The role of organisational learning in organisational strategy at Industrial Development Bank Capital Limited, Kenya
The need for institutional using organizational learning as a strategic tool cannot be ignored. In the journey of organizational transformation, the critical challenge lies in evolving a performing organization so that the business deliverables can contribute to the operative efficiency of the organization. Measuring organizational success and implementing effective strategies for future success represent continuous challenges for managers, researchers and consultants. The continuous need to improve performance of the public sector corporations of which Industrial Development Bank (lOB) Capital Ltd is one of them remains a major challenge. This is in light of scarce resources, competition, and raising public expectations. The increased pressure for performance driven reforms has been brought about by the need for good governance, public accountability, and to address the varied interests of the public and multiple stakeholders. Organizational learning outcomes contribute to the development of a firm's resource-based capability. In spite of the efforts being made by IDB Capital Limited to boost organizational learning so as to better the overall organizational performance, minimal growth in the business and in personal development of staff has been reflected. This is evidenced in the overall organizational performance trends for IDB Capital Limited which has been declining. The research aims at establishing the factors that have affected the organizational learning so as to lead to a decline. This was with a view to improving organizational learning which may in tum enable the organization to reverse the current trend. This study aimed at examining the role of knowledge management in organizational learning. The objective of the study was mainly to assess the role of organizational learning on organizational strategy. The study was carried out through a case study. Primary data was collected by way of personal in depth interviews with members of staff at different levels of the organization. It was analyzed using the pattern and content analysis technique. The study findings are that organizational learning outcomes contribute to the development of a firm's resource-based capability, as a basic principle of human resource management. Organizational learning enables companies to understand the environment in which they operate and to respond by developing distinct practices, policies and structures to meet the external challenges and thus improve flexibility to market dynamics.