LEARNING ORGANISATIONS
INTRODUCTION
Organizational learning is the process by which an organization improves itself over time through gaining experience and using that experience to create knowledge. The knowledge created is then transferred within the organization.
Organizational learning is important for all companies, as the creation, retention and transfer of knowledge within the organization will strengthen the organization as a whole.
When looking at the definition of organizational learning, there are three main actions to consider:
- Conceive
- Act
- Reflect
An idea or product is conceived, the company creates the idea or product, then the company must reflect. It is through this reflection of both process and outcome that learning will occur. In addition to those actions, there are three key processes that occur in organizational learning:
- Knowledge creation
- Knowledge retention
- Knowledge transfer
It is important that the organization ensures that the knowledge gained from this process is retained within the organization and is transferable. Knowledge retained by individuals cannot be properly retained, as individuals can leave, taking their knowledge with them. Embedded knowledge can be kept within the organization and shared with all individuals.
To define organizational learning is to understand the importance of creating a learning culture within an organization. This type of learning benefits both individuals, teams, and the organization as a whole. There are also positive intra-organizational benefits to this approach.
What is organizational learning theory?
The theory of organizational learning focuses on the creation of knowledge and the use of that knowledge within an organization.
Key aspects of organizational learning theory are that learning happens when people interact while finding and solving problems.
Organizational learning theory stresses the importance of developing a learning culture within an organization.
According to this theory, organizations should:
- Develop a culture that prizes knowledge sharing
- Take time to learn the lessons that failure can teach
- Encourage employees of all levels to engage in lifelong learning
- Allow individuals and teams to challenge the status quo of the organization
Why is organizational learning important?
The importance of organizational learning is shown by the various benefits that occur in organizations that develop a learning culture:
- Increased employee job satisfaction
- Lower turnover rates
- Increased productivity, profits and efficiency
- Developing leaders at all levels
- Enhanced adaptability throughout the organization
When organizations dedicate time and resources to developing a learning culture and implementing organizational learning, they are more competitive.
This increased ability to react quickly to fast-changing market conditions is just one of the reasons why organizational learning is important.
An organization that embraces the lessons that can be learned from failure and studies its own processes will be an organization that contains more knowledge about best practices, and will be much more able to adapt.
By creating the basis for continuous learning where all employees are teachers and students, there is an equal exchange of information that allows each person to contribute in a substantial manner.
Develop and Maintain Learning Culture
In this workbook, we put together tips and exercises to help you develop your organisation’s learning culture.
What is Organizational Learning?
Organizational learning is „the process of improving actions through better knowledge and understanding“ (Fiol and Lyles, 1985).
What is a Learning Organization?
A „learning organization“ is a firm that purposefully constructs structures and strategies, to enhance and maximize Organizational Learning (Dodgson, 1993). It facilitates organizational change.
Organizational learning contributes to organizational memory. Thus, learning systems not only influence immediate members, but also future members, due to the accumulation of histories, experiences, norms, and stories.
A learning organization must also forget some of its past. Thus, learning occurs amidst such conflicting factors (Dodgson, 1993).
What are the Three Types of Organizational Learning?
Argyris and Schön propose three types of Organizational Learning:
- Single-loop learning. This occurs when errors are detected and corrected and firms continue with their present policies and goals. According to Dodgson (1993), Single-loop learning can be equated to activities that add to the knowledge-base or firm-specific competences or routines without altering the fundamental nature of the organization’s activities. Single-loop learning has also been referred to as „Lower-Level Learning“ by Fiol and Lyles (1985), „Adaptive Learning“ or „Coping“ by Senge (1990), and „Non Strategic Learning“ by Mason (’93).
- Double-loop learning. This occurs when, in addition to detection and correction of errors, the organization questions and modifies its existing norms, procedures, policies, and objectives. Double-loop learning involves changing the organization’s knowledge-base or firm-specific competences or routines (Dodgson, 1993). Double-loop learning is also called „Higher-Level Learning“ by Fiol and Lyles (1985), „Generative Learning“ or „Learning to Expand an Organization’s Capabilities“ by Senge (1990), and „Strategic Learning“ by Mason (1993). Strategic learning is defined as „the process by which an organization makes sense of its environment in ways that broaden the range of objectives it can pursue or the range of resources and actions available to it for processing these objectives.“ (Mason, 1993:843)
- Deutero-learning. This occurs when organizations learn how to carry out Single-loop learning and Double-loop learning. The first two forms of learning will not occur if the organizations are not aware that learning must occur. Being aware of ignorance motivates learning (Nevis et al., 1995). This means identifying the learning orientations or styles, and the processes and structures (facilitating factors) required to promote learning. Nevis et al., (1995) identify seven different learning styles and ten different facilitating factors that influence learning. For example, one of the facilitating factors is identifying the performance gap between targeted outcomes and actual performance. This awareness makes the organization recognize that learning needs to occur, and that the appropriate environment and processes need to be created. This also means recognizing the fact that lengthy periods of positive feedback or good communication can block learning (Argyris, 1994).
Double-loop learning and Deutero-learning are concerned with the why and how to change the organization, while Single-loop learning is concerned with accepting change without questioning underlying assumptions and core beliefs.
Dodgson states that the type of Organizational Learning also depends on where in the organization the organizational learning occurs. Thus, learning can occur in different functions of the organization such as research, development, design, engineering, manufacturing, marketing, administration, and sales.

Maybe this is the first time you’ve given more than a passing thought to a corporate learning culture. You’ve read about what learning culture is, how learning culture can benefit your company, and about best practices for implementing a learning culture.
A corporate culture of learning empowers all employees in the organization to continue to learn to build their knowledge base and skill sets, to innovate, create, and problem-solve for the benefits of themselves, the company, and their clients. However, developing and sustaining a strong learning culture can seem overwhelming. We want to share with you four real-world examples of businesses that are doing it right.
Organization #1: Adobe
The software giant has consistently been recognized by Fortune Magazine as one of the “Best 100 Companies to Work For.” Along with the company’s stated commitment to the wellbeing of its staff (and the numerous benefits the company offers to support employees), the leadership insists on integrity, transparency, and open lines of communication with staff.
Additionally, the company works to recruit talent from underrepresented minority communities. They recognize the value of having a diverse staff with a variety of ideas, experiences, and talents working together. The Adobe Life blog shares (among other news) stories about staff achievements, so everyone in the company is aware of individual and group successes.
Adobe also provides many learning opportunities for staff at the company through on-demand online courses, mentorship and leadership development programs, and education reimbursements. But Adobe doesn’t stop there. They’ve also created an award-winning program, Kickbox, that encourages innovation and risk-taking, no matter what the outcome. Any staff members who request it is given a red cardboard box containing stationery, snacks, and a $1,000-pre-paid credit card to explore an idea—no questions asked. Currently, 1,000 employees have taken advantage of the opportunity resulting in 23 who have received additional investment in their projects.
Organization #2: Google
We know, you’re probably not shocked to see Google on this list, but there’s a good reason it makes the list! The company is a standout when it comes to serving as a model for a corporate learning culture. Google’s employees are given the flexibility to set their schedules to work when it suits them, in a way that maximizes their productivity and creativity. The staff is made up of talent across all different fields of technology, so everyone can work with and learn from each other.
This growth
mindset, and opportunities for collaboration results in a staff that works to
constantly improve themselves and the company. Google values employee
contributions and risk-taking, even when it leads to
failure.
Google also values great managers. We have mentioned in our posts
the importance of leaders who demonstrate their commitment to, and confidence
in their employees. Google decided it wanted to understand what makes a manager
great.
Researchers first
tried to find evidence that managers weren’t important, that a manager had no
impact on a team’s work. (That’s outside-the-box thinking!) They looked at
manager performance ratings and feedback on Google’s annual employee survey and
found that (of course) managers mattered. Teams with great managers were productive and happy.
Still, the data did not explain what made these managers great; it only
reported that they were.
Google reviewed the comments on the performance ratings, and in the employee
surveys, and found ten behaviors that were repeatedly attributed to the great
managers. They also conducted double-blind interviews with a group of the best
and worst managers to find concrete examples of what the managers were doing
differently. You may recognize the behaviors in this list:
A great manager
- Is a good coach
- Empowers the team and does not micromanage
- Creates an inclusive team environment, showing concern for success and well-being
- Is productive and results-oriented
- Is a good communicator—one who listens and shares information
- Supports career development and discusses performance
- Has a clear vision/strategy for the team
- Has key technical skills to help advise and direct the team
- Collaborates across the organization
- Is a strong decisionmaker
Organization #3: Publix
The world’s largest employee-owned company has spent 21 consecutive years on Fortune’s 100 Best Companies to Work For list. All of its employees (and former employees) are controlling shareholders, with an 80% stake in the company, worth $16.6 billion. All employees who work an average of 20 hours per week receive company stock after working for the chain for a year, and additional stock every year. Employees have a vested interest in the company’s success and know that they are valued by company leadership.
Collaboration and communication are among the company’s core values, and employees are supported in pursuing career goals and reaching out to colleagues for assistance. They are also encouraged to work in the company’s various divisions to learn new skills, information, and aspects of the business.
The company further demonstrates its commitment to its employees by promoting internally in most cases. Perhaps it’s no surprise then, that the company’s annual voluntary turnover rate is 5%, compared with the national average of 65%.
Organization #4: WD-40
Chances are you
have a blue-and-yellow bottle of WD-40 under your kitchen sink or in the
garage, but you don’t necessarily think about the company that produces it.
Garry Ridge, the company’s CEO, is intensely committed to learning, and requires all employees
to take the pledge:
I am responsible for taking action, asking questions, getting answers, and
making decisions. I won’t
wait for someone to tell me. If I need to know, I’m responsible for asking.
I have no right to be offended that I didn’t “get this sooner.” If I’m
doing something others should know about, I’m responsible for telling
them.
When Ridge became CEO in 1997, the company’s signature product was in 4 out of 5 households in the U.S., along with countless businesses. But the can’s omnipresence was also its liability. It was sold only in the U.S. and most of its profits were paid as dividends. By 2016, the product was being sold worldwide, and sales had exploded. The company has also expanded its product offerings.
Ridge requires his employees to ask
questions, to innovate, collaborate with each other, take risks and not be
afraid of failure.
https://knowledgeforceconsulting.com/top-learning-organizations-4-businesses-that-do-it-right/
Workplace learning and development programs empower people to gain new skills and grow professionally. Since every company has its own culture, there are many ways to make learning and development programs successful. To gather inspiration for your next learning and development program, here are ten real-world examples of what companies have implemented for their employees.
1. Yelp
Everyone at Yelp has stretch roles. Giving people responsibilities just beyond
their current capabilities creates an engaged workforce and a culture of
mentoring. People are promoted from within, incentivizing both personal
development and nurturing others.
2. Pixar
Pixar University offers required training’s as well as optional classes for
different disciplines. Pixar President Ed Catmull says, “Pixar University helps
reinforce the mind-set that we’re all learning and it’s fun to learn together”.
They support their directors by empowering them to make decisions and take care
not to undermine their authority. Directors take development into their own
hands by asking for help from a “creative brain trust” of filmmakers, a pillar
of their peer-based process.
3. Airbnb
Fireside Chats are one way that Airbnb shows its dedication to learning. These
internal events bring in industry leaders who share their insights on a certain
topic. Airbnb says, “From CEOs to musicians,
these leaders always have something invaluable to teach us.”
4. Earls
The Visions + Goals program helps people at Earls create life visions and
communicate goals that help them be their best self. It also involves
occasional company retreats. Guest experience training takes place through a
combination of face-to-face training and eLearning.
5. Etsy
People are empowered to learn from others at all different levels within the
company. At “Etsy School” employees both teach and learn in classes on a wide range
of topics like tap dancing or how to navigate a difficult conversation. The
Etsy Learning and Development team helps people find a focus for their career
development.
5. OverDrive
Employees are provided with a Professional Growth Planner at OverDrive. This
guide showcases opportunities available for learning and development, and helps
people decide what is best for them. Employees and managers are encouraged to
work together and track progress throughout the year.
6. Thrive Digital
Accepting applicants at all levels of experience is something that is
encouraged at Thrive Digital. Team members have upward mobility to move into
new positions even if they enter with limited knowledge of the industry.
Training is offered on the paid search channels they’ll work with over time,
and Thrive’s partners often provide additional opportunities on their areas of
expertise.
7. 1800 GOT JUNK
1800 GOT JUNK created the A-Player Development Program for professional
development. They offer a series of workshops taught by employees that cover a
variety of topics like franchise development and strategic planning.
8. Culture Amp
Each employee has access to a professional coach through the Coaching for
Everyone program. Employees are provided with sessions at 6, 12 and 24 months
and they can choose to focus on personal or professional goals. Coaches help
assess where a person is and where they want to be, then guide each person
through a strategy to reach their goals.
9. Digital Ocean
Individual development planning and ensuring that everyone has a career they
can grow into is important at Digital Ocean. People map out what they want to
accomplish each year, looking at how their professional objectives tie into
business strategy along with their personal goals.
10. Optoro
Optoro encourages its employees to participate in the conferences,
organizations and learning programs that will keep them at the top of their
field. All exempt employees are given a professional development budget to use throughout
the calendar year. Employees work with their manager and department head to
determine what programs are appropriate for their development while also
providing business impact. In addition to professional development budgets,
Optoro provides internal management training through an intense 10+ week class.
In 2016, over 40 employees went through
this series.
https://www.manpower.ie/article/10-great-examples-of-learning-organisations
Paraphrase the texts in the INTRODUCTION.
Select a few companies from SECTION I and characterise their learning culture. If you like, you can add more examples.
How to set up a learning organisation? (RESEARCH)
Western civilisation is complex and advanced in all the contexts, be it the statehood, economy and business, law, community or education. This project should demonstrate that continuous, i.e. life-long learning, whose foundation is both gathering knowledge and developing insight, is the prerequisite for the survival and prosperity. On the basis of the resources it includes it should also point out how important strategic thinking is and encourage to improve it. It applies to all who have the necessary potential to do it.