How can organisations learn?

Over the last few decades, organisational learning has been constantly increasing in popularity among scholars and practitioners. However, despite its wide acceptance organisational learning is not a new concept. Researchers have studied it for over 40 years, advocating the importance of knowledge management (KM) within firms. So, while KM became a core structural component of any succeeding organisation, many leaders still overlook or misinterpret organisational learning. Thus, defining what it is and how it distinguishes itself from KM is a crucial stepping stone before integrating it. According to Liu (2020),

“Learning in organisations is a continuous process and can be characterised as involving a dynamic reciprocity and interdependence between individual, group/team and organisational levels.”

In simple terms, organisational learning involves the creation, retention and application of knowledge within the company as well as the continuous sharing of said knowledge between individuals, or departments, of the firm. This article will discuss the importance of interpersonal knowledge sharing and outline the role, and key differences, of single and double-looping learning. Ultimately, answering the question “Why would large corporations be interested in organisational learning?”.

To begin with interpersonal knowledge, it is worth outlining two types of knowledge that can be shared: explicit & tacit. Explicit refers to information that can be easily codified into words while tacit is knowledge that cannot be easily codified and relies on personal experience. For example, production line procedures are explicit knowledge but leading the team is tacit knowledge since it requires intuition and practice rather than formal training. So, while explicit knowledge can be provided by the organisation to its employees, tacit knowledge sharing relies heavily on individuals teaching, helping and collaborating.

Interpersonal knowledge sharing is known as processes that facilitate information sharing among employees, which aims to spread necessary tacit knowledge throughout the organisation. It is a crucial mechanism that fosters innovation, improves decision-making and most importantly increases organisational performance. However, since tacit knowledge resides in an individual’s mind, identifying the right source to gain knowledge becomes critical as it will affect the quality of knowledge and the individual’s performance on the task. Therefore, the responsibility of building confidence to seek knowledge, reducing knowledge hoarding and promoting knowledge contribution falls on the organisation. According to the vast literature, trust is the characteristic that plays the dominant role in interpersonal knowledge sharing. Interestingly, the effects of different types of trust vary depending on the behavioural aspects of knowledge sharing that one is engaged in. Additionally, when employees are under significant pressure from long working hours or tight deadlines, they begin to focus on completing tasks rather than engaging in organisational citizenship behaviour (OCB). This suggests that organisations benefit the most from trust-promoting cultures and times of adequate work-life balance for their employees.

Before moving to the discussion of loop learning, it is worth defining single and double-loop learning. It is proposed that single-loop learning is about identifying and correcting errors from existing rules and goals. Making incremental adjustments to existing strategies, or processes, to improve performance to achieve set targets. The double loop is considered to be a more in-depth analysis. It goes beyond surface-level adjustments by questioning already existing norms that shape organisational behaviour and decision-making. It is a practice of reflecting and revising fundamental beliefs and principles to achieve more sustainable change.

Change is a constant state of the modern world. Thus, old norms, rules and procedures may not be applicable today. Relying solely on single-loop learning may lead to short-term success and incremental improvements but might fail to address underlying systemic issues and adapt to an ever-changing environment. Adopting double-loop learning should enable organisations to challenge the status quo, become more innovative and achieve transformational change. Additionally, it is crucial to understand that it is not one or another but instead a combination of two. Successful organisations use single-loop learning daily to deal with operational issues, performance feedback or routine challenges while also relying on double-loop learning to periodically question and evaluate the effectiveness of current practices. While double-loop learning is less frequent it is the essential driving force of innovation and longevity of the company. An organisation that understands the distinctions between single and double-loop learning can adopt appropriate learning strategies to navigate complexity, increase performance, and achieve long-term success.

In conclusion, the topic of organisational learning has garnered significant attention in recent decades but despite its longstanding presence in academic discourse, organisational learning remains a concept that is often overlooked or misunderstood by many leaders. Successful organisations leverage both single and double-loop learning in their work cultures. By understanding the distinctions between these two forms of learning and adopting appropriate learning strategies, organisations can adapt to change, increase performance, and maintain a competitive edge in today's dynamic business environment.