The
orientation towards client is often emphasized when analyzing organizations providing services $
service must respond to clients needs and expectations Eere the main evaluator is the client, thus, it
is significant to manage perception of "uality of services and satisfaction Darczyk (/999) states that
the "uality of services is expressed in terms of the level of customers satisfaction that depends on
customers needs and experience $ccording to ;umesson (''), it is important to be aware not only
of present customers needs, but future ones as well Therefore, by applying the before#mentioned
definitions, we may state that in the area of services the "uality is often perceived as satisfaction ofclients needs Eowever, it may interfere with other concepts oriented towards inner "uality of
activities Cor that reason, it is not recommended to identify the parameters of "uality solely based on
clients opinion, since not all services are e"uivalent $ccording to %angviene and Kengriene ('), a
conceptual key for perceiving "uality of services is the interaction between the "uality perceived by a
supplier and a client $n important role in this interaction is given to front#office personnel, since
they not only perform certain actions and procedures necessary for providing the service, but they also
communicate with customers and involve them in one way or another into the process of service
provision The key task of such employees is to serve the client and stand for the interests of the
company (Kengriene, '-) Therefore, the improvement of "uality could be related to investments
into personnel and development of both core and other competencies that are significant for
professional activities
1very client individualizes specific services and differently prioritizes its features ;rFnroos
('/) in his research of the area enlisted specific features of services that clients @udge !lient is
interested in basic characteristics of providers activities, such as professionalism and skills, attitudes
and behavior (attentiveness, politeness and respect), also availability and flexibility (convenience ofoffice#hours, short waiting time, convenient location) &eliability and ability to manage unexpected
situations are important as well as reputation and creditability (it is expected that the value provided
will be ade"uate to the amount paid) $ccording to Dagdonien3 and Eopeniene ('), the ma@ority of
authors assume that reliability, flexibility, providers readiness to help and to manage unexpected
situations are the most important issues for clients The above#presented brief analysis criteria applied
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for evaluating services, confirms that among other factors influencing the "uality of services,
personnels core competencies are included
The necessity of life#long learning is determined by constant changes within different areas
and by increasing global competition as well as rapidly developing technologies These pressures
comprise external factors ?n order to survive under the conditions of dynamic market, constantprofessional development and learning of employees should be promoted $t this point, the
significance of developing core competencies is emphasized as the way to cope with external
pressures $ccording to $ .emorandum on %ife#%ong %earning, the core competencies are defined
as the main competencies without which individuals would be incapable of participating in both
knowledge society and modern economy as well as social sphere
4awe ('
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learning organization is possible while identifying members attitude to their own core competence
and the need to develop them) a case study was carried out in '8 # '9 The case study constituted
of the following parts: analysis of internal documentation and a "uantitative study comprised of
"uestionnaires for clients and front office employees
The attitude of the clients on services and employees core competencies of a state non#commercial organization (Curther # organization 7, library) situated in one of the largest cities in
%ithuania was studied in spring of '8 The respondents were selected by approaching every client
during one week The main selection criterion was that a respondent had to be a client of services
provided by the organization 7 8 "uestionnaires were distributed, and J of those were returned and
filled in properly
$ study of front#office employees attitudes was carried out in the spring of '9 The front
office personnel of the relevant organization were approached The main aim of the survey was to
identify what core competencies are the most significant for the "uality of the activities, and what is
the level of necessity for developing the identified core competencies, what encourages to develop
them and what possibilities are provided for this (that is, are members of organization aware of the
need and prere"uisites for the development of a learning organization) ?n both cases anonymous
"uestionnaires were used for data collection The research data was processed by searching for
correlations between the variables and selecting non#parameter based criterion (') for calculations
The selected level of the statistical significance e"uals to p P (0200#/-, software was applied)
The respondents were presented with a partially structural written "uestionnaire made of nine closed#type "uestions evaluated by ranking and nominal scales The respondents constitute 9< Q of all
organizations employees dealing with clients6 therefore the re"uirements for case study method are
met (0hamoo, &esnik, '9) $ total of // "uestionnaires were distributed, / of which were
returned /< were filled in fully
$ccording to the data obtained from the analysis of employees survey, the ma@ority of them
are women with a dominating age of / to years old The minority of the respondents is over sixty
(J< Q)6 the ma@ority of the respondents have university level education (8J8 Q)
Case (td+: Towards a Learning Organization) Perception of Core Competencies
4ocment 5nal+sis) $s it has been mentioned before, a non#commercial service#oriented
organization (library) was selected for the case study Cirstly an in#depth review of documentation was
completed Eaving thoroughly analyzed its overall activities, dominating professional provisions,
strategic plan for the period of '#'8 and reports, we may draw a conclusion that the "uality of
8
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?t was revealed that the clients evaluate most of core competencies (and their elements) either
well or perfectly (0ee Cig/) The highest ranked "uality was helpfulness (over - Q)
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?t should be stated that the evaluation of significance of core competencies does not depend on
respondents, except for one item, and namely: the ability to learn $ statistically significant nonlinear
link exists between the age of respondents and the way they evaluate core competence ability to learn
('S
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?n addition to other desired to be developed competencies, ability to develop inner potential,
concentrate and adapt to changing environment and ability to learn at work in teams were enlisted
These findings seem to indicate that members of non#commercial organization are aware of the need
to develop core competencies, and, therefore, there is a potential for authentic transformation towardsa learning organization in the organization 7
?t should be also noted that there is a statistically significant non#linear link between the
significance and the development of most of the core competencies: ability to get into contact with
and sustain it with customers and colleagues (' S
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The study revealed the methods by which front#office personnel develop their core
competencies (Cig )
Fig. 5. 3ethods for de$eloping core competencies
The data obtained matches with theoretical insights the development of these competencies
within an organization may take place in the dimensions of formal, non#formal and self#based
learning Eowever, only non#formal and self#based learning dominates in professional activities
Conclsions and 4iscssions
/ !ore competencies are widely applicable in different daily life and professional areas Theyplay a significant role in constant economical, social and other changes, and are ac"uired by continual
development and learning $ number of similarities may be distinguished in different classifications
?n the ma@ority of classifications, the same social (communicational, conflict solving and etc),
mathematical, entrepreneurial, managerial, educational, related to foreign languages, informational
literacy, personal, wide scope and etc abilities are enlisted The only differences occur in their
subdivision into elements
' ?n the area of service management and marketing client is one of the central agents and the
main evaluator of the "uality of services $ccordingly, the significance of foreseeing his=her needs,
satisfaction, and management of perceived "uality and interaction with front#office personnel is highly
emphasized This influences the significance of the competencies and abilities of front#office
personnel, such as recognition of needs, communicational, conflict managing, decision making,
educational, general culture, personal, wide#scoped and etc, in pursuance of the "uality of services
!ertainly, other e"uivalent factors exist such as technical "uality, internal relations, working
conditions, re"uirements, regulations and etc ?n order to achieve general "uality of activities, all the/
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factors should be evaluated and all parts should be balanced (functional, technical, internal, external
and etc)
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DeresneviVien3, 4 (') 0uaugusiW@W Uvietimo psichologiniai aspektai == 0uaugusiW@WUvietimas dabarViai ir ateiViai Baunas, K4A- !ullen, L (/999) 0ocially constructed learning: a commentary on the concept of the learningorganisation, The %earning >rganization, Kol - 5o/, pp#'J4awe, 0 ('
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ldroyd, 4, ;edvilien3, ; (') 0uaugusiW@W mokymasis Baunas:K4A