A learning organization is the term given to a company that facilitates the learning of its members and continuously

transforms itself. Learning organizations develop as a result of the pressures facing modern organizations and enables them to
remain competitive in the business environment. A learning organization has five main features; systems thinking, personal
mastery, mental models, shared vision and team learning.
The main benefits are:
 Maintaining levels of innovation and remaining competitive
 Being better placed to respond to external pressures
 Having the knowledge to better link resources to customer needs
 Improving quality of outputs at all levels
 Improving corporate image by becoming more people oriented
 Increasing the pace of change within the organization
Characteristics:
A learning organization exhibits five main characteristics: systems thinking, personal mastery, mental models, a
shared vision, and team learning.
Systems thinking. The idea of the learning organization developed from a body of work called systems thinking. This
is a conceptual framework that allows people to study businesses as bounded objects. Learning organizations use
this method of thinking when assessing their company and have information systems that measure the performance
of the organization as a whole and of its various components. Systems thinking states that all the characteristics
must be apparent at once in an organization for it to be a learning organization. If some of these characteristics is
missing then the organization will fall short of its goal. However O’Keeffe believes that the characteristics of a
learning organization are factors that are gradually acquired, rather than developed simultaneously.
Personal mastery. The commitment by an individual to the process of learning is known as personal mastery. There
is a competitive advantage for an organization whose workforce can learn quicker than the workforce of other
organizations. Individual learning is acquired through staff training and development, however learning cannot be
forced upon an individual who is not receptive to learning. Research shows that most learning in the workplace is
incidental, rather than the product of formal training, therefore it is important to develop a culture where personal
mastery is practiced in daily life. A learning organization has been described as the sum of individual learning, but
there must be mechanisms for individual learning to be transferred into organizational learning.
Mental models. The assumptions held by individuals and organizations are called mental models. To become a
learning organization, these models must be challenged. Individuals tend to espouse theories, which are what they
intend to follow, and theories-in-use, which are what they actually do. Similarly, organisations tend to have
‘memories’ which preserve certain behaviours, norms and values. In creating a learning environment it is important
to replace confrontational attitudes with an open culture that promotes inquiry and trust. To achieve this, the
learning organization needs mechanisms for locating and assessing organizational theories of action. Unwanted
values need to be discarded in a process called ‘unlearning’. Wang and Ahmed refer to this as ‘triple loop learning.’
Shared vision. The development of a shared vision is important in motivating the staff to learn, as it creates a
common identity that provides focus and energy for learning. The most successful visions build on the individual
visions of the employees at all levels of the organization, thus the creation of a shared vision can be hindered by
traditional structures where the company vision is imposed from above. Therefore, learning organizations tend to
have flat, decentralized organizational structures. The shared vision is often to succeed against a competitor,
however Senge states that these are transitory goals and suggests that there should also be long term goals that are
intrinsic within the company.
Team learning. The accumulation of individual learning constitutes Team learning. The benefit of team or shared
learning is that staff grow more quickly and the problem solving capacity of the organization is improved through
better access to knowledge and expertise. Learning organizations have structures that facilitate team learning with
features such as boundary crossing and openness. Team learning requires individuals to engage in dialogue and
discussion; therefore team members must develop open communication, shared meaning, and shared
understanding. Learning organizations typically have excellent knowledge management structures, allowing
creation, acquisition, dissemination, and implementation of this knowledge in the organization
According to Peter Senge the 5 dimensions that distinguishes learning from more traditional organisations is the
mastery of certain basic disciplines or ‘component technologies’. Are:
Systems thinking
The ability to see the big picture and identify patterns and themes instead of individual events. Senge argues we
tend to apply overly simplistic frameworks to complex systems; focusing on the parts instead of the whole.
Classically we look to actions that produce improvements in a relatively short time span. However, when viewed in
systems terms short-term improvements often involve very significant long-term costs. We may learn from
experience but a simplistic short term view may mean we never learn. The argument runs, a better appreciation of
systems will lead to more appropriate action.
See how instructional design. takes account of a systems approach to learning here.
Personal mastery.
Organisations only learn when individuals learn but individual learning does not guarantee organisational learning.
People with personal mastery are continual learners and are aware of their short comings, development needs and
ignorance yet they have the self confidence to be active learners.
Mental models.

This is about understanding that our assumptions and generalisations profoundly influence how we see the world
and the decisions and actions we make. The process here is to uncover those assumptions or mental models and
test them. It is also about balancing advocacy and inquiry and avoiding non-productive corporate games and politics.
It is also about more distributed and local team ownership In other words it is about fostering a mental flexibility
and openness.
Building shared vision.
The emphasis is on a “shared vision” which means collaborative development to foster genuine engagement and
commitment rather than just compliance. This is the exact opposite of a CEO selling a vision. Visions spread because
of a reinforcing process. Increased clarity, enthusiasm and commitment rub off on others in the organization. ‘As
people talk, the vision grows clearer. As it gets clearer, enthusiasm for its benefits grow. Shared visioning build
commitment for the future.
Team learning.
This is about discussion and team alignment; it is about creating the results that the team desires. It builds on vision
and personal mastery but these are not enough. Teams have to learn to work and learn together. It is about team
disciplines and the quality of the team’s discussions and insights. When teams learn together, Peter Senge suggests,
not only can there be good results for the organization; members will grow more rapidly than could have occurred
otherwise.

Before a Learning Organisations can be implemented , a solid foundation can be made by taking into account the
following :
Awareness
Environment
Leadership
Empowerment
Learning

Awareness
Organisations must be aware that learning is necessary before they can develop into a Learning Organisation. This
may seem to be a strange statement but this learning must take place at all levels; not just the Management level.
Once the company has excepted the need for change, it is then responsible for creating the appropriate
environment for this change to occur in.
Environment:
Centralised, mechanistic structures do not create a good environment. Individuals do not have a comprehensive
picture of the whole organisation and its goals. This causes political and parochial systems to be set up which stifle
the learning process. Therefore a more flexible, organic structure must be formed. By organic, we mean a flatter
structure which encourages innovations. The flatter structure also promotes passing of information between
workers and so creating a more informed work force.

It is necessary for management to take on a new philosophy; to encourage openness, reflectivity and accept error
and uncertainty. Members need to be able to question decisions without the fear of reprimand. This questioning
can often highlight problems at an early stage and reduce time consuming errors. One way of over-coming this fear
is to introduce anonymity so that questions can be asked or suggestions made but the source is not necessarily
known.

Leadership

Leaders should foster the Systems Thinking concept and encourage learning to help both the individual and
organisation in learning. It is the leader's responsibility to help restructure the individual views of team members.
For example, they need to help the teams understand that competition is a form of learning; not a hostile act.

Management must provide commitment for long-term learning in the form of resources. The amount of resources
available (money, personnel and time) determines the quantity and quality of learning. This means that the
organisation must be prepared to support this.

Empowerment

The locus of control shifts from managers to workers. This is where the term Empowerment is introduced. The
workers become responsible for their actions; but the managers do not lose their involvement. They still need to
encourage, enthuse and co-ordinate the workers. Equal participation must be allowed at all levels so that members
can learn from each other simultaneously. This is unlike traditionally learning that involves a top-down structure
(classroom-type example) which is time consuming.

Learning

Companies can learn to achieve these aims in Learning Labs. These are small-scale models of real-life settings where
management teams learn how to learn together through simulation games. They need to find out what failure is like
so that they can learn from their mistakes in the future. These managers are then responsible for setting up an
open, flexible atmosphere in their organisations to encourage their workers to follow their learning example.

Anonymity has already been mentioned and can be achieved through electronic conferencing. This type of
conferencing can also encourage different sites to communicate and share knowledge, thus making a company truly
a Learning Organisation.