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Introduction

Organisational The concept of organisational learning and


learning: a critical learning organisation did not emerge until the
review 1980s, but its principles are rooted into many
perspectives of management (Garratt, 1999),
and its practices recognise a wide range of
Catherine L. Wang factors, such as organisation strategy, culture,
Pervaiz K. Ahmed structure, absorptive capacity, problem-
solving ability, employee participation, etc.
determining the learning results. The idea of
organisational learning is credited to the
creation of the ``action learning'' process
(Revans, 1982), which uses small groups,
rigorous collection of statistical data, and the
tapping of the group's positive emotional
The authors energies (Garratt, 1999). This technique is
also reflected in Deming's quality control
Catherine L. Wang and Pervaiz K. Ahmed are based at
system using quality circles, SPC (statistical
the Business School, University of Wolverhampton,
process control) and PDSA (plan-do-study-
Telford, Shropshire, UK.
action). A few works contributed positively to
open up the debate of organisational learning
Keywords and subsequently the popularity of the
Organizational learning, Creativity, Innovation, concept. These include Argyris and Schon's
Learning organizations (1978) double-loop learning notion, Senge's
(1990) The Fifth Discipline and Pedler et al.'s
Abstract (1991) learning company model.
Today, the concept of organisational
This paper reviews the conceptual framework of
learning has flourished and been defined in a
organisational learning, and identifies five focuses of the
wide range of literature (Levitt and March,
concept and practices within the existing literature,
1988; Senge, 1990; Cohen and Sproul, 1991;
namely, focus on collectivity of individual learning;
Argyris and Schon, 1996). However, the
process or system; culture or metaphor; knowledge
management; and continuous improvement. In line with
definitions bear some concurrent criticism.
current industrial contexts, this paper tentatively redefines
First, the concept of organisational learning
the concept of organisational learning, incorporating the
and learning organisation is ``excessively
aspect of radical innovation and creativity. The aim of this
broad, encompassing merely all
paper is to provide a clarified and updated understanding organisational change . . . and from various
of organisational learning. other maladies that arise from insufficient
agreement among those working in the area
on its key concepts and problems'' (Cohen
Electronic access
and Sproul, 1991, p. 1). Similar criticism has
The Emerald Research Register for this journal is been raised by many other authors such as
available at Daft and Huber (1987), Huber (1991),
http://www.emeraldinsight.com/researchregister Dodgson (1993), Garvin (1993), Hawkins
The current issue and full text archive of this journal is (1994), Miller (1996), and Popper and
available at Lipshitz (2000). Second, most of the
http://www.emeraldinsight.com/0969-6474.htm definitions appear to be complementary
rather than fundamentally original or
conceptually different (Matlay, 2000). The
influx of literature provides overwhelming,
but unclear information to both researchers
and practitioners. Finally, the prevailing
concept of organisational learning and
The Learning Organization
learning organisation bears a strong bias
Volume 10 . Number 1 . 2003 . pp. 8-17
# MCB UP Limited . ISSN 0969-6474 towards the traditional scientific approach to
DOI 10.1108/09696470310457469 management, and stresses the importance of
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Organisational learning: a critical review The Learning Organization
Catherine L. Wang and Pervaiz K. Ahmed Volume 10 . Number 1 . 2003 . 8-17

system thinking and continuous all the organisational members (Shrivastava,


improvement. A few researchers have 1983).
identified the limitations of the existing The main stream within this focus of
framework in current industrial contexts organisational learning considers individuals
(Lorente et al., 1999; Kim and Mauborgne, as ``agents'' for organisations to learn (Argyris
1999; Wang and Ahmed, 2001). There is a and Schon, 1978, p. 16):
need to review the existing literature to Organisational learning occurs when individuals
explicate understanding of the organisational within an organisation experience a problematic
learning concept and practices and essentially situation and inquire into it on the organisational
behalf. They experience a surprising mismatch
upgrade the concept to conform to the
between expected and actual results of action
requirements of current industrial and respond to that mismatch through a process
developments. of thought and further action that leads them to
modify their images of organisation or their
understandings of organisational phenomena
and to restructure their activities so as to bring
Identifying five focuses of outcomes and expectations into line, thereby
organisational learning changing organisational theory-in-use.

The concept of learning is understood from A learning organisation evolves as a result of


various perspectives, and mainly developed in the learning and behaviour of its people
the psychological field over a long (Honey and Mumford, 1992; Burgoyne and
evolutionary history. The application of Pedler, 1994; Senge, 1990; Marquardt and
learning at the organisational level was Reynolds, 1994). The ability of a workforce in
primarily conditioned as a collectivity of an organisation to learn faster than those in
individual learning, training and development. other organisations constitutes the only
The process of individual learning has a sustainable competitive advantage at the
significant impact on the concept and disposal of a learning organisation (De Geus,
practices of organisational learning. Learning 1998, p. 71). Organisational learning should
starts from individuals. A learning be where the individuals consciously interact
organisation is founded on the learning with others through the process of education
process of individuals in the organisation. and as a result of experience (Kolb, 1984;
However, individual learning does not Honey and Mumford, 1992). Therefore, a
necessarily lead to organisational learning learning organisation should primarily focus
(Ikehara, 1999). It is the task of the learning on valuing, managing and enhancing the
organisation to integrate individual learning individual development of its employees
into organisational learning. (Scarbrough et al., 1998, p. 2).
The concept of organisational learning has Under this viewpoint, organisational
quickly evolved to cover various aspects of learning is in a sense the collectivity of
organisational management. Researchers and individual learning within the organisation.
practitioners intend to provide a holistic Collective learning occurs in addition to the
description of the domain and create a learning process at the individual level, and
proliferation of definitions. Through an may even occur independently of each
extensive literature review, we identify five individual. However collective learning
focuses of the concept: focus on collectivity of cannot take place if all the employees in an
individual learning; focus on process or organisation are prevented from learning
system; focus on culture or metaphor; focus (Romme and Dillen, 1997; Kim, 1993).
on knowledge management and focus on Therefore it is claimed that a learning
continuous improvement (see Table I). organisation can be defined or measured in
terms of the sum total of accumulated
Focus on collectivity of individual individual and collective learning (Hyland
learning and Matlay, 1997).
Early research demonstrates a strong It is worth noting that individual learning is
emphasis on the role of individual learning in not necessarily positive or contributive to the
organisational learning. At the extreme end, organisation, because employees may learn
the organisational learning system is viewed as something negative to the organisation, or
one depending wholly on individual learning may learn to improve themselves, rather than
as against practice of knowledge sharing for benefit the organisations (Field, 1997). On
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Organisational learning: a critical review The Learning Organization
Catherine L. Wang and Pervaiz K. Ahmed Volume 10 . Number 1 . 2003 . 8-17

Table I A summary of the organisational learning concept and practices


Focus The concept of organisational learning Practices
Individual learning ``Organisational learning occurs when individuals Staff training and
within an organisation experience a problematic development
situation and inquire into it on the organisational
behalf'' (Argyris and Schon, 1996, p. 16)
Process or system Organisational learning is the process whereby Enhancement of information
organisations understand and manage their processing and problem
experiences (Glynn et al., 1992) solving capability
Culture or metaphor ``A learning organisation should be viewed as a Creation and maintenance of
metaphor rather than a distinct type of structure, learning culture:
whose employees learn conscious communal collaborative team working,
processes for continually generating, retaining and employee empowerment and
leveraging individual and collective learning to involvement, etc.
improve performance of the organisational system
in ways important to all stakeholders and by
monitoring and improving performance'' (Drew and
Smith, 1995)
Knowledge management Organisational learning is the changes in the state Facilitation of interaction and
of knowledge (Lyles, 1992, 1998). It involves strengthening of knowledge
knowledge acquisition, dissemination, refinement, base
creation and implementation: the ability to acquire
diverse information and to share common
understanding so that this knowledge can be
exploited (Fiol, 1994) and the ability to develop
insights, knowledge, and to associate among past
and future activities (Fiol and Lyles, 1985)
Continuous improvement ``A learning organisation should consciously and The adoption of TQM
intentionally devote to the facilitation of individual practices
learning in order to continuously transform the
entire organisation and its context'' (Pedler et al.,
1991)

the other hand, individuals' learning Focus on process or system


activities, in turn, are facilitated or inhibited Another stream of organisational learning
by an ecological system of factors that may be research focuses on organisations themselves
called an ``organizational learning system'' and refers to an organisation as a ``learning
(Argyris and Schon, 1978). Thus, the system'' (Revans, 1982). Organisational
learning-based interaction between individual learning is the process whereby organisations
employees and the organisation that employs understand and manage their experiences
them is emphasised (Morgan, 1986; (Glynn et al., 1992).
Hedberg, 1981). Matlay (2000) further notes Different perspectives are stressed within
that the relationship between individual and the learning process: leadership (Revans,
collective learning is a most important aspect 1982; Popper and Lipshitz, 2000); five
that distinguishes learning organisations from disciplines: personal mastery, mental models,
one another. shared vision, team learning and systems
However, if a distinction between the thinking (Senge, 1990); and 4I processes:
organization and the individual is not made intuiting and interpreting at the individual
explicit, a model of organisational learning level; interpreting and integrating at the group
will either obscure the actual learning process level; and integrating and institutionalising at
by ignoring the role of the individual (and the organisational level (Crossan et al., 1994,
anthropomorphizing organisations) or p. 6).
become a simplistic extension of individual The system view of organisational learning
learning by glossing over organisational has been taken mainly from the information
complexities (Kim, 1993, pp. 42-3). processing perspective (Cyert and March,
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Organisational learning: a critical review The Learning Organization
Catherine L. Wang and Pervaiz K. Ahmed Volume 10 . Number 1 . 2003 . 8-17

1963). Organisations are referred to as individual and collective learning to improve


information processing systems, acquiring, performance of the organisational system in
interpreting, distributing, and storing ways important to all stakeholders and by
information within the organisation, and monitoring and improving performance.
therefore four components of the Traditional hierarchical cultures are anti-
organisational learning process are proposed: learning and anti-training, and undermine the
knowledge acquisition, information ability of organisations to match and survive
distribution, information interpretation and increasing competition in the global
organisational memory (Huber, 1991). marketplace (Jones, 1996). In the new
There are two sub-streams within the economy, knowledge is not reserved for
system view: organisations as a closed system people in managerial or professional
or an open system. Under the view of positions. Every worker needs to be a
organisations as a closed system, knowledge worker. However, having a
organisational learning is restricted within an company where the majority of employees are
organisation itself. The viewpoint of knowledge workers is not sufficient to
organisations as an open system takes into guarantee success against strong competition.
account the situational factors and includes The culture has to be right to enable their full
inter-organisational learning as an important contribution. Organisations need to change to
part of the whole organisational learning a collaborative team culture in order to escape
system. Knowledge is acquired widely, both the no-training and waste-training traps
within and outside of the organisation. The (Jones, 1996) and focus on the process and
open system viewpoint reflects the involvement of people within the organisation
contingency approach to organisational (Mintzberg, 1994). Every member of the
management and some practices from the organisation must be able to positively
new organisational paradigms. In a learning contribute. The same has been stressed by
organisation, the highest stage incorporates Jones (1996) that, ``in addition to the full
three aspects of learning: adapting to their utilization of the technical skills and
environment; learning from their people; and knowledge of employees, a team approach is
contributing to the learning of the wider essential for the effective acquisition of new
community or context of which they are a part knowledge and skills. Team skills are
(Pedler et al., 1991). However, there is lack of inextricably linked to effective learning. It is
emphasis on flexibility, innovativeness and the learning and motivation which a team
creativity within the system view, and these approach enables that forms the mainspring
factors become increasingly important for an of quality, innovation, service, etc.''. Torbert
organisation to succeed. (1991) names it ``the liberating culture'',
which is a means of overcoming barriers that
Focus on culture or metaphor limit organisational learning.
Within the organisational learning literature, The linkage between culture and
there is a strong emphasis on the cultural organisational performance has been
perspective of the learning organisation. tentatively defined by researchers (Denison,
Culture serves as a sense-making mechanism 1990; Gordon and DiTomaso, 1992).
that guides and shapes the values, behaviours Culture, as an independent and internal
and attitudes of employees (O'Reilly and variable (Smircich, 1983), has become a
Chatman, 1996), and it is through values that critical tool for strategists to design
behaviour flows and is guided (Simon, 1976). organisations. Culture enables an
An organisation's culture imposes ``coherent, organisation to best utilise its knowledge and
order, and meaning'' and enables the experience for establishing and achieving
institutionalisation of an appropriate sense- desired goals and learning about wisdom as
making structure to facilitate interpretation of the process of discerning judgments and
unfamiliar events (Weick, 1985, p. 384). action based on knowledge (Bierly et al.,
Drew and Smith (1995) comment that a 2000). This type of learning is associated with
learning organisation should be viewed as a the ``third-order learning'' or triple-loop
metaphor rather than a distinct type of learning by Bateson (1972), Berman (1981),
structure, whose employees learn conscious McWhinney (1992), and ``the spirit-action
communal processes for continually connection'' by Rothberg (1993). However,
generating, retaining and leveraging within the existing literature, there is general
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Organisational learning: a critical review The Learning Organization
Catherine L. Wang and Pervaiz K. Ahmed Volume 10 . Number 1 . 2003 . 8-17

restriction to validate the association between 1995, p. 27). It is increasingly important that
adoption of a learning culture and the learning process moves on to a higher
improvement of organisational performance. level of triple-loop learning, which, combined
There is a need of larger-scale empirical with organisational unlearning, leads to
research to understand the linkage and knowledge creation.
relationship.
Focus on continuous improvement and
Focus on knowledge management incremental innovation
Organisational learning and knowledge Current literature on organisational learning
management are two parallel-developed has a bias on continuous improvement
concepts in the new economy and often refer (Pedler et al., 1991; Buckler, 1996;
to each other in their definitions and Scarbrough et al., 1998). The learning
practices. organisation is a state which is continuously
Organisational learning is referred to as the being striven for (Hodgkinson, 2000) and is
changes in the state of knowledge (Lyles, more an aspiration for a continuous process
1992, 1988), and involves knowledge rather than a single product (Garratt, 1999).
acquisition, dissemination, refinement, A learning organisation is viewed as one
creation and implementation: the ability to where ``people continuously expand their
acquire diverse information and to share capacity to create the results they truly desire,
common understanding so that this where new and expansive patterns of thinking
knowledge can be exploited (Fiol, 1994, are nurtured, where collective aspiration is set
p. 404), and the ability to develop insights, free, and where people are continually
knowledge, and to associate among past and learning how to learn together'' (Senge, 1990,
future activities (Fiol and Lyles, 1985, p. 811). p. 3). A similar definition is given by Pedler
Bierly et al. (2000, p. 597) define ``learning is et al. (1991): a learning organisation should
the process of linking, expanding, and consciously and intentionally devote to the
improving data, information, knowledge and facilitation of individual learning in order to
wisdom''. Organisational knowledge is stored continuously transform the entire
partly into individuals in the form of organisation and its contexts (Pedler et al.,
experience, skills and personal capability, and 1991; Morris, 1996; Scarbrough et al., 1998).
partly into the organisation, in the form of In this sense, the adoption of total quality
documents, records, rules, regulations and management (TQM) is a milestone towards a
standards, etc. (Weick and Roberts, 1993). learning organisation.
Part of knowledge between an organisation TQM's main tenets are the pursuit of
and individuals is complementary and part of continuous improvement. Practised both as a
it incongruent to each other's belief systems. philosophy and a set of techniques, TQM
Organisational memory maintains the enables organisations to focus on meeting and
organisational knowledge base, acts as the satisfying customer needs by improving
foundation of knowledge accumulation and processes, understanding the internal
creation, and reflects the absorptive capability customer concept, involving each individual
of organisations. Therefore, to create a employee, implementing organisational wide
learning environment between individuals training and development and concentrating
and the organisation to facilitate interaction on improvements in cost, quality and
and strengthening of each other's knowledge customer satisfaction (Evans and Lindsay,
base becomes the main task for management 1999; Luthans, 1998; Flood, 1993). It has
(Adler et al., 1999). been thus argued that TQM and learning
Only recently has organisational learning organisations are mutually dependent (Ford,
been essentially linked to knowledge creation. 1991). Organisational learning is an intended
The understanding of the impact of outcome of TQM, and there is a correlation
organisational learning on knowledge between process improvement and
management can be taken from the organisational learning (Barrow, 1993).
``ontological dimension'' of Nonaka and Continuous improvement is aimed to achieve
Takeuchi's knowledge creation model, which incremental innovation, therefore, a learning
is the process of knowledge transfer among organisation dedicates to incremental
individual, group, organisational and inter- innovation through effective learning
organisational levels (Nonaka and Takeuchi, mechanisms.
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Organisational learning: a critical review The Learning Organization
Catherine L. Wang and Pervaiz K. Ahmed Volume 10 . Number 1 . 2003 . 8-17

Focus on creativity and innovation assumption, organisational learning needs to


adopt a sixth focus of innovation and
It is not necessary to make a prolonged creativity, and possess the following features
discussion about the fast changes of the (see Table II):
current business world, which is evidently . Triple-loop learning: it is essential that
featured by hyper-dynamics, uncertainty and organisations move onto this higher level
chaos. Organisations have to face a constant of triple-loop learning, which constantly
challenge: intensified competition6increased questions existing products, processes and
customer power6shortened product life systems by strategically asking where the
cycle. Organisations relying simply on the organisation should stand in the future
traditional competence in cost and differential marketplace, rather than merely single and
strategy find it increasingly difficult to sustain double-loop learning which simply asks
competitive advantage. A strategy of what is wrong, how to correct and prevent
continuous improvement is not necessarily from errors (Wang and Ahmed, 2001).
beneficial to organisations which operate in . Organisational unlearning: people do not
hyper-dyanmic markets such as the high-risk tend to abandon current beliefs and
investment sector like pharmaceuticals and methods as long as they seem to produce
the high-tech sector like microprocessors, etc. reasonable results (Kuhn, 1962), and
(Lorente et al., 1999). In fact, many until incontrovertible evidence, usually in
researchers have noted that a focus on merely the form of failures, convinces them to
continuous improvement lacks vigour in the accept new paradigms (Petroski, 1992,
new world, since many companies are likely to pp. 180-1). The insistence in existing
confront competitors' innovations that beliefs and methods inhibits learning;
undermine their area of competence (Kambil therefore, organisational learning is often
et al., 2000). Continuous improvement accompanied with a certain degree of
provides a comfortable logic to gradual organisational unlearning. In fact,
evolution and an intellectual ``safe harbour'' organisations have to learn to discard
for risk optimisation, but presents very limited things done previously. They have to plan
forms of creative insights (Mascitelli, 2000). to abandon rather than try to prolong the
In turbulent organisational environments, life cycle of a successful product, system,
``competitive advantage is anchored in the or policy (Drucker, 1993). In a sense,
company's ability to innovate its way organisational learning is more about
temporarily out of relentless market organisational unlearning in order to
pressures'' (Ghosal et al., 1999). create quantum leaps.
Traditional strategies are competition- . Knowledge creation: organisational
based: strategies are oriented toward building learning is not restricted to knowledge
advantages over the competition (Kim and accumulation, dissemination, retention
Mauborgne, 1999). Guided by this principle, and refinement. Knowledge creation is
organisational learning conforms to system the core competency for organisations to
thinking and stresses the capacity of problem- move to a higher platform of competitive
solving or information-processing, which success. Innovation capacity is referred to
leads to incremental improvement. This as a continuous process of knowledge
stereotype contains a certain degree of creation (Biemans, 1992; Nonaka and
deficiency in terms of flexibility, Takeuchi, 1995; Davenport and Prusak,
proactiveness, innovativeness and energetics 1998). However, there is more evidence
required to succeed in new business that, to achieve sustainability,
environments. Organisations need to stand on organisations need to facilitate knowledge
a more revolutionary viewpoint and make creation through radical changes, which
breakthroughs and quantum leaps, which requires triple-loop learning accompanied
require fundamental changes in organisations. by organisational ambition, wisdom and
Organisational learning will have to expand its courage (Bierly et al., 2000).
function to facilitate the change in order to . Creative thinking: ``Creativity is the seed
enable the organisation to gain a leadership of all innovation, and the psychological
position (Kim and Mauborgne, 1999; perceptions of innovation (the
Mascitelli, 2000; Kambil et al., 2000; Wang implementation of people's ideas) within
and Ahmed, 2001). Based on this an organisation are likely to impact the
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Organisational learning: a critical review The Learning Organization
Catherine L. Wang and Pervaiz K. Ahmed Volume 10 . Number 1 . 2003 . 8-17

Table II A shift of the organisational learning focus


Existing focus New focus
Single-loop and double-loop learning Triple-loop learning and unlearning
Knowledge accumulation, dissemination, retention, Knowledge creation through radical changes
refinement and creation through incremental
changes
System thinking Creative thinking
Competition-based strategy Competence-based strategy
Continuous improvement in organisational Organisational sustainability through creative quality and
performance value innovation

motivation to generate new ideas'' In view of the aforementioned, we feel it


(Amabile et al., 1996). Breakthrough necessary to update the concept of
innovations involve unexpected leaps of organisational learning and learning
creativity and insight, rather than simply organisation to conform to current business
follow predictable trajectories (Mascitelli, environments.
2000). Organisational learning needs to In hyperdynamic business contexts, organisation
incorporate a higher degree of creativity learning is the process by which the organisation
to achieve quantum leaps. constantly questions existing product, process
and system, identifies strategic position, applies
. Competence-oriented: traditional various modes of learning, to achieve sustained
competition-based strategies drive competitive advantage.
organisations to build up competitive A learning organisation should dedicate to
advantage by doing better and cheaper improving the learning context and strategically
than competitors. Because their strategic strengthen organisation competency to facilitate
thinking regresses toward the knowledge creation and innovation, and deliver
marketplace-based competency.
competition, companies, in spite of
tremendous efforts, often achieve no Continuous improvement is still important to
more than incremental improvement a learning organisation, because it is the
(Kim and Mauborgne, 1999). foundation of a learning organisation, and the
Organisational learning needs to focus on basis of organisational capacity. To move onto
building competence, both organisation- this higher level of organisational learning,
based and marketplace-based, to organisations need a strong backup based on
undermine competitors' innovation single and double-loop learning, which
(Kambil et al., 2000). The organisational involves continual improvement in
objective should be set to make current management techniques. Similarly,
competition irrelevant and open up a new knowledge creation is based on the existing
market opportunity. knowledge base and absorptive capability of
. Linked to organisational sustainability: the organisation, which is enhanced through
organisational learning is related to continuous improvement. Therefore,
organisational outcomes (Bedeian, 1990, incremental changes are in fact more
1987), and connected to continuous important than ever to a learning organisation.
improvement (Pedler et al., 1991; Morris, However, encountering current business
1996; Scarbrough et al., 1998). However, environments, a learning organisation has to
in response to current turbulent markets, strive to achieve breakthroughs in terms of
value innovation through the creative both organisational competency and
quality process will be the only sustainable competitive edge in the marketplace.
competitive advantage in the future Organisations will have to focus on creativity
(Wang and Ahmed, 2001). Organisational and innovativeness to make quantum leaps in
learning should facilitate the creative order to become a market leader.
quality process to deliver value innovation
in the marketplace, in order to achieve
organisational sustainability, rather than Conclusions
temporary profitability and incremental
changes within the current competitive The concept of organisational learning has
framework. borrowed and developed from the individual
14
Organisational learning: a critical review The Learning Organization
Catherine L. Wang and Pervaiz K. Ahmed Volume 10 . Number 1 . 2003 . 8-17

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