ORGANIZATIONS AS BRAINS

Organizations as Brains

Organizations as Brains

Introduction

Prescribed associations have been gradually developing over the past century. An important change in the structure of prescribed organizations has changed the customary worth scheme of organizations into a more up to date organizational system. With the integration of modern flexible organizational structure formal organizations have become more profitable, employees earn higher wages and consumers reap the rewards of lower priced products. A discovering association systematically learns from its know-how of what works and what does not work. The aim of learning is expanded discovery, effectiveness, and performance. Learning organizations, provide continuous learning opportunities, use learning to reach their goals, link individual performance with organizational performance, foster's inquiry and dialogue, making it safe for people to share openly and take risks, embrace creative tension as a source of energy and renewal, and continuously aware of and interact with their environment (Gunasekaran, and Kobu, 2007).

Discussion

Avnet has come to realize that learning is strategic and that leaders play a vital role in the educational component of a business success. Avnet has implemented structured learning objectives that have enabled the firm to become the leading distributor of high tech products like computer hardware, semiconductors and microwave components. Avnet places huge value in people. They place emphasis on developing an atmosphere that is very people friendly, from their employees to their suppliers and customers. They accomplish this by promoting engagement through employee education, and cultivating an environment that promotes excitement in their products. Avnet has two high level programs at their disposal to get their philosophy into action, they are: Global Organizational Leadership Development (GOLD) and Leadership Education Accelerating Development (LEAD). GOLD is a program that is designed for future leaders taught by current leaders. GOLD focuses on the day to day operations that bind corporate goals, board members, and senior leaders together to achieve company goals. The LEAD program is more focused on middle management teaching them the fundamentals of management. It teaches thing s like how to do a performance appraisal, pay plans, and interview and select. Along with these two high profile strategies there is a third strategy that Avnet uses with their individual distributors called PRO, together they form a triangle that forms a dynamic learning experience for their employees. Together they build upon each other to form a clear line of succession from basic employee to upper management.

This strategy has proved to be very fruitful for Avnet because they have measure their bottom line from the difference of what they pay a supplier for a product to what they actually sell that product to a customer for. Using this method of measurement they have increased their productivity by 20 percent at the same time they increased training and development as a pay roll from 1.5 percent to 2.5 percent.

There are variables out there that any organizations must face in order to maintain their competitive advantage through learning organization; for instance the only source of sustainable competitive advantage for any organization over the long term ...