Organizational Learning and Its Role in Improving Organizational Performance

This report evaluates the role of organizational learning in improving organizational performance. It explains the concept of organizational learning, learning organization, and organizational performance. The report critically analyzes the role of organizational learning in improving organizational performance using theories and models. It also provides examples of organizational learning and performance. The subject is Learning and Development, and the course code is 1.

Learning & Development
Critical evaluation using theories and
models and critically analyse the role of
organisational learning in improving
organisational performance.
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Table of Contents
Introduction...................................................................................................................3
An Explanation of organizational learning ...................................................................3
An Explanation of learning organization.......................................................................4
An Analysis of organizational performance..................................................................4
Definition, explanation and examples of organizational performance ........................4
Theories and models to critically analyze the role of organizational learning in
improving organizational performance. .......................................................................5
Conclusion....................................................................................................................8
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Introduction
This report is going to evaluate the organizational learning ,learning
organization and analysis of learning organization. Organizational learning is the
learning which helps organization to improve itself by transferring the
knowledge,retaining and strengthening the organization as a team. It can be done by
improving the actions by understanding , and better knowledge. It is important for all
the companies to create a learning culture which benefit both employees and
organization. It will directly increase the employee's job satisfaction, efficiency to
perform better and developing leaders at all levels.
An Explanation of organizational learning
Organizational learning is the process of transferring the knowledge so that
organization will have business gains and maximum employees engagement. It is
the framework which focuses on the study of knowledge and experience(Corvellec,
2018). There are four types of learning which are explained below-
 Group Learning- It is a learning in which majority of people work with their
team mates ,co-workers to perform a particular task which is assigned to
them. For example – Team of doctors who have come together to perform a
surgery as a team.
 Individual Learning- it allows individual to learn at their own pace with the
guidance of mentors.
 Inter-Organizational Learning - This is a wide range of learning and
organization can promote
Organizational learning is the comprehensive structure of important learning
for company because it changes the way people operate and behave. Managers
should update new areas of knowledge about their products ,environment and
business. There are several ways of enhancing organizational leaning is like
company can study about its competitors to perform better, creating networks with
colleagues in the organization and also by conducting surveys timely to obtain
maximum knowledge(Corvellec, 2018). There are so many companies which are
performing better in market for so long the main reason is that they never stop
learning because learning will open new ways of improving performance. One can
learn form their mistakes and helps to get things actually done.
Examples of organizational learning- Examples of organizational learning can
be wherein the new joiners were allotted training for the tasks that need to be
performed in the organization. For example, The employee joining in an organization
for the job role of HR executive at an organization is provided ample training in the
initial stage.
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An Explanation of learning organization
Learning organization is a important process of an organization which has
developed the capacity to continuously change,learn and adapt in the dynamic
environment. Now a days , companies are working globally and they guided by the
preference,culture,attitude and belief system of the country(Yuliansyah and Jermias,
2018). Organization grow in the dynamic environment by adapting new innovations
in technology and information this is the fundamental requirement of the company. It
is a organization where people keep expanding their capacity to bring more results.
When there is a learning culture in the company employees automatically learn ,up-
skill themselves and create a positive environment.
An Analysis of organizational performance
Organizational performance is measured at different levels for example
Individuals ,group and the entire organization as a whole(Do and Mai, 2020). It well
defines a company's performance and work efficiency against its aims and targets.
There are three different areas of organizational performance-
 Financial performance- It explains to estimate company's policies in monetary
form which will help in measuring the performance by calculation of return on
investment and assets.
 Shareholder Value – It explains how a company can enhance its performance
for shareholders to sustain and grow profits over time.
 Market performance- It explains how a company performs in the marketplace
to have greater sales and profit margins
It can be concluded that it is a continues process of setting individuals as well as
team's goals to attain the goal with improving skills ,knowledge and abilities of
people.
There are numerous elements of organizational which affects the
organizational effectiveness for example employee skills, tools and technology.
Definition, explanation and examples of organizational
performance
Organizational performance is defined as the actual performance or results
gathered by a company in context of the expected outcomes. It is a broad field which
considers and reflects upon the dealing of the company, the ways in which its deals
with them and how it can attain it goals and objectives either short or long term by
interacting with numerous factors and aspects.
The performance of a company not only supports in the short term but also affects it
in the longer run by impacting its productivity, boosting employee engagement and
their motivation level(Ghasemaghaei, 2018).
Another, important factors attached with the performance of a company is its
growth and success in the existing as well as new market. As effective performance
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of the company opens innovative options and opportunities for the entity which
allows them to grow and develop better position of the brand in the marketplace and
explore growth options.
A real world example of effective organizational performance Amazon, a US
e-commerce business organization which has huge power in market and is the
leading brand. The company is a market leader which succeed due its performance
and employee engagement practices which enable the brand to be productive and
grow in the respective industry.
Theories and models to critically analyze the role of
organizational learning in improving organizational
performance.
The phenomenon of improving and developing organizational optima through
organizational learning, to maintain a learning organization which helps overcoming
barriers of learning and knowledge(Henschke and et. al., 2020). It is the process of
creation, retention, inculcation and flow of knowledge in an organization to interpret
and respond to dynamic environment in the business. This phenomenon is a conduct
that involves disciplines such as natural and social sciences which improves human
psychology, sociology and knowledge. There are diversity of thoughts regarding this,
the first one involves the cognitive learning and operational conditioning which
focuses its “thinking” dimension. Another is the behavioral conditioning and social
learning which focuses on “doing” dimension. The various business enterprises uses
different theories and models of organizational learning which are explained below.
Theories and models of organizational learning
It is important to maintain a working organization updated through continuous
inflow of knowledge through learning. Due to continuous fluctuations of market
environment conditions from comparatively stable to comparatively unstable
situation, organizations need to enhance learning process. The trends of market
conditions, demand-supply, technology, competition and other factors keeps
evolving therefore companies needs to reinvent their learning to nurture long term
survival and growth strategies. Therefore, it makes sense to apprehend diversity of
thoughts in improving and justifying organizational learning and knowledge by
exploring new principles and policies. In order to achieve this, different companies
uses various models and theories or combination of these theories which are given
below:
Organizational Learning Theories
 Experiential Learning Theory: This principle is based on its working in four
steps that are concrete learning, realization through observation, abstract
conceptualization and experimenting for gaining knowledge on timely basis.
This theory helps employees to examine and educate through their actions,
work, thoughts, processes and even the emotional responses that comes on
trial and error basis(Kopelman, 2019). Experimental learning theory by
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Koleb's (1984) is based on physiology, psychology and philosophy of an
individual to influence learning and organizational development. Its main
aspect is that plant of learning and knowledge grows through the water of
grasping, transformation and experience of individual or groups. A person
needs to pass through concrete experience and abstract conceptualization
including the concept of grasping. Where reflective observation and active
experiments helps Azesta an UK based customer support company to
transform their growth and learning factors through recognizing experience of
others. This learning procedure is programmed as a cycle of experiences,
observations, thought processes, gradual progression, adaptation and
consequence that a person pursue through their lives. In specification,
concrete experiencing, detailed sightings-observations, consequences and
reflection of others actions for gaining behavioral learning and psychological
learning. The learning style positions such learning styles like assimilation,
accommodating, converge and diverge to create learning(Kundu and et. al.,
2019).
 Generative and/or Adaptive Learning Theory: It involves improvisation and
continuous development of the expound sequence of critical actions through a
process of self-optimization and improvements. Adaptive learning can be
developed by an individual or group of people, in a organization or society
through various methods. It is a dynamic learning environment that utilizes
data from behaviors and attitude of implicate to forecast when a particular
concept is likely to vanish from short term memories of employees(Reese and
Yusuf, 2018). It also involves continuously inspecting one's working
knowledge and integrate efforts to gain information by grabbing
psychologically. Simply we can say that generative learning is based on
process of learning from the data stored in someone's brain that is vital for
business's growth. In process to do so, people make use of new things and
information by relating to the data, algorithms, action plans and memories
already stored in the subconscious. This integrates actions required at new
places to make easy adaptation of new ideas, knowledge and learning for the
people. The evolution of this theory helps Century Tech an UK based
software development company, towards organizational learning through
noteworthy psychological models – deeply entrenched imaginations,
assumptions, experiences, or psyches that affects our actions today. Adaptive
learning and generative learning are little-bit different as adaptive learning
focuses on foundation of new knowledge based on old ones and amending
existing knowledge to new aspects to achieve objectives.
 Assimilation Theory: It is a linear process by which one group becomes
culturally similar to others after sometime of involvement and interaction.
Assimilation is like adding air to the balloon to make it expand. In this method
of learning the people goes through the interactions so continuous
interchange of knowledge and process could occur. Along with proper
intercourse of fresh knowledge and information a person's ability to work
doubles and lowers the efforts to a great extent(Lombardi, 2019). It is well
said that someone's knowledge can be an anchor for others which can
integrate two separate dimensions in uni. The process of assimilation is
simple and occurs when ideas, knowledge and experience of one-others
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blends together to raise combined efforts. Amazon a US based B to C
commerce industry which includes combination of two main assimilation
theory aspects which are immigrant assimilation through socioeconomic
status, geographical distribution, second language attainment and
interconnection, another is segmented assimilation through highly researched
and sociological arenas. It features three unique learning processes that are:
knowledge acquisition, consisting development of skills, insights and relations;
knowledge sharing, dissemination of what had been gained by the
knowledge; knowledge utilization through acquiring knowledge and widely
availing it across every place.
4I Model of Organizational Learning
To further broaden and give a huge base of knowledge and learning support,
the organizations have to explore different research dimensions all round to evolve,
elaborate and inhibit knowledge and learning(Maletič, Maletič and Gomišček, 2018).
These four I's structure covers three levels of learning starting from individual then
group then towards organization which acts as key facets in organizational learning.
These four I's are are as follows:
 Intuiting: It focuses on individual level that patterns or possibilities coherent
in individual's flow of experience. It improves individual learning including
sharing of knowledge as well as experience through interaction of others. The
connection between one's success and enterprises goals are coordinated at
all levels not only at one level therefore company uses intuiting.
 Interpreting: It can be explained well with the help of term 'interpretation',
through words or actions of ideas, knowledge, and insights to one's self and
others. This process involves directive and verbal actions to develop
individual's or group learning process.
 Integration: It is a group activity of developing shared knowledge and
understanding among individuals and taking coordinate actions through
mutual compensations or adjustments. It can be useful to convey existing
meanings and evolve new ideas to make high caliber actions.
 Institutionalizing: It is in concept of an organization to make use of routine
actions to create smooth flow of actions. These actions become habitual as
these are embedded in structure, systems, strategies, and prescribed actions
of an organization.
Role of Organizational learning in Organizational Performance Development
When an organization or company invests time, resources and efforts to
improve and develop a culture of organizational learning and learning in organization
they prove to more competitive(North and Kumta, 2018). By this a company gets
may advantages of quick action and reaction towards changes and dynamic market
fluctuations. Organizations embraces real life experiences from failures and victories,
where every employee could be a teacher and student, there is a flow of significant
knowledge and expertise learning and contribute substantially. Organizational
learning positively affects organization which are as follows:
 Increase Employee Ability: The employees are benefited by the knowledge
creation, knowledge transfer, knowledge retention and sense of personal
worth in their suggestions which enhances their optima. IT helps to unify
people from different departments through motivation, emotional connect,
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alliances and strong bonding which arouse sense of responsibility for others
works too.
 Lowers Employee's turnover rates: Through complete and effective flow of
knowledge and communication people are able to work willingly. They gets
chances of learning and improvising themselves in various aspects which
builds their confidence. By this the chances of turnout by employees becomes
very low and they work in most optimistic ways to develop the organization.
 Increases Profits, Productivity and Efficiency: An organist always
recognizes the needs of knowledge transplant in order to re-frame old policies
and create new ones(Park and Kim, 2018). Due to praising of knowledge flow
and organizational learning company cConclusionould easily sneak higher
profits and improve efficiency of work within an organization.
 Developing leaders at all levels: The flow of knowledge from one person to
another helps to create motivators and leadership quality among people.
Organizational learning is all business process involving people at every lever
everyone is teacher and everyone is student.
 Enhances adaptability throughout the organization: To adapt vigorously
changing environment an organization needs to keep up with the ideas and
knowledge of next level. This will help an organization to quickly adapt and act
to the changing situations.
 Bridges the gap between theory and practical knowledge: Theoretical
knowledge can be gained everywhere but practical knowledge is essence to
every organization(Pudjiarti and Hutomo, 2020). This practical knowledge can
be obtained by self experience or experience of others.
Conclusion
The following paper had been drawing attention towards the meaning,
explanation and examples related to the organizational learning along-with how
learning in organization is performed. The main aspects in this report had covered
evaluation of importance of organizational learning and various models, practices
and theories for learning development in improving organizational performance.
Moreover, it presents about business performance development and how
organizational learning is affected by it. Thereafter, it brings in about classical
theories on company's development and learning with highlighting strengths
weaknesses and differences in the use of various theories for organizational
development. Further in this report analysis and importance of organizational
learning learning through various models is also given. In the end role of
organizational learning on the development of organizational performance is
provided.
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References
Books and Journals
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performance. Routledge.
Corvellec, H., 2018. Stories of achievements: Narrative features of organizational
performance. Routledge.
Do, T. T. and Mai, N. K., 2020. Review of empirical research on leadership and
Organizational Learning. Journal of Knowledge Management.
Ghasemaghaei, M., 2018. Improving organizational performance through the use of
big data. Journal of Computer Information Systems.
Henschke, J. A. and et. al., 2020. Facilitating Adult and Organizational Learning
Through Andragogy: A History, Philosophy, and Major Themes: A History,
Philosophy, and Major Themes. IGI Global.
Kopelman, R.E., 2019. Improving Organizational Performance: The Cube One
Framework. Routledge.
Kundu, S. C. and et. al., 2019. Diversity within management levels and
organizational performance: employees’ perspective. Journal of Advances in
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Lombardi, R., 2019. Knowledge transfer and organizational performance and
business process: past, present and future researches. Business Process
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Maletič, M., Maletič, D. and Gomišček, B., 2018. The role of contingency factors on
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North, K. and Kumta, G., 2018. Knowledge management: Value creation through
organizational learning. Springer.
Park, S. and Kim, E. J., 2018. Fostering organizational learning through leadership
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