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Gaining a Competitive Advantage by Creating a Learning
Organization
ObjectiveTo understand the need for creating a Learning
Organization.To outline the different levels of learning and To
examine the success of learning methods adopted by few
companies.
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The External EnvironmentDynamic in natureHeavy competition
Increased speed of communication due to information technology
andTremendous improvement in the customer requirements.
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Goal of all OrganizationsTo have a continuous improvement of
their products and services andTo survive and sustain in this
competitive and dynamic environment.
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To search for new ideas, new problems and new opportunities for
learning.To improve their ability to monitor and respond to their
customer requirements.To analyze themselves, their processes,
structures and their environments and To develop their ability to
learn and to learn from their learning. Achieving the goal
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Need to create a Learning OrganizationThere is a need to fulfil
the essential requirements for continuous improvement like
:Learning something new and A commitment to learn. There arises the
need to create a Learning Organization.
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Meaning of Learning OrganizationA Learning Organization is an
organization that facilitates the learning of all its members and
continuously transforms itself. It provides continuous learning
opportunities, links individual performance with organizational
performance and uses learning to reach organizational goals.
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Levels of LearningIndividual LearningOne-to-one LearningGroup
LearningLearning OrganizationInter-organizational Learning
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Different Methods of LearningSystematic Problem
SolvingExperimentation with new approachesLearning from their own
experience and past historyLearning from the experiences and best
practices of othersTransferring knowledge quickly and efficiently
throughout the organization
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1. Systematic Problem SolvingIt relies on the philosophy and the
methods of quality improvement. It also relies on the scientific
method, rather than guess work. It insists on data, rather than
assumptions as background for decision making. It uses simple
statistical tools to organize data and draw inferences.
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Xerox2. Collecting information 3. Analyzingthe data1. Generating
ideas6. Practice in training session4. Reaching concensus 5.
Planningactions 7. Apply to real problemsSystematic method of
making decisions
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2. Experimentation with new approachesThis is focused towards
the systematic search for and test of new knowledge. It takes two
main forms :Ongoing programs andDemonstration projects
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a . Ongoing ProgramsA continous series of small experiments,
designed to produce incremental gains in knowledge. It is necessary
to ensure that there is a steady flow of new ideas, even if they
must be imported from outside the organization.
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RanbaxyFirst-line supervisors sent to hospitals located in
U.S.The employees learn about the cleanliness and the manner how
the nurses handle their products. They understand the need to
ensure cleanliness in the workplace. They develop an understanding
of new work practices.They bring what theyve learned back to the
company and apply it to daily operations.
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Henry Ford Famous for building automobiles on an assembly
line.They brought small changes in the regular task of
employees.They assigned a specific and repetitive task for every
worker.By breaking jobs into small standardised tasks, Ford was
able to produce cars at the rate of 1 every 10 seconds while using
employees who had relatively limited skills.
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b. Demonstration projectsThey are usually first time projects to
embody principles that the organization hopes to adopt later on a
larger scale.They implicitly establish policy guidelines and
decision rules for later projects.They often encounter severe test
of commitment from employees.They are normally developed by strong
multifunctional teams.They have only limited impact if they are not
accompanied by explicit strategies for transferring learning.
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MotorolaBirth of Six Sigma at Motorola. It is a quality standard
with a goal of only 3.4 defects per million processes. Different
levels of training to employees and certification as green belts,
champions or black belts. Six Sigma Training helps to reduce
defects and to cut costs.It has saved the company an estimated $15
billion since the early 1990s.
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3. Learning from their own experience and past history
Santayana Review
Coined by a famous philosopher, George Santayana.
Those who cannot remember the past are condemned to repeat
it
Companies must review their successes and failure, assess them
systematically, and record the lessons in a form that employees
find open and accessible.
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Hewlett-Packard Employees rendering computer service to the
customers were forced to answer calls late at night and on
weekends. The employee turnover of the company increased resulting
in loss of talented employees. Hewlett Packard redesigned work
schedules to allow the employees to volunteer to work either during
the week or on weekends. As a result, turnover rates decreased.
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4. Learning from others Gaining insights by looking outside ones
immediate environment.It is a powerful source of ideas for creative
thinking. Benchmarking is one way of getting an outside
perspective.It is an ongoing investigation that ensures that best
industry practices are uncovered, analyzed, adopted and
implemented. The greatest benefits come from studying the best
practices of other organizations.
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General ElectricBenchmarked the Six Sigma quality standards of
Motorola. 35,000 defects per million operations before introducing
Six Sigma.Reduced to fewer than 4 defects per million after
implementing Six Sigma. Over 1,00,000 employees trained in Six
Sigma.Since 1996, when Six Sigma quality initiative was started, it
has produced a benefit of more than $2 million for GE.
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MotorolaCustomer as an effective source of information.Members
of the Operating and Policy Committee, including the CEO, meet the
customers personally and on a regular basis.They get insights about
their changing needs and to learn about the competitors
products.
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5. Transferring knowledgeFor learning to be more effective it
must spread quickly and efficiently throughout the organization.
Ideas carry maximum impact when they are shared broadly rather than
held in a few hands. Written, oral, visual reports, site visits,
tours, personnel rotation programs and HRIS facilitates this
process.
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Time LifePersonnel Rotation ProgramThe President of the companys
music division, who had several years of rapid growth and high
profits through innovative marketing was transferred to the
presidency of the book division. As a result the profit in the book
division increased which was achieved by sharing the experience of
CEO.
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HRIS in Northern Telecom Limited A Canadian telecommunications
company that has facilities in 90 countries, including United
Kingdom, China and the United States.The managers were in need to
access to information about the employees located worldwide. The
company created a central database to update employee details about
their headcount, salary, and recruiting data.This enabled the
managers around the world to obtain up-to-date employee data to
meet customer needs and to address internal staffing issues.
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Communities of practice Group of employees work together, learn
from each other and develop a common understanding of how to get
the work accomplished. Discussion boards, list servers, or other
forms of computer-mediated communication in which employees
communicate electronically. Naturally occuring communities of
practice that evolve as a result of the relationship employees
develop to accomplish work and the design of work environment.
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Siemens Power Transmission The managers intended to stop
employees from gathering in the employee cafeteria for informal
discussions. Later they discovered that the informal discussions
actually encountered learning. Employees developed problem-solving
strategies, shared product and procedural information, and provided
career counseling to each other. Managers are now encouraging
employees by providing essential tools and information and giving
employees the freedom to meet.
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Measuring LearningA comprehensive learning audit to measure
performance of employees.By using surveys, questionnaires and
interviews to measure the employees level of learning.By bringing
consultants from outside the organization.Without this measurement
the companies would lack a rationale for investing in learning and
the assurance that learning was serving the organizations ends.