Concepts of an Organization, Research Paper Example

Abstract

The paper discusses the concept of a learning organization and the processes involved in shifting away from an organization as a machine to the concept of a learning organization. The definition and the five critical features of a learning organization are provided. The example of Exco is used to emphasize the benefits of shifting from the ‘machine’ concept of an organization to learning as the basic prerequisite of continuous organizational success.

Introduction

The term “learning organization/ culture” is commonly used by organizations to describe their change strategies. Learning in organizations is invariably associated with the generation and distribution of knowledge, which managers and employees use to achieve their organizations’ strategic goals and objectives. When shifting away from an organization as a machine to the concept of a learning organization, organizations are bound to go through numerous process changes, and whether they become truly learning depends on numerous conditions and factors.

Peter Senge (1990) was the first to define a learning organization as “a place where people continually expand their capacity to create results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free and where people are continually learning how to learn” (p. 1). For organizations to identify themselves as learning, they should be able to promote active thinking and knowledge generation, and to apply this knowledge to achieve their strategic objectives. It would be fair to assume that the shift from viewing an organization as a machine to the concept of a learning organization requires meeting several essential conditions. Organizations usually start with replacing traditional vertical organizational structures with horizontal ones: in learning organizations, vertical structures work against the basic principles of learning and create unnecessary distances between managers at the top and workers, who fulfill the major organizational responsibilities (Daft, 2006). To meet the basic requirements of a horizontal organizational structure, learning organizations, for example, can promote the creation of self-directed teams, which will erase the boundaries between different workplace functions and will align employees with the basic organization’s principles and objectives.

In the process of acquiring essential “learning” features, organizations move away from routine tasks and use empowered roles as an effective tool of achieving strategic learning outcomes (Daft, 2006). In distinction from tasks which are characteristic of “machine” organizations, roles allow workers to use their discretion and abilities to meet their performance goals (Daft, 2006). For example, employees should have a chance to expand their workplace roles in ways, which would help them use their cultural sensitivity and intelligence to meet the most sophisticated organization’s demands. This is the example of U.S. Central Command in Iraq, which Daft (2006) describes in his book: when soldiers’ tasks are not limited to shooting and following orders, they become more flexible and are willing to utilize their intelligence and cultural sensitivity for the benefit of the major peacekeeping operations. In the same way, to become a learning organization means to shift from formal control to shared information; from competitive to collaborative strategy; and from rigid culture to cultural adaptability (Daft, 2006). In this context, the example of American Exco reveals the major benefits of becoming a learning organization.

Exco is a well-known independent energy company engaged in acquisition, development, and exploitation of natural gas properties (Exco, 2010). Learning for Exco became the determining feature of the organization’s continuous success. In response to the growing competition, Exco came to realize the need for developing competencies necessary to become a learning organization: the company’s organizational structure was flattened, and cross-functional teams were created, to empower employees to make knowledge contribution to the organization’s development. As such, Exco was able to develop and use systems thinking, personal mastery, mental models, shared vision, and team learning to significantly enhance its organizational performance (Senge, 1990). Through team learning, Exco was able to create conditions suitable for cross-functional teams to achieve the results they truly desired, while systems thinking gave Exco an opportunity to evaluate and reshape organizational behaviors more effectively (Senge, 1990). Through learning, Exco was able to achieve the level of mastery high enough to preserve and improve its competitiveness in the global marketplace.

Conclusion

The concept of a learning organization is commonly used to describe organizations’ change strategies. Learning in organizations is invariably associated with the generation and dissemination of knowledge necessary for employees and managers to achieve organizations’ strategic objectives. Horizontal structures, role empowerment, collaboration, adaptability, and change altogether represent the steps, which organizations should take in order to shift away from an organization as a machine to the concept of a learning organization. The example of Exco shows that such shift is the critical precondition for any organization’s continuous business success.

References

Daft, R.L. (2006). Organizational theory and design. Cengage Learning.

Exco. (2010). Reaching new heights in energy acquisition. Exco. Retrieved from http://www.excoresources.com/

Senge, P. (1990). The fifth discipline: The art & practice of the learning organization. New York: Currency.