Organizational Learning
Organization-wide continuous process that enhances its collective ability to accept, make sense of, and respond to internal and external change. Organizational learning and is more than the sum of the information held by employees. It requires systematic integration and collective interpretation of new knowledge that leads to collective action and involves risk taking as experimentation. The process through which managers seek to improve organisation members’ capacity to understand and manage the organisation and its environment so that they can make decisions that continuously raise organisational effectiveness.
Organizational learning is an area of knowledge within organizational theory that studies models and theories about the way an organization learns and adapts. The concept of a learning organization has become popular since organizations want to be more adaptable to change. Two of the most noteworthy contributors to the field of organizational learning theory have been Chris Argrys and Donald Schon. It is a product of organizational inquiry. This means that whenever expected outcome differs from actual outcome, an individual (or group) will engage in inquiry to understand and, if necessary, solve this inconsistency.
In the process of organizational inquiry, the individual will interact with other members of the organization and learning will take place. Learning is a dynamic concept and it emphasizes the continually changing nature of organizations. The focus is gradually shifting from individual learning to organizational learning. Learning is essential for the growth of individuals; it is equally important for organizations. Since individuals form the bulk of the organization, they must establish the necessary forms and processes to enable organizational learning in order to facilitate change.
The three levels of learning which may be present in the organization
- Single loop learning: This occurs when errors are detected and corrected and firms continue with their present policies and goals. It has also been referred to as "Lower-Level Learning" "Adaptive Learning" and "Non-Strategic Learning" E.g. when sales are down, marketing managers inquire into the cause, and tweak the strategy to try to bring sales back on track.
- Double loop learning: Learning that results in a change in theory-in-use. The values, strategies, and assumptions that govern action are changed to create a more efficient environment. It is also called Higher-Level Learning, Generative Learning and Strategic Learning. In the above example, managers might rethink the entire marketing or sales process so that there will be no (or fewer) such fluctuations in the future.
- Deuteron learning: Learning about improving the learning system itself. This is composed of structural and behavioural components which determine how learning takes place. Essentially deuteron learning is therefore "learning how to learn."
The concept of the learning organization, particularly in regards to improving learning processes and understanding or modifying mental models Effective learning must therefore include all three; continuously improving the organization at all levels.
Organizational Innovation
The term innovation derives from the Latin innovatio, the noun of action from innovare.innovare "to renew or change," from in- "into" + novus "new" innovation generally refers to the creation or improvement of products, technologies, or ideas. Innovation is distinguished from renovation in that innovation generally signifies a substantial change or difference versus more incremental changes.
The process by which organisations use their skills and resources to develop new goods and services or to develop new production and operating systems so that they can better respond to the needs of their customers. Organizational innovation refers to new ways work can be organized, and accomplished within an organization to encourage and promote competitive advantage. It encompasses how organizations, and individuals specifically, manage work processes in such areas as customer relationships, employee performance and retention, and knowledge management. At the core of organizational innovation is the need to improve or change a product, process or service. Organizational innovation encourages individuals to think independently and creatively in applying personal knowledge to organizational challenges. Therefore, organizational innovation requires a culture of innovation that supports new ideas, processes and generally new ways of "doing business". The road to organizational innovation lies in the ability to impart new knowledge to company employees and in the application of that knowledge. Knowledge should be used for new ways of thinking, and as a stepping stone to creativity and toward change and innovation.
The Benefit of an Innovative Organization
- Cross functional team building while discouraging silo building
- Independent, creative thinking to see things from a new perspective and putting oneself outside of the parameters of a job function
- Risk taking by employees while lessening the status quo
Steps to Innovation
- Is a climate of innovation supported by senior management?
- Do managers routinely identify and bring together those individuals more oriented toward innovation those willing to think new ideas and act on them?
- Is there a process in place monitoring innovation teams and identifying what has and hasn't worked as a result of them?
- How can an organization be strategic and focused on it goals yet build and develop an innovative culture?
- Is there a single most important variable or ingredient that fuels an organization toward an innovative culture?
Obstacles to Corporate innovation
- Very Large organizations foster resistance to change
- Innovation may threaten current successes
- Product/market boundary charters sometimes preclude innovation
- In a large organization, the separation of power constitutes a “weakest link” constraint on innovation
- The politics of large organizations can lead to compromises that decreases the effectiveness of attempts at innovation
- Large firms have marketing departments that follow, rather than lead the market
Creativity
Creativity is defined as the tendency to generate or recognize ideas, alternatives, or possibilities that may be useful in solving problems, communicating with others, and entertaining ourselves and others. It is the application of a person’s mental ability and curiosity to discover something new. It is also known as the generation of ideas that result in the improvement of the efficiency or effectiveness of a system. While a variety of methods have been used to stimulate group creativity, several methods are more useful in a business environment. The creative process begins with perceptual aspects instead of analytical. In the human aspects, creativity and present growth are interrelated and employee’s creativity is the result of planned management action. But creativity alone is not the kind of miraculous that leads to business growth. organizational effectiveness depends on the creativity of the workforce to a large extent.
Creativity is any act, idea, or product that changes an existing domain, or that transforms an existing domain into a new one...What counts is whether the novelty he or she produces is accepted for inclusion in the domain
To enhance creativity in business, three components were needed
- Expertise (technical, procedural and intellectual knowledge),
- Creative thinking skills (how flexibly and imaginatively people approach problems),
- Motivation (especially intrinsic motivation).
There are mainly four factors that affect creativity
- Problem sensitivity - This is basically the ability to recognize that a problem exists or to be able to cut through consider standing, false impression, lack of facts or other hurdles and recognize the fact problem.
- Idea fluency - This term simply means that a person can pile up a large number of alternative solutions to a given problem in a given time. the fact that the more ideas you have, the greater are the chances of finding a usable one.
- Originality – originality required of the business executives is more likely to be that of finding new ways to very existing conditions, or new ways to adapt existing ideas to new conditions.
- Flexibility - Another name of creative flexibility is “creative expectancy” meaning the creative person just expects to solve the problem no matter how many failures temporarily delay the solution.
These are the Techniques to Fostering creativity
- Establishing purpose and intention
- Building basic skills
- Encouraging acquisitions of domain-specific knowledge
- Stimulating and rewarding curiosity and exploration
- Building motivation, especially internal motivation
- Encouraging confidence and a willingness to take risks
- Focusing on mastery and self-competition
- Promoting supportable beliefs about creativity
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