Organizational learning is the process by which managers seek to improve organization members’ capacity to understand and learn the organization’s internal and external environments. In turn, members will perform to their capacity in carrying out their duties and progressively learn when they met with difficulties; hence they can make decisions and achieved objectives that continuously raise organizational effectiveness.
A learning organization is one that holistically constructs its structure and designs its visions in tandem with a conducive work environment, a learning culture, engaging policies and operational procedures, so as to enhance and maximize the potential for organizational learning to take place. ´
A Learning Organization is a company that uses knowledge as the path to productivity and improved market competitiveness. David A. Garvin of Harvard Business Review defines it as a company that specializes in creating, acquiring, and transferring knowledge.
Enhance the knowledge of employees at every level in the organization, empowering them to question and analyze the means an organization currently performs its activities and to experiment with new means to change it to improve operational effectiveness. This will create a learning organization which is capable of allowing its members to appreciate enhancing current knowledge and gaining new knowledge, hence they are able to respond swiftly to changes in this volatile business environment.
Exploitation learning involves organizational members learning means to refine and improve existing activities and procedures, whereas exploration learning involves members searching for and experimenting with new kinds or forms of activities and procedures.