This is where the concept of learning organisation comes into the picture. That is, learning organisation facilitates continuous learning with the employees learning new things and perspectives, thus leading to the structured changing or transitioning of employees, departments and the organisations as a whole from a current state to a favourable future state. When this change shows positive results, organisations can extricate from tough situations and achieve success.
A learning organization values challenges, promotes flexibility, innovation and creativity, treats mistakes as stepping stones of development and encourages individuals to think. Learning is carried out by implementing various practices. Some of the key practices are help people value the effects of their learning on their organizations, link individual performance with organizational performance, tie rewards to key measures of performance and importantly create structures and procedures that support the learning process. Thus, learning organisations or organisations which indulge in learning process will try to learn newer and optimal strategies to optimize the organisational functioning.
Peter M Senge, an American scientist, is one of the profound business thinkers and author. He analyzed many organizations and its workings for many years at MIT and the resultant theories and concepts were brought out by Peter Senge in his 1990 book, The Fifth Discipline. In that book, he brought out many organizational theories particularly the ones related to leadership under the concept of ‘learning organization. According to Peter Senge (1990, p.3) learning organizations are, “Organizations where people continually expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free,