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ORGANIZATIONAL LEARNING AND EMPLOYEE PERFORMANCE OF SELECTED BREWERY FIRMS

CHAPTER ONE

INTRODUCTION

1.1  BACKGROUND TO THE STUDY

According to Senge (1990) organizational learning is viewed as a constant put to test and transformation of experience into knowledge which is significant to the organization and available to the whole organization. Huber (1991) classify organizational learning into four processes: information acquisition, information interpretation, information distribution, and organizational memory. Rimouski (1994) defines organizational learning as a process of acquisition, interpretation of information and the resulting behavior accompanied by cognitive changes, which exact impact on organizational performance. Firms which possess a strong learning culture have the capacity to create acquire and transfer knowledge, and also modify behavior to suit new acquired knowledge and insight (Huber, 1991; Garvin, 1993). This implies that firm employing organizational learning must acquire information, interpret it and transform it into knowledge and also proceed to effect behavioral and cognitive changes – in order to convert words into action.

Organizational learning exact some advantages in providing core competency Through the creation of knowledge, enhance new product development, improved customer service etc. (Baker and Sinkula, 1999). The organizational performance  also improved through market information generation and dissemination. The innovative development of the firm leads to organizational performance .It also facilitate the monitoring of new trends in the market place which result in increased sales and market share. Martinez-Costa and Jimenez-Jimenez (2009). Organizational learning enhances a responsive and flexible organization structure which better to respond to new challenges and overcome competition.

1.2  STATEMENT OF THE PROBLEM

Organizational learning process is a sequence of three phases: information acquisition, information interpretation, and behavioral and cognitive changes. Companies that have developed a strong learning culture are good at creating, acquiring and transferring knowledge, as well as at modifying behavior to reflect new knowledge and insight (Huber, 1991; Garvin, 1993). According to Senge (1990) organizational learning is viewed as a constant put to test and transformation of experience into knowledge which is significant to the organization and available to the whole organization. Huber (1991) classifies organizational learning into four processes: information acquisition, information interpretation, information distribution, and organizational memory. Rimouski (1994) defines organizational learning as a process of acquisition, interpretation of information and the resulting behavior accompanied by cognitive changes, which exact impact on organizational performance. Organizational learning exact some advantages in providing core competency Through the creation of knowledge, enhance new product development, improved customer service etc. (Baker and Sinkula, 1999). The organizational performance is also improved through market information generation and dissemination. Hence, organizations stressing learning must first acquire information, interpret it to fully understand its meaning and transform it into knowledge. At the same time, they must not forget the most important part – to implement behavioral and cognitive changes – in order to convert words into action.

However not many organization have imbibe this concept. The process of organizational learning requires management commitment to formulating and implementing policies which promote the culture of organizational learning. The reason why many organizations cannot withstand competition is because of lack of innovative knowledge and skills to meet with the trend of modern technological development and research. Consequently employee performance is retarded and organizational performance affected interms of poor financial returns, low market share, poor shareholders value etc. Therefore the problem confronting the research is to determine organizational learning and employee performance of selected brewery firms in anambra state

1.3  OBJECTIVES OF THE STUDY

Huber (1991) classify organizational learning into four processes: information acquisition, information interpretation, information distribution, and organizational memory. Rimouski (1994) defines organizational learning as a process of acquisition, interpretation of information and the resulting behavior accompanied by cognitive changes, which exact impact on organizational performance.

Firms which possess a strong learning culture have the capacity to create acquire and transfer knowledge, and also modify behavior to suit new acquired knowledge and insight (Huber, 1991; Garvin, 1993)

To determine the nature and impact of organizational learning on employee performance of selected brewery firms in anambra state

1.4  RESEARCH QUESTIONS

What is organizational learning and employee performance?

What is the impact of organizational learning on employee performance?

What is the impact of organizational learning on employee performance of selected brewery firms in anambra state?

1.5  SIGNIFICANCE OF THE STUDY

The research advocates the importance of organizational learning as a measure necessary to improve employee performance and the overall organizational performance. This process must require the firm commitment of management to formulating and implementing policies essential for organizational learning. Organizational learning exact some advantages in providing core competency Through the creation of knowledge, enhance new product development, improved customer service etc. (Baker and Sinkula, 1999). The organizational performance also improved through market information generation and dissemination. The innovative development of the firm leads to organizational performance .It also facilitates the monitoring of new trends in the market place which result in increased sales and market share. Martinez-Costa and Jimenez-Jimenez (2009). Organizational learning enhances a responsive and flexible organization structure which better to respond to new challenges and overcome competition.

1.6  RESEARCH HYPOTHESIS

Ho The impact of organizational learning on employee performance of selected brewery firms in anambra state is low

Hi  The impact of organizational learning on employee performance of selected brewery firms in anambra state is high.

1.7 SCOPE OF THE STUDY

The study focuses on the appraisal of the impact of organizational learning and employee performance of selected brewery firms in anambra state.

1.8 LIMITATIONS OF THE STUDY

The study was confronted by some constraints including logistics and geographical factors.

1.9 DEFINITION OF TERMS

Organizational memory.

Organizational memory is viewed as the means by which past knowledge is applied on present activities in other to achieve higher or lower levels of organizational effectiveness.

Organizational learning organizational learning as a process of acquisition, interpretation of information and the resulting behavior accompanied by cognitive changes, which exact impact on organizational performance.

Organizational performance Organizational performance constitute the firms capability to  is the organization’s ability to attain to achieve its goals and objectives” (after Ricardo, 2001).

REFERENCES

Huber, G. P. (1991), “Organizational Learning: The Contributing Process and the Literatures”, Organization Science, Vol. 2, No. 1, pp. 88-115.

(Martinez-Costa and Jimenez-Jimenez, 2009). 78 Journal of Global Strategic Management | V. 5 | N. 1 | 2011

Senge, P. M., (1990), The Fifth Discipline: The Art and Practice of Learning Organization.

New York: Currency Doubleday.

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