Importance of learning organization in the 21st century


The study analyzes the construct of larning organisation and its importance in the twenty-first century organisations. It besides surveies about HRM and its function and challenges in a learning organisation. This study is analyzed on the footing of a instance survey on Southwest Airlines. It besides makes a critical comparing between the British Airways and Southwest Airlines in respects to larning organisation and uninterrupted betterment. By analysing the Harvard and Michigan theoretical account of HRM, the study tries to understand which theoretical account of HRM is practiced by Southwest Airlines.

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From this instance survey we can understand that the cardinal factor behind the success of Southwest Airways is uninterrupted betterment and its full use of the resources. Its mission of low cost, low menu, no frill is the dedication to its highest quality of client service which is delivered with a sense of heat, friendliness, single pride and company spirit. These all are included in the policies and processs of the Company that are developed by the HRM section. So although there are some challenges to HRM in a learning organisation it has a important function to play in every organization.A

Learning Organization

Learning organisation means “organizations where people continually expand their capacity to make the consequences they genuinely desire, where new and expansive forms of thought are nurtured, where corporate aspiration is set free, and where people are continually larning how to larn together” ( Senge, 1990, p. 3 ) . From this definition we can understand that larning organisation is a squad and organisational procedure instead than single and it is a uninterrupted ne’er stoping procedure. It is indispensable for a learning organisation to do originative and better ways of acquisition and bettering its public presentation. It becomes a portion of the uninterrupted procedure of sharing information with people and the environment, and interchanging and circulating information. A learning organisation is wholly different from a traditional organisation as it has the capacity to do alterations continuously.

The theory of organisational acquisition stresses the importance of policies and processs inside the organisation in response to the outside effects even though they are positive or negative the house learns from its experiences. Learning has merely really small to make with acquiring information, instead it is simply a procedure for heightening capacity. Learning is for doing new sorts of developments that the organisation could non accomplish in the yesteryear ( Lassey, 1998 ) . The principle premise of larning organisation, hence, is that if acquisition from the portion of persons is improved, organisational public presentation besides will better. Senge ( 1990 ) identified five subjects which are indispensable to the development of larning organisations in his sentiment.

These subjects are the distinguishing factors behind the learning organisation and a traditional organisation. Those subjects are personal command, mental theoretical accounts, shared vision, squad acquisition and system thought. Personal command attempts to get the academic expertness and efficiency that they got from their activities and experiences. Mental theoretical account focuses on an person ‘s basic universe position, which is reinforced by constructions, experiences, civilizations and belief systems.

This theoretical account ushers and directs people as they make determinations, and are used to filtrate thoughts and possibilities. Shared vision is the corporate positions of employees and evolves from their apprehension of the organisation ‘s mission. In traditional organisations, shared vision is non platitude, because small or no attempt is made to internalise or understand the house ‘s mission. Shared vision is, nevertheless, a basis of larning organisations because it requires a common position of acquisition by all types of members from top to bottom in an organisation. This subject besides helps the organisations allocate its assorted sorts of resources towards its aims ( Beiske, 2007 ) .

Team acquisition enables the members of an organisation in spread outing their positions, furthering their cognition, intensifying their comprehension power and will do a better sense of ego. Team acquisition helps employees better coaction, communicating and co-operation, every bit good as position other organisational members as learning resources ( Pettingar, 2002 ) .

In the instance of system thought, the members of a learning organisation have to believe in a strategic manner about every facets of an organisational life, which include the organisation ‘s function in accomplishing its concern aims, its mission and scheme, and its construction, civilization and managerial patterns. Therefore, a learning organisation as it continuously examines the external and internal force per unit areas, influence every portion of the organisation it proves helpful. Furthermore, system believing requires coefficient of reflection on the portion of leaders, directors and employees for the intent of bettering understanding and action.

Importance of larning organisation in the twenty-first century

As the universe is altering twenty-four hours by twenty-four hours, each coevals has to accommodate and do alterations in a really limited clip. Therefore uninterrupted acquisition is indispensable for endurance and success in today ‘s universe. Technological alteration is holding a enormous impact on all our lives. Today, society is far more sophisticated than the universe in the earlier yearss. As technological alterations are in a fast mode, it becomes more hard to foretell the hereafter developments and program for the hereafter alterations ( Gilley, 2000 ) . In order to get by up with the altering universe we have to alter our activities and thoughts harmonizing to the altering universe. Successful people have the ability to and are prepared to alter and accommodate.

All successful people are scholars ; similarly successful organisations excessively are larning organisations. Learning organisations entirely can do betterments and they ne’er become dead. Although organisations are larning and adapt to alter they are so slow in doing alterations. Successful organisations consider alteration and development as the most of import factor which determine their success ( Gilley, 2000 ) .

Learning organisations have the capableness to command the external force per unit areas instead than be a slave to it. If an organisation is a learning organisation it will cut down the staff turnover and it will go more attractive to possible employees. Learning procedure will enable the organisation to react to the alterations and new state of affairss more rapidly than its challengers. The ability of the organisation to concentrate on organisational ends and unafraid staff committedness to their accomplishment will take to far greater efficiency and a better quality of merchandise or service. The popularity of larning organisation is increasing twenty-four hours by twenty-four hours.

From the given instance survey we can see that Southwest Airlines is a learning organisation. It considers each and every employees with the same concern, regard and caring attitude within the organisation through which their external behaviour to the sou’-west clients. Southwest Airlines has a good squad spirit than their rivals and the company gives consideration for employees than clients. The company is besides engaged in supplying its employees plentifulness of information that will assist them to understand their company, mission, clients and its competition. And through uninterrupted acquisition, the company ‘s employee productiveness increased and it is able to keep a proper figure of staffs. It makes a feeling that all of its people are portion of a one large household. The company is doing originative and advanced alterations in bettering the effectivity for the highest quality of client service delivered with really friendly and warmth mode.

Role of HRM in a acquisition organisation

HRM is a term by and large used to depict all those activities in an organisation related to recruitment, choice, planing work, developing & A ; development, assessment and wage, way, motive and controlling of workers. HRM includes the model of doctrines, policies, processs and patterns for the direction of the relationship that exists between an employer and worker ( Wilton, 2010 ) . From the overall activities of HRM, we can see learning and development is besides of import activity of HRM in an organisation.

It helps in placing the squad and organisational development demands of an person for planing, implementing proper preparation and development methods and measuring the preparation and development intercessions. HRM is non merely the occupation of HR specializers but it besides requires the engagement of both senior and line directors in the procedure of successfully developing and implementing policies and patterns. To do the acquisition procedure really effectual the results should be evaluated often and do necessary alterations and betterments wherever it require ( Robbins, 2009 ) .

A good civilization is one in which the members of the organisation are cognizant of their demands and demands in the organisation and will execute good in order to accomplish the aims of it. Such a civilization lead an organisation to do high public presentation in the countries like productiveness, quality, degrees of client service, growing, net incomes and in the instance of a net income devising organisation it will besides increase the stockholder value.

There should be a alone civilization for every member in an organisation which develops a good organisational civilization. It is the responsibility of HRM to develop a good civilization in an organisation empowered with good policies and patterns by larning the external and internal alterations ( Price, 2000 ) . As HRM plays a critical function in the major maps of an organisation, such as planning, forming, directing and commanding, it should do uninterrupted larning for the overall development of the organisation.

HRM theoretical accounts and Southwest Airlines

There are assorted theoretical accounts of HRM ; the two most of import theoretical accounts among them are propounded by Harvard and the Michigan theoretical accounts. These two theoretical accounts have been described in footings of soft and difficult attacks. Hard HRM theoretical account focuses on employee cost and Numberss and soft theoretical account on the psychological facets such as committedness, accomplishments and authorization. Harvard theoretical account of HRM ( Beer et. al. , 1984 ) emphasizes the soft side of human resource direction by giving importance to actuating people and development of a good organisational civilization based on trust and teamwork.

This theoretical account of HRM believes that the organisation ‘s people are assets to it instead than costs. So in conformity with this theoretical account, the clip and money spent for preparation and development is an investing in a house ‘s human capital. Human capital means the organic structure of cognition, accomplishments and experience possessed by the people in an organisation. From the point of position of Harvard theoretical account, an organisation will acquire long-run benefits through investing in people.

Another of import theoretical account, Michigan theoretical account focuses on the harder side of HRM or it is a less humanistic attack. This theoretical account gives equal importance to employees and all other resources of the organisation. This theoretical account considers all its concern policies and activities are linked with its concern scheme. The chief characteristics of this theoretical account include its concentration on pull offing human assets to accomplish strategic ends and it is chiefly based on strategic control, organisational construction etc. , the importance given for the constituents such as organisation construction, mission and scheme, human resource choice, public presentation assessment, wagess and development ( Randhawa, 2007 ) .

In the instance of Southwest Airlines, the company has implemented the Harvard theoretical account of HRM as it considers employees as the most of import plus of the organisation. It provides the employees big sum of information for assisting them to understand the organisation ‘s construction, mission, clients and rivals. The company is non sing employees and all other resources as equal.

Challenges to HRM in heightening learning organisation

The learning organisation is really a construct based on the human plus doctrine or the Harvard theoretical account of HRM. It makes the chief challenge to HRM in larning organizations.A There are many factors such as external and internal factors which will act upon the environment of an organisation. The chief challenges that are faced by HRM are ;

Technological developments-as there is an addition in the technological developments the HRM section has to retrain and upgrade its employees.

Globalization-as the industries are spread outing its concern to foreign states the HR directors should hold the cognition about the employees and company ‘s demands in the foreign market. They are besides needed to larn the local linguistic communication of the foreign state.

Socio-cultural factors- organisations are working in a society and it is for the society. So it should take utmost attention in taking any concern action upon the society. It should non ache the beliefs, ethical motives, moralss, imposts and values.

Workforce diversity- there are diverse sort of employees like immature and extremely educated people, female employees, married female workers etc. and at that place should non be any favoritism among them.

Management of human relations- the new immature work force is more intelligent and witting than their predecessors. So it becomes more tough while actuating and making employee committedness.

Even if these challenges are at that place in the acquisition organisation it will notA A have a much deeper consequence in those organisations because the acquisition organisations are ready to do alterations and betterments. But to do alterations and betterments, the directors should hold to do greater attempt and have to better themselves at assorted degrees.

British Airways and Southwest Airlines

British Airways is one of the largest air hoses in the Europe and besides taking air hoses in the United Kingdom. British Airways and Southwest Airlines, both are larning organisations in the existent sense. But they make inventions and alterations in assorted manners. British Air passages made a concern scheme of puting in people and merchandises and developed a strong client base. The chief factors behind the successful operation of British Air passages are that it has a strong U.K based web, it understand the clients more than its rivals, the trade name popularity and above all the teamwork among its employees ( Beiske, 2007 ) British Airways as an established and popular trade name, need non do more alterations continuously. They make alterations in the overall scheme while there are any external or internal dazes.

So in the instance of British Airways, the constructs of larning organisation and uninterrupted betterment have merely less importance. Southwest Airways on the other manus, makes alterations and betterments continuously even though they are besides working successfully. It can be found that for an organisation to be successful it may non be a learning organisation. Even though in today ‘s fast changing universe, the importance of larning organisation increasing, there are unfavorable judgments besides against the constructs of larning organisation and uninterrupted betterment. For case, sing the instance of British Airways, it is non a learning organisation but it is marginally successful in its overall operation.


With this study it can be concluded that the construct of larning organisation is going popular in the twenty-first century. The instance of Southwest Airways is a best illustration for a acquisition organisation which makes success. As the universe today is altering continuously the importance of uninterrupted alterations and betterments in the organisations are going indispensable. HRM has to do necessary alterations by larning civilization and it has to guarantee the development of the organisation. The HRM theoretical accounts used by different organisations are different. The two HRM theoretical accounts developed by the Harvard and Michigan universities are explained in this study.

Harvard HRM theoretical account gives more importance to its employees than any other resources but Michigan model gives equal importance for both the employees and other resources in an organisation. As Southwest Airlines see its employees more of import than any other resources it can be concluded that the HRM theoretical account used by the Southwest Airlines is the Harvard theoretical account. HRM in a acquisition organisation has to confront many challenges chiefly in commanding and directing the new immature employees as they possess more potencies than their predecessors. The study besides made a critical comparing between the British Airways and the Southwest Airlines.

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