Organizational Learning Capability

Organizational Learning

CapabilityArthur Yeung

David Ulrich

Stephen Nason

Mary Ann Glinow

1999

3/7/2015 1(c) Sachidananda

About the Authors

3/7/2015 (c) Sachidananda 2

Arthur Yeung David Ulrich Stephen Nason Mary Ann Glinow

http://www.ceibs.edu/faculty/cv/1113.shtmlhttp://en.wikipedia.org/wiki/Dave_Ulrichhttp://www.bm.ust.hk/mgmt/staff/mnsnason.htmlhttp://business.fiu.edu/faculty/faculty_experts.cfm?FlagDirectory=Display&User=vonglinowm

Author’s thesis


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

Exte

nt

to w

hic

h c

han

ge in

itia

tive

is a

do

pte

d

low

High

Highlow

Author’s thesis


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

Author’s thesis


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 cultureBusiness Strategy

Business Performance:1. Competitiveness

2. Innovativeness

Author’s thesis


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

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.


Author’s thesis


Insights on Generalization of ideas for impactManagers 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)

Author’s thesis


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

Architecture


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?

QUESTIONSTHANK YOU

3/7/2015 11(c) Sachidananda

Organizational Learning Capability

Leadership & Management

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