Learning Organisation: An Effect on Organisational Performance

Learning Organisation: An Effect on Organisational Performance

DOI: 10.4018/978-1-7998-3473-1.ch178
OnDemand:
(Individual Chapters)
Available
$37.50
No Current Special Offers
TOTAL SAVINGS: $37.50

Abstract

In an ever-changing business world, the need to gain a competitive advantage has become extremely imperative for enterprises to survive in the age of globalisation. Much emphasis on learning has arisen due to rapid changes in the business environment, including uncertain market conditions, increasing complexity, changing demographics, and global competition. The companies are forced to innovate and develop new techniques for improving the quality and functionality of products, reduce costs, and respond to the highly elegant customers' demands in order to survive in the market. Learning organisations encourage the groups to come together and explore new ideas without being directed by a manager. The main objective of the chapter is to measure the effect of the dimensions of the learning organisation on organisational performance. A positive statistical relationship exists among the learning organisation dimensions and with organisational performance. Organisations must consider the learning organisation dimensions to enhance employees efficiency and organisational performance.
Chapter Preview
Top

Introduction

A learning organization is an institution, which has the skills to change behaviour in order to form new information and understanding through the creation, gathering and transfer of information based on a continuous learning cycle. Organizations that could shed light on the future are those with learning capacity and enthusiasm and are able to form and use valid and reliable information. It is essential for the staff of an organization to be open to innovation and learning, in order to increase service quality, and convey the impact of being a learning organization to the forefront. Similar to the growing importance of being learning organizations in all fields and institutions, it is also gaining importance in educational institutions in terms of reforming information and adapting to change (Volante, 2010). Especially, gaining awareness of the characteristics of learning organizations can result in dynamism and innovation, as well as increased motivation and enthusiasm in the institutions (Tasargöl, 2013).

Organizations include multiple and intricate networks of relationships, which are sustained through communication and other forms of feedback with varying degrees of inter-dependence. With the rapid pace of growth, organizations face some challenges in training and retaining the intellectual capital of their workforce. First, due to the rapidly changing technologies, there is a need for continuous adaptation and retraining of the employees. Second, the training has to address a wide range of people with different backgrounds and abilities, ranging spectrum of needs and availability of time to study, etc. Further, as these learners are adults with considerable experience and awareness of what they would like to learn, training methods need to evolve to meet the needs of a modern knowledge society (Minch & Tabor, 2003). In addition, organizations are facing a number of key changes that focus attention on efficiency in relation to delivery methods. New opportunities are being offered by information technology (IT) which could facilitate major changes in the delivery of training and provide greater flexibility for learning (Littejohn & Watson, 2004).

In the digital age where information is regarded as the most important power, learning can be considered as an effective process of collecting, developing and transferring information (Alipour & Karimi, 2011). The concept of the learning organization has been linked to innovation and performance in organizations (Power & Waddell, 2004). The capacity for change and continuous improvement to meet the challenges in the environment in which organizations operate has been associated with the capability of these organizations to learn (Armstrong & Foley, 2003). Thus, organizations that learn will be able to keep abreast with developments and improvements in the business environment to operate successfully.

Organizations of the future will not survive without becoming communities of learning. It is absolutely essential for organizations to learn from their environments, to continually adjust to new and changing market dynamics, and just as is the case with the individual, to learn how to learn from an uncertain and unpredictable future. Continuous improvement requires a commitment to learning. Solving a problem, introducing a product, and reengineering a process all require seeing the world in a new light and acting accordingly. In the absence of learning, organizations and individuals simply repeat old practices. Change remains cosmetic, and improvements are either fortuitous or short-lived.

Key Terms in this Chapter

Educational Leadership: Educational leadership is a collaborative process that unites the talents and forces of teachers, students and parents to improve the quality of education and the education system itself.

Innovation: Innovation is the process of translating an idea or invention into a product/service that creates value or for which customers pay.

Knowledge Sharing: Knowledge sharing is an act of exchanging information or understanding between individuals, teams, communities, or organizations.

Organizational learning: Organizational learning can be seen as the collaborative learning process of individuals and analysing learning processes without concerning the outcomes.

Strategic Learning: Strategic learning is referred to as a means of evaluation to assisting the organizations or groups to learn quickly from their work and adapt their strategies.

Knowledge Management: Knowledge management is the systematic process of managing the organization's knowledge assets for the purpose of creating value and meeting tactical & strategic requirements.

Learning Organization: An organization that facilitates the learning of its employees so that the organization can continuously transform itself is referred to as a learning organization.

Leadership: Leadership refers to the ability of an individual or a group of individuals to influence and guide followers or other members of an organization.

Social Interaction: A social interaction is an exchange of communication between two or more individuals and is a building block of society.

Learning Cycle: Learning cycle is referred to as how individuals learn from past experiences.

Complete Chapter List

Search this Book:
Reset