Finally, Finger and Brand conclude, that there is a need to develop ‘a true management system of an organization’s evolving learning capacity’ (). This, they suggest, can be achieved through defining indicators of learning (individual and collective) and by connecting them to other indicators.
In our view, organizational learning is just a means in order to achieve strategic objectives. But creating a learning organization is also a goal, since the ability permanently and collectively to learn is a necessary precondition for thriving in the new context. Therefore, the capacity of an organization to learn, that is, to function like a learning organization, needs to be made more concrete and institutionalized, so that the management of such learning can be made more effective. (: 147)
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The emergence of the idea of the ‘learning organization’ is wrapped up with notions such as ‘’. Perhaps the defining contribution here was made by . He provided a theoretical framework linking the experience of living in a situation of an increasing change with the need for learning.
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We could argue that organizational learning is the ‘ and the by which organizations eventually reach th[e] ideal of a learning organization’ (Finger and Brand 1999: 136).
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Subsequently, we have seen very significant changes in the nature and organization of production and services. Companies, organizations and governments have to operate in a global environment that has altered its character in significant ways.
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A failure to attend to the learning of groups and individuals in the organization spells disaster in this context. As Leadbeater (2000: 70) has argued, companies need to invest not just in new machinery to make production more efficient, but in the flow of know-how that will sustain their business. Organizations need to be good at knowledge generation, appropriation and exploitation.
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It was in this context that (1990) began to explore ‘The art and practice of the learning organization’. Over 750,000 copies of (1990) were sold in the decade following its publication – and it is probably this book that has been the most significant factor in popularising the notion of the learning organization. However, as Sandra Kerka remarked in 1995 ‘there is not… a consensus on the definition of a learning organization’. Indeed, little has changed since. Garvin (2000: 9) recently observed that a clear definition of the learning organization has proved to be elusive.