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36 Management Services

Summer 2009 Organisational Learning

By Joe Marshall and Simon


Smith, Faculty of Business,
Computing & Law, University
of Derby, and Steve Buxton,
Aberthaw Works, Lafarge
Cement UK.
Abstract
Organisational learning has been the subject
of attention and research for a number of
years, with a plethora of advice on how to
become a 'learning organisation', adapt
and survive and improve organisational
performance. This paper sets out to
examine the assumptions behind such
advice by investigating a number of
influences that may affect organisational
learning at two Strategic Business Units
(SBUs), operating in the UK, of two global
companies, one American, one French.
Two in-depth studies were undertaken to
identify the learning climate and capability
(Pedler, 1999; O'Keeffe, 2002; Chen, 2005); the
effects of different sub-cultures or communities
in the same firm on learning (Schein, 1996); and
the impact, if any, of learning on organisational
performance (Tsang, 1997; Murray, 2002). The
implications for global firms on learning and
sharing knowledge across national, cultural and business
boundaries were also investigated.
The research indicated that while learning practices and
opportunities existed at both SBUs, a number of inhibiting
factors were identified, including a mixed understanding of the
drivers for improvement and learning; different and opposing
perceptions of the current learning climate and capability; and
the dysfunctional interactions of misaligned sub-cultures or
communities. The study also found any link between learning and
organisational performance unclear, and identified some of the
difficulties of learning and knowledge-sharing across SBUs and
the parent organisation.
The study suggests that collective learning in organisations
Organisational Learning
Monagement Services
Summer 2009 37

earnin
TTe learned?
is problematic and that the two studies were undertaken
prescriptive literature on to identify the learning climate "Much of the academic and
organisational learning and and capability (Pedler, 1999;
the learning organisation (ie, O'Keeffe, 2002; Chen, 2005) practitioner literature suggests
that learning is organised, at both SBUs; the effects on
aggregated, controlled and learning of different sub- that OL is a critical way to maintain
apolitical) is an idealisation of cultures or communities in
real organisational life. the same firm (Schein, 1996) competitive advantage in a
at Rockwood Electronic
Introduction Material (REM);andthe competitive environment"
The interest in and study of perceived impact of learning
organisational learning after on organisational performance
Cyert and March (1963) first at Lafarge Cement UK (Tsang, participants on the value and
used the term, started to 1997; Murray, 2002). efficacy of such practices.
increase in the early 1990s Two of the authors were Schein's work (1996) on the
(Crossan and Guatto, 1996) managers at each SBU where cultures of management and
and continued into the new learning, through a number OL influenced the research at
century (Bapuji and Crossan, and variety of organisational Rockwood to investigate the
2004). The key driver for this initiatives over the years (eg, 'alignment' of management
interest has been the belief Ouality Management Systems, cultures or communities and
that organisations are required Continuous Improvement its effect on OL. According
to continually improve and Leadership Development to Schein, effective learning
and adapt in the current programmes), has been cannot take place if there is a
competitive environment in something the organisations 'lack of alignment' between
order to survive and prosper. have actively promoted, the sub-cultures within the
According to Goh and Richards investing considerable time organisation.
(1997), these characteristics are and resources. The third area of enquiry
promoted by organisational Learning climate and undertaken at Lafarge and,
learning. capability were examined by arguably, one of the most
This paper sets out to in-depth interviews across the important for an SBU and its
explore the assumptions process engineering function parent is the premise that
behind much of the literature at Lafarge and survey methods there is a positive relationship
and advice on organisational across the whole site at REM. between OL and organisational
learning (OL) and the learning For this aspect of the study, performance. The interest here
organisation (LO). We examine a prescriptive/normative was the organisation's learning
the evidence on the nature perspective of OL and LO capability and its impact, if any,
and prevalence of OL and LO was adopted (see Shipton, on performance.
at two case organisations, 2006). This served to underpin The paper will present the
both strategic business units the research and capture findings from the two case-
(SBUs) operating in the UK of organisational practices studies and finally a discussion
two global companies, Lafarge that could be considered as on the assumptions implicit
SA (France) and Rockwood evidencing learning and elicit in OL and LO and make
Elearonic Materials (USA). The the views of organisation suggestions for future research.
38 Management Services
Summer 2009 Organisational Learning

organisational learning and learning' debate and suggest


"The key driver for this interest has firm performance. However, it that it is now accepted that
is helpful to first introduce and learning occurs at different
been the belief that organisations explore some of the recurring levels (see McDougall and
themes and debates across the Beattie, 1998; Mullholland et
are required to continually literature. al, 2000; and ßontis et al, 2002).
The literature reviewed
improve and adapt in the current Organisational Learning shows that OL is a complex
Much of the academic and multifaceted subject. A
competitive environment in order and practitioner literature significant proportion of the
suggests that OL is a critical literature can be classed as
to survive and prosper" way to maintain competitive literature reviews or theoretical
advantage in a competitive papers without empirical data.

Literature environment and, as such, Examples include Huber (1991),


The research and literature on there is a significant quantity Tsang (t997), and Burnes et
organisational learning (OL) is and variety of literature al (2003). There are repeated
as vast as it is diverse. published. Lopez et al (2005) claims (Huber, 1991; Ulrich et
According to Shipton (2006), recognise that organisational al, 1993; Lähteenmäki et al,
there is little common learning is idiosyncratic and 2001; and Chiva-Gómez, 2004)
agreement about what complex. This makes it difficult about this lack of empirical
organisational learning to imitate and transfer and, research.
represents and the thus, offers a competitive Tsang (1997) and Chiva-
perspectives, interpretations advantage. Gómez (2004) identify
and approaches taken The existence of OL as a literature as being prescriptive
vary from the prescriptive/ collective and shared process or descriptive. The former
normative to the explanatory/ at the organisational level has are mainly published by
descriptive and from the been questioned (Douglas, consultants and concentrate
individual to the organisational 1986; Easterby-Smith et al, on telling organisations how
levels of learning. 2000). Douglas concedes that to learn, whilst the latter are
The literature reviewed much of the learning that written by academics and study
for this paper will focus on goes on in an individual's how organisation learning
the research aims outlined head is influenced by others occurs. Tsang (1997) comments
earlier, namely, relating to in the organisation but rejects that prescriptive papers tend
learning climate and capability, the view that organisations, to lack scientific rigour while
the effects of sub-cultures as colieaive entities, can the descriptive papers, though
or communities on learning learn. Easterby-Smith et al rigorously researched, fail to
and the links between (2000) called this the 'levels of offer practical advice. However,
Organisational Learning
Management Services
Summer 2009 39
it is possible to identify action to correct errors within popular in the early 1990s by
common themes to investigate accepted organisational rules. Senge (1990) and others (eg,
organisational learning Double loop learning is said to Pedler, 1998;Garvin, 1993).
processes and capability. occur when the organisation's The concept was that to
The complexity and variety underlying shared mental survive and be successful, an
of organisational learning models are examined and organisation must become a
is highlighted by the many changed. 'learning organisation'.
definitions found in the Edmondson and Moingeon Apart from the number and
literature. Tsang (1997) (1999) identify two types variety of definitions of the
identified that definitions of of learning which require LO on offer, Leitch et al (1996)
OL tend to involve cognitive corresponding learning and Easterby-Smith et al (2000)
and behavioural changes with capabilities. Learning how is both discuss the confusion
a debate on whether real defined as learning to execute that the LO introduced into

behavioural change has to a routine without necessarily


occur. McDougall and Beattie understanding why it works. "Double loop learning is said to
(1998) found that definitions Learning why requires
have common themes: the diagnosing and understanding occur when the organisation's
expectation that increased problems to allow alternative
knowledge improves artion; approaches to be developed. underlying shared mental models
acknowledgement of the Murray (2002) identifies
organisation's relationship to adaptive and generative are examined and changed"
the environment; the concept learning. The former is
of collective thinking; and concerned with the firm organisational learning
the organisation proactively adapting to environmental research. However, Leitch et al
changes itself. changes and the latter with (1996) suggest that: "the LO is
new ways of looking at the an organisation that excels at
Types of Learning world. Murray (2002) points collective learning", whereas,
The literature highlights out that recent empirical "OL refers to the methods of
that there are hierarchies of research in the New South collective learning."
organisational learning based Wales construction industry Tsang (1997) suggests a
on the degree of a change found that adaptive learning similar relationship, where
resulting from the learning. was more evident than OL is an activity undertaken
Argyris and Schon (1978,cited generative learning. by an organisation, whilst the
in most papers) developed LO is a type of company, ie,
the single and double loop The Learning Organisation "... a learning organisation
learning concepts. The former The concept of the learning is one which is good at
involves recognising and taking organisation (LO) was made organisational learning."
40 Management Services
Summer 2009 Organisational Learning

OL Facilitating Factors and learning process that must be


Capabilities followed.
Organisational learning Pedler et al (1999) suggest a
is thought to improve 'learning company' must have
organisational performance a number of characteristics.
and a large proportion of They have designed a
the literature examine the questionnaire as a diagnostic
process, systems and factors tool to investigate to what
that facilitate this. Much of extent the organisation is a
this literature tends to be learning company and where
prescriptive with an ideal set are the gaps measured against
of learning conditions. More their n learning company
recentiy, the literature has characteristics. While their
accepted that multiple formats learning company diagnostic
exist to enable organisational offers a pragmatic method of
learning and success. measuring the current learning
Fiol and Lyies (1985) climate, Pedler et al recognise
identified four contextual that their descriptive approach
factors; cultural influences, can be interpreted in different
organisation strategy, structure ways by organisations.
and the environment that
affect the probability of OL Effectiveness and
learning occurring. Senge Measurement
(1990), Garvin (1993), and The relationship between
Ulrich (1993) propose OL and organisational
ways of building learning performance is an issue that
organisations and the many prescriptive perspectives
skills required including: never seriously question
'systems thinking, personal (Ortenblad, 2002). Like many
"Organisational mastery, and mental models' organisational interventions
(Senge); experimentation, that appear to be good for the
learning systematic problem solving
and transferring knowledge
business, the quantification of
the benefits depicted is often
is thought quickly and efficiently through
the organisation (Garvin);
not undertaken.
According to Shipton (2006),
to innprove and building commitment to
learning (Ulrich).
there is little empirical work
available to test the notion
organisational Popper and Lipshitz (2000) that there is a significant
take a cultural and structural and positive relationship
performance" approach to OL, where the between adoption of practices
mechanisms for learning are to promote learning and
the structural and procedural competitive success. However,
arrangements that allow there is some research evidence
organisations to collect, claiming positive links between
analyse, store, disseminate firm performance and OL
and systematically use (Tippins and Sohi, 2003; Lopez
information that is relevant to etal, 2005).
performance. These authors Using questionnaires,
propose that the culture must these studies have
have a continuous learning examined organisation level
perspective and without a performance, ie, profitability,
strong leadership commitment return on investment (ROI) and
to learning, the probability of sales growth and customer
institutionalising OL is low. retention, albeit through
A number of authors (eg, indirect measures to protect
O'Keefe, 2002; Nevis, 1995; confidentiality. Empirical
Huber, 1991) imply that for studies still appear to have
learning to occur, one ideal done little to clarify the link
set of conditions for learning between individual level
exist and there are steps in the learning with organisational
Organisational Learning
Management Services
Summer 2009 41
level outcomes and what

.Ml.
lies within the 'black box' "Empirical studies still appear
(Friedmanetal, 2005).
Tsang (1997) points out to have done little to clarify the
the problems of assessing
the impact of OL and the link between individual level
difficulties in establishing a
cause and effect relationship. learning with organisational level
A summary of the key
constructs emerging from outconnes"
the literature reviewed so far
is used in the design of our the ability of people to learn the tbree cultures should not
research tool at LCUK - see and adapt to unforeseen define reality for tbe otbers
appendix. circumstances. According to and until executives, engineers
Schein, engineers (systems and operators realise that they
Management cultures and designers and technocrats) are use a different language, make
OL attracted to their professions different assumptions about
A number of authors reviewed because it is a technical what is important and come
here refer (directly and process. They often belong to to accept tbat other cultures'
indirectly) to the cultural professional bodies and they assumptions are valid, OL will
dimension of organisations prefer people-free solutions. continue to fail.
and the influence on OL. The The CEO and executive levels The nature of the business
essence of OL as a collective have a different educational at REM and the sub-cultures
process Is the 'sense making' background, tend to be observed over a number of
(Weick, 1995) or the 'joint preoccupied with financial years provided us witb an
construction of meaning' by survival and growth of tbe opportunity to explore these
those involved. The sharing organisation. Tbe assumptions communities in more depth
and the dialogue process are based on executives who and the likely effects on
required can be a considerable have moved up the hierarchical learning.
impediment to OL because ladder and with increased
in any organisation there responsibility, it becomes Research Methods
are competing ideologies or harder to influence operational The research is based on two
cultures matters. Schein believes that case study organisations. Tbe
Schein (1996) identifies managing from afar induces choice of the organisations
three management cultures the need for impersonal is based on tbe following.
which he believes are present control systems and routines to Firstly, both firms have gtobal
in every organisation and can manage costs, etc. Peopte tend manufacturing operations
impact on the capability to to be viewed as a resource and and a considerable history in
learn. Schein describes these regarded as costs, rather than their respective manufacturing
cultures as the operator, human assets. processes. They both have
engineering and executive Dysfunctional interactions a level of sophisticated
cultures or communities. Each arise when the three cultures manufacturing processes and
of these cultures has a set of or communities are misaligned produrtion management,
shared assumptions about their or in conflict and Schein quality systems and continuous
roles, the business and what argues tbat this has become improvement initiatives which
is important. The operator acceptable or 'normal' in increases the likelihood of
culture is essentially an internal many organisations. As each teaming systems and practices
culture but engineering and culture devalues tbe concerns of one kind or another.
executive cultures have their of the other cultures, there Secondly, the organisations
roots outside the organisation is less likelihood of looking are UK SBUs, both witb
in the wider occupational for integrated solutions. foreign parents and with the
communities. The organisation's ability to potentiat to share knowtedge
Operations managers focus collectively learn is largely across other SBUs (inter-
on the produaion process determined by the readiness organisational or gtobal
and the people employed. of organisation participants to teaming). Thirdty, two of
Regardless of bow carefully be open and share knowledge the authors were ideatly
engineered the process is, its and concerns. placed, as managers at the
effective functioning will be All three cultures are valid organisations, to undertake
determined by the quality of and a source of valuable the research, access company
the operations performed. learning. Schein concludes that records and documentation
42 Management Sen/ices
Summer 2009 Organisational Learning

and the research participants. (QMS), learning climate capabilities and capacities and
"People tend As 'insiders' this provides and identify subcultures or are of different ages.
advantages for the research communities. Wafer Reclaim is the process
to be viewed but also some potential Company policies, of reclaiming material from
drawbacks. Care was taken documents, systems and silicon chips. Over the years,
as a resource to ensure the conduct of practices (eg, training the Wafer Reclaim group have
the research ensured what programmes, knowledge increased their commitment to
and regarded Lincoln and Guba (1985) call databases) were reviewed quality management systems,
'trustworthiness' (plausibility, and analysed in detail at both continually improved their
as costs, rather credibility, authenticity). companies. ISQ ratings and the adoption
A mixed methodology was of TOM techniques. The
than human adopted for the research Research settings restructuring of the UK site and
overall which pragmatically Lafarge Cement UK (LCUK, QS 9000 was believed to be the
assets" combined quantitative and formerly known as Blue Circle first in the world for a Wafer
Reclaim facility. Continuous
qualitative methods in order Cement UK) became part of
to study the different but the French-based Lafarge SA Improvement is a philosophy
related dimensions of OL. The in 2001. Lafarge Cement UK adopted by the business
debate on researching OL has has 40-50% by volume of the and driven by the Quality
identified the value of both UK cement market. In recent Management System (QMS).
quantitative and qualitative years, performance at LCUK
methods, as well as the has varied and one of the Data Collection and
potential for middle ground strategic objectives is to sustain Analysis
research (Easterby-Smith, improvements in industrial LCUK
2000). performance and retain a ln-depth qualitative semi-
At Lafarge, the Process competitive advantage in the structured interviews were
Engineering function serves market place. carried out with seven process
as the sampling frame to OL is seen as potentially engineering staff from a total
examine learning capability one way of achieving this aim. of 18 staff in the function.
and the perceived impact on The 'Leader for Tomorrow' Questions were framed around
performance, by face-to face programme was launched a research too! developed
interviews with members of in 2002 to demonstrate the from the literature review
the function. Process engineers 'Lafarge way' (product/service and designed to capture the
are considered a critical group innovation, supportive key dimensions of facilitating
of employees whose role environment, developing factors and learning capability.
interacts with all operational talents, training focused on The researcher's role as a
functions and are considered performance improvement process manager at LCUK
as key staff in sustaining - Company Report). enabled a knowledge and
performance. Rockwood Electronic familiarity of the research
At Rockwood, a survey Materials (REM) Wafer Reclaim setting (process engineering
strategy using questionnaires is an SBU within Rockwood background, spoke the
across the whole SBU Specialities Inc. It is one of five language, credibility with staff).
population (55) is employed Wafer Reclaim sites based in While the interview process
to explore perceptions of the the USA, France, Germany and benefited from the closeness of
Quality Management System the UK. Each site has different the researcher, there remained
Organisational Learning
Management Services
Summer 2009 43
a strong level of critical QMS and management cultures factors discussed in the (action types) within LCUK
awareness and scrutiny. were entered directly into the literature exist within LCUK. is the improvement of
All interviews were tape- SPSS data editor and analysed Processes were discovered, existing systems, ie, adaptive
recorded and transcribed. by inspection, frequency and including performance learning, while the major
Coding and thematic analysis grouping. measurement, problem solving, aspect of learning capability
similar to previous OL research knowledge transfer and suggested in the literature
studies (Naot et al, 2004; Findings individual learning, and that is experimentation and
Andrews and Delahaye, 2000; We now examine the findings a team working approach was innovation, ie, generative
Di Bella, 1996) revealed five of the research at each of the used as necessary. learning (Murray, 2002).
domains of OL and is discussed two organisations. All interviews described Evidence gathered in our study
later. In both organisations, the the internal and external suggests that LCUK is not an
management of production drivers (action initiators) for innovative company but the
REM processes has reached a level OL and change by way of low-tech nature of processes in
All 55 staff of the REM site of sophistication in both projects, investigations and the industry may explain this.
took part in a questionnaire awareness of and commitment actions as cost reduction or All interview questions
survey to identify the learning to improvement, development increased production. The explored learning practices
climate on six of Pedler et and learning. Both majority of interviews also of one kind or another.
al's learning characteristics. organisations employ a variety identified drivers based on Most interviews contained
Respondents' views and of means to do this (eg, safety requirements (eg, zero references to problem solving
understanding of the OMS quality management systems, lost time accidents- LTAs), and root cause analysis (RCA),
were also elicited by the TQM techniques, statistical legislation (eg. Chrome the formal system used to
questionnaire and we explored process control (SPC), directives) and customer investigate plant breakdowns,
the assumptions and beliefs problem solving, OS9000, response and product quality but the majority of approaches
held across different staff benchmarking, knowledge (eg, avoiding complaints and to problem solving cited
groups or management and information systems), compensation). were informal and developed
cultures (Schein, 1999). indicating a strong desire for The interview data through experience. Garvin
The data from the organisational learning. and company policy and (1993) and Naot et al (2004)
questionnaire was entered praaice suggest that describe the importance of
into an Excel spreadsheet to LCUK performance measurement systematic problem solving and
enable formatting of results The interview data analysis and benchmarking are major investigation in OL.
which represented each was coded into five 'themes of factors in improvement within All transcripts contain
respondent's mean score of commonality' or domains of LafargeSAandLCUK. All references to team working,
Pedler's 'Learning Company' OL, as follows; action initiators; interviewees knew and used another major OL facilitating
characteristics. From this action types; learning practices; the official KPI system with
information, collective mean organisational attitudes; and the majority of actions and
scores for the population were learning impact. Here we changes coming from regular "The
calculated for each learning present a summary of the performance measurement and
characteristic to produce a findings from each domain that bench marking. organisation's
satisfaction and dissatisfaction address the main research aims. Reflection and assessment
index. Using SPSS, we were also on these actions, an important ability to
able to examine the data in Learning Practices part of learning, according to
terms of department, position, and Capability the literature, was less evident. collectively
age and length of service. All The analysis identified that Interviews and assessment data
other questions addressing the OL practices and facilitating suggested this was informal learn is largely
and not routinely applied to
specific actions. Unplanned and determined by
unpredictable incidents and
accidents also trigger artion the readiness
for improvement to plant
processes and the reduction of of organisation
LTAs.
Whilst examples participants
of innovative process
improvement exist, most to be open
examples cited by interviewees
appeared to be about and share
improved utilisation of
existing technologies and knowledge and
competencies. The main
form of change and learning concerns"
44 Management Services
Summer 2009 Organisational Learning

"Organisational response to failure, openness, trust


and transparency improve information flow, solution
development and thus OL"
factor according to Senge essential factors to successful they could not provide definite
(1990) and Chiva-Gomez OL(Lipshitz, 2002) and examples.
(2004), interviewees cited management support for new While no definite
team working, as and when ideas at LCUK was expressed conclusions can be drawn,
required, to resolve plant by interviewees as a positive the respondents (process
problems. All interviews factor. engineering staff, all well
contain references to Organisational response placed to observe and judge
organisational memory sources to failure, openness, trust learning and improvement)
(people, archives, databases), and transparency improve found difficulty in
another key factor in OL information flow, solution quantitatively or qualitatively
according to the literature. development and thus OL, describing how their learning
However, knowledge from according to Nevis (1995), or the learning of others could
external sources appears to Chiva-Gomez (2004), and promote organisational-level
be under utilised. Replies Naot et al (2004). However, outcomes.
to the questions on the use all interviewees gave similar There are a number of
of external sources suggest responses with regard to the problems researching the link
that this is infrequent, with question on this topic. For between OL and performance.
only one respondent saying example: "... sort of grey area; The literature reports on the
they had. Transcripts confirm ... depends on your boss... failure to define an assessment
knowledge transfer and people do penalise you for method and Tsang (1997)
dissemination takes place and failing; ... follow the Lafarge and Murray (2002) discuss the
with willingness to share, but way and you're OK..." difficulties of determining
not as a regular operation. For While the extent of a cause and effect.
example: "... I give a lot of safe climate has not been Most of the prescriptive
feedback, if I'm asked..." determined here, the literature implies that there
The infrastructure for organisation's response is a link between OL and
knowledge transfer is to failure, the need to performance and competitive
available within LCÜK (across demonstrate value before success. The belief and faith
seven plants in the UK) but management support is given in this link is a common one
dissemination appears to be and the inferences about but without a great deal of
infrequent. Dissemination transparency quoted above, evidence, according to Shipton
between SBUs and the parent, suggest the climate may (2006).
Lafarge SA, was not evident be restrictive. Based on the The limited amount of data
from the interviews. evidence collerted, LCUK is collected in our study and the
Strong individual learning not a learning organisation way in which we explored the
practices exist, ie, training as defined in the literature impact of OL on performance
courses, appraisal, rotational but, like many organisations, gave no clear indication on
placement and the consensus it does have praaices and the links but further supports
among interviewees was that issues which affect learning a need to devise more robust
LCUK was a good provider capability (DiBella et al, 1996). methods of assessment if
of individual training and the claims in much of the
development. This contribution OL and Performance literature are to be taken
to OL (Nevis et al, 1995; Pedler The interview data on the links seriously.
et al, 1999) suggests that between OL and performance Part two and a full list of
Lafarge is attempting to build (learning impact) provide only references will appear in the next
or maintain its intangible limited evidence. Respondents issue of the journal.
organisation memory. did not know if OL was This paper also appears in
Supporting cultural, improving performance. They The International Journal of
policy and psychological said that the learning practices Knowledge, Culture
aspects of OL (organisational found at LCUK 'should' and Change Management,
attitudes) are considered to be improve performance, but Volume 8, Number 5.

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