LEARNING ORGANIZATIONS

By Mohit Makker

What is a Learning Organization?

Organization that has developed the continuous capacity to adapt and change. Organization in which people:
put

aside their old ways of thinking and learn to be open with each other; understand how their organization really works; have a shared vision and then everyone works together to achieve that vision.

Examples of Learning Organization

NOKIA
SHELL

WIPRO
GENERAL ELECTRICAL (GE) ABN AMRO Bank

Five Learning Disciplines

The core of a learning organizations work is based upon five disciplines. These include:
Personal

Mastery - This involves individuals learning to expand their own personal capacity to create results that they most desire. Models - This involves individuals continuously clarifying and improving their internal pictures of the world and also seeing how they shape personal actions and decisions.
Contd..

Mental

 Shared

Vision - This involves individuals building a sense of commitment within the workgroups, developing shared images of common and desirable futures and finally working to achieve it. Learning - This involves relevant thinking skills that enable groups of people to develop intelligence and an ability that is greater than the sum of individual members talents. Thinking - This discipline helps managers and employees alike to see how to change systems more effectively, and to act more in tune with the larger processes of the natural and economic world.

Team

Systems

Characteristics of a Learning Organization

There exists a shared vision that everyone agrees on. People discard their old ways of thinking and continually enhance their capability to change and adapt.

People openly communicate with each other without any fear of criticism or punishment.
People sublimate their personal self interest to work together to achieve the organizations shared vision. Such organizations learn from their past experiences and mistakes rather than being bound by them. Double-loop Learning is used when an error is detected. It involves modification of organizations objectives, policies and standard routines.

Learning Organization vs. Organizational Learning

Learning Organization

Organizational Learning

A group of people continually enhancing their capacity to create what they want to create. Type of organization. Emphasis is on the potential, individuals have to learn through empowerment and changing leadership style.

Process of detection and correction of errors. Activity or processes in organization. Focus is on creating an environment that fosters learning through strategies that promote a growth-oriented workplace.

Traditional Organization vs. Learning Organization

Building Blocks of a Learning Organization

Awareness

Organizations must be aware that learning is necessary at all levels; not just at the management level.

Environment

More flatter structure, openness, experimenting environment, should look at failures as opportunities to improve.

Leadership

Leaders should foster the Systems Thinking concept and encourage learning.

Empowerment The locus shifts from managers to workers.

The workers become responsible for their action.

Learning Atmosphere in which everyone is open to learning.

Case Study: ABN AMRO Bank

Introduction

Netherlands' former two largest banks Algemene Bank Nederland (ABN) and Amsterdam-Rotterdam Bank (AMRO) merged to form ABN AMRO Bank in 1991. ABN AMRO ranks 8th in Europe and 13th in the world based on total assets.

ABN AMRO is Hollands leading bank operating over 800 offices in Holland together with 2,600 worldwide offices in 75 different countries with over 110,000 employees.

ABN AMRO Bank got the status of Learning Organization because of:
1.

Continuous Improvement

2.
3.

Culture
Innovation & Creativity

Continuous Improvement

The ongoing success of ABN AMRO is attributed to its commitment towards employees continuous improvement in terms of learning and personal development.
In order to support the personal development and career development of employees, ABN AMRO offer continuous learning programmes such as:

Job-related Training e.g. In-house training programmes. Management Programmes Leadership Programmes e.g. e-Learning. Development Programmes e.g. Structural talent management & succession planning.

Learning is an investment and an ongoing process in ABN AMRO adding value both to the organization and to its employees.

Culture

ABN AMRO is an active Learning Organization and has an aggressive program aimed to change the traditional banking culture to meet todays challenges. ABN AMRO ensures that during the transition of the merger of the new staff with the old staff no one is left behind, all the staff is given equal opportunities and all the necessary training in an effort to adapt effortlessly to the new culture and environment. ABN AMRO has set up a community program referred to as The Change Community with the purpose "to live, plant and support action at ABN AMRO towards more meaningful and inspiring work/life."

Innovation & Creativity

Social and Environmental Innovative Sustainability (A core strategy) - The innovativeness of this sustainability mindset has led to numerous activities that are creating a shift in the impact of ABN AMRO on both the environment and society. Worldwide Common Office Environment (COE) Deployment Project - ABN AMROs COE Wholesale Client Services business brought innovation and new practices for over 3000 Traders in the organization with the objective of streamlining common standards across its global business.

Service Innovations - Focus 2005 is a 5 year long-term plan with the objective of redesigning the organization for more effective customer service in an era where technological developments such as the Internet are rapidly altering service requirements.

Conclusion of Case Study

It is evident that ABN AMRO is a dynamic Learning Organization which is always in search of new opportunities for business growth. We can conclude that ABN AMRO is: Encouraging innovation Making work more enjoyable and productive Stimulating continuous improvement Creating a capacity for self-transformation & many more Therefore, the main pillars of a Learning Organization i.e. Continuous Improvement, Culture & Innovation and Creativity are a living monument in ABN AMRO Bank which contributes towards the organizations success, survival and potential future growth.

QUIZ
1. A task force manager holds a meeting and encourages members to share the progress of their work. This manager is focusing in the ________ principle of creating a learning organization.
1. 2. 3. 4. 5.

Personal mastery Mental models Team learning Shared vision Systems thinking

2.

The idea that one level of learning affects other levels is part of the ________ principle of creating a learning organization. Personal mastery Mental models Team learning Shared vision Systems thinking

3.

According to Senge's concept of the learning organization, team learning is less important than individual learning when trying to increase organizational learning.
1.
2.

True False

4.
1.

Which technique is used in Learning Organizations for correcting errors?

2. 3.

Single-loop learning Double-loop learning Triple-loop learning

5.

What is the main focus of Learning Organization?

1. 2. 3.

Individual Interest Team Learning Downward Communication

6.
1.

A Learning Organization requires:

2. 3. 4.

Stable Hierarchy Questioning Culture Shared vision and culture which is challenging and questioning Knowledge Management Systems

7.

Organizations that are good at developing relevant capabilities to respond to the changing context are known as:
1. 2. 3. 4.

Knowing Organizations Learning Organizations Stretch Organizations Absorptive Organizations

8.
1.

An organization adjusts its pricing in response to falling customer demand. This is an example of which type of learning?
2. 3. 4.

Single-loop Learning Double-loop Learning Surface Learning Deep Learning

9.
1.

Which of the following attributes is NOT seen as being necessary for an organization to become a Learning Organization?
2. 3. 4.

Cultural Diversity Top Management Commitment Openness to new ideas Willingness to experiment and risk making mistakes

10.

Which of the tools and techniques is NOT used in Learning Organizations?

Brainstorming Creativity Positive Criticism Adaptive Learning

Thank You!!