Chapter 14 The Learning Organization and Knowledge Management Fundamentals of Organizational Behavior 2e Andrew J. DuBrin PowerPoint Presentation by Charlie Cook Learning Objectives 1. Describe the 4I framework of a learning organization. 2. Identify the building blocks, or key characteristics, of a learning organization. 3. Recognize organizational conditions favoring knowledge management. 4. Specify methods for sharing information within an organization. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western. 14–2 The Learning Organization An organization that is skilled at creating, acquiring, and transferring knowledge, and at modifying behavior to reflect new knowledge and insights. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western. 14–3 The 4I Framework of Organizational Learning Individual Level (Intuiting and Interpreting) Group Level (Integrating) Organizational Learning Organizational Level (Institutionalizing) EXHIBIT 14-1 Source: Mary M. Crossan, Henry W. Lane, and Roderick E. White, “An Organizational Learning Framework: From Institution to Institution,” Academy of Management Review, July 1999, p. 525. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western. 14–4 The 4I Framework Organizational Learning Processes Organizational Learning Levels Intuiting Individual Level Interpreting Group Level Integrating Organizational Level Institutionalizing A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western. 14–5 Building Blocks of a Learning Organization Double-Loop Learning Confronting the validity of the goal or the values implicit in a situation by questioning, based on feedback, the core premise of the situation. Action Learning Acquiring skills while working in teams on real problems that are reusable at later stages in resolving the problem. Systems Thinking Developing a point of view of the organization as a system that affects and is affected by the external environment. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western. 14–6 Building Blocks of a Learning Organization Shared Vision Developing a common purpose and commitment for the organization to keep learning. The Challenge of Mental Models Overcoming powerful assumptions and mental models that prevent people from working together can open up a world of opportunities. Team Learning Engaging in collective problem solving by sharing information and opinions with coworkers. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western. 14–7 Building Blocks of a Learning Organization Personal Mastery of the Job Developing the individual expertise necessary to master the demands of the job. Translation of New Knowledge into New Ways of Behaving Using knowledge to change behavior through learning. Systematic Investigation and Problem Solving Instigating the widespread use of the scientific method to investigate and solve problems. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western. 14–8 Building Blocks of a Learning Organization Experimentation Developing the risk-taking, entrepreneurial attitude to seek out new opportunities through experiments in improving organizational performance. Learning from Other Organizations Studying competitors to acquire insights to be used as benchmarks for improving the effectiveness and efficiency of the organization. Healthy Disrespect for the Status Quo Challenging whatever exists (e.g., work processes) and seeing if anything can be improved upon. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western. 14–9 Building Blocks of a Learning Organization High Impact Learning Taking steps to increase significance of high impact learning in moving the firm forward and preventing potential problems by: Building a commitment to a learning capability among members of the organization. Generating ideas with impact by developing deliberate approaches to acquiring knowledge. Using cross-functional team to disseminate ideas with impact throughout the organization. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western. 14–10 Knowledge Management (KM) Knowledge is managed more effectively in a learning organization. Information is systematically shared to achieve goals. Intellectual capital is a resource for competitive advantage. Organizational Conditions Favoring KM Being a learning organization. Having an organizational culture that emphasizes sharing information through an incentive reward system for contributing to the organizational knowledge base. Providing top-management leadership for the KM effort. Demonstrating the value of KM to encourage commitment. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western. 14–11 Knowledge Management Strategies and Techniques Hire the Right Persons Employ people who are good at learning and teaching; who are intelligent, can accumulate knowledge, and are intellectually curious. Create Knowledge Use intelligence, creativity, and innovation to create new bundles of knowledge leading to new products or services. Competitive Knowledge Management Develop mechanisms that allow knowledge and expertise (competitive intelligence) outside of the firm to be tracked. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western. 14–12 Knowledge Management Strategies and Techniques Codification versus Personalizing Knowledge Codification: Companies with standardized products and services store information in way that it can be readily assessed and repeatedly used. Personalization: Companies with unique products and services share information through interpersonal contacts. The choice for codification or personalization of knowledge is largely determined by the products or services the company produces. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western. 14–13 Knowledge Management Strategies and Techniques Appointing a Chief Knowledge Officer Duties of a Chief Knowledge Officer Arranging conferences where workers share information. Assimilating databases of company knowledge. Teaching people how to learn at a deeper level. Getting people to reflect on their experiences and profit from their mistakes. Selling people on the idea that brainpower is the company’s true source of competitive advantage. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western. 14–14 Knowledge Management Strategies and Techniques Closing the Gap between Knowing and Doing Do not allow stored knowledge to go unused; convert knowledge to action. Build a culture of action A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western. 14–15 Methods for Sharing Information 1. Create an in-house Yellow Pages. 2. Install an intranet communication system. 3. Provide personalized explanations of success factors. 4. Foster dialogue among organization members. 5. Create shared physical facilities and informal learning situations to promote information sharing. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western. 14–16