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1 Building Learning Organizations Unit-1 Emerging Business Realities Unit-2 Why Organization Need to Learn Unit 3- Organization Learning- A capabilities Based View

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Building Learning Organizations

Unit-1 Emerging Business Realities

Unit-2 Why Organization Need to Learn

Unit 3- Organization Learning- A capabilities Based View

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Organizational Learning&

Learning Organizations

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Learning Organizations

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Learning Organization

LO is the generic term given to strategies and initiatives for improving organizational effectiveness through emphasis on developing the capabilities , capacities and qualities of the employees at all the levels.

Corporate commitment for doing things in there preferred ways.

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LO adopts strategic approaches to long term organizational security, continuity, viability, effectiveness-and therefore profitability- that integrates-

What is done and why- business and organizational policy, direction, purpose and priorities with,

How it is done- the specific attention to the staff who have to implement it, and whose efforts depends continuing success or failure.

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A "Learning Organization" is one in which people at all levels, individually and collectively, are continually increasing their capacity to produce results they really care about.

An organization that learns and encourages learning among its people. It promotes exchange of information between employees hence creating a more knowledgeable workforce. This produces a very flexible organization where people will accept and adapt to new ideas and changes through a shared vision.

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It was Peter Senge’s 1990 book The Fifth Discipline that popularized the concept of the ‘learning organization'. Since its publication, more than a million copies have been sold and in 1997, Harvard Business Review identified it as one of the seminal management books of the past 75 years.

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Learning Organisation

Peter Senge has defined Learning Peter Senge has defined Learning Organization in the following way,Organization in the following way,

"Organisations where:

people continually expand their capacity to create the results they truly desire,

new and expansive patterns of thinking are nurtured,

collective aspiration is set free, and

people are continually learning to learn together"

- Peter Senge

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Need for Learning Organization

Is your company is suffering with following problems? Do your employees seem unmotivated or uninterested in

their work? Does your workforce lack the skill and knowledge to adjust

to new jobs? Do you seem to be the only one to come up with all the

ideas? And does your workforce simply follow orders? Do your teams argue constantly and lack real productivity? Or lack communication between each other? And when

the "guru" is off do things get put on hold? Are you always the last to hear about problems? Or worst still the first to hear about customer complaints? And do the same problems occur over and over?

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In current situations of rapid change only those organizations that are flexible, adaptive and productive will excel. For this to happen, organizations need to ‘discover how to tap people’s commitment and capacity to learn at all levels’

While all people have the capacity to learn, the structures in which they have to function are often not conducive to reflection and engagement. Furthermore, people may lack the tools and guiding ideas to make sense of the situations they face. Organizations that are continually expanding their capacity to create their future require a fundamental shift of mind among their members. 

According to Peter Senge, real learning gets to the heart of what it is to be human. We become able to re-create ourselves. This applies to both individuals and organizations. For a ‘learning organization it is not enough to survive. ‘”Survival learning” or what is more often termed “adaptive learning” is important – indeed it is necessary. But for a learning organization, “adaptive learning” must be joined by “generative learning”, learning that enhances our capacity to create’

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How to create a LOThe Building Blocks- To build a solid

foundation for creating a LO following parameters are needed :

Awareness- learning must take place at all the levels

Environment-organic structure, linear organization with open communication

Leadership-Leader should foster system thinking

Empowerment-Decision making power + Accountability

Learning- Learning Labs, Simulation games

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According to Peter Senge the dimension that distinguishes learning from more traditional organizations is the mastery of certain basic disciplines or ‘component technologies’.

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PETER SENGE'S FIVE DISCIPLINES OF LEARNING

ORGANISATIONS

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Systems thinking-People in an organization are part of a system. Systems thinking is a discipline which integrates the other disciplines in a business. It allows the 'whole' (organization) to be greater than the 'parts (people, departments, teams, equipment and so on).

Personal mastery.-This discipline allows people to clarify and focus their personal visions, focus energy, develop patience and see the world as it really is. Employees who possess a high level of personal mastery can consistently generate results which are important to them through their commitment to lifelong learning.

Mental models- These are internalized frameworks which support our views of the world, beliefs in why and how events happen, and our understanding of how things, people and events are related. Senge advocates bringing these to the surface, discussing them with others in a 'learningful' way and unlearning ways of thinking which are not productive.

Building shared vision-Developing 'shared pictures of the future' together so that people are genuinely committed and engaged rather than compliant.

Team learning- Senge sees teams as a vital element of a learning organization. As there is a great significance in the ability of teams to learn.

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The Focus of Learning Organization Five

Disciplines

TheLearning

OrganizationFocus

SystemsThinking

TeamLearning

SharedVision

MentalModels

PersonalMastery

Peter Senge

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A Learning Organization:Key Disciplines

SYSTEMS THINKING: Integrating all the functions in an organization into a cohesive structure.

PERSONAL MASTERY: Personal and professional development that is in sync with the organization’s goals.

MENTAL MODELS: Internalized frameworks and generalizations of how an organization works and

responds to its environment.

SHARED VISION: Developing commitment using “shared pictures of the future”; Everyone working for a common,

agreed upon future.

TEAM LEARNING: People working as teams and therefore learning as teams.

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The Learning Organization Goal

Make Learning Part of the Every Day Office Environment

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The Learning Organization

Encourages Continuous Learning Promotes Access to Learning Maximizes Information Sharing Increases Flexible Access to Training Works Efficiently Using Interactive

Relationships Sees the Big Picture Shares a Common Vision

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Why is it Important?

“The organizations that will truly excel in the future will be the organizations that discover how to tap people’s commitment and capacity to learn at all levels in an organization.”

– Peter Senge “The rate at which organizations learn may become the only

sustainable source of competitive advantage.”– Peter

Drucker “The need for learning organizations is due to the world

becoming more complex, dynamic and globally competitive.”– Gary Ahlquist

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What is a Learning Organization? - Debate

Many pundits – among the most respected business thinkers:Peter Drucker – “The Information Age”Peter Senge – “The Fifth Discipline”

No clear consensus on the definition Learning Organization is an ideal that

could exist in may forms

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Peter Drucker – “The Information Age” Competitive advantage is created through “information-

based organizations” Four Critical Areas:

Develop rewards, recognition and career opportunities that stimulate information sharing

Create a unified vision of how the organization will share information

Create the management structure that enables cross-boundary information sharing

Ensure the continuous supply and training of staff and volunteers that can use the information

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Peter Senge – “The Fifth Discipline” “Learning organizations are where people continually

expand their capacity to learn” “Five disciplines are key to achieving an effective

learning organization” Personal Mastery – enhancing ability to be objective Mental Models – continually scrutinizing our

assumptions and picture of the world Shared Vision – creating a new picture for the future Team Learning – creating the capacity to “think

together” Systems Thinking – knowledge and tools that allow

people to see inter-relationships

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Shared Characteristics (across many differing views) Provide continuous learning opportunities for all

employees and volunteers Use learning as a way to reach the organization’s goals Link individual performance with organizational

performance Make it safe for people to share information and take

risks Embrace differences as tension that generates creativity Continuously understand and interact with targeted

beneficiaries

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System Thinking This is the ability to see the bigger picture, to look at the

interrelationships of a system as opposed to simple cause-effect chains; allowing continuous processes to be studied rather than single snapshots.

The essential properties of a system are not determined by the sum of its parts but by the process of interactions between those parts.

Systems thinking is fundamental to any learning organization; it is the discipline used to implement the disciplines.

Without systems thinking each of the disciplines would be isolated and therefore not achieve their objective. The fifth discipline integrates them to form the whole system, a system whose properties exceed the sum of its parts.

Systems thinking cannot be achieved without the other core disciplines: personal mastery, team learning, mental models and shared vision.

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Popular concept of system

input process output

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System is a

Whole always

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Mental Models

Shared Vision

Team Learning

Systems Thinking

Personal Mastery

Learning Organization

Learning organization

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System is Relationships

A

CD

B

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Construct and analyze

analyze

reconstruct

construct

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College (or College System)

Community (home for this group of students)

A system is a larger world

Teacher

Student

Parent

Classroom

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Still larger view : we need to analysis

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Systems Thinking

Making It Work:

Management must

Understand the concepts to put into place Take feedback to reinforce system Look at the whole picture, not “snap

shots in time”. Have system maps Provide the right workplace conditions

The Tricky Part:

• People find it hard to see the whole pattern of change.• Takes time to see newly initiated ideas work.• Easier to learn at an early stage rather than at later stage.

Meaning: Integrating all the functions in an Organisation into a cohesive

structure.

It is the discipline that integrates the others, fusing them into a coherent body of theory & practice.

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Personal Mastery: How it can be Achieved?

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Personal Mastery Personal mastery is the process of

continually clarifying and deepening an individual's personal vision.

This is a matter of personal choice for the individual and involves continually assessing the gap between their current and desired proficiencies in an objective manner, and practicing and refining skills until they are internalized.

This develops self esteem and creates the confidence to tackle new challenges.

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Organizational Behavior: Conflicts in Organizations

• Levels of Conflict

1. Intrapersonal Conflict

2. Interpersonal Conflict

3. Intragroup Conflict

4. Intergroup Conflict

5. Intraorganizational Conflict

6. Interorganizational Conflict

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Organizational Behavior Conflict in Organizations

• Interpersonal Conflict Management1. Force2. Withdrawal3. Smoothing4. Compromise5. Mediation and Arbitration6. Superordinate Goals7. Problem Solving8. Dialogue

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Lecturing

ONE-WAY

Communication

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Debate

Two-wayCommunication

It teaches fighting

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Discussion

Multi-way communicationTake decision by voting

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Dialogue is constructing

Dialogue is art of listening. Here people learn to listen to learn not only words but all facets of the presence of others in their context

Dialogue is exploring for construction not an agreement

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Dialogue is checkingassumptions

•Your own assumptions

•And others assumption

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Telling Dictating: “Here’s what I say, and

never mind Why” ( dysfunctional ) Asserting: “Here’s want I say, and

here’s want I say it.” Explaining: “Here’s how the world

works and why I can see it that why.”

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Generating Skillful discussion: (Balancing advocacy-

encouragement and inquiry) genuinely curious makes reasoning explicit asks others about assumptions without being critical or accusing)

Dialogue: suspending all assumptions creating a “container” in which collective thinking can emerge

Politicking: giving the impression of balancing advocacy and inquiry, while being close-minded (dysfunctional)

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Observing

Bystanding: Making comments which pertain to the group process, but not to content.

Sensing: Watching the conversation flow without saying much, but keenly aware of all that transpires.

Withdrawing: Mentally checking out of the room, and not paying attention. (dysfunctional)

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Asking

Interrogating: “Why can’t you see that your point of view is wrong?” (dysfunctional)

Clarifying: “What is the question we are trying to answer?”

Interviewing: Exploring others’ points of view, and the reasons behind them.

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Special rules of dialogue

Circular arrangements; not rows and column type

Agenda Chairperson Language Decisions

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Personal Masterycreative tension in rubber band

Reality

Aspirations

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Personal mastery beliefs, reality, vision

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Personal Mastery Meaning:

Personal & professional development that is in sync with the organisation’s goals.

It is discipline of ‘continually clarifying & deepening our personal vision, of focusing our energies, of developing patience, & of seeing reality objectively’.

The Tricky Part

• Resistance to PM due to difficulty in quantifying results. 

• Ideas behind PM have been heard before.  

• People forced to develop PM - may do more harm than good.

Making It Work

Management must Redefine employees job  Provide the right conditions for employees

to be proactive  Generate a sense of purpose Develop competencies of employees Create situations for employees to have

personal vision, holding creative tension & recognizing own strengths.

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Mental Models Each individual has an internal image of the world, with

deeply ingrained assumptions. Individuals will act according to the true mental model that they subconsciously hold, not according to the theories which they claim to believe.

If team members can constructively challenge each others' ideas and assumptions, they can begin to perceive their mental models, and to change these to create a shared mental model for the team. This is important as the individual's mental model will control what they think can or cannot be done.

It is a framework for the cognitive processes of our mind. In other words, it determines how we think and act. Winning in arm wrestling means the act of lowering their partner's arm to the table. Most people struggle against their partner to win. Their mental model is that there can be only one winner in arm wrestling and that this is done by lowering their partner's arm more times than their partner can do the same thing to them.

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Mental Models Meaning: Internalised frameworks & generalisations of how an organisation works &

responds to its environment.

It starts with turning the mirror inwards; learning to unearth our internal picture of the world, to bring them to the surface & hold them rigoursly to scrutiny.

The Tricky Part

• Managers not always very skilled in implementing new ideas • People find it difficult to

challenge assumptions they believe to be “the case” 

• Some people act in reutilised

ways when they are at work

The Tricky Part

• Managers not always very skilled in implementing new ideas • People find it difficult to

challenge assumptions they believe to be “the case” 

• Some people act in reutilised

ways when they are at work

Making It Work

Skills learnt must be put into regular practice  continually challenged 

Strong role of manager to integrate mental modelling and systems-thinking skills.

Allowing ‘learningful’ conversations that balance inquiry & scrutiny.

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Shared Vision To create a shared vision, large

numbers of eligible people within the organization must be empowered to draft it, and create a single image of the future.

All members of the organization must understand, share and contribute to the vision for it to become reality.

With a shared vision, people will do things because they want to, not because they have to.

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Shared Vision Meaning:

Developing commitment using “shared picture of the future"; Everyone working for a common, agreed upon future.

The Tricky Part

• Compliance not commitment • Extrinsic visions are usually

personally held and are defensive • Vision is usually top-down – do not have as good an affect as they should

Making It Work

Management must Foster genuine commitment & enrolment rather

than compliance. focus & generate energy for learning;

put together by many not a few  better when considered intrinsically at the

organisational level. Have discussion on vision for better clarity

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Team Learning Team learning focuses on the learning ability of the

group. Adults learn best from each other, by reflecting on how they are addressing problems, questioning assumptions, and receiving feedback from their team and from their results.

With team learning, the learning ability of the group becomes greater than the learning ability of any individual in the group.

Learning stages are: Forming Storming Norming Performing

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Team Learning Meaning: People working as teams & therefore learning as teams.

It starts with a dialogue, the capacity of members of a team to suspend assumptions & enter into genuine ‘thinking together’.

The Tricky Part

• practice, and consistency, no quick fixes• boredom sets in  • open minded with one’s own views and the views of others

The Tricky Part

• practice, and consistency, no quick fixes• boredom sets in  • open minded with one’s own views and the views of others

Making It Work

Management must Everyone must pull in the same direction  Teams must master the art of dialogue and

discussion  Conflict can still appear in good team learning BUT essentially a unitary frame of reference

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attitudes + perceptionattitudes + perception

you those around you

Mental Models: you and around you

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Shared Vision evolves

Shared visions

Personal 1

Personal 3

Personal 2

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R&D

Finance

HumanResourcesDivision A

Division B

Division C

Marketing Manufacturing

Personal visions: variation

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Shared Vision: fully aligned

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Team coherence and alignment

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Knowledge of systems’ thinking is Knowledge of systems’ thinking is powerpower

Wisdom

Knowledge

Information

Data

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Management of systems is achieved by

• Bringing changes outside

and• Changes inside yourself

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Learning Organization

'Organizations learn only through individuals that learn. Individuals' learning does not guarantee organizational learning. But without it no organizational learning occurs.‘

Senge, Peter, 1994

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Learning Organization Senge (1990) defines the Learning Organization as the

organization "in which you learn because learning is so insinuated into the fabric of life." Also, he defines Learning Organization as "a group of people continually enhancing their capacity to create what they want to create."

Learning Organization is an "Organization with an ingrained philosophy for anticipating, reacting and responding to change, complexity and uncertainty." The concept of Learning Organization is increasingly relevant given the increasing complexity and uncertainty of the organizational environment. As Senge (1990) remarks: "The rate at which organizations learn may become the only sustainable source of competitive advantage."

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Learning Organization

."

McGill et al. (1992) define the Learning Organization as "a company that can respond to new information by altering the very "programming" by which information is processed and evaluated."

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Why there is a need for Learning Organisation

Business becoming more complex & globally competitive.

Excelling in a dynamic business environment requires more understanding, knowledge, preparation & agreement than one person’s expertise experience provides.

Continuous improvement is the order of the day – it requires a commitment to learning.

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Learning Organization

Jeanne Meister (2004) reports that “learning organizations whose performance correlated with excellent business results show mastery in seven key areas":

1. Executives are known as much for following as they are for their leadership.

2. They enthusiastically invite and willingly take the good advice they seek from others.

3. They are defined by openness to employee climate surveys, suggestion systems and work clusters that empower subordinates to contribute meaningful solutions.

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Learning Organization

4. They understand that innovation thrives wherever new ideas, diverse views, and vigorous debate are encouraged.

5. They gather information from outside the four walls of their business.

6. They go to great lengths to solicit help and wisdom from vendors and suppliers, learning from their understanding of market trends, technological directions and current competitive landscape.

7. They understand that moving from commodity to experience begins and ends with the awareness of the customer view.

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Learning Organization

Learning Organization has the ability to learn faster than their competitors.

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Organization Learning

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Organization Learning

“Individual learning does not guarantee organizational learning," organizational learning can and does occur with no specifically related individual learning. That is, the environmental consequences of organizational behavior can be fed back to the organization and shape future organizational behavior without requiring individual learning at all.

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Organization Learning (OL)

Organizational Learning (OL) has become very prominent in the current scenario. Managers see OL as a powerful tool to improve the performance of an organization. It is not only the scholars of organization studies who are interested in the phenomenon of OL but also the practitioners who have to deal with the subject of OL.

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Organization Learning

Two different processes of organizational change that are associated with OL:

Adaptive learning, i.e. changes that have been made in reaction to changed environmental conditions .

Proactive learning, i.e organizational changes that have been made on a more willful basis. This is learning which goes beyond the simple reacting to environmental changes.

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Organization Learning

Adaptive learning is a process of incremental changes. Adaptive learning is more automatic and less cognitively induced than proactive learning.

The adaptive learning compared to proactive learning is also expressed by the different labels which have been used to describe these two types of OL: “Single-Loop versus Double-Loop Learning” (Argyris and Schön, 1978), “Lower Level versus Higher Level Learning” (Fiol and Lyles, 1985), “Tactical versus Strategic Learning” (Dodgson, 1991) “Adaptive versus Generative Learning” (Senge, 1990

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Organization Learning

Argyris (1977) defines organizational learning as the process of "detection and correction of errors." In his view organizations learn through individuals acting as agents for them: "The individuals' learning activities, in turn, are facilitated or inhibited by an ecological system of factors that may be called an organizational learning system"

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Organization Learning

Huber (1991) considers four constructs as integrally linked to organizational learning: knowledge acquisition, information distribution, information interpretation, and organizational memory. He clarifies that learning need not be conscious or intentional. Learning does not always increase the learner's effectiveness, or even potential effectiveness. Moreover, learning need not result in observable changes in behavior. Taking a behavioral perspective, Huber (1991) notes: An entity learns if, through its processing of information, the range of its potential behaviors is changed.

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Organization Learning

“Organizational Learning is the process within the organization by which knowledge about action-outcome relationships and the effect of the environment on these relationships is developed" (Duncan & Weiss 1979).

In his view, "a more radical approach would take the position that individual learning occurs when people give a different response to the same stimulus, but Organizational Learning occurs when groups of people give the same response to different stimuli."

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Organizational Learning vs. Learning Organization Ang & Joseph (1996) contrast Organizational

Learning and Learning Organization in terms of process versus structure.

McGill et al. (1992) do not distinguish between Learning Organization and Organizational Learning. They define Organizational Learning as the ability of an organization to gain insight and understanding from experience through experimentation, observation, analysis, and a willingness to examine both successes and failures.

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Adaptive Learning vs. Generative

Learning

Adaptive Learning or single-loop learning focuses on solving problems in the present without examining the appropriateness of current learning behaviors. Adaptive organizations focus on incremental improvements, often based upon the past track record of success. Essentially, they don't question the fundamental assumptions underlying the existing ways of doing work. The essential difference is between being adaptive and having adaptability.

Adaptive learning is about coping.

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Adaptive Learning vs. Generative Learning Thus Adaptive learning is about coping.

Senge (1990) elaborated that increasing adaptive ness is only the first stage; companies need to focus on Generative Learning or "double-loop learning"

Generative Learning is about creating - it requires "systemic thinking," "shared vision," "personal mastery," "team learning," and "creative tension" [between the vision and the current reality]

Argyris 1977- Generative learning emphasizes continuous experimentation and feedback in an ongoing examination of the very way organizations go about defining and solving problems.

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Managers' Role in the Learning Organization Senge (1990) argues that the leader's role in

the Learning Organization is that of a designer, teacher, and steward who can build shared vision and challenge prevailing mental models.

A Leader/Manager is responsible for building organizations where people are continually expanding their capabilities to shape their future -- that is, leaders are responsible for learning

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Learning Organization The key ingredient of the Learning Organization is in how

organizations process their managerial experiences. In Learning Organizations/Managers learn from their experiences rather than being bound by their past experiences.

In Generative Learning Organizations, the ability of an organization/manager is not measured by what it knows (that is the product of learning), bur rather by how it learns -- the process of learning. Management practices encourage, recognize, and reward: openness, systemic thinking, creativity, a sense of efficacy, and empathy.

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Optimizing Organizational Learning

1 -View learning as work and work as learning. Recognize learning in all it's forms in order to find ways to nurture it and connect it across the organization.

2 -Count on the informal.

3 - If there is a learning problem, look for patterns of social participation and exclusion.

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Optimizing Organizational Learning

4 - Keep learning as close to practice as possible. Be suspicious of any process that attempts to extract knowledge from the communities of practice where it is kept alive, to transform this knowledge into a curriculum, and to deliver it outside of

practice.

5 - Treat Communities of practice as assets. Encouraging learning communities by supporting reflection processes and access to information as part of the practice itself. Given the right conditions - enough understanding of circumstances, access to resources and control over their destiny - communities of practice can use their shared history as a social resource to learn very much, very fast.

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Optimizing Organizational Learning

6-View individuals as members of communities of practice, not by stereotyping them, but by honoring the meaningfulness of their participation. Recognize, for example, that the cadre of volunteers who staff the hospital's gift or coffee shops are not only members of the community of volunteers but also an informal public relations community who give people directions and information, and convey, with every contact, that the hospital is a friendly (or unfriendly) place.

7 - Encourage the formation and deepening of communities of practice

by legitimizing the work of pulling them together and valuing the informal learning facilitate. If staff nurses come up with an idea for improving patient care over lunch, then take that idea to their supervisor, and are met with a response like, "Well, write up a proposal and the appropriate committee will review it,"

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Optimizing Organizational Learning

8 - Manage boundaries between communities of practice as opportunities for learning. Recognize the strengths and weaknesses of objects and people in their ability to bridge across practices. A protocol, for instance, becomes useful to the extent that someone can negotiate its relevance to a specific patient.

9 - Expect transformations, misunderstandings, and reinterpretations when people, artifacts and information cross boundaries of practice. Pay particular attention to artifacts and documents that are supposed to create links across boundaries. When in doubt, have objects accompanied by someone.

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Optimizing Organizational Learning

10 - Value the work of brokering learning among communities; it often does not look like work. The connection across departments provided by a group of caregivers going to lunch together can be as essential to the quality of care as any protocol.

11 - Be attuned to the emergence of new practices at boundaries. The value of these new practices may initially not be recognizable by the criteria of existing practices.

12 - View the organization as a constellation of interconnected practices. Give local communities enough information and encouragement to negotiate how they fit within the whole and contribute to the efficiency of the organization.

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Optimizing Organizational Learning

13 - Put communities of practice in charge of their learning, recognizing that they need access to other practices in order to proceed. No practice can fully organize the learning of another. But at the same time, no practice can fully organize its own learning, because no practice has the full picture.

14 - Make sure that the organizational apparatus is in the service of practices, and not the other way around. Avoid organizational demands that do not somehow serve the practices on which they are made. The purpose of having organizations is not to replace communities of practice with an abstract sense of affiliation, but to recognize their existence and to provide the resources and information to help them locate their practices in a broader context and align with one another in order to work together.

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Future Organisations

Top learns & guides

Everybody is Learning

Everybody is

Learning

Teaching & being taught

Everybody is

Learning

Teaching & being taught

Coaching & being coached

Industrial Organisation

Learning Organisation

Teaching Organisation

Coaching Organisation

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The End