Five Elements of a Learning Organization Qualitative Research

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Introduction

The contemporary business environment is characterized by stiff competition as each enterprise seeks to maximize its market share. When one firm gains a given market share, the competitors are locked out of that segment (Easterby-Smith & Lyles, 2011). In that regard, firms must utilize everything at their disposal to outsmart their competitors and earn a competitive advantage over the rivals.

Most businesses today have embraced the concept of organization learning to acquire a sustainable competitive advantage over the rivals. Senge developed the concept of the learning organization, and it emphasizes the need for organizations to adapt to the dynamically changing environment against the backdrop of the stiff competition among firms. Senge (2006) cites the following five concepts as the components of organization learning:

  1. Shared vision
  2. Mental model
  3. Personal mastery
  4. Team learning
  5. Systems thinking

This research paper shall focus on the five elements of organization learning to unravel their usefulness in earning a sustainable competitive in the backdrop of the rapidly changing business environment. The paper shall research the applicability of the concept to the United Parcel Service Inc. Both the qualitative and the quantitative techniques shall be used to collect and analyze data related to the company.

The literature is rich in the information about the topic hence the author shall review the literature and compare it with the findings of this study. Based on the findings from the research and the literature review, the paper shall offer recommendations to the company on how to improve their organization based on the five concepts of the learning organization.

United Parcel Services (UPS)

The United Parcel Services Inc. was incorporated in 1907 with the objective of offering parcel delivery services to its customers. Its initial operations were based in New York but today, the company has increased its areas of operation. Currently, the company operates in over 220 countries across the globe serving approximately 6 million customers daily.

The rapid growth of the company is attributed to its delivery of quality services to its customers. The company operates on the principle of customer-centered services whereby the customer’s needs are prioritized.

Research objectives

This study seeks to add to the current literature regarding the concept of the learning organization. The stated purpose shall be accomplished by conducting research using both the qualitative and the quantitative methods. The researchers shall use interviews and observations to research on the topic.

Significance of the research

The contemporary business environment is characterized by stiff competition between firms as each enterprise seeks to maximize its profitability at the expense of the rivals. One of the surest ways of creating a sustainable competitive advantage is by applying the concepts of the learning organization.

However, research indicates that most managers are not aware of the effective application of the five elements of the learning organization concept hence leading to failure in the implementation phase (Cohen, Rosenblatt, & Buhadana, 2011). Based on the mentioned view, this paper seeks to educate managers on the applicability of the concept to extirpate such failures.

Research methodology

Sample population

The study recruited participants from among the employees and managers of UPS Inc. 50 employees from the company were recruited for the study. To qualify for inclusion an employee had to meet the following criteria:

  1. S/he had served the company for not less than five years
  2. Demonstrate awareness of the organization culture
  3. Be conversant with the English language

Managers too were recruited with five managers and the vice president of the staff training and development of the company recruited for the study. The inclusion criteria for the managers were similar to those of the employees.

Ethical issues

Confidentiality of information

The law requires that the privacy of the participants’ personal data be guaranteed at all costs. In compliance with the stated provision, the researchers banned the inclusion of the participant’s names in the documents used to collect the data. The participants were assured of the privacy of the information given during and after the study. Additionally, the computers used to store the data were password protected to avoid unauthorized access.

Informed consent

The law requires researchers to obtain a written consent from the participants the commencement of a study. The consent is only valid if the researcher discloses all the material facts to the participants before obtaining such consent. To comply with this provision, the participants were informed of the objectives of the research, and their roles during and after the research. Additionally, the participants were notified of their right to abandon the study at any stage.

Qualitative methods

The qualitative research method involves the use of interviews and the questionnaires to solicit information from the participants. This study used both the interviews and the questionnaires to collect the data from both the employees and the managers. The interviews between the employees and the researchers took place in the employees’ respective offices. Each employee was allowed 45 minutes in which s/he answered pre-prepared questions.

The interviews were recorded for analysis in the next stages. In the interviews, the employees were asked to describe the leadership style exercised by the leaders of the organization. Besides, the employees were to describe their understanding of the concept and its applicability in the organization. The questionnaires were used alongside the interviews to solicit reliable data from the participants. Two types of questionnaires were prepared to solicit information from the participants.

The questionnaires for the employees were designed to collect data regarding their understanding of the five principles of organization learning and its applicability in the company. The questionnaires were based on the Likert-type scale labeled 0 to 6 where 0 represents strongly agree while 6 represents strongly disagree. Each of the elements of the learning organization was weighed against the scale.

The managers’ questionnaires, on the other hand, were designed in such a way that they would allow the collection of data regarding their efforts in implementing the learning organization concept in their respective departments.

Quantitative method

The quantitative method involved observing the managers and the employees conductin the firm. The researchers visited the firm 2 hours a day for one week to obtain first hand information relevant to this research.

Results

Interviews and questionnaires

The managers unanimously emphasized the application of the concept to the organization, and their commitment to the success of the concept. Eighty percent (80%) of the respondents (40 out of the 50 employees) demonstrated great knowledge of all the elements of the LO.

Ninety percent (90%) of the interviewees cited communication as a success factor of the concept. Seventy percent (70%) acknowledged the application of the concept in the firm. Ten (10) employees claimed that there were deficiencies in communication since they did not have a chance to meet with the executives. All the managers illustrated the inclusion of the employees in decision-making.

Communication according to the managers was twofold: one involved the executives and the line managers while the other involved the line managers and the employees. The employees demonstrated their knowledge regarding the working of the learning organization concept by highlighting all the five elements and their applicability in the organization. The managers too demonstrated great knowledge of the subject indicating their commitment to the concept.

Observation

The study team observed that the line managers communicated with the drivers before their departure to the various destinations. The meetings were termed as Prework Communication Meeting (PCM), and they centered on the local and the global business developments, priorities, issues, and challenges.

The drivers would interact with the managers, pose questions, and make the relevant suggestions. The study team learned that the meetings consumed about $50 million in terms of time costs. The team also noted that the company had a program named “The Quality Performance Review (QPR)” that brought together team members and the line manager. The meeting attendants deliberated on the achievements of the company, and they set the goals for the next period.

The manager, the peers, and the team members do individual work performance evaluation. The managers exercise a democratic style of leadership where the employees are involved in the decision-making process. However, we observed a line manager commanding a driver to alter his scheduled route without explaining the reasons for the change.

Discussion

The study’s findings illustrate existence of variation in UPS application of the core capabilities of a learning organization. The firm’s application of the core capabilities is evaluated herein.

Shared vision

Senge (2006) states that building a shared vision focuses on the creation of a single vision from the personal visions of the stakeholders, which results in shared values, purpose, and common understanding. A shared vision motivates the stakeholders to work industriously to achieve the stated mission both in the short run and in the long term. A shared vision encourages the stakeholders to learn not because they are under pressure to do so but because they are driven by the desire to accomplish the organization’s vision (Colmer, 2008).

One of the approaches that UPS has taken into consideration in creating shared vision entails developing an effective internal communication approach. The firm’s management team ensures that the employees are adequately involved in making strategic decisions involving the firm’s operations. UPS appreciates the value of internal communication in developing a strong organizational culture. Thus, the firm has developed a two-way communication approach.

The outcome of the firm’s commitment to development of internal communication is underlined by the development of a strong sense of organizational citizenship amongst the employees. A significant proportion of the firm’s employees feel appreciated and valued due to their inclusion in the organization’s strategic decision making process.

The firm’s success in promoting internal communication has enabled UPS to reduce the rate of voluntary employee turnover remarkably. Thus, the company has been able to enhance the likelihood of attaining long-term survival.

A significant proportion of the firm’s employees perceive the firm’s success as a critical component in enhancing the firm’s capacity to promote their personal and career development. The firm’s ability to establish shared vision has improved the extent to which employees support the firm’s strategic change efforts. This aspect has originated from the fact that the employees are aware of the firm’s long-term and short-term goals. Therefore, the firm has succeeded in entrenching emotional acceptance amongst employees.

In the process of implementing strategic change, the firm ensures that employees understand how the change will affect them and how it intends to mitigate the possible negative outcome of the change. Moreover, the firm has entrenched different programs aimed at strengthening and sustaining shared vision. Examples of such programs include the orientation and employee training programs. Through these programs, UPS has been able to instill the values that employees should observe in undertaking their job roles.

In the period between 1991 and 1999, the firm’s vision was “to be the leading package delivery company.” To ensure that they went in the pace of the radically changing business environment, they altered the vision to “the enablers of global e-commerce” in 1999. All the stakeholders of the firm participated in the change of the vision and encouraged to support the changes. Moreover, the employees are trained to handle their new tasks.

The company also has an online teaching system that allows the employees and managers from different companies to learn the key concepts of the changes. The online training is administered through emails and the Skype. The online system of learning is effective since it lowers the costs of administering the training. Besides, the company has a counseling program whereby the staffs receive the counseling free of charge.

Counseling prepares the employees mentally to accept changes in the organization (Sun & Scott, 2006). Additionally, counseling may help employees and the managers get rid of undesirable behaviors that may affect their relationship with other members of the organization.

Personal masterly

Thomas and Allen (2006) argue that personal mastery involves personal growth and development tailored towards improving the individual skills to increase efficiency. Personal mastery refers to the ability of the employees to clarify and expand their personal vision continuously. It involves the continuous acquisition of skills by the individual employees with the intent of maximizing the overall output of their efforts in the company (Raidén & Dainty, 2006).

UPS considers personal mastery as an essential element in integrating organizational change. The firm’s rationale of integrating personal mastery is to enhance the establishment of positive work related behaviors. The firm achieves this goal by challenging the employees’ personal values and beliefs on work related issues.

Moreover, the firm ensures that employees understand how their respective behavior affects that of their fellow colleagues. One of the ways through which the firm utilizes the concept of personal mastery entails challenging their perceptions regarding different work related aspects (Mets & Torokoff, 2007).

Team learning

The study’s findings further highlight that UPS has entrenched the concept of team learning in its quest to position itself as a learning organization. Kamya, Ntayi, and Ahiauzu (2011) state that team learning entails the process through which organizations acquire skills and knowledge through team work.

Thus, team learning entails a process through which an organization integrates teams as an approach to ‘thinking together’. The establishment of the Prework Communication Meeting (PCM) indicates one of the notable approaches through which the firm has integrated the concept of team learning.

The meetings are intended to chart the ways that the firm should follow in undertaking job responsibilities. Moreover, the team learning approach provides employees an opportunity to discuss the issues and challenges encountered in undertaking different job activities.

Through the collaborative meetings, UPS employees such as drivers discuss on how to improve their work processes. Therefore, to position itself as a learning organization, UPS should consider team learning as an essential approach in deriving intelligence on different human resource management aspects.

The firm should consider organizing its operations into teams. A team leader should head the teams operations to oversee the working of the group. The leaders give the necessary support to the employees to facilitate the acquisition of skills. Additionally, the new employees work with the experienced employees to facilitate their learning of the organization culture and the expectation of the firm.

Through such interactions, the inexperienced employees gain the skills necessary to accomplish the various tasks in the firm. Alternatively, UPS can leverage on the concept of team learning by adopting the project-based approach in resolving job tasks. The project-based approach should be operationalised by assigning employees work-based projects to employees.

This aspect will create an opportunity for employees to share ideas and opinion on the best practices to observe in attaining the assigned project goals. Garvin, Edmondson, and Gino (2008) state that knowledge may be available in an organization’s employees, but it may not be accessible to those who need it. Thus, teamwork approach will facilitate the sharing of such information. Ultimately, the firm will succeed in becoming a knowledge-based entity

In its quest to promote team learning, UP S should appreciate the value of promoting internal communication amongst the different employees. Currently, the parcel deliverers have the hand-held computers that facilitate the communication between them and the customer.

Besides, the devices facilitate communication between the employees and the management. Such communication allows issuance of an instruction to the drivers by the managers and the sharing of information between the employees.

Such information sharing facilitates team learning since all the stakeholders work as a team in the process of delivering the parcels to the customers. In case an employee has trouble with the way, s/he can contact other employees through the hand-held device to seek for guidance. Therefore, the firm should continually improve team communication through integration of emerging communication platforms.

Mental models

Mental models refer to the beliefs, feelings, and assumptions that influence the employees’ views and actions towards certain phenomenon (Senge, 2006). The contemporary business environment is characterized by a high rate of change. Subsequently, business organizations have a responsibility to ensure that their operations are aligned with the changing business environment.

Achieving this goal requires an organization to implement change initiatives continuously. However, successful change implementation requires businesses to ensure that employees understand that change inevitable.

To improve its efficiency in implementing change, UPS should focus on ensuring that employees understand the value of change to the organization’s long-term success. The firm can achieve this goal by shaping the employees’ perception and views on change through creation of positive mental models. The firm should consider incorporating social learning and on-the-job training as a way of creating positive mental models regarding change.

System thinking

To improve its performance and long-term sustainability, UPS should consider entrenching and improving the concept of system thinking. This aspect will play a fundamental role in the firm’s quest to become a learning organization. Sun and Scott (2006) state that system thinking centers on the establishment of inter-relationship across the complex organization units. The rationale of system thinking is to develop a holistic approach in undertaking job responsibilities.

UPS has incorporated a democratic style of leadership whereby the employees’ inputs are integrated into the decision-making process in the creation of the company’s goals. Additionally, new ideas are rewarded and made public as a way of encouraging others to come up with similar conceptions.

The managers organize regular meetings with the employees to remind them of the company’s goals and to notify them of their role to work as a group to achieve the set objectives. In such meetings, the achievements made by the firm are highlighted, and each employee is acknowledged for his/her commitment towards the achievements made.

Employees are encouraged to view the organization as a system, and they are advised that the achievement of the company’s goals is dependent on the collective working of all the departments.

Problem solving in the organization is not the exclusive role of the affected department, but it is a collective role where all the stakeholders are involved in finding a solution to the problem. The managers emphasize the need for collective reasoning in providing a solution to a problem affecting an individual unit, and they emphasize that failure by one department is a failure for the entire organization.

To entrench the concept of system thinking successfully, the firm’s management team should ensure that employees understand how their actions influence the firm’s overall performance. Thus, the firm should focus on increasing the employees understanding on the cause-effect chain. Through this aspect, the firm will successfully create sufficient understanding on the interconnections between the different departments.

The leadership in place in a firm may either promote or inhibit the adoption of the system thinking (Kamya et al., 2011). In organizations where new ideas from employees are not implemented and rewarded, it is hard to achieve system thinking. In that regard, the managers must cultivate a culture that favors the view of an organization as a system.

The system thinking approach advocates for the working together of all the departments of the firm to achieve the objectives of the company. Incorporation of system thinking will promote the company’s ability to undertake the requisite change initiatives.

Study limitations

The study population was limited to the company’s headquarter branch, and no participant came from the company’s subsidiaries. The study recruited only 56 participants for this research. Since the company has subsidiaries in over 220 countries across the globe, the study population was not big enough to give reliable results for generalization. Most employees at the headquarter branch are Americans. Their perceptions regarding the leadership of the company may differ from the perception of the staff in other branches.

Additionally, the operations in the headquarter branch may differ from that in the subsidiaries since the managers at the headquarters are under pressure to meet the company’s goals. The results would be more reliable is the study population was drawn from a cross-section of the firm’s subsidiaries across the globe. Future researchers should recruit larger samples and use different companies to study the topic.

Recommendations

One of the challenges facing the company is inadequate training of the staffs. The training offered by the company is limited to the orientation of new staff, and the preparation of staff for promotion to the managerial positions. The two types of training are important and congruent with the learning organization principle; however, the organization should implement a non-discriminatory training program that facilitatescontinuous learning for the staff at various levels of the organization.

The differentials in the learning needs should be reflected in the programs. This view is informed by the fact that the personnel at different levels of the organization have varying educational needs (Thomas & Allen, 2006). On the other hand, employees need to be trained on effective handling of the various tasks that they execute. The training should be continuous and should not take place only at the orientation stage, as it is the case in UPS. The training should be job specific to deter job mobility to reduce staff turnover rates.

The other shortfall that the researchers noted during the study revolves around the customer-centered principle evident in the firm. There needs to be a balance between the customer and the staff satisfaction to succeed in introducing the concept of the learning organization. The company needs to invest heavily in the workforce as opposed to the customers to achieve customer satisfaction.

Research indicates that employees’ satisfaction greatly influences customer satisfaction whereby a satisfied workforce satisfies the needs of the customers (Mets & Torokoff, 2007). In that regard, the company should focus on the challenges facing the employees and devise strategies aimed at mitigating them.

The managers should cultivate a culture that empowers employees and instills a sense of value in them. Training coupled with competitive compensation is one of the strategies that the company may utilize in its endeavors to guarantee employees’ satisfaction. The provision of the mentioned incentives to the employees will not only elevate their morale, but it will also ensure that the company retains the best talents.

Lastly, the company needs to encourage the full adoption of the democratic style of leadership. As indicated previously in this paper, the researchers noticed some degree of autocracy among the managers. The managers make some decisions without consulting the executing teams.

The success of the learning organization concept largely depends on the leadership style in place in a company. Democratic leadership favors the success of the concept while the bureaucratic style of leadership undermines the concept (Cohen et al., 2011). In a bureaucratic system of governance, the leaders make the decisions without involving their subordinates. The company needs to involve all the stakeholders in the creation of the company’s vision to facilitate the collective working of the teams to achieve the objects of the firm.

Conclusion

The stiffening competition coupled with the rapidly changing business environment has prompted companies to adopt the concepts of the learning organization. This study investigates the application of the concept in UPS. The study used both the qualitative and quantitative methods to conduct the study. The findings from the interviews and the questionnaires are as follows:

  1. 80% of the respondents were conversant with all the elements of the LO
  2. 90% of the interviewees cited communication as a success factor of the concept
  3. 70 % acknowledged the application of the concept in the firm.
  4. The managers unanimously emphasized their commitment to the concept

The findings from the observations are highlighted hereafter:

  1. The company held Prework Communication Meeting (PCM)
  2. The company holds the Quality Performance Review (QPR)
  3. The company has a democratic style of leadership

In conclusion, therefore, UPS has implemented the concept of learning organization as indicated by the highlighted results. However, the company needs to adopt the following recommendations to maximize the gains:

  1. Establish continuous training for its employees
  2. Cultivate a culture that favors a democratic style of leadership
  3. Enhance employee satisfaction

References

Cohen, A., Rosenblatt, Z., & Buhadana, T. (2011). Organizational Learning and Individual Values The Case of Israeli Civil Service Employees. Administration & Society, 43(4), 446-473.

Colmer, K. (2008). Leading a learning organization: Australian early years centers as learning networks. European Early Childhood Education Research Journal, 16(1), 107-115.

Easterby-Smith, M., & Lyles, M. (2011). Handbook of organizational learning and knowledge management. New York, NY: John Wiley & Sons.

Garvin, A., Edmondson, C., & Gino, F. (2008). Is yours a learning organization? Harvard Business Review, 86(3), 109-11.

Kamya, M. T., Ntayi, J. M., & Ahiauzu, A. (2011). Organizational learning and competitive advantage: testing for the interacting influence of knowledge management and innovation. International Journal of Innovation and Learning, 10(4), 376-401.

Mets, T., & Torokoff, M. (2007). Patterns of learning organization in Estonian companies. Trames, 4(2), 139-154.

Raidén, A. B., & Dainty, A. R. (2006). Human resource development in construction organizations: An example of a “chaordic” learning organization. The Learning Organization, 13(1), 63-79.

Senge, P. M. (2006). The fifth discipline: The art and practice of the learning organization. New York, NY: Broadway Business.

Sun, P. Y., & Scott, J. L. (2006). Process level integration of organizational learning, learning organization, and knowledge management. International Journal of Knowledge and Learning, 2(4), 308-319.

Thomas, K., & Allen, S. (2006). The learning organization: a meta-analysis of themes in literature. The Learning Organization, 13(2), 123-139.

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