Towards a Learning Organization: the Role of Core Competencies as an Internal

Factor for Transformation

Jrat Palas!ait" #ai$a %ze$i&it" 'i$il (tar!e$i&it
The purpose of this paper is to present the case study, which was aimed to identify whether
decision to transform an organization into a learning organization may be triggered by internal rather
than external factors) The hypothesis: to identify which factors (internal, such as decision to develop
competencies of members of an organization, or external, such as pressures of competitive market,
globalization, technological advancement) trigger the transformation of an organization to learning
organization is possible while identifying members attitude to their own core competence and the
need to develop them
*e+ words: !ore competencies, learning organization, "uality of services, front#office
personnel
Introdction
$ccording to %auzackas & ('(()b), the development of core competencies could be
defined as the development of *knowledge, abilities, skills, attitudes and value orientations that are
being used for a long period of time and have the impact on comprehensive development of
personality, professional flexibility and mobility+ (p ,-) The significance for the development of the
learning organization and community, organization and states economy has been declared in
internationally recognized documents: $ .emorandum on %ife %ong %earning ('((/), %isbon
0trategy ('(((), and in various documents of the 1uropean 2arliament and !ommission
$ state financed organization providing non#commercial services was chosen for the empirical
study of the paper $s Targamadze and 0imonaitien3 note ('(('), external factors are "uite often
relied on triggering transformations towards a learning organization 4ue to the fact that non#
commercial organizations are less susceptible for the external factors for transforming into learning
organizations, such as the rapidly changing markets in comparison with profit#making organizations,
it is likely that situation will reflect reflective and conscious choice of members of an organization
(internal factors) rather than reaction to forces of market (external factors) to implement
transformation 5on#commercial organizations should find other sources for transformation than
merely reaction to external pressures, and namely some internal triggers or factors The prpose of
this paper is to present the case study, which was aimed to identify whether decision to transform an
/
organization into a learning organization may be triggered by internal rather than external factors The
h+pothesis: to identify which factors (internal, such as decision to develop competencies of members
of an organization, or external, such as pressures of competitive market, globalisation, technological
advancement, etc) trigger the transformation of an organization to learning organization is possible
while identifying members attitude to their own core competence and the need to develop them The
o,-ect of the paper covers attitudes of organizations members towards the development of
personnels core competences The following o,-ecti$es have been raised: to characterize the concept
of core competences, to define content of a concept of "uality of services, to reveal the relation
between front#office personnels core competences and the "uality of services6 to identify the
perceived significance of development of 7 organizations personnels core competences for the
transformation of an organization into a learning organization .sed methods include critical and
systemic analysis of references6 also case study that included internal documents analysis, also a two#
stage "uantitative research, which was completed in '((8#'((9 The following methods for an
empiric study were used: analysis of recent internal and strategic documents and "uestionnaires
comprising open and closed type "uestions Research limitations : only clients and members of one
non#commercial, service orientated organization in one of ten counties in %ithuania were approached
This must be seen as a limitation of the study
Core Competencies / the Concept and Classification
The relevance of core competencies in professional activities was influenced by
globalization and constant changes covering various areas (economical, political, social,
technological, etc) ;lobalization caused the need for discussing what are the competencies with the
help of which one could flexibly adapt to changes occurring in professional, personal and other
activities $ certain value of core competencies is definitely gained within the area of services, which
is based both on technology and a certain form of relationship between a service provider and a client
$domaitiene et al ('((<) define the competence as a physical or mental ability of a human being to
carry out a certain action or activity $uthors enlist the following competencies: physical (health),
educational (knowledge, know#how, skills), psychological (cognitive skills), social (right to act,
understanding power boundaries), expertise (individuals uni"ue expression in activities, based on
his=her professional and personal abilities) >n the other hand, %auzackas ('(()b) emphasizes that
expertise is a functional ability to ade"uately perform certain activities
$ccording to the documents of the 1uropean 2arliament and !ouncil, regarding %ife #%ong
%earning competencies ('((-), the latter ones are indicated as abilities necessary for personal
'
development, active citizenship, social integration and employment of all citizens 8 core
competencies (and their elements) are enlisted !ommunication in mother#tongue is defined as ability
to both in written and orally express and explain notions, feelings, facts and opinions !ommunication
in foreign languages is based on ability to understand a foreign language, express one#self, explain
notions, thoughts, feelings, facts and opinions within a certain society or cultural environment
.athematical abilities and core competencies in research and technological areas (mathematical
abilities for developing and applying mathematical thinking when solving different every day
problems) !ompetencies in science area stand for a persons ability and willingness to apply
knowledge and methodology when explaining nature, trying to raise "uestions and draw evidence#
based conclusions 4igital literacy deals with reliable and critical appliance of ?T at work, for leisure
or when communicating %earning to learn competence (ability to study insistently and to arrange
ones learning process both in groups and individually, by effectively managing information) 0ocial
and civic competencies, initiative and entrepreneurship 0ability to turn ideas into actions1 creativity,
innovation, readiness to risk, pro@ect planning and managing in the pursuit of goals raised), cultural
consciousness and expression (perception of the significance of different creative ideas, music, stage
and visual art and literature) finalize the list
?n the AB (2aulauskait3, '((9) core competencies are defined as a complex of abilities
providing the basis of any kind of effective activity They are necessary for successful work, learning
and other activities The structure of core competencies is comprised of communication (participation
in discussions, application of visual aids etc), mathematical literacy (data collection, recording and
processing), ?T (preparation of information, processing, presentation etc), personal (personal learning
and professional improvement), problem solution (naming the problems, decision making etc), and
competencies of foreign languages (listening, speaking, reading and writing)
$ny organization, including a learning organization, has to perform certain functions such as
recruitment of employees and support for the development of competencies as well as career
planning ?n addition to technical competencies (knowledge and skills characteristic to a certain
profession), other important competencies may be identified, including communicational (ability to
start and sustain relationship with customers), organizational (ability to organize ones work activities,
plan them and set priorities), managerial (ability to organize activities of others, inspire and motivate
them), strategic (ability to communicate within a system and interact with other participants),
educational (ability to explain, consult and support learning of others), cognitive (ability to develop
new competencies), recognition of clients environment (ability to recognize a client, discover his=her
needs and expectations) and those of common culture (an important part of holistic competence)
<
(Birby, /999, here from 2aulauskaite, '((9) $ccording to the number of authors and references, core
competencies are identified as comprehensive and applicable within different spheres of life and
professional activities Curthermore, they play an important role in the context of constant economical
and social, as well as technological changes !ore competencies (and their elements) are the result of
lifelong learning
O$er$iew of the Concepts of (er$ices
0ervices have certain characteristics: heterogeneity, unsteadiness, clients participation in the
process of service provision, the unity of service provision and consumption (Dagdoniene, Eopeniene,
'((,) There is a variety of ways to classify services $ccording to ;rFnroos ('((/), non#commercial
services are not aimed at profit6 rather they are aimed at meeting community needs 0uch services are
provided by governmental non#commercial organizations and private non#profit organizations
Asually, state budgetary funds comprise a large proportion of budget of such organizations
Curthermore, such kind of an organization faces harsher restrictions (laws, regulations) Asually,
private non#profit organizations are not entitled to share profit between members or managers 0uch
kind of organizations promote voluntary work and their profit is not always expressed in terms or
forms of money
The #ariet+ of 2alit+ Concepts
There is also a variety of concepts of "uality $ccording to Gesterhei@den ('(()), every
definition of "uality is a matter of agreement The sub@ectivity of the concept of "uality comes from
three interacting parts: benefit (features, form and tune), value (economical, intellectual) and
suitability (amount and timely performance) The above enlisted may be perceived differently by each
individual $ccording to %ok and !rawford ('((,), an ob@ective (visible, measurable features) and
sub@ective (immeasurable, experienced via consciousness) "uality may be distinguished ?n addition,
there are internal and external perceptions of "uality ?nternal "uality is related to organizational
culture, history and structures as well as the "uality level of the way its inner elements function
(mission, human resources, and monetary resources) .eanwhile, an external "uality deals with the
satisfaction of client needs and re"uirements The latter one may be influenced by political regulations
as well
?t may be concluded that there is no universal definition of "uality $ccording to .isiHnas
('((8), the diversity of concepts comes from the fact that there are several "uite different perspectives
of "uality Iuality is rather a socially negotiated construct than a definite constant ?t is dynamic and,
nevertheless, the contents of the concept serves as a starting point for activities in any organization
,
2alit+ of (er$ices and Core Competencies in a Learning Organization
To add to the complexity, the concept of the "uality of services and its models are widely
analyzed in management and marketing literature ?t is impossible to evaluate "uality of services and
the "uality of products applying the same criteria $ccording to 1riksson et al (/99J), services may be
defined as a product resulting from experience that may be evaluated only through consumption The
orientation towards client is often emphasized when analyzing organizations providing services $
service must respond to clients needs and expectations Eere the main evaluator is the client, thus, it
is significant to manage perception of "uality of services and satisfaction Darczyk (/999) states that
the "uality of services is expressed in terms of the level of customers satisfaction that depends on
customers needs and experience $ccording to ;umesson ('(('), it is important to be aware not only
of present customers needs, but future ones as well Therefore, by applying the before#mentioned
definitions, we may state that in the area of services the "uality is often perceived as satisfaction of
clients needs Eowever, it may interfere with other concepts oriented towards inner "uality of
activities Cor that reason, it is not recommended to identify the parameters of "uality solely based on
clients opinion, since not all services are e"uivalent $ccording to %angviene and Kengriene ('(()), a
conceptual key for perceiving "uality of services is the interaction between the "uality perceived by a
supplier and a client $n important role in this interaction is given to front#office personnel, since
they not only perform certain actions and procedures necessary for providing the service, but they also
communicate with customers and involve them in one way or another into the process of service
provision The key task of such employees is to serve the client and stand for the interests of the
company (Kengriene, '((-) Therefore, the improvement of "uality could be related to investments
into personnel and development of both core and other competencies that are significant for
professional activities
1very client individualizes specific services and differently prioritizes its features ;rFnroos
('((/) in his research of the area enlisted specific features of services that clients @udge !lient is
interested in basic characteristics of providers activities, such as professionalism and skills, attitudes
and behavior (attentiveness, politeness and respect), also availability and flexibility (convenience of
office#hours, short waiting time, convenient location) &eliability and ability to manage unexpected
situations are important as well as reputation and creditability (it is expected that the value provided
will be ade"uate to the amount paid) $ccording to Dagdonien3 and Eopeniene ('((,), the ma@ority of
authors assume that reliability, flexibility, providers readiness to help and to manage unexpected
situations are the most important issues for clients The above#presented brief analysis criteria applied
)
for evaluating services, confirms that among other factors influencing the "uality of services,
personnels core competencies are included
The necessity of life#long learning is determined by constant changes within different areas
and by increasing global competition as well as rapidly developing technologies These pressures
comprise external factors ?n order to survive under the conditions of dynamic market, constant
professional development and learning of employees should be promoted $t this point, the
significance of developing core competencies is emphasized as the way to cope with external
pressures $ccording to $ .emorandum on %ife#%ong %earning, the core competencies are defined
as the main competencies without which individuals would be incapable of participating in both
knowledge society and modern economy as well as social sphere
4awe ('((<) states that the following factors stimulate learning within an organization, or
internal factors: changes within an organization, attention to "uality, and installation of new
technologies, readiness tolearn ?t is important to ensure work security and create flexible and safe
environment (0mith et al , 99)) ?n addition, Eayton ('(()) states that the following internal factors
influence learning within an organization: the size of an organization, organizational structure,
dominant atmosphere, attention to personal needs of members of an organization and managerial
attitude
$ccording to 0akalas (/998), every organization by taking into consideration environmental
conditions and internal factors of the enterprise forms individual strategy for the development of
professional "ualifications Eaving constituted models of competencies and professional
"ualifications and having evaluated the need for the development of professional "ualifications, a
training program that will contribute to the optimization of the organization activities is chosen $t
this point, it is significant to note that when striving for the development of core competencies, it is
essential that the before#mentioned issues would be included into the strategy for the development of
professional "ualifications Curthermore, it is important to harmonize individual development and
professional development (%auzackas, '(()a6 Targamadze, 0imonaitiene, '((')
$s it has already been mentioned before (Eayton, '(()6 2undziene and 4ienys, '((<), one of
the factors influencing the learning within an organization is its size $n employee of a big enterprise
is most likely to have professional skills in a single narrow area of activities ?n a small enterprise
each employee has a perception of closely related areas to his=her professional area Ghether an
employee will be given an opportunity to develop his=her core competencies along with other
competencies, may depend on the organizational culture $ccording to 0eilius (/998), every
organization has its own norms, rules and scale of values influencing the behavior of its members and
-
conditions for development >rganizational culture depends on experience of its employees,
emotional attitude towards tasks, products, colleagues, and organizational management and attitude of
members of organization towards change $ppropriate social, physical and other environment makes a
huge impact on learning (Deresneviciene, '(((6 Tereseviciene, ;edviliene, >ldroyd, '((,6 Larvis et
al , '((,)
Priorit+ internal factors for transformation to a learning organisation
Eowever, one of the most significant factors for learning in organizations is individuality of
a learner ($domaitiene, 4aukilas et al, '((<6 2etkeviciute, '((-, 2rice, '((J) Eere it is important to
note that in this paper development of core competencies is at focus (rather than learning in order to
know how to operate new line of technology better), because in labor market professional
competence, personal "ualities and social competence have a crucial importance today (;ruzevskis,
Mabarauskaite, .artinaitis, 2ocius, Diveinyte, '((J)
The discussions on what is a learning organization have gone through many combinations and
transformations over the last decade in terms of theoretical development and attempts at practical
application There are varying definitions of a learning organization in published literature, although
the unifying idea between them all remains clear and has been summarized by 2edler et al (/99J)
$uthors note that if an organization facilitates learning of all its members, and transforms itself as a
result of that learning, it can be called a learning organization
Anderpinning the development of management perspectives on learning in organizations is
what Eawkins (/99,, p 9) calls NNa change at the heart of our understanding of learning and a shift
from viewing learning as being abrupt facts to learning as a more multi#faceted and dynamic processOO
$s Eawkins suggests, it is not that we are learning any differently than before but NNour understanding
of how we learn has begun to catch up with what happens in practiceOO (Eawkins, /99,, p 9)
&esearchers have been challenged to develop and discuss concepts of learning and how they may be
applied to organizational settings The approach taken by theorists of learning organization is that an
organization that learns can manage the change process more effectively than can an organization that
does not learn (rather, members of an organization) (!ullen, /999) %earning organization is thought
to be about increasing an organizations problem#solving capacity and about changing behavior in
ways leading to improved performance at the individual, team and organizational levels
Research 3ethodolog+
?n order to clarify the hypothesis (which factors (internal, such as decision to develop
competencies of members of an organization, or external, such as pressures of competitive market,
globalisation, technological advancement, etc) trigger the transformation of an organization to
J
learning organization is possible while identifying members attitude to their own core competence
and the need to develop them) a case study was carried out in '((8 # '((9 The case study constituted
of the following parts: analysis of internal documentation and a "uantitative study comprised of
"uestionnaires for clients and front office employees
The attitude of the clients on services and employees core competencies of a state non#
commercial organization (Curther # organization 7, library) situated in one of the largest cities in
%ithuania was studied in spring of '((8 The respondents were selected by approaching every client
during one week The main selection criterion was that a respondent had to be a client of services
provided by the organization 7 8( "uestionnaires were distributed, and J, of those were returned and
filled in properly
$ study of front#office employees attitudes was carried out in the spring of '((9 The front
office personnel of the relevant organization were approached The main aim of the survey was to
identify what core competencies are the most significant for the "uality of the activities, and what is
the level of necessity for developing the identified core competencies, what encourages to develop
them and what possibilities are provided for this (that is, are members of organization aware of the
need and prere"uisites for the development of a learning organization) ?n both cases anonymous
"uestionnaires were used for data collection The research data was processed by searching for
correlations between the variables and selecting non#parameter based criterion (
'
) for calculations
The selected level of the statistical significance e"uals to p P (() (0200#/-,( software was applied)
The respondents were presented with a partially structural written "uestionnaire made of nine closed#
type "uestions evaluated by ranking and nominal scales The respondents constitute 9< Q of all
organizations employees dealing with clients6 therefore the re"uirements for case study method are
met (0hamoo, &esnik, '((9) $ total of //( "uestionnaires were distributed, /(, of which were
returned /(< were filled in fully
$ccording to the data obtained from the analysis of employees survey, the ma@ority of them
are women with a dominating age of ,/ to )( years old The minority of the respondents is over sixty
(J< Q)6 the ma@ority of the respondents have university level education (8J8 Q)
Case (td+: Towards a Learning Organization) Perception of Core Competencies
4ocment 5nal+sis) $s it has been mentioned before, a non#commercial service#oriented
organization (library) was selected for the case study Cirstly an in#depth review of documentation was
completed Eaving thoroughly analyzed its overall activities, dominating professional provisions,
strategic plan for the period of '(()#'((8 and reports, we may draw a conclusion that the "uality of
8
organizations activities is rather often related to the learning process of the members of organization
.oreover, in documents starting '((J, a clear strategy towards the learning organization was
formulated $lso, the document analysis revealed the strategic goal to support employees learning in
other (than merely technical) fields These findings seem to indicate that prere"uisites for
transforming an organization towards learning one started in organization 7 Eowever, it was also
found that a more focused research on what were employees (including front#office) learning needs
(in terms of core competencies), was not completed &ather, a "uite declarative statement instead of
action plan appeared in strategic documents in recent years Therefore, a study on how clients and
front#office personnel perceive core competencies (and their elements) seemed important in order to
help an organization to have a clearer and more focused view on itself, and to have information for an
action plan
Clients6 0Cstomers67 5ttitde) ?t turned out that the ma@ority of the respondents (-(8 Q)
are fully satisfied with the "uality of services 5one of the respondents have indicated that the "uality
of serving the customers at the library does not satisfy them Dased on initial theoretical insights on
core competencies, personal, social and informative literacy competencies were provided in the
"uestionnaire
Fig. 1. 8$alation of core competencies 0and their elements7 of front9office personnel as
percei$ed ,+ clients
9
?t was revealed that the clients evaluate most of core competencies (and their elements) either
well or perfectly (0ee Cig/) The highest ranked "uality was helpfulness (over -) Q)
<( out of J, respondents replied to an open#type "uestion *Ghat would you suggest changing
in the customer related area of organization 7R+ &espondents indicated that the range of services
offered could be expanded 0ome respondents suggested establishing a cafeteria and improving the
conditions for using a computer and ?nternet ?t is evident that the suggestions were rather on the
infrastructure of the organization, rather than on the core competencies of front#office personnel
The 5ttitde of Front9office Personnel 0emplo+ees7) $s an outcome of the study it turned
out that the following core competencies play the most important role in the activities of front#office
personnel: related to educational, cognitive, organizational and strategic competencies (.agnin D,
'((,, here from 2aulauskaite, '((9) and informational literacy >ver fifty per cent of the respondents
(0ee Cig '), have identified that ability to explain and provide information and ability to learn are
very important in their daily professional activities ?n addition, it is important to know how to
organize ones tasks, use ?T and work in a team
Fig. 2. Front9office emplo+ees6 percei$ed significance of core competencies for ser$ice pro$ided
0per cent of respondents7
&espondents noted that organizing colleagues work (/) Q), and numeracy (/<- Q) were
not important for their work Dased on the research data, the least important competencies in the work
of front#office personnel are ability to communicate in foreign languages, mathematical competencies
and ability to organize the work of others
/(
?t should be stated that the evaluation of significance of core competencies does not depend on
respondents, except for one item, and namely: the ability to learn $ statistically significant nonlinear
link exists between the age of respondents and the way they evaluate core competence ability to learn
(
'
S<(,)'J6 pS(,(/)) 0imilar situation occurs when analyzing the education of the respondents This
factor correlates only with these core competencies (or their elements): ability to solve problems
(
'
S'J,J896 pS(,(((), make decisions (
'
S'',J-86 pS(,((J) and explain and convey information
(/J,<-<6 pS(,(,<) ?n this particular case, the insight indicated in theoretical discussions stating that
the significance of core competencies depends on education and makes influence on "uality, fails to
be confirmed Dased on the research data, we may state that in order to achieve better "uality of work,
front#office personnel feel the need for developing most of their core competencies (0ee Cig <) ?n
most cases the respondents indicated that they are keen on developing their ability to learn (-/ Q),
ability to use ?T, ability to identify customers needs and solve problems
Fig. 3. 4emand for de$eloping core competencies of front9office personnel in prsance of
impro$ing the :alit+ of wor! 0per cent of respondents7
//
?n addition to other desired to be developed competencies, ability to develop inner potential,
concentrate and adapt to changing environment and ability to learn at work in teams were enlisted
These findings seem to indicate that members of non#commercial organization are aware of the need
to develop core competencies, and, therefore, there is a potential for authentic transformation towards
a learning organization in the organization 7
?t should be also noted that there is a statistically significant non#linear link between the
significance and the development of most of the core competencies: ability to get into contact with
and sustain it with customers and colleagues (
'
S <,/)/6 pS(((/), identify customers needs (
'
S
'/9(,6 p S ((<9), solve problems (
'
S <</)(6 pS((((), organize ones works (
'
S </'/,6 p S
(((', p S (((/), organize works of others (
'
S )J,8<6 pS(,(((, pS(,(((), work in a team (
'
S
')--'6 pS((/'), make decisions (
'
S '9'8'6 p S (((,) This implies that the demand for
development of these competencies is ade"uate to their perceived significance
Cront#office personnel are encouraged to develop core competencies both by internal and
external factors 5evertheless, the greatest influence is that of a desire to perform ones work in a
"ualitative way (internal factor) &espondents also enumerated a number of other factors (0ee Cig ,).
Fig. 4. Factors encoraging the de$elopment of core competencies
/'
The study revealed the methods by which front#office personnel develop their core
competencies (Cig ))
Fig. 5. 3ethods for de$eloping core competencies
The data obtained matches with theoretical insights : the development of these competencies
within an organization may take place in the dimensions of formal, non#formal and self#based
learning Eowever, only non#formal and self#based learning dominates in professional activities
Conclsions and 4iscssions
/ !ore competencies are widely applicable in different daily life and professional areas They
play a significant role in constant economical, social and other changes, and are ac"uired by continual
development and learning $ number of similarities may be distinguished in different classifications
?n the ma@ority of classifications, the same social (communicational, conflict solving and etc),
mathematical, entrepreneurial, managerial, educational, related to foreign languages, informational
literacy, personal, wide scope and etc abilities are enlisted The only differences occur in their
subdivision into elements
' ?n the area of service management and marketing client is one of the central agents and the
main evaluator of the "uality of services $ccordingly, the significance of foreseeing his=her needs,
satisfaction, and management of perceived "uality and interaction with front#office personnel is highly
emphasized This influences the significance of the competencies and abilities of front#office
personnel, such as recognition of needs, communicational, conflict managing, decision making,
educational, general culture, personal, wide#scoped and etc, in pursuance of the "uality of services
!ertainly, other e"uivalent factors exist such as technical "uality, internal relations, working
conditions, re"uirements, regulations and etc ?n order to achieve general "uality of activities, all the
/<
factors should be evaluated and all parts should be balanced (functional, technical, internal, external
and etc)
< Transformation of an organization into a learning organization may be triggered by both
external and internal factors or by interaction between internal and external factors 5on#commercial
organization may provide a better insight into the process, as external factors have a bit smaller impact
than on organizations that are profit orientated $ state financed organization, therefore, may either
continue reproducing status "uo in terms of performance and goals, or strive towards development
based on internal factors 1mployees decision to perform better, and to feel pride in what they are
doing, readiness of employees to be able to learn together with colleagues, and to be able to organize
work, also to develop other core competencies (and their elements), may act as productive internal
factors for transformation
, $s an outcome of the empiric study it turned out that the following core competencies play the
most important role in the activities of front#office personnel: cognitive, organizational and strategic
competencies and informational literacy Ghen striving for a higher "uality of activities, the
employees face a strong need for developing most of the core competencies Curthermore, it turned
out that respondents age and education plays a minor role in the perceived significance of core
competencies for the ma@ority of respondents $ case study provided information for the organization
7 on the development of which core competencies to concentrate first ?t seems that front#office
personnel are in need to learn in teams (which is universally "uoted as one of the ma@or competencies
in transforming and organization into a learning one), and to learn to start and maintain contact with
client
) ?t may be concluded that internal factors (including attention to development of core
competencies) may be of the same importance in triggering transformation towards a learning
organization, as are the external ones (globalization, technological advancement, competitiveness)
The hypothesis that internal factors, such as decision to develop competencies of members of an
organization and awareness of them may trigger the transformation of an organization to learning
organization was partially confirmed
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