Facing the fluctuating business environment, an organization should be more market driven and responsive toward the market changes. A learning oriented organization is believed to be able to retain organization long term competitiveness. This paper conceptually discusses the practical steps taken in implementing a learning based employee development plan by adapt Deming PDCA Model. To help understand the process of development, the concept of training, development and learning are defined. Meanwhile, Senge's learning framework, the fifth discipline and Nonaka knowledge management discipline are used to integrate and support the continuous development plan which add value to the organization. Finally, the barriers that hinder the organizational learning outcome are discussed.
Chapter 1: Introduction
In 21st century, the raise of global competition and rapid technological changes have result the large scale of organization restructuring. The role of human resource management in executing the employee development plan has become notably important to constantly adding value into an organization. An employee development program is a continuing set of activities by an organization to improve employee's skills, knowledge and competency. White (1959, p.297-323) states that employee development is a long term program of individual growth provide by an organization to enhance employee job competent and performance.
To deal with these trends, a learning oriented organization is thus a necessity for the continuous improvement. Liao (2003, p.155) elucidates that the process of learning is an essential element in creating new knowledge, solving problem and forming organization core competencies which benefits individual and organization. Hence, the adoption of learning approach in employee development acts as a driving force for an organization to enhance their adaptability and responsiveness toward changing business environment. Barrow et al. (1992, p.3) state that the employees of a strategic learning organization exhibit several identities which are ability to acquire new knowledge without supervision, take initiative in setting own career goal and creativity in solving the emerge problem. This will further integrate an organization existing system, structures and routines.
The challenging part for an organization to implement the learning approach is crafting the strategy in creating a continuous learning environment. The provision of learning facilities encourages a creative and innovative working culture. Dogdson (1993, p.375) illustrates that an organization structures and strategies approaches encourage employee learning which promote creation of innovation. Besides, Pedler et al. (1989, p.1) advocate that a effective learning oriented organization should possess the characteristics which are employees potential is given opportunities to develop, the communication between employees and management are strongly integrate to share company vision and keeping organization growth by knowledge sharing.
Chapter 2: Background of the Organization
PGEO Edible Oil Limited is one of the Asia largest agribusiness group that fully owned by Wilmar International Limited. The organization main activity is edible oils manufacturing. It has the largest refining capacities with eight refinery plants across Malaysia. The company trading business involves crude palm oil products, hydrogenated products and cocoa butter replacer. The products are broadly exported to Europe, Middle East, China, India and Pakistan. As the growing of global demand on edible oils, the company is facing significant challenges toward rapid market change.
Traditional way of management style which managerial level involves in making most kind of decisions is no longer sufficient enough to encounter different kind of issues arise due to the business expansion. Coopey (2000, p.869) states that the traditional hierarchy system differentiates people and inhibits employee capacity in communicate their ideas which affect organizational learning. To further integrate the organization system, each employee should proactively taking responsibility in sharing skills and knowledge, making necessary changes in individual work area to strengthen the entire organization structure. These changes are the motives that pushing the organization to develop the organizational learning.
Strategy adapt in promoting the organizational learning deems to be the crucial element to determine the company current and future market position. Through learning process, the existing resource and skills are able to enhance by creation of new composition knowledge that will augment the organization capability in problem solving. The learning approach involves transformation of all levels of organizational structure to archive improvement. Stata (1989, p. 63) advocates that organizational learning means the process of improvement which getting everyone involve through knowledge sharing in detecting and correcting error.
Chapter 3: Literature Review
3.1 Theoretical Concepts
In the fast changing demographic environment, an organization should focus on employee development plan to improve organization performance. Hackman et al. (1995, p.309) illustrates that a learning oriented based employee development plan allow an organization to effectively improve management performance and gains competitive advantages. To clearly review the employee's development, the concepts of training, development and learning will be specifically derived.
To define development, Maurer (2001, p.124) asserts that development as an outcome of process implementation by successive changes, where employee development is the system to develop the workers ability to deal with future environment change. An effective employee development program not only aims for individual improvement and it should be adding value to the organization. Kottke (1999, p.503) points out that an effective employee development plan consists of workplace competency and distinctive framework. Further illustration from Kottke (1999, p.503), the workplace competency refer to the ability of problem solving by continually learning, communicate effectively and self career management. Additionally, organization that poses contextual management framework able to support the employee development plan effectively. Gerbman (2000, p.101) illustrates that an organization should make company vision known by communicate among all employees, assist employee in recognize the organization culture as well as educate each level of employees to participate in organization challenges.
Yet, Goldstein (1980, p. 229) defines training as the gaining of knowledge and skills through teaching that able to improve job performance. The result of training usually aims to improve productivity, quality and service which align to the organization requirements. Salas et al. (1988, p. 124) the training outcome should improve employee relevant knowledge and skills that enable employee to perform effectively in workplace. In contrast, Kraiger et al. (1993, p.311) asserts that learning defines as gaining knowledge, sharing skill and action tendencies which emphasis on process and outcome. Beginning of 1980s, De Geus (1988, p.70) explains the concept of learning organization was initiated by scholars. De Geus (1988, p.70) also mentions that learning organization defines as knowledge development, competency expansion and performance improvement. However, by 1990s the term of organizational learning was more widely used.
There is certain difference between learning organization and organizational learning. Underpinnings the work of Tsang (1997, p. 74), organizational learning is to become learning organization by systematically endorse learning in the organization where learning organization refers to the higher state of company has absolutely transformed continually with development and involvements of all employees. In addition, Chang et al. (2007, p.807) points out that the theory of learning organization is branch of organizational learning, where organizational learning is the strategy to develop a learning organization.
3.2 Critiques
Organizational learning approach enables company to react more responsive to the environment change. Murray et al. (2003, p.51) explains that organizational learning encourage innovation culture and improve individual competence, hence the organization most likely to react effectively toward surrounding changes. Nevertheless, Calvert et al. (1994, p.38) argues that in real life there is no true learning organization exist, somehow the firm only demonstrate certain characteristic expect from a learning organization. Besides, Senge et al. (1994) illustrates that there is no such learning organization where there is rather a vision. Furthermore, Fiol et al. (1985, p.803) points out that there is no widely accepted theory due to the literature of organizational learning is so fragmented. Although there is arguments of learning organization literature, but the learning organization shares identical purpose to integrate and maintain company competitive advantage to sustain in global challenges.
3.3 Contemporary Development
In the contemporary development, an organization should focus on knowledge based learning approach for creating value and promoting innovation to differentiate itself from other competitors. Bates (1998, p 41) elucidates that knowledge is the fundamental of learning. Organization knowledge management ability influences the firm enhancement in organizational learning approach. Phang et al. (2008, p.99) illustrates that an organization process of learning is enhanced by modifying the existing knowledge and create new knowledge where knowledge management ability would directly reflects the organizational learning capability. Hence, knowledge management deems to utilize company accumulation knowledge and skills which considered as an organization strategic resource.
Facing the current diversification trend in global market, an organizational should aware of the linkage between organizational culture and organizational learning which perceived to be interrelated that enable contribution to organization sustainability in learning approach. Andrew et al. (2002, p.34) point out that organizational culture is the sharing of company value and belief among employees which produce an organization norms of behavior. To interpret relation between organizational learning and culture, Dodgson (1993, p.375) explains that to shape organizational learning, the firm knowledge and culture which the way of routine activities conduct are essential to determine organization development. The strong adaptive culture with effective communication fosters the progress of organizational learning. Schien (1996, p.9) contends that failure of organizational in learning approach can be caused by the organization culture that is lack of communication. Consequently, employee development plan tends to benefit individual and organization.
3.4 Theoretical Framework
The Deming P-D-C-A Model provides a comprehensive process layout in establishing and executing a business development plan. Deming (1993, p.135) states that the model principle emphasis on each business processes need to be measured in order to identify the variation that affect the organization performance to meet customer requirements. Thus, Deming's Cycle is the fundamental for quality management which every steps of the cycle lead to performance improvement.
Senge learning organization framework, the fifth discipline has indentified five factors that essential to support the learning oriented employee development plan. Senge (1996, p.10) states that personal mastery, mental models, shared vision, team learning and system thinking are the core elements which perceive as an on going basis for organization and individual growth. The model is unique to specify the development behavior needed to engage and motivate the employee in development activities. Besides, Senge (1996, p.11) also mentioned that the learning organization increase employee capacity in taking effective action to fulfill organization needs.
To advance the learning based employee development program, Nonaka knowledge management cycle emphasis on leverage knowledge for creating customers value and improving organization performance. Nonaka et al. (1994, p.14) advocates that modeling knowledge management emphasis on transforming the tactic knowledge into the explicit forms which generate the innovation and learning workplace. Nonaka et al. (1994, p.15) also elucidates that the employee tends to articulate the knowledge and visibly understand the concept behind the problem result of transformation from tactic knowledge to explicit knowledge.
Chapter 4: Main Body
4.1 Proposing the Employee Development Plan
Today, most of the organizations are confront with the trend of demographic uncertainly and changing of customers preference. Therefore, it is necessary to strategically implement a sustainable learning based of employee development plan to retain an organization market leader position. The designation of employee development plan is adapted and modified from concept of Deming model which is the PDCA (Plan, Do, Check and Action) framework. De Jonge (1992, p.359) explains that Deming cycle is a continuous improvement tool that enable an organization strategically enhance their existing management system.
Basically, there are three main elements for the employee development plan. First of all, conduct study and assess on organizational structure to identify the gap for implementation including evaluation on employee competency, reward system and utilization of information technology system to create learning environment. Secondly, implementation by regularly provision of training course to integrate the existing learning system including career workshops, team building, in-house training and company networking campaign. Follow by action taken to accomplish the employee development plan including knowledge management activities, implementation of organizational learning behavior, facilitate coaching and mentoring to integrate the management system.
4.2 Employee Development Plan Analysis and Arguments
4.2.1 Plan and Assessment
The first step for the propose plan is to conduct assessment on the organizational structure. This evaluation enables organization to identify workers attitude and characteristic that contribute to the understanding of employee competency as well as recognize the organizational system capability. SWOT analysis can be an effective analytical tool in this perspective where employee strengths and weaknesses are focused. Alternately, SWOT analysis allows organization to embrace criteria of opportunities and threats to identify the market trend. Pearce et al. (2000, p.134) states that SWOT analysis enable organization to strategically recognize the internal strengths and weaknesses as well as external opportunities and threats to effectively making decision in all kind of situations.
To succeed the organizational learning plan, employee competency, strengths and weaknesses are key elements that affect overall plan performances. Wallach (1983, p.28) elucidates that to create a learning oriented organizational environment, the firm's employees capability determines how the system works on. Eventually, there are various frameworks are used to identify and develop the employee competency. The job based approach framework is one of the most commonly used. Mansfield (1996, p.7) explains that job based approach aim of developing employee competency by analyzing employee personality to enhance the worker adaptability to new system.
Besides, organization remuneration strategy is able to motivate employee proactively participate in new development plan. A study of Bergum et al. (1964, p.197) has shown that those employees received reward exhibited better performance and motivated in participate organization activities. Furthermore, recognize the importance of technology in workplace is able to promote an ongoing knowledge based learning environment. Garger (1999, p.35) states that utilization of intranets and computer based training enable employees to access information quicker meanwhile move employees from training to learning.
4.2.2 Implementation of Learning Environment
The next step of the employee development plan is to chart appropriate training courses for all level of employees. Strategic planning that empowers employee by matching trainings adds value to the organization growth in future. Bracker et al. (1992, pg.1) elucidates that strategically match employees with appropriate training increase organization performance where employee feel job satisfaction through training.
Incorporate Senge learning framework, the fifth discipline able to assist organization in building a learning organization. Senge et al. (1994, p.108) states that the five disciplines are defined as personal mastery, mental models, building shared vision, team learning and system thinking which is considered as continually improvement in knowledge and capacity. Career workshops create a learning environment which enhances employee personal mastery. Through continually training program, an individual professionalism will be improved and an intelligent organization able to achieve.
Argyris (1994, p.77) explains that individual career improvement through trainings result in organization performance improvement. In the same way, team building program is essential to transform individual learning into organizational learning. Team building program and in-house training enable socialization among each others to share their experience in solving problem which helps to develop in mental model which refers to creation of new knowledge and behaviour of solving problem. Nonaka (1994, p.27) also illustrates that teamwork based training foster knowledge creation process and shape employee behaviour in solving the real world problem.
Likewise, organization networking campaign encourages employees to communicate and work as a team as well as learn together to share the company vision. Shared vision through employees' communication able to further integrates organizational learning process which shape system thinking in an organization. Senge et al. (1994, p.109) also states that team based learning by effective communication offers a joint inspiration that motivate employees to work together in carry out company vision. An effective organizational learning lays on the collective knowledge, skills and intelligent of all levels of organization.
4.2.3 Take Action Situated Learning
To be a bounded learning environment organization, the managerial level commitment in knowledge management and action taken are extremely essential. An organizational knowledge management deals with the process of creating knowledge and resulting the organization benchmarking. Nonaka discipline of knowledge management is one of the effective tools can be adapted to implement the organizational learning. Nonaka et al. (2000, p.5) states that knowledge management promotes using, sharing, capturing and creating the knowledge to develop effective knowledge communications flow.
The organization should emphasize on technology utilization to develop the knowledge management. A company infrastructure can be enhanced by nurturing the online communities practices which able to support knowledge sharing system and change employee traditional way of working behaviour. Sarvary (1999, p.95) explains that implementation of knowledge management generate by exploit of technology resource which result in behavioural change to produce a dynamic learning system. Consequently, an effective knowledge management has found to be a process of driving innovation in an organization. Innovation capacity is a critical element for an organization to sustain in dramatically changing environment. Cosier et al. (1981, p.643) illustrates that knowledge management in organizational learning enhances innovation capacity of an organization which determines its competitive advantage in the future.
Furthermore, an organization coaching and mentoring program are important to support the entire employee development plan. The process of coaching improves employee competencies including communication skill, analytical skill, and development of cognitive, behavioural and sociological perspectives. Kraiger et al. (1993, p.311) states that the coaching outcome is multi-dimensional which result in change of personal behavioural, knowledge capacity, cognitive flexibility. Meanwhile, an organization that featuring effective mentoring program enable company to promote socialization into organization culture, guidance for career development, improve of job satisfaction and endorse of organizational commitment. Maier et al. (2001, p.1034) illustrates that facilitate mentoring program result in positive effect toward job attitude that lead to job satisfaction and organizational commitment.
Chapter 5: Discussion
5.1 Basis for Its Critical Success Factors
In addressing the ways to implement an effective employee development plan, the organization must identify the strategic factors that can influence the plan performance. Basically, there are six main potential strategic factors can be barriers to organization plan achievement which are classify as defensive routines, reactivity, superstitious learning, sense of community, paralysis and departmental boundaries.
First of all, defensive routines are organization culture, behaviour and practices that block organization from continually discovering and exploring new things to maintain firm competiveness. The routines tend to cover the negative issue happen in the organization which may cause the organization fail to learn from the problem and repeat the same mistake. Argyris (1994, p.77) states that defensive routines affect employee learning behaviour where employee try to bypass the information to avoid the feeling of embarrass. Thus, defensive routines hinder organization development. Secondly, the term of reactivity perceive as the changes take place only when there is enforcement from outside force which is unhealthy phenomena that hinder the development plan. The employee working style that taking initiative and responsibility should be encouraged in promoting the behaviour of learning proactively in order to build the characteristics of creation. Kofman et al. (1993, p.5) illustrates that an organization tends to underestimate the importance of intrinsic the creating mode which is analysed as one of the critical barriers to organizational performance.
Subsequently, Levitt et al. (1988, p.325) defines that superstitious learning as a diverse outcome of action subjected by experience of learning which organization perceive the decision taken based experience was correct and repeating it, yet it is harmful. The ambiguity and ignorance generate employee competency trap which limiting employee skill development and organization growth. Similarly, an organization that poses sense of community is important to commit all level of employees to share their feelings and work together which can enhance group's problem solving skill. Unfortunately, most of the organization consists numerous of independent sub units which reduce verbal communications flow among each others. Kanter (1988, p.169) elucidates that sense of community promote practice of sharing and support the exercise of initiative in archiving organization common goal.
Furthermore, paralysis in workplace can be one of the dysfunctional elements that affect organization development. Sitkin (1992, p.231) describes paralysis as inability behaviour where a proposed plan will never be carried out due to the confusion and constrain of organization. A situation of paralysis occur due to the over analyzing and fearing of making decision. Lastly, the departmental boundaries have restricted the communication and interaction between departmental employees where the specific employee focuses on particular job activity that has been assigned. Wenger (1997, p.14) illustrates that dysfunctional reward system and departmental boundaries result lack of communication and share vision among employees which create imbalance employee relationships.
Chapter 6: Conclusion
The learning based employee development model is an attempt to enable an organization become more aware of competitive intentions, engage employee in on going basis organization related development, and to map motivational process in creating an organizational learning. Being able to generate this mental transformation toward learning, this need strong commitment from management and employee proactively participation to improve personal adaptability to the rapid external changes.
Thus, Deming model is the first step to recognize role of development behaviour and highlight the complexity of process in implementing learning based employee development plan. To support the organizational learning approach, the model incorporate Senge learning framework which provides guidance for an organization to focus on the factors that limiting the development plan. Lastly, Nonaka discipline of knowledge management servss as a catalyst to add value in creating an innovative and creative work environment for cultivate the organizational learning activities.
