Organizational Learning for Smart Organizations

Organizational Learning for Smart Organizations

Cvetko Smilevski *

BAS Institute of Management

Dovledžik BB, 7000 Bitola, Macedonia

E-mail: cvetko_detra@yahoo.com

Daniela Velkova, Ph.D. student

Nataša Nikolovska, MBA student

Andrijana Apostolova, MBA student

* Corresponding author

Structured Abstract

Purpose: The purpose of this paper is to present the findings of the Project Organizational Learning Partnership (OLP) , which has been implemented since 2011 by Business Academy Smilevski - BAS in Skopje and BAS Institute of Management in Bitola, as action research involving ten partner organizations (PO) from the Bitola region. Based on these findings, an integral organizational learning model (IOLM) was tested. In a review of the relevant literature on organizational learning and learning organizations we learn that smart organizations have a very common characteristic with learning organization (Matheson, D. and Matheson, J. 1998): using existing knowledge in strategic decisions, reflection and learning from the strategy implementations, and storing and sharing of knowledge among all stakeholders of the organization. This paper presents the model and the processes in which its implementation can help companies develop into smart organizations.

Design/methodology/approach: We propose a holistic approach to the organization and action research design. A basis for the initial design of IOLM are the concepts and best practices derived from Chris Argyris (1996 and 1999), Peter Senge (1994 and 1999), and Bob Garratt (2002). A basis for the research methodology are the design principles and good practices of action research for implementation of organization learning (Comfort, L.K.1985, Reason, P. 2006, Curzi Y. and Fabbri T. M. , 2010,). Apart from findings of global academic studies conducted in this area in the past 30 years, as well as the majority of master and doctoral thesis research conducted at the Institute for Sociological, Political and Juridical Research in Skopje (under the mentorship of the corresponding author), in the action research design findings from workshops conducted with the 10 POs were also used. Therefore, in the action research conducted in POs, an accent was put on designing and implementing mechanisms for upgrade and integration of OL components, on one hand, and knowledge sharing practices among employees, on the other.

Originality/value: Most of the research conducted so far has been concerned with the practices and impact of specific OL disciplines (e.g. mental models, team learning, etc.), OL strategies (e.g.. laboratory learning, dialogue, etc.), or a whole component at best (e.g. OL strategies as a whole). The novel benefit of this holistic approach is that it explores the relevance of general OL theoretical concepts and findings for the the actual conditions in SMEs in one region in Republic of Macedonia. This approach provided for a gradual development of systemic solutions and personal competencies for integrated practice of the integral organizational learning model. This model contributes to the transformation into a smart organization.

Practical implications: The outcomes of applying a holistic approach to the action research for implementing organizational learning paper are:

- a five component integral model of organizational learning developed and tested (process, situations, levels, disciplines and OL strategies);

- absence of IOLM key components identified;

- measures for gradual development of IOLM by companies designed and tested;

- organizational knowledge sharing lessons learned.

Keywords: organizational learning, smart organization, action research, knowledge management, integral organizational learning model (IOLM).

Paper type: Academic Research Paper

1 Introduction

It is no longer an issue that organizational learning as a company practice increases the organizational capability for acting proactively to the changing environment. This especially refers to small and medium enterprises (SMEs) that do not have enough money, or enough time to invest in training for development of the employees' competencies. Given their limited capacity to design and implement organizational interventions in order to increase the effectiveness of school, it's only a matter of how organizational learning is implemented in SMEs. Despite this situation (the SMEs need to help in designing and implementing organizational interventions for primary school in SME), at the Business Academy Smilevski-BAS, we had another motive for this Endeavour: to help partner organizations (POs) in which our students attended field practice, to develop a culture of sharing knowledge and experience, as one of the essential prerequisites for effective student practice. From the academic year 2011/2012, BAS as a higher education institution and BAS the Institute of Management in Bitola as a research institution had designed and administered the project Organizational Learning Partnership (OLP)

The long-term goal of this project for PO is they to be transformed into learning organizations (LO) building organizational capabilities of SMART organizations (SO).

As an action research project, our idea was to design organizational interventions for implementing an effective model of OL in PO, and then to offer an educational and consulting support for the model implementation. From the literature review, we concluded that most of the field research in OL focused on a particular component or aspect of OL and included evaluation of already introduced practices or introducing OL practices.

In order to ground our endeavor in solid theory, as well as to use good practices from the research already conducted, we grouped the literature review into two categories: (1) an overview of the theoretical developments and conceptual treatment of OL, and (2), an overview of the field research of organizational interventions aimed at increasing the effectiveness of OL.

2 Theoretical foundations of OL and SO

2.1 The essence of OL - the process of experiential learning

In Reg Evans' work, for the first time we find the