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Peter Senge, born in 1947, earned an engineering degree from Stanford University. He then pursued a Master's degree in Social Systems modelling at MIT and completed his PhD in Management (Mark, 2001). According to Senge, learning organizations are defined as "Organizations where individuals consistently enhance their ability to achieve desired outcomes, where new ways of thinking are cultivated, collective goals are liberated, and people continuously learn to perceive the entire picture together."
The key requirement for an organization to succeed in situations of continuous change is to be adaptive, flexible, and productive.
To achieve this, organizations must understand how to encourage people at all levels to learn and develop their skills. According to Peter Senge, learning is fundamental to human nature and the ability to reinvent oneself, which applies to both individuals and organizations. Simply surviving is not enough for a learning organization; they must also prioritize "adaptive learning" to ensure their ability to adapt. However, a learning organization must also integrate "generative learning" with adaptive learning, as this type of learning enhances the capacity for creativity (Mark, 2001).
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Peter Senge identifies five basic disciplines that differentiate learning organizations from more traditional ones, leading to innovation. These disciplines are pioneered by innovative learning organizations:
(a) Systems Thinking, (b) Personal Mastery, (c) Mental Models, (d) Building Shared Vision, (e) Team Learning (Mark,2001)
2.0 The Five Disciplines by Peter Senge in Helping Managers
(a) Systems Thinking
The idea of the learning organization is based on systems thinking, which is a conceptual framework that allows managers to view businesses as bounded subjects.
Managers utilize this approach to assess their company and have information systems in place to measure the organization's overall performance. Systems thinking emphasizes that all characteristics must be present simultaneously for an organization to truly be a learning organization. If any of these characteristics are missing, managers will encounter difficulties in achieving the organization's goals (Boydell, 1999).
(b) Personal Mastery
Personal mastery occurs when an individual or employee is dedicated to the process. It provides a competitive advantage for organizations whose workforce can learn quickly compared to other organizations. Although individual learning occurs through staff training and development, it cannot be forced upon an employee who is unwilling to learn. Studies have demonstrated that the majority of workplace learning is related to, rather than a result of, formal training. Therefore, it is crucial for managers to establish a culture where personal mastery is practiced daily. A learning organization is defined as the collective individual learning, but there must be mechanisms in place for individual learning to be transferred into organizational learning (Boydell,1999).
(c) Mental Models
Mental models are assumptions held by employees and organizations. To become a learning organization, these models must be challenged. Employees have intentions (theories) they want to follow, but they often behave differently in practice (theories-in-use). Similarly, organizations have "memories" that preserve certain behaviors, values, and norms. Managers should replace confrontational attitudes with an open culture that encourages inquiry and trust. To achieve this, the learning organization must have mechanisms for locating and assessing organizational theories of action. Unwanted learning should be rejected through a process called "unlearning" (Boydell, 1999).
(d) Shared Vision
Shared vision plays a crucial role in motivating staff learning for managers, as it establishes a common identity that directs and energizes the learning process. Successful shared visions are built upon the employees' own visions across all levels of the organization; however, the conventional hierarchical structures often hinder the creation of shared visions as they tend to impose the company's vision from top-down. To foster shared vision, a learning organization should adopt flat and decentralized organizational structures. The ultimate aim of shared vision is usually to outperform rival organizations, but according to Senge, it should also encompass long-term goals that are inherent to the company (Boydell, 1999).
(e) Team Learning
Team learning is the combination of individual learning, which leads to faster employee development and a broader range of problem-solving skills. It is made possible by the increased access to expertise and knowledge through collective learning. Team learning stands out for its inclusiveness and ability to go beyond boundaries, allowing organizations to make effective decisions. To engage in team learning, employees must actively take part in discussions and dialogues that promote shared understanding, open communication, and mutual agreement (Boydell, 1999).
3.0 Delivering Customer Value: Other frameworks
(a) The Value Chain according to Micheal Porter
Value chain refers to a concept or framework in business management that was initially described and popularized by Micheal Porter in 1985. This model allows for the analysis of specific activities that enable firms to create competitive advantage and value for customers (Value Based Management,2012). Porter identified a range of interrelated activities that are commonly found in many firms.
Inbound logistics entails activities such as warehousing, inventory control, and receiving input materials. Operations encompass the tasks that transform inputs into the final product. Outbound logistics involves the activities necessary to deliver the finished product to customers, including order fulfillment and warehousing. Marketing and sales comprise efforts focused on convincing buyers to purchase products or services, such as advertising, channel selection, and pricing.
The text explores different activities that help preserve and improve the value of a product. These activities comprise repair services, customer support, and raw material procurement. Moreover, research and development, process automation, and technology development are crucial for supporting these value chain activities. Human resource management includes employee growth, hiring, and compensation. Additionally, firm infrastructure encompasses legal matters, finance, and quality management (Quick,2010).
Senge’s 5 Principle and Porter’s Value Chain have different approaches to delivering customer value. Senge prioritizes the relationship between employees and the organization, focusing on internal marketing. To ensure employees provide value to customers, organizations must maintain strong relationships and provide effective training and privileges. On the other hand, Porter’s Value Chain emphasizes delivering value through department division. The efficient functioning of each department is crucial as they interrelate. If one department performs poorly, it can negatively impact other departments and hinder the delivery of value to customers.
(b) Total Quality Management
Total Quality Management (TQM) is a comprehensive method for managing business processes and individuals, aiming to guarantee overall customer satisfaction internally and externally. TQM surpasses the mere assurance of product or service quality and encompasses a leadership style that emphasizes executing tasks correctly from the beginning. To achieve success, organizations must prioritize specific essential components (Dti, 2010).
Leadership in Total Quality Management (TQM) entails managers offering a motivating vision and strategic guidance for the organization, as well as supervisors displaying dedication in leading their employees. To be an effective manager in TQM, one must possess a thorough comprehension of it, have faith in its principles, and exhibit this conviction through daily actions.
Employee Involvement is when employees are given the chance to contribute their input and have influence over decisions that impact their jobs.
Both suggestions and achievements, whether for teams or individuals, should be recognized. This recognition can take various forms and occur on different occasions. Examples include personal letters from top management, award banquets, trophies, and public acknowledgement in front of other employees.
* Effective communication is crucial for the success of an organization following TQM principles. It involves communication with and among all members of the organization, as well as suppliers and customers. Communication serves as a vital link connecting all elements of TQM.
Collaboration fosters a supportive atmosphere where individuals can openly address issues and seek help from their peers to identify and implement resolutions.
The key distinction between Total Quality Management (TQM) and Senge's 5 principles is their respective focus. TQM prioritizes the quality of products and services, which is accomplished through nurturing solid relationships among employees, managers, and the entire organization. Conversely, Senge's 5 principles emphasize the significance of the employee-organization relationship in achieving this same objective. The belief is that a positive employee-organization relationship will inherently result in delivering value to customers.
4.0 Companies that serve as examples
Finkelstein Metals Ltd. specializes in the production and sale of bronze and brass.
Finkelstein, a company with 50 years of experience, specializes in manufacturing non-ferrous metal castings. They highlight an employee named Jill Barad who fails to acknowledge and learn from her mistakes in a timely manner. In a company that promotes learning, Barad initially disregards the issues faced by the organization. The opportunity to recognize the failure arises when the earnings for the third quarter of 1999 turn out to be a loss of $150 million instead of the expected profit of $50 million. Instead of addressing this failure, Barad remains silent and predicts significant profits for the quarter, only to face a loss of $184 million once again. Rather than acknowledging and learning from these failures, she repeats the same mistakes for the following two quarters, resulting in four consecutive quarters with the same mistake (Edmondson, 2010).
This example illustrates how an employee in a company hesitates to accept and address her failure. Unfortunately, she chose not to engage in conversations about her failure or seek help from her superiors or colleagues when she first became aware of it. To overcome obstacles within a company, it is essential for organizational leaders to take the lead in establishing systems and procedures that provide access to crucial data for identifying and learning from failures. As Senge's 5 principles state, team learning is also important. By openly discussing the issue or problem with other team members and higher authorities, a solution can be easily achieved. Involving multiple individuals will result in a larger pool of useful ideas and strategies to resolve specific problems that arise within the company. (b) Electricite De France (EDF; Electricity Of France)
Electricite de France, based in Paris, France, is the second largest global electric utility company with a revenue of €65.2 billion. They operate 57 nuclear power plants and are considered a learning organization. The company closely monitors each plant for any irregularities, no matter how minor, promptly investigates them, and publicly reports these issues to encourage collective learning. Additionally, feedback from employees, customers, and other sources is recognized as an effective tool for organizational learning. This feedback helps identify failures in meeting objectives or customer requirements and breakdowns in communication (Cannon, 2009).
The company follows the principles of mental model, team learning, and personal mastery. The employees are vigilant about detecting any issues with their plant and promptly notify everyone in the organization. They believe that there is a problem in the plant, leading to a mental model. They immediately work on resolving any arising problems, demonstrating personal mastery. Furthermore, they inform all members of the organization and seek feedback from colleagues and customers, exemplifying team learning.
Conclusion: 5.0
According to Peter Senge, change and learning are interconnected. An organization should embrace the concept of a "learning organization" since everyone is capable of learning. The goal is for organizations to continually enhance their ability to achieve desired outcomes and create new patterns. This can be achieved by fostering an environment where aspirations are encouraged, and people consistently learn together as a team. Managers should adopt these five principles to cultivate motivated and dependable employees, ultimately resulting in lasting customer value. By incorporating the five disciplines, organizations can gain a more comprehensive understanding of organizational life.
The Five Disciplines of Learning Organizations. (2016, Dec 27). Retrieved from https://studymoose.com/peter-senges-five-disciplines-essay
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