by Robert Grice

Created on: July 17, 2010

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UNDERSTANDING PETER SENGE’S VISION OF LEARNING ORGANIZATIONS

The learning organization model assumes that competitive advantage depends upon a firm’s commitment to ongoing training. Peter Senge is credited with developing the learning organization model in the United States. Senge argued that most firms lose profitability and competitive advantage because they succumb to linear thinking. 

Linear thinking involves firms limiting their vision to seeing problems or potential obstacles to the firm. The lack of a systemic viewpoint prohibits management from recognizing that systemic issues within the firm could be the source of the problem. Rather, the natural tendency is to blame external agents for the firm’s problems. External agents are beyond the control of those within the firm so token gestures taken by management in trying to mitigate the problem are often seen as being all that can be done. 

Senge proposed that the modern business environment was in a constant state of change. Only firms that were flexible and responsive to change would remain competitive. The learning organization model promotes learning through five “disciplines.” 

Systems thinking

Personal mastery

Mental models

Shared vision

Team learning

 SYSTEMS THINKING 

Systems thinking views the firm as a whole rather than a collection of segmented parts. The actions of one section within a firm affect the other sections of the firm and the firm as a whole. Systems thinking welcomes honest feedback and engages in frequent assessments of potential weaknesses. 

PERSONAL MASTERY 

Personal mastery is an individual commitment to becoming the best at one’s vocation. Senge comments that this commitment goes beyond simply improving skills to viewing the improvement through continual learning as part of one’s vision or calling in life. Learning organizations will not be successful without a commitment to personal mastery on behalf of firm members. 

MENTAL MODELS 

Mental models are the set of expectations people develop about each other. Senge uses the term “orientation” to describe the collective knowledge that exists within the firm. Learning organizations depend upon the accuracy of the mental models in place because these enable teamwork to function more effectively. 

SHARED VISION 

Shared vision is a commitment to common goals. An effective vision begins with leadership and flows through the organization. Management makes a point of rehearsing and reinforcing the vision through company values. Senge suggested that a mark of a truly powerful vision is one that inspires and motivates the best in people. 

TEAM LEARNING 

Team learning involves aligning the skills of team members in a way that promotes performance. Senge highlights the value of dialogue or communication as the glue that enables teams to function. 

CONCLUSION 

Globalization continues to change the business climate. International competition presses the need for continued learning and flexibility to changing business conditions. Learning organizations promise to enable multinational firms to remain competitive regardless of location. The one problem encountered by the learning organization model is the difficulty in predicting a return on investment. Firms would be well served to consider the learning organization model as a worthy investment and include the costs in production costs.

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