Improving Organizational Productivity through Improved Learning Transfer, Organizational Learning and Organizational Culture

Abstract

In the rapidly changing world we live in and the increasingly competitive environment in which firms operate, organizational learning is emerging as a new management paradigm. One of the key concerns about managing profitable organizations is about enhancing productivity. Productivity comprises of capital and labour productivity and can be measured by a production function. Organizations benefit from increasing returns to scale, i.e. when output increases by more than the proportional change in inputs. This can be achieved by increasing output elasticities of capital and labour. It is seen from existing literature that two of the most important factors that impact productivity are organizational culture and human resource management (HRM) practices. Based on gaps identified, this research is an exploratory and explanatory study of the intangible factors that can improve organizational (labour) productivity. It focuses on organizational learning (emphasizing on learning transfer) as a part of HRM practices and organizational culture and their interplay on organizational performance. Using extant literature on SECI model of knowledge creation, Learning Transfer System Inventory (LTSI) and Competing Values Framework (CVF), the research validates LTSI (instrument to measure learning transfer) in context of executive training in India, discusses learning transfer’s role in organizational knowledge amplification, studies impact of organizational culture on learning transfer and organizational performance and suggests an organizational learning and development framework for practitioners. The findings of the research are: • LTSI is validated in Indian context • LTSI is impacted by organization, type or programme, seniority level, education level, years of experience • Learning transfer plays a role in knowledge amplification • LTSI is impacted by perception or organization culture • Balanced culture results in efficient organizations • People, Process and Impact are the factors responsible for effective OL&D