The purpose of this paper is to give a short overview of a concept of learning organization
as a whole and to show how it is applicable in Azerbaijan.
The paper has three sections: firstly, the description of an organization and its constituent parts is given followed by a
detailed description of a learning organization. Different levels, types and elements of organizational learning suggested by various
authors are described. A personal case study of an author is given as an example.
Secondly, a brief overview of the economy of Azerbaijan is given. Thirdly, a general analysis
of the learning organizations in Azerbaijan is carried out. Sweringa and Wierdsma's „learning loops" levels is applied.
LEARNING ORGANIZATION:
Organization:
Organization in institutional sense is a concrete association of people working together.
Organization, in instrumental sense is the instrument, which regulates organizational
behavior. Sweringa and Wierdsma (1992: 10-11) distinguish 4 concepts within the concept of organization:
¥¥Strategy;
¥¥Structure;
¥¥Culture;
¥¥Systems.
By strategy they mean the goals of organization and the ways in which it seeks to realize them. Structure means the division and grouping of tasks, authorities and responsibilities.
Systems mean the conditions and agreements relating to the manner in which processes (information, communication and decision-making) and flows (cash and goods) can proceed.
Culture is defined as the combined sum of the individual opinions, shared values and norms of the members of the organization.
Organizational Behavior:
All these components are closely connected with each other and interact together. They can greatly influence a development of organizational behavior. Swieringa and Wierdsma
(1992:9) describe an organizational behavior as the collective elements and patterns in the behavior of people working in an organization. Organizational behavior is based on rules,
insights and principles. Rules indicate how organization should behave. The rules are based on insights into what a good organization can do and how it should be run. Principles
contain shared assumptions and core beliefs about a sort of business organization does. The relationship between rules, insights and principles are indicated in Figure 1.
Principles
what we are or wish to be
Insights what we know and understand
Rules what we must and may do
Organization Behavior what we do
Figure 1: The relations between rules, insights and principles
Source: Sweringa, J and Wierdsma, A (1992) Becoming a Learning Organization.- London: Addison-Wesley.-14.
The more complex the rules and the less transparent their formation, the harder they are to change. Organizational behavior also becomes more difficult to change. The older is
organization, the harder is to try changing the rules. Changing the rules does not guarantee a change in organizational behavior. It's more effective to try to change the behavior first and
the rules will change as a result.
Learning Organization:
Understanding that a word „learning" is closely associated with education, we realize that
learning organization doesn't necessarily to be an educational institution. Any organization, which is involved in a process of learning, is called a learning organization.
Even though a concept of learning organizations appeared 40 years ago (March and Simon, 1958) it has been tremendously developed in recent years because of the speed of
technological changes including Internet. Easterby-Smith, Snell and Gherardi (1998:259) explain the growth of this concept by three external factors: the speed of technologic
change, the advance of globalization; the growing corporate competition. The speed of technological change means that there is continual pressure on firms to reduce the time
from innovations such as the Internet mean that companies and knowledge workers within them may have to adapt radically and in unforeseen directions. As a consequence, firms
cannot rely on established practices, they need to invent new processes and technologies; they need to learn new ways of doing things.
While learning, a change of behavior of organization takes place via change in individuals working in the organization. In
other words individual learning if conducted successfully and positively influences behavior of other individuals and is a constituent part of learning organization. At
they same time as Sweringa and Wierdsma indicate (1992: 33) „Individual learning is necessary but not a sufficient condition for
organizational learning.". It is very important for the individuals working in one organization to cooperate with each other, what expresses the main feature of any organization – people
cooperating together. An Organization's behavior is the collective behavior of its members.
In the book The Fifth Discipline: The Art and Practice of the Learning Organization Peter M.
Senge (1990) gives a perfect definition and explanation of what a learning organization is:
"The essence of learning organization is that people are changing, people are developing
ways of thinking and ways of interacting that are fundamentally different that the way most people operate most of the time in most organizations… Where people continually expand
their capacity to create results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free, and where people are
continually learning how to learn together."
Conscious and Subconscious Learning:
Learning in classroom settings in form of lectures, courses or seminars when education
takes place is conscious learning.
Everything we acquire informally by imitation, picking up other people's skills and formally
by means of rewards and punishment takes place unconsciously and refers to unconscious learning through experience.
Kolb, D.A. (1976) was one of those who put an end to differences between conscious and
unconscious learning by building a bridge between these two ways of learning describing learning as a cyclic process:
Doing Reflecting Thinking Deciding (Re)doing
We usually gain experience through doing; reflecting means meditating on this experience; by thinking we try to understand this experience; by deciding we try to make decisions
about our next step and then the cycle repeats itself. By defining „learning" as a cyclic process Kolb testifies that „learning is never ending and constantly repeated process".
Sweringa and Wierdsma (1992: 24) describe it in the following way: "The central ideas of the Kolb model are that it considers that everyday activities can be a component of learning
processes, and that it states how these often unconscious activity processes, in conjunction with thinking and deciding, can be raised to the level of conscious learning. That
is the greatest advantage of this model, since conscious learning leads to a higher level of competence than unconscious learning".
My Personal Case-Study as an Excellent Example of Learning Organization:
Trying to give a short feedback on the above mentioned I want to express my personal point
of view on learning organizations and use my personal example as a case study. I should say that several important components should exist for having a successful learning
organization and to have a learning process run continuously. These components are as follows:
¥¥finding the right ways for the individual learning to influence the learning organization as
a whole;
¥¥having a technology necessary for implementing the changes available;
¥¥being able to be cooperative with the other individuals in organization;
¥¥being able to implement the new approaches and ways of thinking in organization;
¥¥being able to share what you have learned and learn from others;
¥¥understanding a concept a team work and support it;
¥¥remembering that one can't know everything and trying to follow Kolb's cyclic model of
learning In my perception learning is something that we are supposed to do constantly. As information specialist I am learning something every day. I think if I stop doing that, what is
done subconsciously, I'll loose my professionalism. It's like a musician who doesn't practice playing every day or an athlete who doesn't exercise daily. Can they be real professionals if
they don't do it on a regular basis? I don't think so.
Here is my personal case:
I returned to my work place after two years of absence spent in graduate school in the US. I
came back after I passed two full years of conscious learning plus the elements of my unconscious learning which took place at the libraries where I worked part time. I was full of
desire to share what I learned for those two years with my colleagues and implement dramatic changes in the Information Center where I work. Was it easy for me? How did it
go? I was really terrified by a state of things where I came back. I was very pessimistic about possibility to make any changes there. I started with trying to explain how important
is for us to have a reliable Internet access. My second step was to explain that a dozen on-line databases that we are supposed to use fully rely on a quality of our Internet
connection. Then I tried to explain that the most sophisticated computers should be used for public terminals to make an access to our databases easier. Nobody wanted to understand
me at the beginning, they couldn't figure out why I wasn't happy with what they had because that was a best state of affairs in the whole country with a population of around 8 million. I
was also very unhappy that nobody in the office knew what are Lexis-Nexis, OCLC, Galenet etc. about. I was trying to tell them how wonderful these databases are and show them how
they work. My predecessor never used them before. I had to be patient and it didn't take me long to implement all the changes that I dreamed about. I learned a lot about the things that
other people do and tried to demonstrate how sophisticated are the things that I was doing. We understood that our cooperation can lead to a real success of our organization and it
happened. I don't think that it would have been possible if all the above mentioned components didn't exist and if the organization that I work for wasn't a Western one.
Nothing like this could have occurred in Azerbaijani organization, because most of the components would have been absent for sure.
I can't analyze how my conscious and unconscious knowledge accumulates together but I think that I am continuing to learn by doing, reflecting, thinking, deciding and doing again.
I think, Senge's five elements that unite to form a learning organization perfectly reflect my understanding of this concept.
Table 1: Senge's Five Disciplines of Learning Organization:
1. PERSONAL MASTERY A special level of proficiency in which individuals
become committed to their own lifelong learning
2. MENTAL MODELS Deeply ingrained assumptions that influence how
we understand the world and how we take action
3. SHARED VISION BUILDING Sharing a picture of future you want to realize
4. TEAM LEARNING The ability for individuals collectively to produce extraordinary results and allow individual members to grow more rapidly that they could otherwise.
5. SYSTEMS THINKING A conceptual framework that sees all parts as interrelated and affecting each other. This fifth discipline is crucial so that all the elements develop together.
It integrates all of the theory and practice; one can't be separated from the other.
Source: The Fifth Discipline: The Art and Practice of the Learning Organization, by Peter M. Senge.
Three Levels of Collective Learning:
Sweringa and Wierdsma distinguish between three levels of learning, which they call "learning loops".
¥¥single loop learning
¥¥double loop learning
¥¥triple loop learning
In single loop learning changes in the existing rules take place as a result of collective
learning at the rules level improving the rules and the solutions are sought within the existing insights and principles.
In double loop learning, changes in the underlying insights take place. Sweringa and Wierdsma call it „renewal" because it relates to the renewal of insights within the existing principles.
In triple loop learning development of new principles take place with which an organization can proceed to a subsequent phase.
Learning loop Learning Area Learning Level Learning Result
Single Rules Obligation and
Permission
Improvement
Double Insights Knowledge and
Understanding
Renewal
Triple Principles Courage and Will Development
Figure 2: Collective Learning
Source: Sweringa, J and Wierdsma, A (1992) Becoming a Learning Organization. - London: Addison-Wesley.-44.
According to this table changes in the rules take place at the level of single-loop learning.
This level of change leads to improvement. In double loop learning insights forming the basis
of rules take place. It comes to a level of joint learning and understanding. That is where a renewal takes place. Triple loop learning is the most radical level of learning, when the
changes in the principles take place and it leads to a development of an organization.
Nielsen (1996) shows how triple-loop learning led ethically from near to top can produce
desirable social change, whereas double-loop learning or triple-loop initiatives led from below are at the mercy of more powerful stakeholders, and may founder
OVERVIEW OF ECONOMY OF AZERBAIJAN
A brief outlines of the Azerbaijani economy will help to understand the conditions in which the Azerbaijani organizations develop.
Azerbaijan was a part of a Russian Empire from the early 19th century to 1918, an independent republic from 1918 to 1920, and a part of the Soviet Union from 1922 to 1991.
For 70 years Azerbaijan has lived under a communist system that can be characterized by its Marxist-Leninist ideology, centralized economics, communist party rule, right
government control over the citizens as individuals and a as a whole. On August 1991, it declared its independence from the Soviet Union. Independence was formally restored on October 18, 1991.
In 1992 with the breakdown of the Soviet Union and the weakening of its traditional trading partners, Azerbaijan's economy underwent fundamental changes. The government has
committed itself to a long –term plan-of-action, detailing its goals and objectives for investment programs and the restructing of the Azerbaijani economy. Preliminary steps
were taken away from a centralized state-run economy and toward the adoption of a new, free-market system.
The Government of Azerbaijan has proclaimed itself to be in a transition period from the
socialist planned economy to a free market economy. Azerbaijan is one of the last republics if the Former Soviet union to adopt and implement a privatization program.
The Azerbaijani economy has been growing since the second half of 1996. With a highly skilled workforce (see Table 1, Table 2), abundant natural resources, a historical tradition of
engineering and science, and a strategic location, Azerbaijan is racing to make up for the around 60% contraction in its economy during the transition recession. Real GDP
accelerated to 5,8% in 1997 and is expected to remain at 7-10% levels in the next few years. In January 1998, GDP was 10,1% higher than January 1997.
Table 2: Employment, by Sector 1996
Average Annual Total Employment 2,886,000
Agriculture 871,600 (30,2%)
Trade 409,800 (14,2%)
Educatio n, Culture, At 372,300 (12,9%)
Mining and Manufacturing 351,800 (12,2%)
Construction 181,900 (6,3%)
Health, Social Security, Sports 176,100 (6,1%)
Other Sectors 176,000 (6,1%)
Transport and Communications 150,100 (5,2%)
Community Services 80,800 (2,8%)
General Administration 69,300 (2,4%)
Science and Research 31,800 (1,1%)
Banks and Insurance 14,500 (0.05%)
Source: State Committee on Statistics
Table 3: Employment Structure
Labor Force 2,886,000
Public Sector Employment 1,606,000
Private Sector Employment 435,000
Cooperatives 262,800
Small Business 132,100
Other 20,500
Joint Ventures 15,000
Registered Unemployment 414,400
Source: Azerbaijan Yearbook 1994
Growth of the Azerbaijani economy has been initially led by foreign investment in the oil and
related service sectors. 1998 should see a stronger performance in industry as oil sector output (oil and gas production and processing sectors account for 20% of value added in the
economy) increases for the first time. However, a sustainable recovery across all main branches of manufacturing industry awaits a more rigorous implementation of the
privatization program for medium and large scale enterprises, which began in 1997. Small scale privatization is largely completed with some 13,000 small firms privatized by the end
of 1997. With price stabilization already achieved, policy efforts in 1998 and 1999 will focus on structural reform with the aim of raising the share of the economy in private hands from
around 30% in mid –1997 to 70% by the end of 1999. (USACC Investment Guide to Azerbaijan)
Martin (1998) describes a current situation in Baku –a capital of Azerbaijan:
"This capital of the former Soviet republic of Azerbaijan, still enmeshed in the legacy of a state run economy, is experiencing an old fashioned capitalist boom as Western oil
companies rush in to exploit the country's oil reserves. The narrow, winding lanes of Icheri Shaher, the Old town, are now occupied by such multinational organizations as the World
Bank, the European bank for reconstruction and development, Penzzoil, and Russian giant Lukoil.
Baku was isolated for decades by Soviet dominance and, more recently, by the simmering
conflict, with neighboring Armenia over the enclave of Nagorno-Karabakh. But now, perhaps most importantly, it is struggling to regain its age-old position as an enter port, a center for
trade and communications on the shores of the Caspian Sea and a meeting point for the ancient east-west routes known collectively as "the Silk Road".
Learning Organizations in Azerbaijan:
A short overview of Azerbaijani economy will help to understand in what conditions the different organizations have been developing and what kinds of learning organizations have
existed in this country.
Three types of organizations operating in Azerbaijan can be differentiated:
¥¥Government organizations;
¥¥Local private organizations;
¥¥Joint ventures;
¥¥Western organizations
All the organizations registered and affiliated with the Azerbaijani government including state
organs; ministries;educational, research and cultural institutions; state committee's etc are considered government organizations.
Local private organizations include private sector business, cooperatives, small businesses, which are owned and led by local people, most of who have worked in a public sector before.
Joint ventures are the organizations, which involve cooperation of local and foreign companies.
Western organizations include foreign diplomatic missions, international organizations,
foreign businesses and companies.
Answering the question put in the title of my paper on if learning organizations in Azerbaijan
are reality or dream I should definitely say that it has always been reality. Then why I speak about a dream? An issue here is about different levels of learning organizations and a
perception of a learning organization in Azerbaijan. I will try to give a short analysis of each of the above mentioned categories of organizations in Azerbaijan, the conditions in which
these organizations develop and differentiate them according to "three loop" levels.
Government Organizations:
During 70 years of existence before Azerbaijan gained independence all these organizations have had established hierarchical bureaucratic structure. There were special adopted
standards of organizational development. I am not going to analyze how good or bad these standards were. As far as learning organizations go, there has existed a special training,
assessment and appraisal system in these organizations. Different training courses and workshops were carried out for the employees. These courses also included the courses at
different inservice institutions. The employees had to pass a training in order to get a certain grade increase. At some organizations certain assessment and appraisal procedures were
adopted, so that the employees were motivated to make a certain advancement and contribution in order to get promoted. Also specials Boards and Commissions on appraisal
have existed to certify the people employed in different fields. At that time when the economical situation was quite stable and no inflation took place the individuals were highly
motivated to continue their individual learning for a "sort" of their own personal purposes (grade and salary increase) not thinking about a global impact of this learning on an
organization as a whole. At the same time these individuals were using their skills and implementing changes in small structures within and organizations. No significant changes
took place in the strategy, the structure, the culture or the systems of those organizations even though some changes in the existing rules took place. I can describe these
organizations as a "single loop" learning organizations at that stage.
After Azerbaijan gained its independence in 1991 and a lot of dramatic changes started to
take place in political and economic system of the republic, the government organizations started to realize that they should keep up with these changes and it has become very
difficult. The foreign companies and joint ventures with their western style of doing business have been a good reason for government organizations to realize that they should make
some changes so that they would be able to work with those organizations which is difficult to avoid. The government organizations have found themselves in quite a weird situation.
Now after they realized that they should move to another stage of development, and implement technological changes they didn't have enough financial resources to do that. But
a process began. They started to move towards "double loop" learning. The individuals and organizations have started a collective learning process at a level of insights because they
realized that their rules are not understood. A renewal has started to take place in these organizations. There is still a long way for the government organizations to go before they
reach a "triple loop" learning level but I hope it would happen. They realize that they won't be able to survive and succeed if they don't enter a "triple loop" level of a learning organization.
Local Private Organizations:
I can characterize private organizations to be at the levels of " single" and "double loop"
learning. The ones who have been converted from the former government organizations have an established structure and rules and experience the same situation, which the government
organizations did. They are at a stage of single loop learning, trying to move to a rapid renewal after a dramatic improvement takes place. The private companies, which started as
new organizations have already gone through a process of renewal and according to the needs of organization they are going towards "triple loop" learning.
Joint Ventures:
Depending on of the foreign company or local is a leading part in this venture; the organizations can be referred to different learning level "loops'. It is usually "double" or "triple
loop" learning process depending on what is the position of the company and how competitive it is.
Western Organizations:
Most of the Western organizations located in Azerbaijan can be characterized as a triple loop learning organizations because they have well-established practices of development
and organizational behavior. But according to the environment these organizations function, and in this particular case it is Azerbaijan they try to develop new principles, with which
these organizations can proceed to a subsequent phase. These organizations have courage to change some communally shared principles on which they are based asking themselves
the questions: What kind of organization we wish to be in Azerbaijan? What contribution we want to make? What role we choose to play and what values we consider important? It
represents collective learning at the level of courage, will and well being leading to a development. An organization I work for in Azerbaijan is a good example for it.
CONCLUSION:
The concept of learning organizations has been widely discussed using theories and models of different authors. A particular attention was given to Sweringa and Wierdsma's model of
"three loop" learning organizations. An attempt has been made to give a short description of types of learning organizations operating in Azerbaijan according to this model.
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4. March, J.G.; Simon, H.A. Organizations. New York: Wiley, 1958
5. Martin, R. Internet in the Former Soviet Union. Access in Azerbaijan. PreText Magazine, 1998, August 3-9.
6. Nielsen, R.P. The Politics of Ethics: Methods for Acting, Learning and Sometimes Fighting with Others in Addressing Problems of Organizational Life. New York: Oxford University Press, 1996.
7. Senge, p.m. The Fifth Discipline: The Art and Practice of the Learning Organization. London: Century Books, 1990.
8. Sweringa, J; Wierdsma, A. Becoming a Learning Organization.-London: Addison-Wesley,
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9. USACC Investment Guide to Azerbaijan 1998 Washington,DC: USACC, 1998
Nazarova, Muzhgan
IRC (Information Resource Center), USIS (United States Information Service)
Baku, Azerbaijan
USIS American Embassy
Baku, Azerbaijan
Department of State
Washington, DC 20521-7050
USA
