Organisations and Behaviour Learning Organisations - Essay Example

Running head: Human Resource Management Human Resource Management s Introduction: Organisations are human communities, which are formed by bringing people together to communicate, intact and build ties to help each other to create meaning together. Information plays an important role in building these societies and providing knowledge about the task people perform. The information networks created by the organisations help the people to adopt the environment. Build and develop communication networks, improves learning process, develops sense of understanding and sharing between the people, provides a platform to discuss discoveries and innovations, provide the people with chance to learn after making mistakes. A learning organisation intentionally designs the structures and strategies in order to enhance and maximise the learning of its employees. (Dodgson, 1993) With the changing environment of business and advancing technology the notion of the Learning organisations has gained much more importance. Learning has become an important characteristic of an organisation in order to compete in the global business. Learning is a volatile and dynamic concept through which the process of updating in an organisation takes place. With the growing size of the corporations and continuous innovations in the field of technology the individual learning has transformed to the notion of the organisational learning. The notion of learning plays an important part in the progress of an individual just like that the learning on the organisational level plays an important part in the growth of an organisation. The organisational group of people can define the organisational learning as the sum of the learning activities of the individual, which takes the shape of combined effort. (Dodgson, 1993; Fiol & Lyles, 1985). An organisational learning program should be designed in the way that it is not lost when the members of the organisation leave the organisation. The learning system of an effective learning organisation not only serve the purpose of the present employees but also cater the needs of the future employees by the accumulation of histories, experiences, norms, and stories. In the highly competitive environment of the business in today's high pace changing business environment enhancing the learning capabilities of business is the solution of half of the problems. (Prahalad & Hamel, 1994). Equally important is the creation of an unlearning organisation which essentially means that the organisation must forget some of its past. Thus, learning occurs amidst such conflicting factors (Dodgson, 1993). Most of the leading companies of the world like Shell were among the first to embrace the notion of learning. In Shell Arie de Geus described learning as the only strategy to compete effectively. Hence learning organisation can be defined as "The essence of organisational learning is the organisation's ability to use the amazing mental capacity of all its members to create the kind of processes that will improve its own" (Dixon, 1994) "A Learning Company is an organisation that facilitates the learning of all its members and continually transforms itself" (Pedler, Burgoyne & Boydell, 1991) "Organisations where people continually expand their capacity to create the 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 to learn together" (Peter Senge, 1990) The following are the important characteristics of the learning organisations: Learning organisations adopts the external environments. They are flexible and continue the process of change. Depicts the combination of individual and collective learning. Keeps on learning with the outcomes. Learning can be done in two ways. 1) Single loop 2) Double loop In single loop learning people learn in a way prescribed to them by the organisation. In double loop learning people, people not only learn in a prescribed way but also can question and can change the framework. The ability to use double loop learning is a key to success for today's organisations. Motorola puts great emphasise on the learning of its employees. It has created a strategic partnership with the ACS corporation in order to gain is tent expertise in learning and HR so that all the HR and training activities world-wide can be improved and modernised. The $650million contract has created a new business unit, which will play part in improvement of the HR and learning of employees. The step has been taken in order to gain world class management of administrative and transactional function related to HR with training and development. Many of the Motorola's former employees provide virtual end-to-end HR capabilities. This is done in order to retain control over strategic areas. Developmental needs and assessment: Motorola has brought dramatic transformation in its training policy by shifting its rigid training hours of classroom training to a relatively flexible learning program individually designed for an employee. Motorola aims at improving the careers of its former employees. It is estimated that the people who focus only on training as a career are more enthusiasts rather than those in support function. The arrangement will put emphasis on the IT oriented skills development of employees at Motorola. (Harris, 2003) McGregor's Theory X and Theory Y: One view about the nature of people has been expressed in two sets of assumptions developed by Douglas McGregor and commonly known as "Theory X" and "Theory Y." (McGregor, 1960) Managing, McGreor suggested, must start with the basic question of how managers see themselves in relation to others. This viewpoint requires some thought on the perception of human nature. Theory X and Theory y are two sets of assumptions about the nature of people. McGregor chose these terms because he wanted neutral terminology without any connotation of being "good" or "bad." Theory X Assumptions: The "traditional" assumptions about the nature of people, according to McGregor, are included in Theory X as follows: 1. Average human beings have an inherent dislike of work and will avoid it if they can. 2. Because of this human characteristic of disliking work, most people must be coerced, controlled, directed, and threatened with punishment to get them to put forth-adequate effort toward the achievement of organisational objectives. 3. Average human beings prefer to be directed, wish to avoid responsibility, have relatively little ambition, and want security above all. Theory Y Assumptions: MscGregor sees the assumptions under Theory Y as follows: 1. The expenditure of physical effort and mental effort in work is as natural as play or rest. 2. External control and the threat of punishment are not the only means for producing effort toward organisational objectives. People will exercise self-direction and self-control in the service of objectives to which they are committed. 3. The degree of commitment to objectives is in proportion to the size of the rewards associated with their achievement. 4. Average human beings learn, under proper conditions, not only to accept responsibility but also to seek it. 5. The capacity to exercise a relatively high degree of imagination, ingenuity, and creativity in the solution of organisational problems is widely, not narrowly, distributed in the population. 6. Under the conditions of modern industrial life, the intellectual potentialities of the average human being are only partially utilised. These two sets of assumptions obviously are fundamentally different. Theory X is pessimistic, static, and rigid. Control is primarily external, that is, imposed on the subordinate by the superior. In contrast, Theory Y is optimistic, dynamic and flexible, with an emphasis on self-direction and the integration of individual needs with organisational demands. There is little doubt that each set of assumptions will affect the way managers carry out their managerial functions and activities. (Koontz & Weihrich, 1994) Not only the above mentioned sets of assumptions are enough to manage the employees effectively. A number of organisations have made highly visible commitments to managing from sustainability perspective. This movement is farther advanced in Europe, in part because the European Community will shortly require companies to report outcomes related to what they view as their "triple bottom line," i.e., people, profits, and planet. Shell and British Petroleum are among the leaders in emphasising sustainability, as documented in a thesis by two recent Sloan Fellows students. (Mendelsohn & Pangarkar, 2002) We examined the Ford Motor Company's highly visible effort to refurbish its River Rouge manufacturing complex following principles of sustainability. The result has been a bold rethinking of the relationship between a factory, its products and the environment. Ford's CEO William Clay Ford has been an outspoken advocate of the River Rouge initiative and the corporation has even added "environment" to its traditional set of standard metrics on safety, quality, delivery, cost and morale. Still, the concept of sustainability has not yet become deeply embedded in the values and beliefs of the company's managers or in the corporation's manufacturing processes and product development processes. A small staff and a handful of strong line leaders support Ford's sustainability initiatives, but it remains to be seen if the vision will continue beyond the current CEO. (Kochan et al., 2002) Ford Motor Company is committed to equality of opportunity, fairness, work life balance; respect and dignity at work for all. Ford values differences of culture, ethnicity, race, gender, nationality, age, religion, disability, marital status, sexual orientation, education, life experiences, opinions and beliefs. Diversity adds a clear value to Ford's employees, business, customers, the company, shareholders and the communities in which Ford operates. Ford believes valuing difference is not just a 'good cause' - it is a business imperative. The population from which Ford draws its customers and future employees is becoming increasingly diverse for a number of reasons including globalisation and changing demographics within the UK. Ford Motor Company aims to: Become a Employer of Choice by recruiting, retaining and developing the best people; Provide the best possible customer service to all our employees; Provide excellence in customer service to ALL our external customers in ALL their diversity; Access the supply of goods, facilities and services from a diverse business community; Show responsibility and reflect the communities in which we live and work. (CambridgeFlava Society, 2003) The psychological contract: The concept of psychological contract was first developed by Argyris in 1960 and was further developed by Schein in 1980. With the increase in the size of the corporations it has only been in the last few years the notion of psychological contract has become the focus of theoretical and empirical research. Rousseau has done the most important and modernised research in the field of psychological contracts. She has transformed the concept and carried out empirical research to clarify its nature. Schien defines psychological contracts as "unwritten set of expectations operating at all times between every member of an organisation and the various managers and others in that organisation". Rousseau does not keeps the things till expectations she defines it further and states that what is involved are "promissory and reciprocal obligations" although they are not included in the formal contract of employment (Robinson and Rousseau, 1994; italics ours). The commitments about the future behaviour of the organisation are related to some desired actions of individuals. Rousseau states that these promises are not made by the organisations but are perceived by the individual about the future behaviour of the organisation. The nature of these promises is subjective resulting due to the interpretation of the actions of organisation. When a person start serving an organisation he enters into a relationship with the organisation. Any particular psychological contract will contain both transactional and relational elements, but in differing amounts. As will be seen, the nature of this balance, and changes to it, has considerable effects. It is often argued that the psychological contract, influence the relationship between the employee and the organisation, although the effect will not be significantly apparent. Robinson et al. (1994), for example, found that employees experiencing contract violation are more likely to report having a transactional psychological contract with their employing organisation. Robinson et al. (1994) found that the violations of the psychological contract adversely effect the loyalty of the employees towards their employers. Motorola has a reputation of being one of the best-managed companies in the United States. The firm is now being directly challenged on many fronts, and recent erratic stock performance suggests that the company must strengthen its response to heightened competition. The company has successfully faced different challenges such as economic and political conditions, Global competition, New technology, Increasingly complex world markets and Scarcity of natural resources. The business world today moves faster and is more highly volatile than ever before. In this age of unprecedented turmoil, the challenges of facing and successfully managing the uncertainties of the future are everywhere. How well organizations adept to new conditions will determine which will survive and which will thrive. Those that succeed will meet the challenge, respond quickly and surely to new opportunities, and remain competitive in an era of accelerated change. Motorola has gained wide admiration as a role model for business. Its excellence lies in a deeply bred ability to continually move out along the curve of innovation and to invent new, related applications of technology as fast as older ones become everyday, commodity-type products. It is successful, in short, because it is succeeding in renewing itself. Fortune magazine stated, "Mention Motorola, the company that almost everyone loves to love, and the accolades fairly gush: Titan of TQM, epitome of empowerment, tribune of training, icon of innovation, prince of profits. A leader in the worldwide revolution in wireless communications, this manufacturer of a broad array of products has become the most unusual of creatures - a big company that sizzles." Management books and business school case studies have chronicled the company's fanatic pursuit of six sigma, its high-profile battles with the Japanese, and its pioneering advances in self-directed work teams, training, and business-process reengineering. Consultants marvel at the way Motorola decentralizes decision making, breaks down organizational boundaries, and promotes cooperation between labor and management." Other similar prestigious publications have called the company an exemplar of the "high-performance workplace." (Business Forum, 1997) Since the last few decades the concept of learning organisation is gaining importance. It is due to the fact that the business environment is getting more and more volatile with every passing day. The competition is getting tougher only those organisations can survive which have cutting edge in knowledge. Learning is an important process, which should be carried on in Motorola in order to give it competitive position in the market. The organisation should offer its employees a continuous up grading of skills and knowledge in order to present innovative products in market. Since Motorola competes. Motorola has a long history of technological innovations. This is due to the continuous learning process in the organisation. The company has a university named as Motorola University, which aims to make the world a better place to earn money. Motorola has a policy of 40-hour minimum per year of training per employee. The university has an extensive system of classroom instruction. Motorola relies on a management philosophy with two key beliefs, respect for the dignity of the individual and uncompromising integrity. These beliefs in turn are meant to seed an environment of empowerment in a culture of participation, along with an environment which seeks to manage long term growth and investment in technology to maintain competitive. To support the development of its people, Motorola created Motorola University formed in 1986 ($40 M investment; $560/employee). The mission of the university is to supply broad based skills for its standing employees and customers and to train new associates worldwide to become productive team members. In addition to its University, Motorola provides alternative delivery systems through CD-ROMs, Internet applications, and wireless data. (Preliminary Report of the Task Force on Staff at Carnegie Mellon, 1997) Motorola needs to use other means of learning delivery in order to fulfil the requirements of the accelerating rate of knowledge required by the employees. The university is still unable to develop courses quickly enough in order to meet the requirement of the organisation. Motorola now uses distance learning techniques using satellite and microwave. CD-ROM is also used in the learning Resource Centre. The web delivered courses of Motorola has limited sign-up and a low percentage of course completion. The reasons of low catching on of Educators are trying to use web like a classroom People are using the web the way they learn Naturally and when they need to use it. Although the web based learning is not very successful at Motorola but it provides opportunity to let the people learn whenever and whatever they want to this also help people at Motorola to learn in an instructor-led environment. Motorola is an organization with a history of embracing renewal and continuous learning. Those traits have served us well as we apply them to our Six Sigma business improvement efforts. During the last 15 years, we have learned a great deal about what works and what don't work in our Six Sigma efforts. We have moved from counting defects in our product manufacturing to managing variation and systematically improving all our processes. Most important, we have moved from Six Sigma as a tool for improving product quality to Six Sigma as an overall business improvement methodology. The new Six Sigma combines the power of good business application of statistics with the critical elements of effective business strategy. It uses an overall business improvement framework to improve the organization's ability to realize its strategic objectives. This year and beyond, Six Sigma will be Motorola's tool of choice for driving bottom-line improvement across the organization. In this context, Six Sigma projects are carefully chartered to ensure their selection is based on there direct and near term impact on important scorecard objectives and metrics. Sigma methodology: Special efforts are underway to ensure a high percentage of Motorola's leaders are qualified GBs and the percentage of qualified BBs and BB candidates is up significantly. More of our Six Sigma efforts are-and will continue to be-focused on product design that enhances the overall customer experience and on software quality as the key driver of long-term performance and reliability. In addition, more of our projects focus on driving improvement across the Motorola value chain. Six Sigma projects teams that increasingly involve key customers, suppliers and other business partners are the norm, rather than the exception. The Six Sigma improvement methodologies Bob Galvin sponsored 15 years ago continues to grow robustly, supporting Motorola's vision for its customers and shareholders. (Six Sigma Magazine, 2002) References Argyris, C. (1960), Understanding Organisational Behaviour, Dorsey Press, Homewood, IL. Business Forum, (1997). Leadership of renewal: leadership for the 21st century, From Business Forum: winter, 1997 issue, Available: Retrieved: 23/01/06 CambridgeFlava Society, (2003). Are you responsible for your company's diversity initiatives Ford Motor Company, Available: Retrieved [23/01/06] Dixon, N., (1994). The Organisational Learning Cycle, McGraw-Hill Dodgson, M., (1993). Organisational learning: A review of some literatures, Organisation Studies, 14/3: 375-394. Fiol, C.M., & Lyles, M.A., (1985). Organisational learning, Academy of Management Review, 10/4: 803-813. Harris, P., (2003). Outsourced Learning: A New Market Emerges, American Society for Training and Development, June 5, 2003, Available Retrieved [23/01/06] Koontz, H., & Weihrich, H., (1994). Management: A Global Perspective, Tenth Edition, Mc Graw- Hill International Editions, pp. 466-467 Kochan, T., Orlikowski, W., & Gershenfeld, G., C., (2002). Beyond McGregor's Theory Y: Human Capital and Knowledge-Based Work in the 21st Century Organisation, Prepared for the Sloan School 50th Anniversary Session on October 11, 2002, Available: Retrieved: [22/01/06] Mendelsohn, C., & Pangarkar, A., (2002). "Case Studies of How BP and Shell are approaching Sustainable Development" Master's Thesis, Sloan School of Management, Cambridge MA, May 2002. Prahalad, C. K., & Hamel, G., (1994). Competing for the future, MA: Harvard Business School Press. Pedler, M., Burgoyne J., & Boydell, T., (1991). The Learning Company: a Strategy for Sustainable Development, McGraw-Hill Preliminary Report of the Task Force on Staff at Carnegie Mellon (continued), (1997). Section v. External Benchmarks, March 3, 1997, Available: Retrieved: [24/01/06] Robinson, S.L., Kratz, M.S., Rousseau, D.M. (1994), "Changing obligations and the psychological contract: a longitudinal study", Academy of Management Journal, Vol. 37 pp.137-52. Rousseau, D.M. (1990), "New hire perceptions of their own and their employer's obligations: a study of psychological contracts", Journal of Organisational Behaviour, Vol. 11 pp.389-400. Schein, E.H. (1980), Organisational Psychology, 3rd ed., Prentice-Hall, Englewood Cliffs, NJ. Six Sigma Magazine, (2002). Motorola's Second Generation, May, 2002, Available: Retrieved 22/01/06 Read More