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Learning Organization

In an organizational context, learning refers to the process by which organizations notice, interpret, and manage their experience. The outcome of the learning process is typically a change in the organization’s knowledge and action repertoires. Knowledge, in this sense, refers to the stock of insights on causal relations (why X leads to Y) and to the process of acquiring knowledge. As it becomes rooted in the organization’s routines, practices, and memory systems, the experience related to a specific task or situation can become knowledge, in the form of a cognitive or behavioral transformation or both. Learning, thus, can be thought of as an ongoing spiral; knowledge from past experiences influences the current organizational situation and, in turn, its future. Anchoring the concept of learning in organizational experience solves the tension between two seemingly contradictory views embedded in the learning organization— one that regards learning as a trial-and-error process honed through action and experience and another that emphasizes how cognitive patterns and cause-effect relationships evolve into shared beliefs that are ultimately institutionalized. To examine fundamental processes characterizing the learning organization, this entry reviews (a) four basic characteristics of the learning organization; (b) the evolution of organizational learning theory, including major works that shaped our understanding and our sense of the future trajectory of research; and (c) key research findings on the learning organization, suggesting readings on the topic.

Fundamentals

Learning in organizations is often described as multilevel, meaning that learning can occur at the individual, group, organizational, and interorganizational levels and that learning at one level can affect learning at other levels. The learning that occurs at each level has distinctive characteristics regarding what is learned, how it is learned, and how learning is best accomplished. These differences derive from recognizing that organizations are more than the aggregation of individuals, and therefore, processes such as learning involve more than the accumulation of individual learning. To give a few examples: Context can have a significant effect on individual learning; powerful individuals within the organization can influence what information is transmitted; and social interactions among members of the organization—or with external entities—may increase or decrease the outputs of learning.

In 1990, Peter Senge introduced the concept of the learning organization to describe an organization that continually fosters the learning capacity of its members, enhancing its ability to transform itself in the face of changing conditions. He identified five ways in which organizations can enable long-term competitiveness—systems thinking, personal mastery, mental models, building shared vision, and team learning—of which systems thinking is the most important and integrative. Many practitioners followed Senge’s footsteps and wrote books with their own models of the learning organization. However, researchers have not yet identified a model of the learning organization that is universally applicable.

Learning is a complex process and thus has been conceptualized in a number of different ways. A simple way to think of it is as a cyclical process that links together four elements: individual learning, organizational learning, organizational action, and organizational context.

Individual Learning

At the individual level, learning involves the conscious or unconscious recognition of patterns that can potentially become opportunities for action. Over time, consensus over shared understandings can develop among organizational members and, through repeated interactions, learning can become embedded in the systems, structures, routines, practices, and infrastructure of the organization. Through institutionalization, the cognitions and/or behaviors that result from the learning process become taken for granted, thus creating a perceived reality of the organization and its context. The resulting stocks of knowledge offer individuals an array of resources, including cognitive and behavioral capabilities, from which actors can draw as needed. Learning that is embedded in the organization influences the way in which individuals interpret subsequent events and experiences and, consequently, shapes the future learning of the organization as a whole.

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