Organizational Learning

Organizational learning is a process of getting knowledge, interpreting the information and then distributing the information and finally but most importantly preserving this information for adapting successfully in the changing circumstances.

Getting knowledge can be done through imitating competitor’s strategies, by experience or by simply learning different modes for the betterment of the organization. Since the quality of planning depends on the quality of information it is based on, the absence of credible data makes all exercises done in the name of economic planning futile for all practical purposes.

Interpreted information actually reflects a collective understanding within the firm that how each and everyone is taking that information. There always exists some interpretation problems within the organization about information, here the role of managers is very important in dealing with the strategies within the organization.

Once the knowledge is in the organization it is now the responsibility of the management to establish mechanisms for distributing it to relevant departments or employee.

Usually the challenges faced by some organizations in knowledge distributions are
· Locating who has needed information
· And importantly what kind of information

Finally, information preserving or retaining is a key to success and to gain competitive advantage over competitors. It can be done in many ways like Information retention.

· Making the individuals working in firm loyal to the firm
· Creating a strong organizational culture
· A structured transformation procedure for the preservation like some physical or written measures

Using Information Technology as a Strategic Capability

Strategic Capabilities are the competencies, knowledge, and skills that an organization usually apply to be on winning track in a minute changing competitive environment. This concept is based on the competences from the corporate strategy and is known as main support to build the strategic management and focus on the core values for the customers and their loyalty.

As organizations try to meet the new challenges they encounter in the marketplace, a great variety of initiatives have been undertaken. These initiatives include the formation of ‘Leadership and Innovation Development’ centers, ‘Balanced Performance Measurement’ projects, as well as the creation of new roles including Chief Learning Officers and Chief Knowledge Officers. All this is based on the principle that capabilities can be developed effectively through the learning that results from the exchange of knowledge, HRM was redefined to include a complete Knowledge Strategy. In addition to enhancing the organization’s agility, capability and coherence, this new approach was designed as the vehicle for changing how work gets done, and how value is created.

Information Technology has totally changed the whole scenario of the business world, to summarize the IT impact on the organizations is in the following way

· Individuals are empowered and their jobs are expanded.
· It narrowly defines job with process controls are replaced by broadly-defined jobs with output controls.
· Provides new information-based coordination devices.
· It help flattens and streamlining the organization structure.
· Can be linked to total quality management programs.

As IT has spawned e-businesses, thereby it is creating new strategic capabilities for the organization and it is transforming aging bricks and mortar firms, thus altering and enhancing strategic capability. As now many firms are using IT as their strategic capability so their whole operations now have been effected by the influence of IT in their environment.

Two major impacts that IT made on the organizational structure are
· Limited the size of an effective adhocracy.
· Actual delivery of products and services rested more on responsiveness to clients and maintaining efficiency than on continual innovation.

That is why now More firms are recognizing the strategic value of IT and are using IT as a basis for global operations, as IT’s most profound effect is in those firms that rely profoundly on mediating technology.