Learning Organization
Critically reflect on your organizational context (procurement department) and how it contributes to or hinders a learning organization
Enhancing Individual Learning at the Procurement Department
Unlike traditional organizations, which were static, organizations are becoming dynamic with the consistent changes that are taking place in the market, and in order to take a competitive advantage constant learning is essential. This has formed the basis for a learning organization, whose idea is to gain a competitive advantage through learning. According to Saw, Wilday, and Harte (2010), a learning organization is one that not only appreciates and promotes learning from its own practices, but also looks further than its own systems for lessons, and avoids self-satisfaction. This means that the learning process should be both an internal and external process with the organization appreciating that learning from daily experiences is critical. Learning organization gets its basis on the idea that both individual and collective learning are the key to the long-term survival of any organization (Jones & Robinson 2012). A learning organization builds up itself through smoothing the progress of learning of its members. Several tools exist to register the development of an organization in its mission to develop into a learning organization or accomplish organizational learning (Small & Irvine 2006).
A procurement department is in charge of running the purchasing activity for an organization. Two types of purchasing or procurement departments exist, and the difference is the way in which the process of requesting for materials occurs. Whereas in a centralized model all requests for materials centre to this department, in a decentralized model, various departments have the autonomy to process their own requests. However, even in the decentralized model, it is the duty of the procurement department to manage the supply chain. Organizations can adapt supplier development programs to make value for organizations through the creation and transfer of information among supply chain partners (Giannakis 2008). This means that the department has an obligation of ensuring that there is continuous learning at individual and collective levels.
Developments in the current world such as technical evolution, globalization, and deregulation are shifting the competitive formation of the marketplace in a way that the efficiency of conventional sources of an organizations' competitive advantage is imprecise, and firms need to focus in the development of distinguishing capabilities that are not easy to replicate by contenders. As a rejoinder to escalating instability, some organizations are construing that knowledge and learning become principal foundations of competitive advantage.
In the present severe economic atmosphere, individual knowledge is the most important quality for competitive advantage. However, organizations should support the accumulation of the personal knowledge and embed it into organizational culture as organizational knowledge making it a significant factor for the support of performance enhancement (Ji and Thomas 2008). This means that learning should not only occur at individual level, but it should also be collective for an organization to achieve its performance goals. An organization should be able to transfer the knowledge that individuals acquire to all its entities in order to enhance performance. Individual learning will ultimately lead to collective learning to enhance the organization's performance through the application of knowledge management activity.
Learning organizations should enhance both collective and individual learning processes by providing a wide range of opportunities (Serrat 2010). Collective learning is an important aspect that a learning organization should take into account, and it involves learning between teams, organizations, dyads, societies, and communities. A procurement department can ensure this by organizing its functions into team activities. On the other hand, collective learning encompasses characteristics such as associations, mental models, common vision and meanings, and cognitive and behavioral learning (Garavan & McCarthy 2008). A procurement department should develop and communicate to its members the organization's common goals and objectives while allowing them to interact freely with each other for the purpose of sharing experiences. This implies that collective learning, which is a product of individual learning, leads to the overall success of an organization as it depends on both aspects.
It is not easy to get the actual characteristics of a learning organization because of the varying definitions that exist with regard to a learning organization. However, according to Jones, and Robinson (2012), there are common characteristics that the most popular definitions identify. The common characteristics of a learning organization that Jones and Robinson identify, form a basis for the good practice that enhance learning at all levels namely individual...
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