Organizational learning is the learning process an organization goes through in order to remain competitive and relevant. In organization learning experience provides knowledge for employees. Employees gain knowledge and in turn improve production and the ability to work together collaboratively. Organizational learning can have a direct influence on economic growth and innovation of an organization.
Learning happens in four ways or units. The first type of learning is individual learning. This type of learning is where one person learns new skills and that new knowledge may change the individual's job performance and productivity. It is the responsibility of the individual to share the knowledge so it is not lost if that employee leaves the organization.
The second type of learning is group learning. In group learning, multiple members of an organization learn together and then change their practice based on their new learning. Another way group learning happens is if an individual takes the opportunity to share his/her learning with a group and that group uses the new knowledge and turns it into action.
In organizational learning, the entire organization goes though learning and changing process. The ultimate goal of organizational learning is to increase the productivity of the company or organization. Finally the last unit is interorganizational learning. This learning happens when different businesses or companies work together to learn from each other. Both organizations are able to improve their current practice by either using or modifying a strategy that is working for the other company. Heterogeneous collaboration usually is more effective than homogeneous collaboration.