Most people define learning too narrowly as mere “problem-solving”, so they focus on identifying and correcting errors in the external environment. Solving problems is important. But if learning is to persist, managers and employees must also look inward. The need to reflect critically on their own behaviour, identify the ways they often inadvertently contribute to the organisation’s problems, and then change how they act.

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There are two dominant mindsets in the world of business or any kind of organization.<p>One is a productive mindset, and it says it's a good idea to seek valid knowledge, it's a good idea to craft your conversations so you make explicit what you are thinking and trying to examine. You craft them in such a way that you can test, as clearly as you can, the validity of your claims. Truth is a good idea. All the managerial functions—accounting, all of them—have a fundamental notion that the productive mindset is what ought to be used to manage human beings.<p>Then there's another mindset I call the defensive mindset. The idea is that even if you are seeking valid knowledge, you are seeking only that kind of valid knowledge that protects yourself or your organization or your department—it is defensive. From a defensive mindset point of view, truth is a good idea when it isn't threatening or upsetting. If it is, massage it, spin it. But if you massage it and spin it, you're violating the espoused theory of good management. When you spin, you have to cover up the fact that you're spinning. And in order for a cover up to work, it too has to be covered up.

Whenever undiscussables exist, their existence is also undiscussable. Moreover, both are covered up, because rules that make important issues undiscussables violate espoused norms... It is very difficult to manage [organizational defense routines]. They continue to exist and proliferate because they are relegated to the realm of “underground management” and all sides tacitly agree to this state of affairs. As a result, organizational defense routines often are very powerful

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Human beings hold two types of theories of action. There is the one that they espouse, which is usually expressed in the form of stated beliefs and values. Then there is the theory that they actually use; this can only be inferred from observing their actions, that is, their actual behavior.

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Learning can be defined as occurring under two conditions. First, learning occurs when an organisation achieves what it intended; that is, there is a match between its design for action and the actual outcome. Second, learning occurs when a mismatch between intention and outcome is identified and corrected; that is, a mismatch is turned into a match.... Single-loop learning occurs when matches are created, or when mismatches are corrected by changing actions. Double-loop learning occurs when mismatches are corrected by first examining and altering the governing variables and then the actions.