A Model for Organizational Learning Capability - Dr. V. Thanikachalam
1
MODEL OF ORGANIZATIONAL CAPABILITY Business Context • Industry Characteristics • Business Strategy • Business Culture
Learning Capability •Generation of ideas (ability to generate ideas via different learning styles)
Business Performance •Innovations •Competitiveness
•Generalization of ideas (ability to move ideas across boundaries) •Learning disabilities (Barriers to generate and generalize ideas)
Primary relationship Secondary relationship 2
Relationships • Building blocks of learning capability • Business context learning capability • Those between learning capability and business performance 3
Business Context
(Antecedents of Learning Capability)
• Contextual variables that may influence • Industry characteristics • Business strategy • Business culture 4
Industry Characteristics • • • • • •
Market concentration Customer relationships Supplier relationships Technological Interdependence Environmental predictability Industry type 5
Business Strategy • • • • • •
Advertising Brand identification Building employee commitment Competitive pricing Cost reduction Developing operating technology 6
Business Strategy…. • Developing /refining existing products • Differentiating products or services from those of competitors • Improving relationships with customers • Innovation in marketing techniques and methods 7
Business Strategy… • New products or services development • Operating efficiency • Providing specialized products or services • Quality of products or services 8
Business Culture • • • •
Clan culture Adhocracy culture Hierarchical culture Market culture
9
Clan Culture • Empowerment of employees to act • Participation, open discussion • Assessing employee concerns and ideas • Human relations, teamwork, cohesion 10
Adhocracy Culture • • • • •
Flexibility Decentralization Innovation and change Expansion, growth, and development Creative problem solving processes
11
Hierarchical Culture • Control, centralization • Predictable performance outcomes • Stability, continuity, order • Routinization, formalization and structure 12
Market Culture • • • • • •
Task focus Accomplishment Goal Achievement Efficiency Productivity Outcome 13
Market Culture… • • • • •
Excellence Quality Direction Objective setting Goal clarity
14
Consequences of a Company’s Ability to Learn • • • • • •
Innovativeness Competitiveness Morale Commitment of employees Customer Satisfaction Market share
15
Competitiveness • Ability of a business to compare in its niche or market position
16
Components of a Company’s Competitiveness • Financial performance in the last three years • MIS • Customer buying criteria • Customer relations • Distribution channels 17
Components of a Company’s Competitiveness… • • • • • •
Divestitures Financial Management Globalization Government relations Human Resource Practices Marketing and sales 18
Components of a Company’s Competitiveness… • • • •
Mergers / acquisitions Organizational structure Production capability Research and Development
19
Innovativeness • • • •
Cycle time for innovation Reputation as an innovator Willingness to take risks Willingness to experiment
20
Learning Capability • Influenced by context • Influence on performance • Linchpin for managerial action
21
Organizational Learning Capability • The capacity to generate and generalize ideas with impact across multiple organizational boundaries, through specific management initiatives and practices • Based on generation of ideas, generalization of ideas, and identification of learning disabilities. 22
To Compete in Today’s Rapidly Changing Environment • Corporations need to strengthen their learning capability • Simultaneously manage all three building blocks.
23
Business Performance • Influenced by learning capability • Business context influences the learning capability
24
Implement the Model and Review
25