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Organizational learning
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=== 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"/>
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