LEANING

ORGANISATIONS
What is learning?

Cavaleri et al – learning is the continual reconstruction of experience into

meaningful wholes and management for complex organizational situations.
Cole – a complex process of acquiring knowledge, understanding skills and values
in order to be able to adapt to the environment in which we live and cope to
circumstances that we live in.
Chris Argyris – concerned with how individuals or groups acquire something that
already exist or create something completely new in the form of knowledge or
skills to enable them to perform and grow.
Charles Handy-learning is synonymous with change or growth.
A relatively permanent change in behaviour caused by acquired information,
knowledge or experience (Solomon and Stuart, 2005).
Leaning contd
Leaning is but an adjunct to life
Learning has been defined as a dynamic transformational
process, continuously extended and redefined in response to
the context in which it takes place (Anonacopoulou and
Gabriel, 2001:439).
Four clusters
-behaviour (associated with Skinner)
-understanding (cognitive learning)
-knowledge construction (Constructivists)
-social practice, social setting.
The Concept of learning Organisations
Senge (2000:140) observes that “organisations learn only
through individuals who learn. Individual learning does not
guarantee organisational learning. But without it no
organizational learning occurs.
Roper et al (2003:1) posits that the learning organization
associated with Peter Senge is pragmatic in that it focuses
on how organisations successfully acquire, and use
knowledge to achieve organisational goals. There is a strong
emphasis for creating knowledge for action not knowledge
for its own sake.
EVOLUTION AND HISTORY OF
LEARNING ORGANISATION
learning was first put forward by a Chinese philosopher
conficius (551-479BC)
Everyone should benefit from learning.
without learning the wise become foolish,
by learning, the foolish become wise”.
Never have enough of learning, as if you might miss something
A product of researches by Chris Argyris, Donald Schon and
Aris deGeus.(1970s)
Popularized by Peter Senge through his widely read book “THE
FIFITH DISCIPLINE :The art and practice of the learning
organisation 1990”
Acquired a position in the international hall of fame in
“management and organisation”
Learning Organisations
Organisations as human beings also learn. The learning
organization is an approach connected to the purpose
and strategy of the organization which seeks to identify
and learn from its corporate experience.
The objectives are to create a flexible, agile
organization able to handle uncertainty, using learning
to generate new ways of working, to build on success
and learn by mistakes (Abell and Oxbrow 2001:49).
Learning organisations explained
Peter Senge;
organization skilled at creating, acquiring and transferring
knowledge and modifying its behaviour to reflect new
knowledge and insights.
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 continually learning to see the whole together.
Definitions of learning organisation
Roper (2003:2) observes that the approach of learning organisation
is normative in the sense that there is a strong set of underlying
values that inform practice within a learning organisation, which
include a commitment to:
Valuing different kinds of knowledge and learning styles and creating a; learning
environment so each organizational member can realize his/her potential;
Encouraging dialogue and the exploration of different perspectives and experiences
to generate creative thinking;
Working collectively and breaking down traditional barriers or blinders within
organizations so as to release creative potential;
Fostering leadership potential throughout the organisation and reducing
distructions, such as those between management and staff, between strategist and
implementers, between support and professional staff.
Key points to on Senge’s definition
An organisation that values its workforce
workforce which has personal mastery/ excellence
same mental models,
willingness to work as a team
shared vision
same systems thinking
Develop collective as well as individual learning
Use the results of learning to achieve better results
Other LO definitions
Sandra Kerka(1995)
assumption that learning is valuable, continuous and most
effective when shared and that every experience is an opportunity
to learn.
Peddler et al(1991) – a company that facilitates the learning of
its members and continuously transforms itself in response to that
new knowledge and ability.
acquires knowledge and innovates fast enough to survive and
thrive in a rapidly changing environment.
Robbins{2003} – an organisation that develops continuously
and has capacity to adapt or change.
Garvin(1993) -an organisation skilled at creating, acquiring and
transferring knowledge and modifying its behaviour to reflect
new knowledge and insights.
Definitions continued
Wheelen and Hunger ( 2006) – learning organization
must be skilled at;
Solving problems systematically
Experimenting with new approaches.
Learning through experience, past history and the
experiences of others.
Why the interest in learning
organisation
Basically the search for the unattainable (Holy Grail)
continuous improvement and innovation (breakthrough
strategies).
unpredictable and dynamic business environment. .March and
Simon (1958) say LO is to deal directly with the chaos and
complexity of the turbulent environment.
Impact of the speed of information transfer/cutting edge
technological advances, access to it
best practices
intellectual capabilities of each employee.
Global business pressures
Micro and macro challenges
Change management,
Learning organisation constructs
continuous learning opportunities.
Use learning to reach their goals.
Link individual performance with organizational performance
Foster inquiry and dialogue
share openly
take risk.
Embrace and create tension as a source of energy and renewal
continuous awareness of and interaction with environment
importance of disagreements, constructive criticism and other
forms of functional conflict.
Flexibility instead of role clarity
Learning organisation constructs
(Cntd)
Integration instead of specialization
Innovation instead of control
360 degrees feedback
critical thinking and strategic thinking
allowing mistakes as opportunities
value employee contributions
Learn from experience and experiment.
Disseminate the new knowledge throughout the
organization for incorporation into day to day activities
Transformational/Generative leadership needed
Marquardt(1996) summary on seven Cs
of a LO:
▪ Continuous
▪ Collaborative
▪ Connected
▪ Collective
▪ Creative
▪ Captured
▪ codified
Peter Senge and the concept of learning
organization
Senge highlights that a learning organization is one that is to
create its future.
Senge believes in the mastery of the 5 basic disciplines.
Disciplines derived from 3 higher elements interrelated,
leading to LO;
▪ Creative orientation- genuine desire to excel or intrinsic
motivation drive
▪ Generative conversation- deep and meaningful dialogue to
create unity of thought and action.
▪ Systems perspective-ability to see things holistically by
seeing their interconnectedness.
Learning Organisations vs
Organisational Leaning
The difference according to Tsang (1997;74-75) is that
organisational learning is a concept used to describe
certain types of activities that take place in an
organisation while the learning organisation refers to a
particular type of organisation in and of itself.
Nevertheless, there is a simple relationship between the
two –a learning organisation is one which is good at
organisational learning.
The difference appears to be between becoming and
being (Burns, 2004:127).
Learning Organisations vs
Organisational Leaning (Contd)
Organisational Learning describes attempts by
organisations to become learning organisations by
promoting learning in conscious, systematic and
synergistic fashion that involves everyone in the
organisation.
A learning organisation is the highest state of
organisational learning, in which an organisation has
achieved the ability to transform itself continuously
through the development and involvement of all its
members (Argyris and Schon, 1978).
Learning Organisations vs
Organisational Leaning (Contd)
Organisational learning occurs through shared insight,
knowledge and mental models and builds on past
knowledge and experience. (Stata, 1989:64).
A learning organisation is an organisation skilled at
creating, acquiring and transferring knowledge and at
modifying behaviours to reflect new knowledge and
insights (Garvin, 1993:80).
Learning Organisations vs
Organisational Leaning (Contd)
There is a confusion of definitions due to different
disciplines on those writing about organisational learning
Wang and Ahmed (2003) aver that it is not just the different
disciplinary backgrounds of the proponents of
organisational learning that leads to confusion.
They identify five focus on the concepts, focus on
collectivity of individual learning, focus on the process or
systems, culture, knowledge management and continuous
improvement.
QUOTE FROM BILL CLINTON
(SYSTEMS PERSPECTIVE)My life the
Presidential years, 2004
every person counts, deserves a chance and has a
responsible role to play. Competition is good but we all
do better when we work together. The role of
government is to give people the tools to make the most
of our lives. Our differences are important and make
life more interesting but our common humanity matters
more”
SENGE’S 5 DISCIPLINES/ CORE
CAPABILITIES
Personal mastery (Individual growth and learning)

Shared vision. the development of a common view of the organisation’s

future

Mental models- (deeply ingrained assumptions that affect the way

individuals think about people, situations and organisations)

Team learning-the shift from individual learning and collective learning

Systems thinking-the fifth discipline that links the others together and
which he argues is missing in most organisations.
Personal mastery
Focus on being the best person
Developing one’s own proficiency
Pursuit of excellence by individuals
Organizations learn only through individuals who learn.
Jack Welch said “the individual is the fountain head of creativity and
innovation in organisation.
Senge argues that people who achieve high levels of personal mastery
tend to be committed and exude initiative, have broader and deeper
sense of responsibility in their work and learn faster.
A desire to do well.
awareness of one’s ignorance ,incompetence, and realise growth areas
(Stages of competency in knowledge acquisition, beginner, learner,
apprentice, expert).
Search for knowledge
Shared vision
Operating values. Common purpose, pictures that people
throughout the orgn carry
When there is a genuine vision as opposed to the all too
familiar vision statement or Cook books people excel and
learn, not because they are told to do so but because they
want to.
what do we really want to achieve?
Shared vision a blend of extrinsic and intrinsic visions.
When people truly share a vision , are connected bond
together by a common aspiration
Mental models
Deeply ingrained assumptions, generalisations, beliefs, pictures and images that
influence how people understand the world and take action.
Entrenched habits or defensiveness that lessens learning.
Organisations too, holds deep rooted belief systems and preconceived ideas.
Strong mental models create rigidity
In change management, the first step is to unfreeze patterns of behaviour and
dismantle negative mental models and shape new ones
Foster openness and the mentality prepared for a shift
ability to carry on “learningful” conversations that balance inquiry and
advocacy
Toby Tetenbaum “to be a successful manager in the 21st century calls for a new
mental model of manager one suited to a world of chaos”.
Team learning
achieve alignment in people‘s thoughts and energies.
aligning and developing the capacities of a team to create
the results its members truly desire.
People need to be able to act together
Genuine thinking together
David Bohm says a team “becomes open to the flow of a
larger intelligence”
allow members to challenge each others’ ideas.
build a star team not a team of stars.
Systems thinking (ST)
understanding how things influence one another within a whole
Seeing things as wholes and seeing interconnections
systems thinking (ST) is a discipline for seeing wholes, a framework for
seeing interrelationships rather than things, for seeing patterns of
change rather than static snapshots
In organizations, systems consists, of people, organization structures,
processes, technology, environment etc that work together to make an
organization healthy or unhealthy
systems best understood in the context of relationships with each other
and with other systems rather than in isolation.
Moving beyond blame
Senge says “ we live our lives in webs of inter-dependence
QUOTE FROM BILL CLINTON
“The greatest figures have always been independent
thinking individuals with open but not empty minds,
individuals willing to listen and learn.They exhibit a
readiness to re-examine their own premises as
thoroughly as those of others” My life the Presidential
years by Clinton 2004.To what extent does the
statement resemble Senge’ disciplines
Chris Argyris Learning Organisation
model
all organizations just do it better than others.
organizations learn.
a fundamental requirement for their survival.
However some
Stage 1: Single Loop Learning (SLL)
adaptive learning
detecting and rectifying errors and deceptions within an
organisation’s existing practices, policies, norms etc
Correction relies on past routines and present policies.
organisation responds to changes in the environment without
changing the core set of its norms, practices, values, policies.
Argyris model contd
Stage 2; Double Loop learning (DLL)
error is detected , corrected in ways that involve
modification of the organization’s objectives, policies and
standard routines (systems)
solving difficult problems
going beyond correcting variances, but challenging
appropriateness of norms, values, standards etc.
reconstructive learning which questions fundamental
objectives structures, processes, goals, strategies, etc.
members need to learn how to learn.
DLL calls for stewardship, transparency, internal
commitment, personal responsibility by employees in the
workplace.
cntd
Stage 3: Triple Loop Learning (TLL)
Self evaluation from top to bottom
Total/ radical transformation of the organisation
Questioning the rationale of the organization
Continuously challenging mission, vision, strategies,
culture, status quo, processes, structure
TLL representing the highest form of organizational
learning and self evaluation
JOHN DENTON LO MODEL (1998)
▪ proposed nine characteristics for an effective learning
organisation
Teamwork
Supportive atmosphere
Quality,
Knowledge creation and transfer
External awareness,
Blame-free culture
DENTON CNTD
Vision,
Flexible structure,
Learning strategy.
 Building blocks for learning
organizations
❑ Awareness
aware that learning is necessary before developing into a learning
organization.
learning taking place at all levels.
company accepted the need for change.
create the appropriate environment for this change to occur in.
❑ Establish a strategy
Management make clear commitment to change, innovation and
continuous improvement.
❑ Redesign organization’s structure.
Formal structures can be a serious hindrance to learning.
Flatter structure promotes learning.
Building blocks contd
❑ Reshape the organisation’s culture
Management set the tone for the organisation’s growth by what it says
(strategy) and what it does (behaviour).
Management demonstrate by action, risk taking and admission to failure as
a desirable trait.
❑ Leadership
foster the system thinking and encourage learning to help both the
individuals and organizations in learning.
Management provide commitment for long term learning in the form of
resources.
The amount of resources available determine the quality and quantity of
learning.
Building blocks contd
❑ Human resource practices
Appraisal and reward systems designed for sharing , acquiring new skills
and knowledge through participative and practical learning
❑ Empowerment
Jack Welch “the best way to manage people is just to get out of their way”.
locus of control shifts from managers to workers
workers become responsible for their actions but managers do not lose
their involvement.
encourage, guide, enthuse, and co-ordinate the workers.
contd
Equal participation at all levels so that members can learn from each other

Workers encouraged, recognized, utilized not penalized

What is learned is integrated into the operation of the organization.

❑ Information communication technology systems

Geared towards rapid acquisition, processing and sharing of information.
CONTD
❖ What qualifies an organisation to be a LO?
❑ Does the organization have a definite agenda?
clear picture of purpose and goals of the organisation,
values, knowledge requirements
do not work on surprises
Know customers, markets, technologies, production
processes and desired information.
Agenda approached through experiments, simulations,
research studies, post audits, benchmarking.
CONTD
❑ Does the organization avoid repeated mistakes?
LO reflects on past experiences, generate useful lessons, share knowledge,
ensure errors are not repeated elsewhere.
Databases, documents, intranets, training sessions and workshops used for
this purpose.
mind set that enables the company to recognize the value of productive
failure as contrasted with unproductive success.
Jack Welch quoted “I’ve learned that mistakes can often be as a teacher as
success.
Productive failure leads to insights and understanding.
Unproductive success occurs when something goes well but nobody knows
how or why?
CONTD
❑ Does the organization lose critical knowledge when key people leave?
skilled employee leaves the company and critical skill disappear as well.
crucial knowledge is tacit, unarticulated, unshared and locked in the head
of a single person.
Learning organization avoid this problem by institutionalizing essential
knowledge.
codify in policies or procedures, reports or memos,
build it into the company’s values, norms and operating practices.
Knowledge becomes common property rather than the province of
individuals or groups.
CONTD
❑ Does the organization act on what it knows?
Learning organizations are not repositories of
knowledge.
take advantage of new learning and adapt behaviour
accordingly.
Information used to what it knows best
Seeking to add more value to what it knows
Be creative and innovative it what it knows.
Benefits of learning organizations
❑ The development of people
personal skills and qualities improved through learning and development
Benefit from own and other people’s experiences.
❑ Greater motivation
People are appreciated for their own skills, values and work.
awareness of role and importance in the whole organization,
workers are more motivated to “add their bit”.
Creativity and free thinking hence job satisfaction.
❑ Flexible workforce
People learn skills and acquire knowledge beyond their specific job requirements.
workers move freely within the organization,
barriers associated with rigid structured removed.
CONTD
❑ Creative people
More opportunities to be creative in a learning organization
Room for trying out new ideas without having to worry about mistakes.
❑ Improved social interaction
social interaction and interpersonal communication skills natured
Teams work best as a result.
❑ Improved team/group performance
provides perfect environment for high performing teams to learn, grow
and develop.
positive organisational results based on efficiency and effectiveness
CONTD
❑ Knowledge sharing
▪ Openness creates trust
▪ Trust between team members increase as they value each others opinions
more.
❑ Interdependency
▪ people depend on each other for the completion of jobs/task.
▪ Learning organizations increase awareness and improve relations between
people at a personal level.
❑ Breakdown of traditional barriers
▪ hierarchical communication barrier between manager – worker
transformed into more coach-team scenario.
▪ Leaders support the team not dictate to it.
CONTD
▪ Communication between and across all layers of the company gives sense
of coherence,
each individual a vital part of the whole system.
❑ Customer relations
▪ company’s first priority is its customer.
▪ LO allows greater contact with the customer.
▪ LO adapts faster and cope more efficiently with customer demands/
change.
❑ Innovation and creativity.
▪ people in every company level engage in continuous learning,
▪ valid contributions from members and any part of the company.
▪ Being innovative and creative is the responsibility of the whole workforce.
▪ Creativity gives rise to an increased synergy.
SKILLS FOR LEARNING
ORGANISATION
CRITICAL THINKING?
Making clear, reasoned judgement
Process of intellectual engagement
Reflective practice
Self directed thinking
Discern facts from opinion
See holes in arguments
Evaluate evidence
Comfortable with uncertain and complex situations
Critical thinking contd
Transforms you from passive to active participant
Better decisions
Strategic thinking
More sound and more informed opinions
Why critical thinking?
The 21st century associated with ease access to so much
information
Information everywhere
So too does the amount of misinformation
Pro Novella” our brains , our greatest strengths and also
weaknesses and impairments as critical thinkers”
Critical thinking crucial for self-reflection
Promotion of creativity
Avoiding common pitfalls and errors in thinking.
LEADERS AND LEARNING
ORGANISATIONS
❑ Serious L O require leaders to do some deep soul searching.
❑ Leaders are responsible for learning:
▪ Designer – designing governing ideas of purpose, vision, core values,
policies, strategies, goals, structures that translate guiding ideas into
business decisions.
infrastructures to support the learning process
create architecture that supports people and learning, relationships,
rewards and training.
leader being the invisible social architect behind the scene.
Puts effective learning processes.
▪ Teacher – to define reality
helping everyone in the organization including self to gain more insights,
views of current reality.
CONTD
see new possibilities
design learning process
Be a coach, guide or facilitator.
▪ Steward – leader being the servant first
It begins with the natural feeling that one wants to serve first
willing to be accountable
role model
share stories to live by in the organisation
humility
reflective practice
Empower people, serve people, be a partner, and associate
recognize that leadership has an impact on others economically, spiritually,
politically
Other supporting pillars of learning
organisation
❑ Emotional intelligence
ability to recognize your emotions, understand ,
realize how your emotions affect people around you.
perception of others, understand how others feel
manage relationships more effectively
People use emotions to guide and inform thinking
EI is a key part of successful learning organizations.
new resource for leadership development.
Helps develop strong “people skills”.
EI CONTD
People who are masters at managing their emotions don’t get angry in stressful
situations,

take criticism well and know when to use it to improve their performance

have the ability to look at problems , calmly find solutions.

excellent decision makers

People with high degree of emotional intelligence know themselves well , able to
sense the emotional needs of others.

Organizations increasingly using EI when hiring and promoting.

lower staff turnover among people chosen for their emotional intelligence (EI).
Characteristics of emotional intelligence
❑ Self awareness
understand their emotions don’t let their feeling rule them, are confident,
trust their intuition and don’t let their emotions get out of control
(emotional awareness)
Willing to take an honest look at themselves, know their strengths and
weaknesses, work on these areas so they can perform better (accurate
self-assessment)
❑ Self regulation (personal accountability)

Ability to control emotions and impulses. Don’t make impulsive, careless

decisions, disruptive emotions
think before they act, thoughtful, comfort with change, integrity and the
ability to say no.
EI CONTD
❑ Motivation
Achievement driven
strive to improve / meet standard of excellence
Willing to defer immediate results for long term success.
Highly productive, love to be challenged , very effective in whatever they do.
Commitment to the goals of the organisation
Initiative to act on opportunities and optimistic.
EI CONTD

❑ Empathy
Ability to identify with and understand the wants, needs
and view points of those around you,
excellent at managing relationships, listening and
relating to others /understanding others.
avoid stereotyping/ judging too quickly.
Live lives in a very open and honest way.
CONTD
❑ Social skills
easy to talk to others and like other people
People skills
Able to manage disputes, excellent communicators,
masters at building and maintaining relationships
emotional intelligence a good way to shows others the
leader inside you
Improving emotional intelligence in
Learning Organisations
❖ EI can be taught and developed
❖ Observe how you react to people.
❖ Do not rush to judgment/ conclude before you know all facts.
❖ Do not stereotype.
❖ Honestly look at how you think and interact with other people
❖ Look at your work environment
❖ Do a self evaluation, what are your weaknesses?
CONTD
❖ Examine how you react to stressful situations
❖ keep your emotions under control when things go
wrong.
❖ Take responsibility for your actions
❖ Examine how your actions affect others.
EI CRITICAL SKILLS IN LO
Decision making
Team work
Time management
Change tolerance
Stress tolerance
Empathy
Communication
Presentation skills
Social skills
Anger management
Customer service
Assertiveness
contd
Accountability
Flexibility
Trust
Competent
responsible
OTHER ORGANISATIONAL
MODELS
Within the shortest possible time , Japan achieved great strides in economic growth and prosperity.
Japanese super industrial power led Western businesses to question what they did and how they did it
Japan began to take command of international markets and making the west see the world and its place in it
from a new perspective.
aware that the days of the mass production of standardized products appeared to be over
new possibilities and challenges motivated western organization to undertake fundamental reassessment of
their objectives and operations.
Several paradigms among others have come to dominate western managerial thinking.
▪ Learning Organisation
Culture excellence approach
Post entrepreneurial approach
Emerging future organisations approach
Japanese management approach.
Culture-excellence approach
culture at the heart of competitive advantage
Tom Peters and Robert Waterman wrote the book “in
search of excellence; lessons from America’s best run
companies” offering the only way for western
companies to regain their competitiveness.
learning based on the McKinsey 7s framework.
Peters concluded that the four soft S (staff, style,
shared values, skills) held the key to business success
Strategy
Structure
Systems
KEY ATTRIBUTES TO ACHIEVE
EXCELLENCE
❑ Bias for action
Getting things done
Making decisions more quickly as opposed to prolonged decisions.
learn by doing
A reflection of the willingness to innovate and experiment
❑ Closeness to customers
Excellent companies get close to the customer.
Learn from the people served by the business
Learn customer preferences and cater to them.
Provide great products and services
contd
❑ Autonomy and entrepreneurship
Allow employees a high degree of freedom to think independently and
competitively
Foster entrepreneurial spirit in employees
Foster innovation and nurture “champions”

❑ Productivity through people

Workers treated with respect and dignity and as partners.
Create awareness in all employees that their best efforts are essential and
all share in the rewards of the company’s success.
CONTD
❑ Hands on, value driven
Excellent companies are driven by values of the organization from top to bottom.
Discuss company philosophy and values openly
Commitment to excellence from every person in command chain.
Leaders play positive role models
Managers actively solve challenges at all levels.

❑ Stick to the knitting

Do what they know best i.e. concentrate on core abilities.
Management keep in touch with the company’s essential business.
Branch out only in familiar areas.
contd
❑ Simple form, lean staff
Guiding principle is keep things simple and small.
Few administrative layers
Few people in the upper levels.
Flat structures
❑ Simultaneous loose – tight properties
❖ “firm and free principle”

❖ blend of tight and centralised controls for protecting the company’s core values

❖ Loose control in other areas to encourage risk taking and innovation.

NB Peters had this to say “large, bureaucratic organizations based on command and control systems are the
enemy of excellence. If things seem under control, you are just not going fast enough”.
Post entrepreneurship model
❑ Product of Rosabeth Moss Kanter
one of America’s leading business thinkers of the world (27 honorary doctorates).
came to prominence with her book( men and women of the corporation).
Believed that America was bureaucratic, unimaginative and uninspiring.
Placed emphasis on unleashing individual dynamism through empowerment and employee
involvement.
called for a revolution in business management to create what she called post –
entrepreneurial organizations.
Creating a marriage between entrepreneurial creativity and corporate discipline, cooperation
and team work.
faster action, more creative manoeuvres, more flexibility, closer partnerships with employees
and customers, more opportunities, removal of weighty procedures that impede action.
The post entrepreneurial strategies
❑ Restructuring to find synergies.
❖ Every part of the organization must add value, concentrate on core business areas,
remove obstacles that hinder effective efficient operations.
❖ Non core activities eliminated and authority dissolved to appropriate levels of the
business
❖ The organization is flatter, more responsive and less complex and has greater focus.
❑ Opening boundaries to form strategic alliances.
❖ pull resources together with other organizations/ bond together to exploit
opportunities and to share ideas and information
CONTD
❑ Creating new venture from within by encouraging
innovation and entrepreneurship
❖ Opportunities are sometimes missed because workers
are not given flexibility to pursue new ideas and
develop new products.
❖ Traditionally, strategic planners and R & D
departments were the sole domain.
❖ Old banners and restrictions must be eradicated and
innovative potential of employees tapped.
JAPANESE MANAGEMENT
APPROACH
❑ Lifetime employment (nenko)
employee attached to the company for life
❑ Consensus decision making (ringi)
total commitment for all
❑ Job rotation/Non specialised career paths
broader interpersonal relationship and versatile employees
❑ Slow evaluation and seniority based promotion system
appraisal based on long life time contribution
❑ Collective group responsibility (omikoshi)
employees think , work and behave as groups not individuals
❑ Paternalistic human concern
corporate concern for employees
❑ Profit based compensation system.
contd
remuneration linked to company performance
❑ Quality control circles
-quality given maximum possible attention
❑ Egalitarianism
❑ Emphasis on training
-employees hired on the basis of character , upbringing and family background not
experience and skills.
❑ Focus on self discipline and harmony
❑ Ethical conduct
❑ Long term strategy
Emerging Future Organizations model(
Charles Handy)
❑ Handy is a leading UK management thinker and a management consultant.
Authored the following books
Understanding organisations (1976)
The future of work 1984)
The age of unreason (1989)
stated that future organizations will have new knowledge based structures run by
smart people.
New organizations flatter, less hierarchical, smaller and more flexible.
Workers treated as assets to be developed and motivated.
Future companies face different circumstances and need to respond accordingly
postulates 3 types of organizations that will dominate the future;
Shamrock organisation
Organization like the plant has three distinct groups of
workers treated differently and have different
expectations.
▪ Professional Core workers- technocrats, specialists,
brain, the hub / nerve centre of the organisation
▪ Contractual fringe- contracting out to individuals or
service organizations
▪ Flexible labour force/experts- part time workers
The federal Organisation
Collection or network of individual organizations allied
together under a common flag or identity.
autonomy granted to shamrock while the federal centre offers
a common platform to integrate activities , generate and
collate ideas
supports the principle of interdependence , each part needs the
help of other parts as well as the centre in order to survive
maximize the innovative and creative potential of workers.
Triple i Organisation
invest in their workforce and build relationship of trust.
Shamrock’s core workers use intelligence to analyse the available
information and to generate ideas for new products and services.
The formula for success and effectiveness is three i =AV(added value) in
cash and kind.
both the shamrock and the federal centre contain the seeds to produce the
triple i organisation
The 3 i’ s must keep the skills, knowledge and ideas of staff up to date thus
the 3i must be a learning organization in which learning occurs at all levels
Knowledge management
❑ model of knowledge creation
Product of Ikujiro Nonaka and Takeuchi Hirotaka
Nonaka and Takeuchi indicate that Learning Organisation focus on the
importance of knowledge, the icon of new economy.
Corporate success and competitive edge in today’s economy comes from
acquiring ,codifying ,and transferring knowledge effectively and with
greater speed .
Proposed enablers for knowledge creation namely vision, strategy,
structure, system and staff.
tacit and explicit knowledge as the two main types of human knowledge
NONAKA’S SECI MODEL
spiral of knowledge where explicit and tacit knowledge interact with each other in a
continuous process.
process leads to creation of new knowledge
The spiral of knowledge/ amount grows all the time when more rounds are done in the model.

❑ Tacit knowledge/Implicit/Unconscious knowledge/orphan knowledge

personalized knowledge deeply rooted in action, commitment and involvement
knowing more than you can tell
“know-how” which is personal.
CONTD
knowledge difficult to transfer to another person by
means of writing it down or verbalizing it.
❑ Explicit knowledge
expressed in formal and systematic ways, easy to
codify, document, transfer, share and communicate.
Learning of explicit knowledge undertaken through
books, manuals, computer coded content or through
training institutions easily accessible
Modes of knowledge
conversion/interactive learning
❑ Socialization – (tacit to tacit communication)
✔ Person to person interaction
✔ shared experience.
✔ Teaching by practical examples e.g. an apprentice ,practicum
✔ Takes place between people in meetings or in team discussions or story-telling.
❑ Externalization – (tacit to explicit)
convert tacit knowledge to explicit knowledge by developing concepts and models.
✔ Articulation among people through dialogue (e.g. storming)
✔ Tacit knowledge is converted to understandable and interpretable form
CONTD
combination – (explicit to explicit communication)
Compiling externalized explicit knowledge to broader
entities and concept systems.
Knowledge analysed and organized.
transformation phase best supported by technology.
Explicit knowledge easily captured and
distributed/transmitted to worldwide audience as new
knowledge.
CONTD
❑ Internalization – (explicit to tacit communication
Understanding explicit knowledge, deduce new ideas or taking constructive
action.
learning by doing.
Simulation and experimenting
read documents and manuals to reflect on this information.
explicit knowledge transforms to tacit and becomes a part of individual’s
basic information.
knowledge becomes shared mental models, new and valued asset.
spiral knowledge back to socialization where individuals share tacit
knowledge silently.
amount of knowledge grows and the previous conceptions might change.
BASES FOR KNOWLEDGE
CREATION
Field play (playground)
✔ Knowledge requires a context for creation consisting of who participates and
how..
✔ have fluid boundaries
❑ Autonomy
✔ increased commitment and production of unexpected knowledge from members
❑ Creative chaos
✔ Intentional chaos though proposing challenging goals
✔ Questioning ,re-evaluating
✔ Order out of noise
CONTD
❑ Requisite variety
✔ Creativity lying at the edge of order and chaos.
✔ Internal diversity matching variety and complexity of the organization.

❑ Knowledge assets(inputs ,outputs ,processes )

✔ Categories of knowledge assets;
▪ Experiential (tacit -common experiences ,skills ,care , love ,trust ,security ,enthusiasm
,energy ,passion ,tension )

▪ conceptual (images ,symbols ,language designs ,brand )

▪ Routine (actions ,practices ,culture ,stories ,operations )

▪ Systemic (documents ,manuals ,data bases ,patents ,licences ,technologies )

Knowledge Networks ONTD
❑ Cultivation of Deep Smarts.
✔ Experts skilled to act beyond the expected/
extraordinary .
✔ help people to build and read the signs and respond
appropriately.
✔ employees capable of sizing up complex situation and
coming up with rapid decisions which are simple and
brilliant.
✔ know the business , customers, products
✔ insight not documented and articulated( Tacit)
Knowledge Networks
teams/ social networks/ communities that add significant value to the creation, dissemination
and application of better knowledge at a faster rate.eg;
Communities of practice (COP).
Communities of interest (COI)
◦ Knowledge Forums
◦ Knowledge Cafes
◦ Knowledge Teams
◦ Brown bags
◦ Facebooks
◦ Twitters
◦ Whatsapps
◦ Linkedins
◦ Blogs
◦ Skype etc
Communities of practice( Wenger
Etienne et al (1998)
learning an act of members of a group/ social engagement.
group of people sharing a concern or a passion for something they
know how to do
interact regularly to learn how to do it better.(Cross et al 2006)
purpose is to add value, share knowledge, build members’ capabilities.
membership is diverse ,self selecting like minded people, inside and
outside the organisation working to go beyond formal structures and
boundaries
networks of individuals with problems/ interests, get together to explore
ways of working, identifying common solutions, share good practice and
ideas through forum technologies eg linkedin, facebooks.
COP dimensions:
Domain- identity defined by shared domain of interest ie commitment or collective
competence
Community-members engage in joint activities and discussions, help each other
and share information.
Practice-members of COP have shared practice
Learning is social rather than individual process (familiar territory).
Knowledge and Learning are integrated in the life of communities that share values.
Beliefs, language and community routines
Knowledge inseparable from practice. not possible, to know without doing.
Through action, people learn new skills, change ideas by reflecting on their practice
(practice makes perfect).
Empowering people to contribute to a community creates the greater potential for
learning.
What is Knowledge Management (KM)
?
process of organising, distributing an organisation’s collective wisdom so
that the right information gets to the right people at the right time. Robbins
(2003)
development of tool, processes, systems, structures ,and cultures to
improve the creation, sharing, and use of knowledge for critical decision
making( De Long and Seemann,2000)
Simply acquiring, sharing, and utilising knowledge.
KM takes the output from learning organisation, manages it, ensures an
appropriate environment to perpetuate generation and management of
knowledge (Donnan,2008 )
ORGANISATION’S BENEFITS
FROM KM
A competitive edge
Improved organisational performance
Improve quality decision making
Makes an organisational employee smarter.
Reduce costs and increase operational efficiency
Continuous improvement
Innovation
Higher rate of productivity
Improved intellectual asset management
L O AS Boundaryless organizations/
networks
traditional assumptions are that distinct businesses have autonomy competing with each other
for supremacy.
contemporary organizations exploit relationships among themselves
co-evolve into business ecosystem so that each gets stronger.
ecosystems cut across industry lines and boundaries .
Organisations see themselves as teams to create value jointly,
competition and co-operations co-exist (coopetition )
L O networks have expectations for long term relationships, openness of information, mutual
trust and long term goals
Learning Companies choose to focus on activities they do well, leaving other activities to
other companies.
TYPES OF NETWORKS
Partnerships
Strategic alliances
Collaborative networks
Mergers
Consortium
Coalitions
Virtual organisations
Exploration alliances
Exploitation alliances etc.
Joint ventures
Self managed teams
Cross functional teams
Functional teams
UNIQUE FORMS OF NETWORKS
Exploration alliance
Partner firms capitalise on joint capabilities to discover new opportunities, build up
new competencies and adapt to environmental changes.
provides unique learning experiences in which firms evaluate partners’ tacit
knowledge and extrinsic values.
Provides foundations for risk taking.
knowledge search and creation that extends beyond firm’s own knowledge bases.
Joint knowledge and capacity building.
Exposes firms to partners’ tangible and intangible knowledge
Exploitation alliance
Partner firms focus on refinement and efficiency of existing knowledge and
capabilities
Maximising the value of existing resources.
Benefits of networks
Access to external resources,
Common motivation that is synergy seeking,
Resource dependence,
Interaction,
Cooperation and collaboration etc.
 REFERENCES
1. Senge Peter (1990) - The 5 th discipline, the Art and Practice of the Learning
2. Organisation.
3. Cavaleri Steven and Fearson David (1996) – Managing in Organisations that
4. learn.
5. Cavaleri,Steven and Seivert Sharon. Knowledge Leadership, The Art and Science of the Knowledge-based
Organisation.
6. Scarbrough Harry and Carter Chris.Investigating Knowledge Management.
7. Mintzberg Henry et al (1996) – The strategy process, concepts, contexts
8. Argyris Christ (1992) – On Organisational Learning.
9. Little Stephen and Ray Tim – Managing knowledge.
10. Burnes – Managing Change
11. Cole G.A (1999)- Organisational Behaviour, Management, Theory and
12. Practice.
13. Flood Robert (2000) Rethinking the fifth Discipline –Routledge, London