OPTION C – ORGANISATIONAL LEARNING AND DEVELOPMENT AT AIS INSURANCE COMPANY
1.0 Executive Summary
No longer at its infancy, organisational L&D is viewed to be one of the imperatives of strategic HRM. As the concept that aimed at increasing individual capacity within organisations, L&D purport the acquisition of intellectual intangibles that are necessary in achieving the competitive advantage. Though the report is generally focus on the culture and leadership changes that will, in effect, influence how the company approach organisational L&D, the situational analysis and skills audit proved that the current practices of AIS is no longer being effective and sustainable. Generative learning will be the outcome which will be founded on combating the L&D dilemmas at AIS company. The L&D problems identified are: inherent problems based on the management group structure, inexistence of internal promotion and succession strategies and unproductivity and lack of employee commitment. These three components, in addition, facilitates the emergence of other L&F deficiencies such as attraction and retention, lack of support on changed job requirements, lack of mentoring/coaching structures and lack of integral skills to job function. The recommended trainings are divided into two categories: administrative-centered such as organisational goal setting, process mapping and managerial effectiveness training programs and employee-centered training program which is the talent management program.
2.0 Introduction
Organisational learning and development (L&D) is not in its infancy. In fact, L&D is one of the imperatives of human resource management as it can improve performance at individual, collegial and organisational levels. As the process of ‘increasing one’s capacity to take action, organisations are now increasingly becoming particular with organisational learning and therefore collective development. A concept that is distinct from training, learning focuses on acquiring new knowledge, skills and capabilities. Training is simply one of the several responses any organisation can pursue to promote organisational learning.
Organisational learning, on the other hand, refers to the “efficient procedure to process, interpret and respond to both internal and external information of a predominantly explicit nature. According to Easterby-Smith, Burgoyne and Araujo (1999), the emergence of the concept of organisational learning is central on the hitherto idea that prior advocacies of learning are tended to its commercial significance and are lacking of empirical information on learning processes. Strategically, organisational L&D deals with the acquisition of understanding, know-how, techniques and practices. These intellectual intangibles can be translated into an organisational resource through the people that acquire, infer and utilise such towards the achievement of the organisation-wide L&D (Armstrong, 2006, p. 40).
This report chooses the third option that presents the L&D dilemmas of an insurance company. An understanding of how people learn necessitates the effective learning processes within organisations. Poignantly though, AIS company has no concrete learning and development processes, systems and institutions in place. Embedded on a traditional practice of earmarking and the misaligned organisational culture, the company experiences concurrent employee turnovers and the general lack of sense of ownership of the employees. As the appointed State Training and Development Manager, this document outlines the current practices of L&D at AIS and the proposed L&D planning and strategy. How learning theories are applied to practice and how it implicates leadership and development are addressed likewise.
3.0 Methods
Majority of the report is vested on the assessment of L&D practices of AIS based on organisational learning literature and research also known as the secondary data researching. The strategy is mind is to re-engineer the prevailing L&D systems and practices at AIS and therefore apply the generative learning principle (Senge, 1990, p. 249). Nonetheless, a situational analysis and skills auditing are also implemented for the purpose of presenting a clearer perspective on the current situation at the AIS company.
3.1 Situational Analysis
Situational analysis refers to the pre-planning action to identify the several factors that affect the prevalent practices within an organisation. Situational analysis targets the identification and prioritisation of problem situations that affect the overall performance of the organisation and its people. This analysis process answers what is the problem, why is there a problem, who are affected by the problem and what should be done to solve the problem. For this report, the single and double-loop learning model developed by Argyris and Schön (1978) was used (refer to Figure 1 in Appendix section). The model looks at the three elements: governing variables, action strategies and consequences.
3.1.1 Governing variables refer to the dimensions that people are trying to keep within acceptable limits.
3.1.2 Action strategies refers to the moves and plans used by people to keep their governing values within the acceptable range.
3.1.3 Consequences are the results of the action both intended and emergent.
3.2 Skills Audit
Skills audit, alternatively, is the process of identifying the skill gaps in an organisation. Skills auditing results in the understanding of the skills required and the gaps that the organisation currently possesses; the targeted analysis of the development needs; the list of people of who need development; the data that can be utilised for internal selection and the information that can be used for dynamic succession planning. Skills audit involves conformation of current duties, job analysis, training needs, future development needs and action plan. Usually, skills audit is accompanied by a questionnaire to which, as the L&D manager, must be implemented within for the AIS management group. (The questionnaire is provided in Table 1.)
4.0 Current Practices
A more than forty-year old company, AIS is equipped with a relatively mediocre number of employees. In light of the fierce competition, the company lags behind in terms of L&D resulting to a series of younger employees turnovers. The problem lies on the management structure where frontline and middle managers are proven to be ineffective and incompetent. There are several reasons for this situation which are based on the single and double-loop learning model.
4.1 L&D problems via the hierarchy of management structure
First, there had been the hierarchical problems on L&D. The implicit exclusivity and the one-dimensional process of delegating employees could be the rationale for this. Career advancement opportunity is generally tended on the technical competence of employees which eliminates the majority of the employee base. Though employees move to the ladder, the concentration for specialistic delegation is apparent. This points to the second dilemma.
4.2 Lack of internal promotion and succession strategies
Consequently, AIS has no internal promotion policies and succession strategies that generally results in the ageing workforce. The average age of the management role is comparatively high. This notion may also explain why frontline and middle managers typically lack the commitment towards L&D. Though we cannot explicitly say that the top management lacks in support for various L&D initiatives, it is perceptible that within AIS there lacks the competences top-down.
4.3 Unproductivity and lack of employee commitment
Finally, AIS has no formal L&D policies and structures that result in the high percentage of unproductive employees and low levels of participation. To wit, the company offers no management development opportunities and services. In addition, the command and control style of leadership is hampering the way their managers could advance their competence and expertise.
In sum, the governing variables of the AIS company are bureaucracy and the emphasis on rationality. The actions are the unilateral control of the L&D system and the operationalisation of illustrated attributions (technical competence) as well as the covert, undermining practices of employee selection. Observably, the consequences are reduced production of valid information, low levels of loyalty and the minimal opportunity for continuous improvement and lack of functionality.
4.4 Resultant factors of the three identified L&D problems
Moreover, these identified L&D dilemmas branched to several other quandaries. These include the poor attraction and retention strategies, the lack of support on changed job requirements, the inefficacy of in-house L&D programs (if there are any), the inexistence of mentoring/coaching initiatives and the lack of other incremental skills jobs required. Though we can deduce that the management group possesses analytical and technical skills, they generally lack in management and behavioural skills (refer to Figure 2).
5.0 Findings and Discussion
The current practices outlined are basically problematic and conflict-laden. Based on the situational analysis and skills audit, the company, as a whole, faces major challenges on three aspects: professional development, internal promotion/succession strategies and purely bureaucratic culture that dictates the organisational thinking. Effectual L&D could assist in combating these fruitless endeavors for AIS. The need for organisational learning and development for AIS managers is evident.
The requirements of the AIS’ organisation L&D center the employees, the line management and the organisation. The foundations are the acquisition of skills and knowledge for the purpose of performance and promotion and career advancement and personal and professional development for the employees; improvement of efficiency and effectiveness, adapting to changes and improvement of employee performance for line management; and prevention of skills shortages, facilitation of workforce planning, succession management and attraction and retention strategies for the organisation.
5.1 L&D requirement that centers the AIS company’s hierarchy
Keys and Robert (1998) maintain that the presence of formal hierarchy influences systems thinking and organisational learning. In reality, the self-select role of employees thereby assumes an organisational title, an associated status, apposition in the hierarchy and role responsibilities (p. 232). This is not to say that AIS is embracing a structurally wrong hierarchy; the fact is in every organisation structure, there is an inherent risk of exclusivity and therefore, the greater need for cross-functional integration. The continuity of learning may be jeopardised at times through hierarchies. Flattening and softening the hierarchy is fundamental then.
Organisational learning, as well, conforms to organisational processes that influence policies, reporting relationships, business unit configuration, communication patterns and strategies and methods (Sessa and London, 2006) p. 178). As Lazonick puts it, ‘managerial learning’ is one of the major institutional barriers to making investments in organisational learning. The era of intense competition and the clash for competitive advantage calls for broader and deeper skills bases. Drawing away from the cumulative and collective organisational learning, the L&D initiative must direct on organisational learning must penetrate beyond divisions of labor and involve more functional specialties. Organisational integration of L&D would generate higher quality, lower cost products. Beyond the traditional division of labor, integrationism would provide the employees the incentive to cooperate in contributing their skills and efforts toward the achievement of common goals (p. 50).
However, the problem would be in the aspect of organisational L&D as a challenge to identifying the new learning that will succeed and eventually replacing the old with the new. This is where precisely the L&D could be put into greater test within the AIS system. True enough, knowledge is not easily shared but it is even harder to give up old practices and beliefs that have worked seriously well in the past. The necessity for double-loop learning is evident here. Culture change at AIS must be pursued.
Sisaye (2001) made mention that organisational learning occurs when organisations use their knowledge and experience to improve organisational task performance. Learning involves knowing organisational rules, procedures, operating manuals, strategies, norms behaviours and, in general, the culture that governs the organisations (p. 77). Creating the conditions of change for the AIS company, the shift in culture must face with reorientation that includes learning of new ideas knowledge and cultural practices. To wit, the command-and-control culture is no longer proving to be plausible for AIS.
Moreover, evidences prove that leadership style influences the incidence or quality of the organisational learning. Leadership is therefore crucial for the success of AIS company’s L&D. Nonetheless, the nature of leadership within the organisation is rather dictatorial. Though leadership component is not the most important factor in successful L&D, it is clear that leadership structure is a determinant of the feasibility and quality of L&D initiatives. Lipshitz, Popper and Friedman (2006) argue that transformational leadership was associated with more intensive organisational learning activity with a stronger learning facilitative culture than transactional leadership (p. 98).
5.2 L&D requirement for the lack of internal promotion and succession strategies
Provided that L&D does not only facilitate the continuity of learning but also the continuity of work, internal promotion and succession would be plausible. The organisations acquire the opportunity to assess individuals performance; hence, the active demonstration of internal promotion opportunities. Investing on long-term goals, strategic L&D creates avenues for accessing promotions on the basis of clear-cut job requirements and aligned skills, competences and expertise that integrate not just technical requirements.
For instance, the management skills of the managers should encompass performance management, people management and leadership. Further, the behavioural skills must involve communication, assertiveness, influencing, negotiating, professionalism, enthusiasm and initiative and teamworking. To which the AIS management structure lacks.
Organisational L&D has a production function. Such function centers the human aspect of the organisation in the form of succession. Important is that structuring and sensemaking act as levers to organisational L&D. For structuring, these are the organisational structure itself, norms (policies and procedures), roles, technology leadership, education/training/development and rewards and recognition. Making sense to this are shared context (mission, objectives and goals), language and symbols, values and assumptions and schemas and scripts (p. 47).
Friedman (1987, p. 66) asserts that the tripartite sharing of responsibility is the crux of a more effective learning process. Organisational learning is the process by which organisations obtain and use new knowledge, tools, behaviour and values, and it happens system-wide. At all levels, newly learned knowledge is translated into new goals, procedures, expectations, role structures and measures of success. As such, the more learning is built into the culture of the organisation, the more likely it is that the kinds of task and personal learning will take place.
5.3 L&D requirement for unproductivity and lack of employee commitment
Nowadays, the trend increasingly focuses on the concept of L&D as an integral tool in accelerating the competitive advantage, innovation and organisational effectiveness. As organisational learning leverage organisations in creating knowledge repository, identifying and codifying competencies and routines which includes acquiring, storing, interpreting and manipulating information from within and external to the organisation, the way people approach their work through sharing processes generates quality performance for both individuals and the organisation (Holsapple, 2003, p. 443). To simplify, learning is the dynamic process that manifest itself in the continually changing nature of the organisations. These are exemplified by innovation, collaboration, culture shifts and high morale.
Aside from competitive intelligence and technical expertise, there are also organisational capabilities that are being tap through L&D. Leadership, organisational learning and employee productivity comprise organisational capabilities. Through organisational learning, leaders communicate, direct, negotiate, influence, adapt and most of all gain employee commitment (Wade and Recardo, 2001, p. 53). Though organisational learning is inclined on the ability to learn from competitors, it is through organisational learning too that employees become more productive and more committed. This happens when they believe that the management has the skill to lead them to success and to provide them with knowledge and resources they need to meet customer requirements.
5.4 L&D requirement for the resultant factors
Organisational L&D is responsible for talent management as it systematically develop learning processes, providing employees with learning opportunities that develop their capabilities, realise their potential and enhance employability. Not only that, L&D is also central on yielding to high quality people and providing development opportunities to managers to increase their capacity in contributing to the achievement of the organisational goals (Armstrong, 2003, p. 10). And as already mentioned, L&D should facilitate the lessening of restrictive job descriptions while also encouraging the cross-functional cooperation. The supportive atmosphere augments the commitment two-way resulting to productive individuals who feel a sense of ownership and empowerment (Denton, 1998, p. 91). Unfortunately, these are the attributes that AIS lack.
Organisational consultancy at AIS is obviously deficient. According to Connor and Pokara (2007), coaching and mentoring are complementary to organisational learning. As both are increasingly being recognised as powerful L&D tools, the approaches should be strategically in existence with the L&D initiatives (p. 213). This provides a ground for personal and professional development and developing networks for senior and junior employees. Through the process also, organisational L&D as knowledge acquisition points on the development of skills, insights and relationships. Apart, L&D is also accountable for knowledge sharing and dissemination and knowledge utilisation (Palmer and Hardy, 1999, p. 200).
6.0 Recommendations
Based on the findings, there are specific training programs for AIS that should be prioritised. With greater emphasis given on the developmental activities for managers, the training programs are intended for the gradual change of management culture. This report recommends the following training programs for AIS company. The training programs are divided into two categories: administrative- and employee-centered. For administrative, these are organisational goal setting training, process mapping training and managerial effectiveness training. For employee-centered trainings and program, this is chosen in response with for the lack of internal promotion and succession strategies known as talent management training.
6.1. Administrative-Centered Training Programs
The rationale behind these three professional development trainings centers the development of a more proactive approach and improvement of ways to meet the challenges in AIS as identified above. Ensuring long-term business benefits by focusing on managerial, supervisory and leadership development.
6.1.1 Organisational Goal Setting Training
This training program is intended on learning how to set goals from team and organizational levels. Such training program teaches participants how to set goals by using organisational objectives, statement of values and vision and mission statements. Learning how to implement strategic goals in the workplace is the main objective of this program. Strategic goal setting skills are the intended outcome of this training program. This training program is intended for administrators, managers and supervisors, with a total training time of 4 hours. The learning objectives of this training program are:
· Help AIS develop and implement action plan
· Identify the factors that influence strategic goals
· Sequence the steps for putting organisational goals into action
· Applying visualisation techniques
6.1.2 Process Mapping Training
Process mapping refers to a visual tool used to illustrate the core businesses. Process maps are also regarded as communication tool, planning tool and a tool that effectively cuts cost for organisations. The benefits of this training program is to improve the understanding of processes internal to AIS and boosts management group’s understanding of the business and operational performance. Provided that processes are the most effective way to manage the organisation, processes then directly supports the organisational goal. By improving processes, AIS can improve internal efficiencies, effectiveness, adaptability and customer service. Through this, AIS could generate useful analytical data in order to derive findings, draw conclusions and formulate recommendations. This two-day training program is intended for managers, system implementers, management representatives, system coordinators, change managers and improvement teams. This training program’s objectives are as follows:
· Improve effectiveness and quality of work through identifying critical areas of improvement
· Rediscover core processes through analysis of organisational complexities
6.1.3 Managerial Effectiveness Training
This three-day training program is intended for midlevel and developing managers. The focus of this training program is on being aware of oneself and knowing how individual behaviour affects both managerial effectiveness and employee performance. Experienced managers who desire to enhance their managerial effectives are expected to attend. The primary goal of this training program is learning the importance of working as a ‘cohesive unit’ within the organisation and how understanding others could lead to more effective managerial effectiveness.
Such training program covers changes in the workplace, the manager’s style, how to manage teams, managers as transformational coach, style and motivation, managing conflicts, delegation for growth and managing performance and growth. The benefits of the training program are aligning motivation with work; anticipate and resolve conflict situations; instill a culture based on trust, partnerships and respect; increase dialogue and constructive feedback for optimum managerial effectiveness; and use delegation to increase performance and individual growth. The following are the objectives of this program.
· Develop competencies and skills needed by the modern manager
· Enhance effective job relationships
· Empowering subordinates
· Nurture and mentor talent in the continuum
· Improve managerial and leadership characteristics
6.2 Employee-Centered Training Program
This training program, basically, is in response of the primary problem which is the lack of internal promotion and succession strategies within AIS. The benefit of this training is central on optimising the benefits of having a knowledge-driven workforce.
6.2.1 Talent Management Training
In order to ensure a company’s long-term success, talent management training becomes an increasingly important component of strategic management. This training program is divided into three main steps: analysis, design and implementation. In the analysis phase, AIS defines the current situation regarding how effective the organisation is retaining and sustaining the talent pool as well as the goals and results to be achieved by talent management. In the design phase, AIS should develop fundamentals, prepare client specific talent management process and develop instruments used in talent management. Finally, in the implementation phase, AIS should prepare, train and coach internal process owners, assist internal communications and implement the program.
The talent management programme itself is comprised of various activities such as identification of internal and external candidates; nomination; evaluation through assessment of potential, performance evaluation and development planning; development (individual and for talent pool); and succession planning. The objectives of this training program are:
· Counter lack of visibility and knowledge of internal high calibers and top performers
· Prevent vacant key positions and avoid discrepancies between competences required
· Counter lack of knowledge of the strategic need for successors and career perspectives within the company
· Prevent loss of know-how as resultant factor of excessive fluctuation of high calibers and top performers
7.0 Conclusion
As a process of investing on the intellectual intangibles of every organisation, L&D shall be closely integrated with culture and the leadership style. Based on the findings of the report, AIS is generally lagging behind the competitors in terms of definite process and systems with respect to L&D. The factors that hampering the effective implementation of the L&D are the hierarchy of the company, the lack of internal promotion and succession strategies and the unproductive practices unique to the organisation. These three factors had branched out into resultant factors including attraction and retention, support on job requirements, mentoring and coaching and lack of incremental skills. There are a total of four training programs recommended. These are: organisational goal setting, process mapping and managerial effectiveness (administrative-centered) and talent management training (employee-centered).
8.0 Bibliography
Argyris, C and Schön, D 1978, Organisational learning: A theory of action perspective, Addison Wesley, Reading, Massachusetts.
Armstrong, M 2003, A Handbook of Human Resource Management Practice, Kogan Page, Ltd, London, UK.
Armstrong, M 2006, A Handbook of Human Resource Management Practice, Kogan Page, Ltd, London, UK.
Connor, M and Pokora, J 2007, Coaching and Mentoring at Work: Developing Effective Practice, McGraw-Hill International, US.
Denton, J 1998, Organisational Learning and Effectiveness, Routledge, London, UK.
Easterby-Smith, M., Burgoyne, J. and Araujo, L. (eds.) 1999, Organizational Learning and the Learning Organization, Sage, London.
Friedman, S D 1987, Leadership Succession, Transaction Publishers, Piscatway, New Jersey, USA.
Holsapple, C W (ed.) 2003, Handbook of Knowledge Management, Springer-Verlag, Berlin, Heidelberg and New York.
House, R J 2004, Culture Leadership and Organizations: The Globe Study of 62 Cities, Sage Publications, Inc., London, UK.
Keys, J B and Robert, R M 1998, Executive Development and Organisational Learning for Global Business, Haworth Press, Inc., Philadelphia, PA.
Lazonick, W ‘Organizational Integration and Sustainable Prosperity’, in R Forrant, J L Pyle, W Lazonick and C Levenstein, (eds.), Approaches to Sustainable Development: The Public University in the Regional Economy (pp. 46-89), University of Massachusetts Press, US.
Lipshitz, R, Popper, M and Friedman, V 2006, Demystifying Organizational Learning: Demystifying Organizational (p), Sage Publications, Inc., Wydawca.
Palmer, I and hardy, C 1999, Thinking About Management: Implications of Organisational Debates for Practice, Sage Publications, Inc., London, UK.
Senge, P 1990, The Fifth Discipline. The art and practice of the learning organization, Random House, London.
Sessa, V I and London M 2006, Continuous Learning in Organizations: Individual, group and Organizational Perspectives, Routledge, London.
Sisaye, S 2001, Organizational Change and Development in the Management Control Systems, Emerald Group Publishing, US.
Wade, D and Recardo, R 2001, Corporate Performance Management: How to Build a Better Organization through Measurement-Driven, Strategic Alignment, Butterworth-Heinemann, UK.
9.0 Appendices
Figure 1 Single- and Double-Loop Learning Model
Figure 2 Skills Requirement of Organisational Members
Name:
Position
General
1) Are you a new employee or a long-standing employee of the company?
2) How long have you been in your present job?
Confirmation of Current Functions and Responsibilities
3) Do you have a duty statement for your job?
4) Is your job accurately described in the duty statement?
5) a. If no, what extra duties do you do that need to be added to your duty statement?
b. What duties are no longer part of your job and can be deleted from your duty statement?
Job Analysis
6) Describe the tasks you regularly perform that are critical to carrying out your job effectively.
7) Describe the type of equipment you are required to use (for example, keyboard, machinery, tools of trade, etc).
8) Do you require a high degree of technical knowledge for your job?
9) How do you work?
10) If you work as part of a team, do you perform the same of different work to members of your team?
11) To what extent does your job require you to work closely with other people, such as customers, clients or people in your own organisation?
12) How much autonomy is there in your job, ie, to what extent do you decide how to proceed with your work?
13) How much variety is there in your job, ie, to what extent do you do different things at work, using several skills and talents?
Training Needs
14) To perform your current job: What training do you still need (either on-the-job or a formal course) to perform your current job competently (eg, Excel, bookkeeping, English as a second language, etc)?
15) To perform other jobs in the organisation: What other roles in the organisation would you be interested in doing if a vacancy became available (eg, transfer to another section, supervisor position, etc)?
16) To perform other jobs in the organisation: What training or experience would be required (eg, machine operation, negotiation skills, Occupational Health and Safety Awareness, etc)?
Future Development Needs
17) What are your career aspirations?
18) What training or development do you need to help make this happen (eg, external degree study, formal meeting procedures, leadership training, etc)?
Recognition of Prior Learning
19) What training have you attended within the last three years? (This will help identify if any training sessions have been missed or if any refresher training is required.)
20) What training or skills have you acquired outside your current job that may be relevant to the wider organisation?
Action Plan
Agreed training and development to be provided over the next 12 months:
(Record the details of training courses, on-the-job experiences, buddy systems or mentor arrangements, and include the recommended dates the staff member can expect these to occur.)
Training
1)
2)
3)
Date
Table 1 Skills Audit Questionnaire
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