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Organizational Learning and Performance
Traditional educational and instructional solutions in the workplace are aimed at improving the skills and knowledge of workers, but organizational leaders are ultimately interested in, and accountable for, performance results. In this sense, improving learning at the worker level adds value only to the extent that it measurably contributes to the attainment of worthwhile organizational performance objectives. Roger Kaufman argues that a critical distinction must be made between means and ends. It is important to recognize that educational technology concepts, tools, and products are some of the means organizations can use to improve learning at the worker level. However, these means should never be picked before carefully determining what organizational performance results we are responsible for accomplishing, what gaps exist between those desired results and current results, the causal factors contributing to those results, and finally, what solutions are appropriate, given the causes for existing gaps.
Performance data may indicate that a lack of skills and knowledge in a group of workers is not a factor, and in this case we must turn to other relevant solutions that, even though they may be outside the scope of learning, are still within the scope of performance. These include clear objectives, systematic job processes, and appropriate consequences. This systemic orientation is driven by relevant performance data at all levels of the organization and at all stages of organizational processes. Dale Brethower references Geary Rummler’s work as being the quintessential example of how one can continuously learn about, and improve, organizational performance, primarily by focusing on two key questions: “What are the variables that measure the results desired? What variables must we manage to achieve those results?” (p. 18).
Therefore, beyond a focus on individual learning, organizational learning and performance are concerned with the organization’s ability to continuously improve itself based on timely performance data relevant to its ultimate, and en route, objectives. In this sense, organizational learning and performance are intricately linked to continuous improvement in that they involve monitoring key data and then using them to make ongoing adjustments. This entry first discusses how organizations learn from performance measurement and what performance indicators are measured. It then discusses performance monitoring and feedback systems and the outcomes of organizational learning.
Learning From Performance Measurement
A group of scientists, engineers, and economists at the Massachusetts Institute of Technology that constituted the MIT Commission on Industry Productivity specifically recommended that organizations must develop and use sound techniques for measuring and improving the efficiency and quality of their processes. This 1989 landmark study, published in part as Made in America: Regaining the Productive Edge, further stated that it is necessary to identify opportunities for progressive improvements in their performance.
Without accurate and timely performance feedback—provided by ongoing measurement and tracking of performance indicators—it becomes nearly impossible to efficiently and effectively see progress toward desired ends. It becomes equally difficult to make sound decisions about what to keep, what to change, and how. Performance feedback therefore provides a unique and crucial role in the improvement of human and organizational performance.
Most scholars and practitioners would agree about the importance of establishing performance objectives that provide strategic direction to our efforts. What is not as widely understood—and perhaps even practiced—is that without en route timely measurement of those objectives, organizations do not really know whether they are getting closer to or further away from those objectives, whether they are using the most efficient way to get there, or whether they are taking unnecessary twists and turns. In this sense, performance measurement is the compass that keeps an organization on course toward a desired destination, while providing the intelligence to make day-to-day decisions about how to best get there. Performance measurement can, nevertheless, speak both to effectiveness (Was the target destination reached?) and efficiency (Was the destination reached in the most economical way—whether in terms of time, cost, and other resources?).
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