Competencies of the Learning Organisation Essay - 702 Words

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Competencies of the Learning Organisation

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Text Preview Four competencies of the learning organisation
The four competencies of the learning organisation is a knowledge management theory. It is thought that to be successful in managing knowledge, four competencies need to be developed: 1. Absorption – taking in knowledge from outside the organisation 2. Diffusion – spreading knowledge around inside the company 3. Generation – creation of knowledge inside the organisation 4. Exploitation – exploiting knowledge in services and products. The theory behind this model is that organisational learning should be pursued at all times. There are four types of knowledge (expert, methodological, social and know-how) that need to be gained and distributed throughout the company. It is important to be able to get knowledge out of people’s heads and shared for the benefit of the company. The model is used to understand the learning capabilities of the organisation and to correct any problems with knowledge sharing that may currently exist.

Generic competitive strategies
Michael Porter suggested that there are just three consistently successful strategies for succeeding in business: 1. Cost leadership requires an organisation to protect itself against all of Porter’s Five Forces (competitive rivalry, buyers, suppliers, substitutes, potential entrants) 2. Differentiation – to differentiate is to offer something completely different from other companies; companies following this route need to spend more time and resources on aspects such as research and design; while there is only one cost leader in a marketplace, there may be many differentiators 3. Focus is a company’s attempt to narrow down to one group of customers or one limited product; the idea behind this approach is to provide products or services to one small marketplace extremely well. Porter thought that it was necessary to select one of these strategies in order to succeed.

The Gods of management (a cultures model)
This model uses Greek gods to illustrate four... Show More

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