Organizations in the 21st Century:
Knowledge and Learning—the Basis for Growth

Nov. 16-17, 2001 at the Social Science Research Center (WZB), Reichpietschufer 50, 10785 Berlin

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"Organizations in the 21st Century: Knowledge and Learning—the Basis for Growth" was held Nov. 16-17, 2001 at the Social Science Research Center (WZB) in Berlin, sponsored by the Gottlieb Daimler- and Karl Benz-Foundation.

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Conference Summary

Table of Contents

Introduction

About the Event

What is Organizational Learning?

Defining a Need

New Thinking

Cause and Effect

Theory to Practice

Between Three Worlds

Learning in the Private Sector

Learning in the Public Sector

Learning in the Academic Sector

Opportunities for Cross-Pollination?

Case in Point

Reconsidering the Variables

Diversity and Conflict

Learning with Power

Learning with Emotion

Learning Fashions

Learning from the Past and Future

Architecture for Learning

Organizational Theater

About the Author

 

Reconsidering the Variables

Besides exploring issues of organizational learning in the worlds of business, government and academia, other conference sessions explored notions long considered to be “facts of life” on organizations, but ones which might actually be put to constructive use. So how can organizations better leverage such facets as diversity, time, emotion, power and fashion?

Diversity and Conflict

The increasing diversity in a global firm is something that needs to be managed as both an asset and a liability, suggests Prof. Meinolf Dierkes.

“Well-managed diversity is the best way to survive and prevail in the coming decades. Especially at times of change, organizations need a diversity of people in communities and subcultures and need to be open to a diversity of perceptions and values,” he says. “In fast-changing environments, diversity leads to learning processes that help develop survival strategies. The more people are looking, the more angles you can see.”

However, Dierkes adds, “Like information, you can overload on diversity if it is disorganized or unmanaged. It can even be dangerous.”

Diversity must be embedded in the structure of the organization to be socially fruitful. Those structures have to include the ability of leadership to end a discussion and make decisions without disaffecting those whose ideas were not chosen. “Diversity, as raw material for organizational learning, needs to be kept alive despite the need for organizations to choose a single strategy to pursue,” he explains. So how do you structure organizations to reap the benefits of diversity without getting in political gridlock? Diversity needs a framework, he says, similar to the regulatory framework in productive markets. You need structure, culture and leadership that encourages inquiries and ideas, especially at the edges where internal networks interface with outside groups, individuals and ideas.

Prof. Joseph LaPalombara, Arnold Wolfers Professor of Political Science and Management at Yale University, suggests that conflicts are often the essence of all organizational behavior. “An organization’s goals, its rules of the game, the means for goal achievement, the norms and standards used to recruit, train, reward, promote or separate those who make up the organization are themselves reflections of ongoing struggle, conflict and power-seeking,” he says.

Consider how political learning might be applied to the public sector. Nowak and Donoughue alluded to the deftness of “political” skills that must be employed internally in a political organization. LaPalombara observes not only that public sector managers are developing far more skill at managing the social capital necessary for effective action in their own sphere, but also that such skills will be in greater demand in the private sector as globalizing corporations adopt more federalized structures.

“The real challenge for modern organizations is how to best manage the diversity that describes the global firm, without losing too much in terms of short-term efficiencies and productivity,” he explains. One inevitable answer, he notes, is the federal organization structure favored by governments.

Centralized, homogenized forms of organization don’t work well in situations where size is large and diversity is great. The local culture, local leaders and local units of larger organizations demand more autonomy. In turn, new skills will be required of private-sector managers—skills that come naturally to public-sector managers.

“These are the skills of learning to respond to and manage different constituencies, many of which lie outside the organization,” LaPalombara says. “They are skills of negotiating, bargaining, compromising and persuading in settings where you cannot fire people at will and where authority is really much more flat than hierarchical.”

Revised: 11/13/02. All contents copyright 2001 by Steve Barth, Wissenschaftszentrum Berlin für Sozialforschung (WZB), and individual authors. All rights reserved. For more information, please contact the Webmaster. Photographs by Peter Hinsel.