[Solution]Understand the concept of organisational capability

Course Learning Outcomes 1. Understand the concept of organisational capability and how it develops to be able to undertake a realistic organisational assessment 2. Synthesise…

Learning Outcomes

1. Understand the
concept of organisational capability and how it develops to be able to
undertake a realistic organisational assessment

2. Synthesise ideas
from different disciplinary areas such as Organisational Learning, HRM, Human
Resources Development and Strategic


3. Integrate social, human and intellectual
capital in order to understand the relationship between individual group and
organisational capabilities


One of the reasons given for developing
organisational capability is that it leads to ongoing competitive advantage or
value adding. As a part of that there is often a need to develop organisational
learning and innovation capabilities though organisations often face challenges
when seeking to develop these capabilities. Ricardo Chiva, Joaquin Alegre and
Rafael Lapiedra have identified five organisational learning capabilities that include:

“experimentation, risk taking, interaction with the external
environment, dialogue and participative decision making” (2007, 226).

In addition, Sofia Borjesson and Maria
Elmquist have highlighted challenges to the development of innovation
capabilities at Volvo (2011).

Essay Question: You are asked to
critically examine how an organisation might develop organisational learning
and innovation capabilities, what pitfalls might arise to limit this process
and how they may be overcome? You should:

• First, present a general overview of
the literature on organisational learning capabilities, referring to the rhodel
developed by Chiva et al. (2007) and one or more learning theories.

• Second, evaluate the potential for
organizational learning to deliver innovation capabilities that can lead to improved outcomes. Use a wide range of
literature to develop and support your argument.

Essay Readings

Borjesson, S.
and Elmquist, M. (2011) ‘Developing Innovation Capabilities: A Longitudinal
Study of a project at Volvo Cars’, Creativity and Innovation Management, 20
(3): 171-184.

Bolino, M.,
Turnley, W. & James M. Bloodgood (2002) ‘Citizenship Behavior and the
Creation of Social Capital in Organization’, Academy of Management Review, 27
(4): 505-522.

Chaston, I.,
Badger, B. and Sadler-Smith, E. (1999) ‘Organisational learning: research issues
and application in SME sector firms’, International Journal of Entrepreneurial
Behaviour & Research, 5 (4): 191-203.

Chiva, R.,
Alegre, J. and Lapiedra, R. (2007) ‘Measuring organisational learning
capability among the workforce’, International Journal of manpower, 28 (3/4):

Chiva-Gomez, R.
2004) ‘The facilitating factors for organizational learning in the ceramic
sector’, Human Resource Development International, 7(2): 233-249.

Kim, A. and
Lee, C. (2012) ‘How does HRM enhance strategic capabilities/ Evidence from the
Korean management consulting industry’, International Journal of Human Resource
management, 23 (1): 126-146.

A., Real, J. C. and Valle, R. (2011) ‘Relationships between human resource
management practices and organizational learning capacity: the mediating role
of human capital’, Personnel Review, 40 (3): 344-363.

M.E., Slocum, J.W., Lei, D. (1992). ‘Management practices in learning
organizations’. Organizational Dynamics, 
21 (1): 5-17.

C.O. and Ariss, S.S. (2002). ‘Creating
competitive advantage through effective management education’. Journal
of Management Development, 21 (9): 640 – 654.

J. (2005). ‘Producing Sustainable Competitive Advantage through the Effective
Management of People’. Academy of
Management Executive,  19 (4):95-108.

Vanhala, M. and
Ritala, P. (2016) ‘HRM practices, impersonal trust and organizational
innovativeness’, Journal of Managerial
Psychology, 31 (1): 95-109.

Chapter 4:  ‘HRD needs investigation: an overview’ in Delehaye, B. (2011) Human Resource
Development: managing learning and knowledge capital. 3rd edition. Tilde
University Press.
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