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A learning organization is a conceptual model of an organization, which is characterized by a flat structure, openly communicative processes, an inquisitive, customer–focused culture, and collaborative relationships that are built on a shared vision that uses the curiosity, commitment, and cooperation of the participants (employees).

Chris Argyris and Donald Schon proposed the concept of learning organizations as part of their work on organizational learning in the late 1970s. They wrote about two forms of organizational learning: adaptive learning and generative learning.

Adaptive learning (sometimes called single-loop learning in earlier works by Chris Argyris) only occurs within a set of recognized and unrecognized constraints called the learning boundaries. Within these learning boundaries, organizational competitive progress may be made, but if competitors are developing their thinking and learning outside the boundaries, this progress will not be sufficient for market success.

Generative learning, in contrast, yields a more powerful type of solution. Argyris describes this as “double-loop thinking.” In double-loop thinking, the organization is willing to question long-held assumptions about its mission, customers, competencies, and strategies. It is in questioning these assumptions that the true power of learning and unlearning can be realized.

Almost two decades later, learning organization theory gained attention on a much broader scale in the early 1990s as a result of Peter Senge' work described in his book The Fifth Discipline. Senge' premises built on Argyris and Schon' but went further: A learning organization is one that is willing to shift from viewpoints inherent in traditional, hierarchical organizations and to move toward a perspective in which all employees have the ability to challenge the prevailing thinking and provide new insights.

In The Fifth Discipline, Senge spent considerable attention on circular diagrams called causal loops, which map typical behaviors and organizational problems that he calls system archetypes.

Senge' work describes five elements of a learning organization:

  • Mental models
  • Personal mastery
  • Systems thinking
  • Shared visions
  • Team learning

Through the use of left- and right-hand column exercises, Senge contends that organizations can identify what they really think (the left-hand column) and what they say (the right-hand column). Argyris has written extensively about the dilemma of organizations that confuse the behavior espoused (talk) with the behavior in use (actions). This exercise allows analysis and dialogue about the personal and organizational prejudices and misconceptions that impede progress.

Finally, Senge uses what he calls a ladder of inference to help discover why we behave the way we do. This approach helps avoid jumping to dangerous or misdirected conclusions:

I take ACTIONS based on my beliefs;I adopt BELIEFS about the world;I draw CONCLUSIONS;I make ASSUMPTIONS based on the meanings added to my mental models;I add MEANINGS (cultural and personal);I select DATA from what I observe;I OBSERVE data and experiences.
Source: Senge, 1990, p. 59

Some of the important tools for developing and succeeding with learning organizations are provided by Senge' “Fieldbook,” which followed his original work and was based on challenges he met in trying to actually help organizations implement his ideas and discoveries.

If learning organizations are so potentially powerful, why are they not more prevalent? Despite the apparent power of learning organizations to achieve at unprecedented levels, they are still the exception, because their open, risk-tolerant cultures are in conflict with long-standing conservative corporate cultures. Most organizations are designed to resist learning, rather than facilitate it.

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