The organizational learning cycle

Abstract

This chapter describes an organizational learning cycle that involves four steps: widespread generation of information, integration of new/local information into the organizational context, collective interpretation of information and having authority to take responsible action based on the interpreted meaning. The organizational members who make the interpretation need also to be the ones to act on it in order to learn the extent to which their interpretation made sense and what additional data are needed to make a better interpretation. Chaparral has taken as its goal to lead the world in the low-cost, safe production of high-quality steel. Much of the success of Chaparral can be attributed to a culture that is focused on learning. A critical element for learning is the integration of research and development with production; development takes place on the floor. Chaparral selects employees for their desire to challenge their own and others’ thinking. They look for innovators and for individuals with a positive attitude toward learning.

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