Review of Organizational Learning Capability

1. Organizational Learning
Capability
Arthur Yeung
David Ulrich
Stephen Nason
Mary Ann Glinow
1999
3/7/2015 1(c) Sachidananda

2. 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.shtml
http://en.wikipedia.org/wiki/Dave_Ulrich
http://www.bm.ust.hk/mgmt/staff/mnsnason.html
http://business.fiu.edu/faculty/faculty_experts.cfm?FlagDirectory=Display&User=vonglinowm

3. Author’s thesis
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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
Extenttowhichchangeinitiativeisadopted
low
High
Highlow

4. Author’s thesis
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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

5. Author’s thesis
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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 culture
Business Strategy
Business Performance:
1. Competitiveness
2. Innovativeness

6. Author’s thesis
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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

7. 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.
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8. Author’s thesis
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Insights on Generalization of ideas for impact
Managers 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)

9. Author’s thesis
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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

10. Architecture
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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?

11. QUESTIONSTHANK YOU
3/7/2015 11(c) Sachidananda