Editing Organizational learning (section)

== Relevance ==
Organizational learning happens as a function of [[experience]] within an [[organization]] and allows the organization to stay competitive in an ever-changing environment. Organizational learning is a process improvement that can increase efficiency, accuracy, and profits. A real-world example of organizational learning is how a new pizza store will reduce the cost per pizza as the cumulative production of pizzas increases.<ref name=":03" /> As the staff creates more pizza; they begin to make pizzas faster, the staff learns how to work together, and the equipment is placed in the most efficient location leading to cheaper costs of creation. An example of a more formal way to track and support organizational learning is a [[learning agenda]].

Organizational learning is an aspect of [[organizations]] and a subfield of [[organizational studies]]. As an aspect of an organization, organizational learning is the process of creating, retaining, and transferring knowledge. [[Knowledge]] creation, knowledge retention, and [[knowledge transfer]] can be seen as adaptive processes that are functions of experience.<ref>Cyert, Richard; March, James G. (1992). A Behavioral Theory of the Firm (2 ed.). Wiley-Blackwell. {{ISBN|0-631-17451-6}}. 172.</ref> [[Experience]] is the knowledge that contributes to the procedural understanding of a subject through involvement or exposure. Research within organizational learning specifically applies to the attributes and behavior of this knowledge and how it can produce changes in the [[cognition]], [[Business process|routines]], and [[behaviors]] of an [[organization]] and its individuals.<ref>{{cite journal | last1 = Easterby-Smith | first1 = M | last2 = Crossan | first2 = M | last3 = Niccolini | first3 = D | year = 2000 | title = Organizational learning: Debates past, present andfuture | journal = Journal of Management Studies | volume = 37 | issue = 6| pages = 783–796 | doi=10.1111/1467-6486.00203}}</ref>

Individuals are predominantly seen as the functional mechanisms for organizational learning by creating knowledge through experience.<ref name="Argote Book5" /> However, individuals' knowledge only facilitates learning within the organization as a whole if it is transferred. Individuals may withhold their knowledge or exit the organization. Knowledge that is embedded into the organization, in addition to its individuals, can be retained.<ref name="Argote 20113" /> Organizations can retain knowledge in other ways than just retaining individuals, including using knowledge repositories such as communication tools, processes, [[learning agenda]]s, routines, networks, and [[transactive memory]] systems.<ref>{{cite journal | last1 = Argote | first1 = L |author1-link= Linda Argote | last2 = Ingram | first2 = P | year = 2000 | title = Knowledge transfer: A basis for competitive advantage in firms | journal = Organizational Behavior and Human Decision Processes | volume = 82 | issue = 1| pages = 150–169 | doi=10.1006/obhd.2000.2893}}</ref><ref>{{cite journal | last1 = Walsh | first1 = JP |author1-link= James P. Walsh | last2 = Ungson | first2 = GR | year = 1991 | title = Organizational memory | journal = Academy of Management Review | volume = 16 | issue = 1| pages = 57–91 | doi=10.5465/amr.1991.4278992}}</ref>

As a subfield, organizational learning is the study of experience, knowledge, and the effects of knowledge within an organizational context.<ref>{{cite journal | last1 = Fiol | first1 = M.C. | last2 = Lyles | first2 = M.A. | year = 1985 | title = Organizational learning | journal = Academy of Management Review | volume = 10 | issue = 4| pages = 803–13 | doi=10.5465/amr.1985.4279103| hdl = 2142/29097 | hdl-access = free }}</ref> The study of organizational learning directly contributes to the applied science of [[knowledge management]] (KM) and the concept of the [[learning organization]]. Organizational learning is related to the studies of [[organizational theory]], [[organizational communication]], [[organizational behavior]], [[organizational psychology]], and [[organizational development]]. Organizational learning has received contributions from the fields of [[educational psychology]], [[sociology]], [[economics]], [[anthropology]], [[political science]], and [[management science]].<ref>[[b:Learning Theories/Organizational Learning: Contributions by Discipline|Wikibooks:Learning Theories/Organizational Learning: Contributions by Discipline]] Wikibooks on Learning Theories and Organizational Learning</ref>

=== Communities of learning ===
Organizations gain knowledge in one of the four organizational communities of [[learning]]: individual, team, organizational, and inter-organizational. Organizational learning "involves the process through which organizational communities (e.g. groups, departments, divisions) change as a result of experience." An example of organizational learning is a hospital surgical team learning to use new technology that will increase efficiency.<ref>[[Argote, Linda]]. "Intraorganizational Learning." UNC Classes. UNC. Web. 11 Dec. 2014.</ref>
* ''Individual learning'' is the smallest community at which learning can occur. An individual learns new skills or ideas, and their productivity at work may increase as they gain expertise. The individual can decide whether or not to share their knowledge with the rest of the group. If the individual leaves the group and doesn't share their knowledge before leaving, the group loses this knowledge.<ref name="Wilson, Jeanne M. 20073">{{cite journal | last1 = Wilson | first1 = Jeanne M. | author-link2 = Paul S. Goodman | last2 = Goodman | first2 = Paul S. | last3 = Cronin | first3 = Matthew A. | year = 2007 | title = Group Learning | journal = Academy of Management Review | volume = 32 | issue = 4| pages = 1041–59 | doi=10.5465/amr.2007.26585724}}</ref> In their study of software development, Boh, Slaughter and Espinosa (2007) found that individuals were more productive the more specialized experience they had with a certain system.<ref name="Argote Spektor4" />
* ''Group learning'' is the next largest community<ref>{{cite book |last1=Wenger |first1=Etienne |title=Communities of Practice: Learning, Meaning, and Identity |date=1998 |publisher=Cambridge University Press}}Argote, L., Gruenfeld, D., and Naquin, C. "Group learning in organizations."
Groups at Work: Advances in Theory and Research, ed., M. E. Turner
(Lawrence Erlbaum, 2001).</ref> There are conflicting definitions of group learning among researchers studying it. One belief is that group learning is a process in which a group takes action, gets feedback, and uses this feedback to modify their future action.<ref>{{cite journal | last1 = Sole | first1 = D. | last2 = Edmondson | first2 = A. C. | year = 2002 | title = Situated knowledge and learning in dispersed teams | url = http://nrs.harvard.edu/urn-3:HUL.InstRepos:37907101| journal = British Journal of Management | volume = 13 | issue = S2 | pages = S17–S34 | doi=10.1111/1467-8551.13.s2.3| s2cid = 16422610 }}</ref> Another belief is that group learning happens when a member shares their individual knowledge with other group members. Others have suggested that group learning is primarily a process of error detection and correction<ref>Argyris,C. and Schön, D. Organizational Learning: Theory, method and practice.(New York: Addison-Wesley, 1995)</ref> or that group learning is primarily about the processes of interpretation and integration.<ref>{{cite journal | last1 = Crossan | first1 = M.M | last2 = Lane | first2 = H.W. | last3 = White | first3 = R.E. | year = 1999 | title = An organizational learning framework: From learning to institution | journal = Academy of Management Review | volume = 24 | pages = 522–537 | doi = 10.5465/amr.1999.2202135 }}</ref> Once this happens, individual learning turns into group learning.<ref name="Wilson, Jeanne M. 20073" /> Reagans, Argote, and Brooks (2005) studied group learning by examining joint-replacement surgery in teaching hospitals. They concluded that "increased experience working together in a team promoted better coordination and teamwork."<ref>Edmondson, A.C., J.R. Dillon, and K.S. Roloff (2007). Three perspectives on team learning: Outcome improvement, task mastery, and group process. In A. Brief and [[James P. Walsh|J. Walsh]] (Eds.), The Academy of Management Annals, Volume 1.</ref> Working together in a team also allowed members to share their knowledge with others and learn from other members. To sum up the different definitions cover following aspects: task independence (what one group member does affects and is affected by another group member); social psychological awareness (members perceive themselves as a group and are perceived as a group); and social embeddedness (the group exists in a larger social system).<ref>Argote, L., (2013). Organizational Learning:Creating, Retaining and transferring knowledge, Springer Science + Business Media New York, 115-146</ref>

* ''Organizational learning'' is the way in which an organization creates and organizes knowledge relating to their functions and culture. Organizational learning happens in all of the organization's activities, and it happens in different speeds. The goal of organizational learning is to successfully adapt to changing environments, to adjust under uncertain conditions, and to increase efficiency.<ref>{{cite journal | last1 = Dodgson | first1 = Mark | year = 1993 | title = Organizational learning: a review of some literatures | journal = Organization Studies | volume = 14 | issue = 3| pages = 375–394 | doi=10.1177/017084069301400303| s2cid = 146404914 }}</ref> According to Argote (1993), managers in manufacturing plants saw organization learning occur when they found ways to make individual workers more proficient, improve the organization's "technology, tooling, and layout," improve the organization's structure, and determine the organization's strengths.<ref name="Argote Book5" />
* ''Interorganizational learning'' is the way in which different organizations in an alliance collaborate, share knowledge, and learn from one another. An organization is able to improve its "processes and products by integrating new insights and knowledge" from another organization.<ref name="Tucker, Anita L. 20073">{{cite journal | last1 = Tucker | first1 = Anita L. | last2 = Nembhard | first2 = Ingrid M. | last3 = Edmondson | first3 = Amy C. | year = 2007 | title = Implementing new practices: an empirical study of organizational learning in hospital intensive care units | journal = Management Science | volume = 53 | issue = 6| pages = 894–907 | doi=10.1287/mnsc.1060.0692}}</ref> By learning from another organization, an organization is able to cut time costs, decrease the risks associated with problem solving, and learn faster. Learning from another organization can mean either applying the same ideas used by that organization or modifying these ideas, thereby creating innovation.<ref name="Tucker, Anita L. 20073" /> Inter-organizational learning occurs frequently in fixed business models, such as franchising. The franchisee looking to use the franchisor's brand has to learn how to use the organization's business model before starting a franchise.<ref>{{cite journal | last1 = Hjalager | first1 = Anne-Mette | year = 1999 | title = Interorganizational Learning Systems | journal = Human Systems Management | volume = 18 | issue = 1| page = 23 | doi = 10.3233/HSM-1999-18104 }}</ref>

=== History of study ===
The origin of the focused study of organizational learning can be traced to the late 1970s, when researchers studied it from a psychological viewpoint. Key advances in the field include:
* ''Behavioral psychology and organizational development'': In their 1978 work on organizational learning, [[Chris Argyris]] and [[Donald Schön]] developed the concepts of single-loop and double-loop learning.<ref>Argyris, C. and Schön, D.A. (1978), ''Organizational Learning: A Theory of Action Perspective'', Addison-Wesley, Reading, MA.</ref> Single-loop learning is the process in which a mistake is corrected by using a different strategy or method that is expected to yield a different, successful outcome. Take, for example, a person who acts a certain way to accomplish a certain goal. If this person's actions fail in accomplishing the goal, with single-loop learning, this person will reflect on their previous actions and, going forward, they will take a different set of actions to accomplish the same goal. Double-loop learning, on the other hand, is a more complicated process in which a mistake is corrected by rethinking the initial goal. In the previous example, the person would show double-loop learning if they chose to reevaluate their goal and beliefs instead of simply reassessing their failed actions. They will then take a set of actions that are aligned with their reevaluated goals and beliefs. Argyris and Schön explain that both single-loop and double-loop learning processes are present in organizations and are two types of organizational learning. Single-loop learning occurs when an organization detects a mistake, corrects it, and carries on with its present policies and objectives. Double-loop learning occurs when an organization detects a mistake and changes its policies and objectives before it can take corrective actions.<ref>YMCA George Williams College. "Chris Argyris: Theories of Action, Double-Loop Learning, and Organizational Learning." Infed. Infed.org. 30 Nov. 2014.</ref><ref>Romero Pereda, Arturo. "Single-Loop and Double-Loop Learning Model." ICL Blog. AFS Intercultural Programs. Web. 30 Nov. 2014.</ref>
* ''Adaptation and routines'': In their book defining the [[behavioral theory of the firm]], [[Richard Cyert]] and [[James G. March]] described organizational learning as an organization's adaptive behavior over time. This consists of the adaptation of goals, adaptation in attention rules, and adaptation in search rules. Part of organizational learning is setting goals and changing these goals over time. They change along with an organization's members are established as problems arise.{{clarify|date=November 2015}} When setting goals, an organization should consider three variables: "the organization's past goal, the organization's past performance, and the past performance of other 'comparable' organizations."<ref name="Cyert, Richard M. 19643">Cyert, Richard M., and James G. March. A Behavioral Theory of the Firm. Englewood Cliffs, NJ: Prentice-Hall, 1964.</ref> Adapting an organization's attention rules consists of determining which parts of an organization's environment requires most attention. Cyert and March give the example of the criteria an organization uses to evaluate employees' performances. Over time, organizations learn which criteria to use for their evaluations and how much weight to assign to each criterion. They also use the example of selecting which criteria to use when comparing one's organization with a similar one. An organization's adaptation in search rules refers to its ability to find solutions for its problems. Since a solution depends on the problem, an organization's search rules will change accordingly. Typically, an organization will be more likely to search for a solution a certain way if this search method previously succeeded in finding a solution. An organization's search rules will depend on its previous successes or failures with the alternative search rules.<ref name="Cyert, Richard M. 19643" />
* ''Learning curves'' by Dutton & Thomas (1984): John M. Dutton and Annie Thomas organized field studies on various industries to study the rates of learning in organizations. They found that workers' errors and/or costs decrease as they learn from experience. However, since the knowledge that workers' can learn lessens over time, they cannot improve their performance at a constant rate. Instead, the rate by which they improve decreases with more experience. Dutton and Thomas also found that there are four causal categories that affect a firm's progress. Two categories, exogenous and endogenous learning, describe the source of a firm's progress. Exogenous learning occurs when a firm acquires information from external sources that allow it to progress. Examples of external sources include "suppliers, customers, competitors, and government."<ref name="jstor.org">{{cite journal | last1 = Dutton | first1 = John M | year = 1984 | title = Treating Progress Functions as a Managerial Opportunity | journal = The Academy of Management Review | volume = 9 | issue = 2| pages = 235–247 | jstor=258437| doi = 10.5465/amr.1984.4277639 }}</ref> Endogenous learning occurs when employees learn from within the firm, which is "manifested by technical changes, direct-labor learning, and smoothing production flows."<ref name="jstor.org"/> The other two categories, induced and autonomous learning, describe the environments in which progress occurs. Induced learning occurs when a firm makes investments or adds resources to an environment to make it conducive for learning. Autonomous learning occurs when sustained production leads to automatic improvements over long periods of time.<ref name="jstor.org"/>