CHAPTER 3: CHANGE MANAGEMENT AND ORGANISATIONAL LEARNING
3.3 Organisational learning
The change process can be viewed as a learning experience, as emphasised by Carnall (2003) in stating that learning and transformation are part of the same process. Organisational learning and subsequent change are critical to an organisation’s longevity (Montouri 2000). This has been observed in practice by Arie de Geus of Royal Dutch/Shell and Jack Welch of General Electric, both of whom were of the opinion that learning is key to competitive advantage (Senge et al. 1999).
Hayes (2002) defines organisational learning as the development of the collective ability to perform more effectively by allowing members to diagnose the situation of the organisation as well as assess their past behaviours, and then merge this understanding to adapt the rules that steer decision-making and action.
This relates to the concepts of single and double-loop learning in systems theory illustrated below in Figure 3.2. Argyris (1999: 68) defines single-loop learning as involving the identification and fixing of errors resulting in members adapting their current mental models to do things better. Double-loop learning on the other hand is a deeper process, which leads to current thinking being challenged. This then generates a novel understanding, which sees a change in the behaviour of members, which ultimately ends up in things being done otherwise or new things being tried. This sort of deeper learning that results in a paradigm shift is critical to those involved in change processes. Argyris (1999) views double-loop learning as being crucial in organisations and applicable for use in complex issues.
Hayes (2002) argues that organisations need the ability to not only learn from their experience but also to utilise this learning in order to develop effective strategies. There have been calls for relevant research into organisational learning experiences. Bokeno (2003) appeals to those studying organisational learning to not provide yet another theoretical description of power and politics, but rather to enter companies in search of ways to break down defensive management
habits and test other forms of systemic change. Senge (2006) argues for insight into the occurrence of organisational learning, and then utilising it to make thinking and acting at all levels a possibility.
Figure 3.2: Single-loop and double-loop learning (Argyris 1999: 68)
Figure 3.3 below is a construction of the ideal learning processes that are required in organisations. It is based on a review of three studies into organisational learning. The first by Garvin (2005) denotes the three levels of organisational learning, which are the cognitive, behavioural and performance improvement level. Carnall (2003) also highlights the many aspects of learning and how these impact on effectiveness. Spector and Davidsen (2006) point to the critical processes that facilitate organisational learning. Figure 3.3 thus calls for learning from practical experience, which allows for meaningful engagement and processes where people can question. Such learning processes should allow for failure, for ideas to be played with, and for constructive criticism. Through this, people may become more cohesive, respectful, and levels of communication may increase.
Match
Mismatch
Single-loop learning Double-loop learning Governing
variables
Actions Consequences
Levels of organisational learning (Garvin 2005: 285)
• Cognitive level – involves people dealing with new ideas, increasing their knowledge and then thinking differently
• Behaviour level – employees internalise new insight and consequently change their behaviour
• Performance improvement level – changes in behaviour will have outcomes on measurable improvement in results
An account of learning and change with the goal of seeking effectiveness (Carnall 2003: 230- 231)
• Learning comes about through exploring dilemmas or contradictions
• Personal experience and experimentation constitute learning
•The environment must be conducive to risk taking, doing and trying new things
•The acknowledgement of conflict and the expression of deeply held beliefs are key in releasing ideas which can be assessed before implementation
• Only by permitting the worth of people and ideas can learning be achieved
Key processes to effective organisational learning (Spector & Davidsen 2006: 68)
• Actions as reflected in terms of information flow, innovation, involvement, and results
• Goal formation processes, including the ability to identify instances of goal cohesion and goal erosion
• Leadership engagement, including open exchanges to identify problems, assess situations and consider alternative solutions
• Sentiments are reflected in attitudes and preferences pertaining to cohesion, respect, support, and trust
• Team processes, including measures of collaboration, coordination, communication and co- mentoring
•Tolerance for errors, including the encouragement of experimental and evidence-based reasoning Figure 3.3: A portrayal of organisational learning
As has been highlighted earlier in this chapter, many organisations try to encourage stability.
The danger of this, however, is that learning processes can be affected. Srikantia and Pasmore (1996) argue that a pattern of dependency is an adverse outcome of management’s desire to cultivate a safe setting for learning and change. Such behaviour along with risk aversion, need to be unlearnt, in order for there to be sufficient doubt that change is required (Srikantia &
Pasmore 1996). Kotter (2002) argues that the difficulties are not so much around strategy, systems, or culture but rather around changing people’s behaviours. Unlearning can be viewed as a catalyst towards an active learning process to replace former beliefs and organisational routines with new knowledge (Akgun, Byrne, Lynn & Keskin 2007).
Organisations will experience short-lived or fortuitous changes when they simply continue with their old habits, and thus will not improve unless they learn something novel (Garvin 2005).
Unlearning facilitates double-loop learning and is seen as the link in organisational change and learning processes (Akgun et al. 2007).
Both processes of doubt and conviction are considered necessary in organisational learning (Srikantia & Pasmore 1996). Doubt is linked to “fear, loss of security and threats to self-esteem”
while conviction is “tied to curiosity, inspiration and our eternal hope for a better future”
(Srikantia & Pasmore 1996: 43). The authors view training or simulation as one of the ways to enhance doubt by confronting complacency. Conviction can be encouraged by having individuals’ self-efficacy highlighted in the learning experience by learning skills or conducting safe experiments, thereby minimising failure in real change events. Furthermore, dialogue between people who have a desire to learn, and observation of those who take steps towards learning effectively can also lead to conviction. Experimentation, following the need for change, should allow for the risk of failure, as well as for new ways of doing things (Srikantia &
Pasmore 1996).
The concepts of doubt and conviction are similar to the work of Elkjaer (2005) in identifying openings and closures to organisational learning. Examples of closures and opening include respectively, fears of job losses and previous failures, and the creation of new options and positive changes in job structures. Elkjaer (2005) encourages the acceptance of both as a way of igniting organisational learning through tension that induces inquiry and critical thinking. These concepts are critical in the change process.
Learning is thus a continuous process and organisations need to ensure that the tools, time and occasions, and continuous evaluation and feedback for learning are in place (Mitki, Shani &
Meiri 1997). Moerdyk and van Aardt (2003) argue that it is essential that organisational learning become part of change processes, in order to facilitate continuous learning.
As detailed in the preceding sections, organisations cannot afford to overlook the critical role that systemic interactions, complexity and opportunities for learning, play in organisational change and organisational development. The processes and principles involved in these critical areas have been outlined and will now be used in examining critical issues in organisational change which on the surface may appear to be straight-forward, but as will become evident are anything but that.