1. Managing Learning and Knowledge Capital Human Resource Development: Chapter 13 Creating and embedding new knowledge Copyright © 2010 Tilde University Press

2. From maintaining to creating So far, have assumed that the knowledge available somewhere –Everything that is worth knowing is already known? –A finite reservoir of knowledge? The shadow system – creating/importing new knowledge –Based on Positive feedback loops Double loop learning –Pulls organisation towards chaos –Keeps organisation viable in far-from-certainty conditions –Needs an appropriately powerful legitimate system –Staff move in and out of the shadow system several times a day 2

3. Guiding principles of the shadow system Focuses on the individual in relationships Others in the relationship exert a certain level of constraint Leads to extraordinary management indirect form of restraint and is referred to as –Harnesses energy of individuals within relationships –Uses position power of supervisor to energise, coerce, and direct 3

4. Three roles of the shadow system 1.Identify new knowledge – Two basic sources for this new organisational knowledge –Reveres and honours learning –failure as a natural process in learning 2. Challenge fundamental values of legitimate system -Double loop learning -Theory-in-use Model II 3. Store potentially useful knowledge/ information basic information and raw data unrelated knowledge in minds of staff knowledge of how to learn 4

5. Extraordinary management processes The process – subtle, complex, focuses on individuals in relationships Self-organising groups –The heart of the shadow system –Dissipative structures –Inherent desire of individuals to form relationships, particularly in times of tension –‘whinge-and-bitch’ groups –Usually initiated by two or more members coming together over an exciting idea 5

6. Supporting SOGs Provision of sufficient resources –Time & money –Active interest of upper management Have ready access to knowledge systems Variety in the membership of the SOG Interactions within the SOG based on group dynamics –Help move through the stages of group growth 6

7. Facilitating the knowledge development process Appoint a facilitator Manage the process –One of the problem ‑ solving models –Move through the four knowledge generation steps –Cavaliere’s five-stage model At least one of four outcomes The SOG, being a dissipative system, dies before achieving Original idea is expanded into a viable concept, but the concept is not yet useful to the organisation Original idea becomes a viable product, knowledge base, or alternative SOG evolves into a community of practice 7

8. Communities of practice Often develops out of a SOG Informally bound social collectives of experts, either existing within or independent of organisation External CoPs (e.g., professional bodies) Internal CoPs –Encourage greater knowledge sharing. –In turn, this supports and promotes innovation –Develop social capital as well as specialist content knowledge –Need some of the same support mechanisms as SOGs –Not always the benevolent and beneficial entities –Power dynamics may arise in CoPs, leading to politics 8

9. Networks Powerful bonds of the six degrees of separation External networks –Increase the potential for identifying knowledge that is new –Weak ties (sometimes called loose links) –Strong ties (sometimes called tight links) Relationship strength Network density Internal networks –With weak ties - catalyst for new knowledge –with strong ties - thick communication –SOGs are often conceived within internal networks –Exportation process 9

10. Learning partnerships Special type of networking Organisations have become less satisfied with the mere transmission of information by learning institutions Joint ventures Apprenticeship learning partnerships Strategic learning partnerships - with tertiary institutions –Research –Work integrated learning or work experience learning –Customised work integrated learning –Work capacity integrated learning 10

11. Exporting to the legitimate system Need new knowledge embedded in the workplace Defence mechanisms –Defensive routines –An appearance of positive action –Use up the energy –Purposes of defence mechanisms Each system has its role 11

12. Exporting to the legitimate system (cont) The shadow system –The paths to the legitimate system can be many and varied –Quickly and painlessly – codified (more explicit) –Non-codified, tacit knowledge needs thick communication channels and strong ties –Exportation to legitimate system is, often, a political process Several options The legitimate system –Embedding process The audit Strategic planning process, standing plans, single-use plans Implementation Extended learning 12

13. Control—to be or not to be? Managing the shadow system is not an easy process Direct control is the very antithesis of the shadow system Allowing open slather will also be an invitation to disaster Need to use more indirect controls –Carefully selecting staff –Providing ‘sunset’ clauses in any projects –Constraining effect of individuals operating in relationships –The ‘invisible force’ of organisational culture 13