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1 BSc (Hons) Business Management Top up BMP6004 Learning & Development The role of organisational learning in improving Organisational performance Submitted by: Name: ID:

2 Contents Introduction ...................................................................................................................................... 3 An explanation of organisational learning ....................................................................................... 3 An explanation of learning organisation .......................................................................................... 5 Difference between organisational learning and a learning organisation ........................................ 7 An explanation of organisational performance ................................................................................ 7 The role of organisational learning in improving organisational performance ............................... 9 Espoused Theory ......................................................................................................................... 9 Theory in use ............................................................................................................................. 10 Types of learning theory ............................................................................................................ 10 Conclusion ..................................................................................................................................... 11 Reference ....................................................................................................................................... 12

3 Introduction For any company, learning and development are critical concepts. It refers to establishing the correct environment and the right training for workers and organisational members to learn and grow (Allan, 2018). When you learn a new skill, you're making progress toward that goal. When it comes to learning, there is a connected problem called development. The beginning of an organization's and its workers' development is learning. Understanding a company's existing and future capabilities is made easier with the aid of this strategic pattern. Because it aids in the advancement of the company, culture has a role to play in this process of growth and development. Diageo is a British beverage giant with operations in almost 180 countries across the globe. In the beverage industry, it is one of the most well-known and well-established enterprises. For the benefit of Diageo Plc, this paper will assess organisational learning, learning organisations, and models of organisational learning. An explanation of organisational learning Organizational learning is a methodical approach to attaining company success by using information in a systematic manner (Arlo, 2016). Every organisation has the ability to improve itself via a new perspective. Developing these talents is an essential element of a person's growth. Knowledge and expertise are essential to building an organisation, which is why employing such talents inside an organisation may lead to success. Diageo Plc understands the importance of this in today's business environment. Think, act, and reflect all sorts of organisational learning together to improve it. Every company has to be aware of its own leanings. Process of organisational learning Organizational process learning may be accomplished in one of three ways (Chang and Huang, 2017). Following these steps will make it simple for you to grasp the organization's procedure, which is as follows:  Creation of new knowledge  Retaining information  Transfer of knowledge The process of producing new information is fundamental to every organisation. It is necessary for any organisation to cultivate their own internal expertise in order to advance. For instance, collecting relevant information and data for each and every employee of the organisation. The

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4 production of new knowledge can be of assistance to an organisation in many different ways; however, this knowledge needs to be used effectively in order for it to be beneficial. Knowledge implications are only effective when the organiser is able to make effective use of the knowledge for development (Fielding, 2016). Knowledge retention is another useful phrase in the field of learning and organisational development. It refers to a prospective process in which applying this information might result in the transfer of knowledge from the short-term to the long-term memory. The growth of organisation learning is a massive master plan; it may be assessed for both the short term and the long term. Because of this, managing knowledge or the retention of information is an essential component of an organisation learning. For instance, seeking and providing the answer to a frequent query that is present in both Tettra and Slack is something that may be done. Additionally successful in this aspect of organisational learning was the company Diageo Plc. Knowledge transfer is a possible process that might take place when knowledgeable organisational personnel communicate and disseminate their own experiences with one another with the purpose of contributing to collective growth. In order to learn new things and achieve better results for the organisation as a whole, every organisation has to work on developing both its own talents and its organisational skills. As an example, serving as a guide and mentor to workers at lower levels in order to assist them in accomplishing organisational objectives (Francis and Redding, 2012). Organizational learning is crucial for a number of reasons, some of which include an increase in work satisfaction, a reduction in the turnover rate for organisations, an improvement in productivity, the development of corporate leaders, and an enhancement of flexibility. If an organisation downplays the significance of organisational learning, it may be able to make greater use of it, which in turn may assist the organisation reach the required level of commercial success in the allotted amount of time. As a result of the frequent shifts in consumer behaviour, Diageo Plc is also continuously working to increase the learning capabilities of its organisations. Diageo Plc would be able to elaborate the company skill and development and operate strategically if they follow the significance of the aforementioned demonstration and ensure that it is carried out properly. Following the successful

5 management of that significance, this organisation will maintain a balanced approach to doing company operations around the globe (Jenkins, 2021). An explanation of learning organisation A well-being organisation is a learning organisation. Organizations with these traits and skills are known as learning organisations, and they are capable of generating and maintaining a seamless business environment for continuous development. It aids a company's ability to plan and strategize across a wide range of areas by providing fresh information and perspectives. General Electric is an example of an organisation in the UK that teaches people how to create and enhance businesses for continuous improvement (Kim, 2019). Learning organisations have certain characteristics – For Diageo, understanding about the qualities of a learning organisation will make it easier to enhance their skills and maintain a culture of learning (Margherita and Sharif, 2020). For a better understanding of the learning organisation, the following features are provided. (Moen and Anders, 2013)  Systems thinking  Personal mastery  Mental models  Shared visions

6  Team learning In a learning organisation, system thinking is crucial; it entails reviewing the organisation and developing new ideas and concepts in order to remain ahead of business goals. In order to remain profitable and competitive, every company considers a number of factors. Diageo Plc performs the same thing in order to improve corporate efficiency. Consider, for example, evaluating every aspect of a company's operations in order to develop a strategy for the future fiscal year (Mongols, 2014). The pursuit of personal mastery is a personal endeavour. Every member of the team has a stake in the company's long-term goals. Because reaching company goals is difficult without a learning organisation, collaborative efforts are linked to a learning organisation. It's a blend of assumptions and generalisations. Mental models aid in determining whether or not an employee is capable of completing a task. The learning organization's ability to do this is yet strength. Employees and executives alike will be more motivated and productive if they have a shared vision for the company's success. The most important factor in a growing organisation is the ability to communicate a common vision. Diageo Plc must comprehend and establish a shared vision for the organization's betterment if it is to develop (Moss, 2021). Team learning is essential to a successful learning organisation. Team learning is a must for all development teams. Diageo Plc. is a great example of a company that relies on its employees to learn and grow. It is a competitive advantage to become well-organized in order to work in an office environment. It aids in the creation of a company strategy for enhancing a certain problem area (Mumford and Leith, 2014). It is important to know some of the possible advantages of the learning organisation in order to achieve business learning in particular. Many of the benefits of using a learning organisation include ensuring that innovation and competitiveness are maintained, obtaining better knowledge and meeting customer needs and improving the quality of output, and establishing an organization's image as a corporation. Learning an organisation is also effective for making long-term decisions and for sharing knowledge. As a multinational beverage company with operations in 180 countries, Diageo may benefit from the knowledge and experience gained from this study in terms of improving business quality and strategic management. Diageo Plc may be more successful and competitive in the global beverage industry by handling the right hurdles that may develop during learning organisation. Those barriers might hinder learning organisation.

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7 Difference between organisational learning and a learning organisation When it comes to how people learn in an organisation, the two concepts are quite similar, but they vary in that one focuses on how people learn in an organisation, while the other focuses on how people learn in an organisation. Understanding and enhancing one's activities via increased information and understanding is the goal of organisational learning. To put it another way, a learning organisation is a company that organises and plans for employee education. It is the action and process of achieving the goal of a learning organisation that is the focus of organisational learning An explanation of organisational performance Every business must do an in-depth analysis of its performance. This kind of organisation analysis is required by all sorts of organisations in order to examine a business's present and future state. It is possible for an organisation to carry out its tasks in a group setting. It is impossible for an organisation to carry out its purpose or operations if it is not a collective. Assessing organisational performance is a diagnostic procedure that aims to identify and assess the current state of affairs as well as to identify areas for improvement. Capacity evaluation is another name for this process. Because a company's total business performance may be better assessed with the use of this study. For a variety of reasons, it is critical to evaluate the effectiveness of an organisation. An organization's success relies on a variety of various levels of activity, however analysing performance may assist to assess performance and analyse the possibilities for small businesses. Performance analysis may be used to identify an organization's strengths and flaws. Diageo is able to quickly identify its strengths and shortcomings by analysing its performance (Muzzles and Lambkin, 2017). The organisational performance assessment framework is a prominent instrument for analysing organisational performance. This method is often used to evaluate the efficiency of corporate entities. This analytical tool may help Diageo evaluate its organisational performance. An evaluation technique that takes into account factors such as internal motivation, external factors such as the environment, and internal organisational capabilities. It may be applied in a wide range of organisations, including manufacturing, government, and service-oriented businesses. Using this architecture, a company should assume that three performances are incorporated. Effectiveness, efficiency, and relevancy are all considered, as is the project's

8 financial sustainability. For Diageo's viewpoint, a simple example is provided below to better understand these concepts: (Pataki, 2017) Organizational motivation - It's important to remember that every company has its own unique set of goals and potential. For this reason, every organisation must use organisational motivation in the workplace for employees. Organizational motivation is the ability of an organisation to perform its activities on a continuous basis by using human capital to achieve its goal. The analysis of performance can only be completed if every organisation employs the proper methods and motivates its employees properly. By utilising this internal drive; Diageo will be able to complete the performance evaluation process one step closer to its original goal. External environment - Every company has a significant effect on the surrounding environment. The study of an organization's performance might be a factor. To name just a few, there are the laws of the land, the political atmosphere, the economic climate, social conventions, and so on. These external elements have a role in evaluating organisational success. When doing any kind of business analysis or making a possible choice, Diageo Plc must consider these elements. The relationship between the stakeholders has an effect on the external environment that is used to evaluate the performance. An organisation with the fewest stakeholders may not be the best match for a successful company. An organization's and a country's economy both benefit from having more stakeholders involved (Shanks, 2018). Organisational capacity - It's an effective and necessary part of this framework for analysing performance. An organization's capacity is a measure of the resources it has at its disposal.

9 Examples of resources include human and non-human capital, as well as physical and financial assets. These tools make it easier and more accurate to assess an organization's capability. As part of the system and technique for managing the capital, strategic leadership, programming, and process management all play a role in the organisational capacity. The system of analysing performance is one step closer to getting the right business choice by using these efficient methods of analysis. Analysis of Diageo Plc's organisational capacity may be used to determine the company's organisational performance (Silverman and Capsize, 2020). As a result of these ramifications, Diageo Plc will be able to evaluate the overall success of the company as well as the performance of the various divisions within it. The role of organisational learning in improving organisational performance An organization's success depends on its ability to understand the importance of organisational learning. Using theories and models may help an organisation have a clear understanding of what it means to be successful (Simons and Roisters, 2013). Knowledge may be retained, created, and transferred in an organisation via a process known as "learning organisation." The effectiveness of an organisation is the sum of its parts. Organizational learning’s in enhancing performance may be gained by following a set of possible metrics and techniques. UK-based beverage firm Diageo is one of the world’s largest. It's a powerful tool for enhancing performance and learning throughout the organisation. Diageo will be able to enhance its organisational performance by studying ideas of organisational learning. To make things clearer, I've included some advice and a quick example in the following paragraphs. Organizational learning is the subject of a number of well-known theories and models. Organizational learning will benefit from a better understanding of these treatments and models. Espoused Theory A formalised part of an organisation is the focus of this theory. In every company, there are distinct roles for external and internal activities. It is beneficial for a company to delegate business goals and responsibilities to all of its employees. The directions are rather specific, yet restricting one's view creates a course of action. If you understand this principle and can provide an example, such as a phone that won't operate, the issue will be solved quickly.

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10 (Waleed, 2016) Theory in use Using this embraced idea, issues may be solved and organisational learning can be improved. This notion proposes that an organization's problems may be solved by working together as a team. Employees may also use it as a means of resolving any issues inside the company in a group setting. However, if an employee is able to redirect their attention to any external difficulties, the problem- solving process may be hindered. An organization's problem-solving and organisational learning are more successful when done in a structured manner. Types of learning theory  Double loop learning – Learning has the ability to have a significant impact on the whole organisation. Changing a company's criteria might make it more profitable by improving the organisation. A productive working environment is built on assumptions, ideals, and techniques. This theory of organisational learning will be enriched by the addition of double loop learning.  Deuteron learning - The process of organisational learning is critical to the success of a learning organisation. It's a part of an organization's structure and behaviour that helps to identify learning. Things's the portion of learning that shows you how to do it, as it's a guide for you to follow.

11 Those may be put to good use in support of the organisational theory of learning. It's easy to safeguard any circumstance for bettering an organization's performance before employing them. The ability of a company to perform relies on its ability to learn. It's possible for Diageo Plc to come up with a variety of new ideas by using these three phases of learning theory. Conclusion Every company has a need for learning and growth. No organisation can make progress in all areas of improvement without the ability to learn. Because it is widely accepted, fostering a culture of organisational learning is beneficial to any company. An organization's ability to learn and grow is dependent on the ability of its employees to learn from each other. Organizational learning, the performance of the organisation, theories of organisational learning for improvement are covered in this paper. With the help of relevant examples, the general instructions are efficiently carried out. A company's ability to explain learning and development will be a lot easier following this example.

12 Reference Allan, B. (2018). Developing a learning organisation. London: Financial Times / Pitman. Arlo Aar (2016). Organisational problems in planning educational development. Paris: Owed. Chang, W.-H. And Huang, T.-H. (2017). Perceptions of learning effectiveness in M-learning:scale development and student awareness. Journal of Computer Assisted Learning, 33(5),pp.461-472. Fielding, M. (2016). Learning Organisation or Learning Community? Philosophy of Management, 1(2), pp.17-29. Francis, H. and Redding ton, M. (2012). People and organisational development: a new agenda for organisational effectiveness. London: Chartered Institute Of Personnel And Development. Jenkins, B. (2021). Systems Thinking for Sustainability. Journal of Systems Thinking, p.13. Kim, M.-J. (2019). organisation and development strategy. Natural Language & Linguistic Theory, 27(2), pp.345-377. Margherita, A. and Sharif, H. (2020). A conceptual framework of strategy, action and performance dimensions of organisational agility development. Technology Analysis &Strategic Management, pp.1-14. Moen, A. and Anders March (2013). Collaborative knowledge creation: practices, tools,concepts. Rotterdam; Boston: Sense Publishers. Mongols, K. (2014). Diageo multinational beverage company. International Journal of Trade,Economics and Finance, 5(5), pp.445-448. Moss, P. (2021). Models of organisational learnings. International Journal of Integrated Care,21(3).

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13 Mumford, W. and Leith wood, K. (2014). Educational leadership for organisational learning and improved student outcomes. Dordrecht: Kluwer. Pataki (2017). Organisational process of learning. Budapest: Business Ethics Centre. Savaii, R. and Gardner, F. (2015). Critical Reflection to Identify Gaps between Espoused Theory and Theory-in-Use. Social Work, 57(2), pp.145-154. Shanks, D. (2018). Three types of learning theory. Journal of Number Theory, 4(6), pp.537-556. Silverman, S.L. and Capsize, ME (2020). Learning and development. San Francisco, Calif.:Josser- Bass Publishers. Simons, P.R.J. and Roisters, M. (2013). Forum for organisational learning: combining learning at work, organisational learning and training in new ways. Journal of European Industrial Training, 27(1), pp.41-48. Waleed, A. (2016). The performance diamond: measuring public sector organisational performance. International Journal of Business Performance Management, 17(1), p.65. Zama, A. (2015). The Impact of Organisational Learning on Organisational Performance.Management and Business Administration. Central Europe, 23(4), pp.98-112.

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