MBA - HRM Blog 5

 

Practical Application of Learning Curve for an Organization

The Theory of Learning Curve

Organizational learning is a continuous process that impacts individual learning within the organization. Learning curve theory can be used to identify the changes of individual performance during their learning period. Accordingly, the learning curve is the visual depiction of the production efficiency of an organization during a certain period (Anzanello & Fogliatto, 2011). The learning curve emphasizes that there will be a preliminary period that the investment in learning will be larger than its return and the return will be greater than the investment with the time (Dar-EL, 2013).

Pros and Cons of the Learning Curve for Organizations

Pros

Cons

Help for the organizational strategic planning process to enhance employee performance.

Merely depending on the learning curve to determine employee performance and improvement needs is ineffective as learning can be impacted by several factors such as experience, individual ability and motivation, quality of learning activities etc.

Inspiring employees by promoting a learning culture.

Hard to quantify and measure all type of employee performance.

Helps to determine individual learning trends to make decisions and forecast the future.

Learning curve is incomplete to predict the entire organizational performance and it is essential to use combined methods to determine individual performance.

(Source: Wang & Lee, 2001)

Types of Learning Curves

        I.            Diminishing- Return Learning Curve

The performance increases rapidly at the initial stage and then reduces over a period. This is applicable with easy tasks to learn for employees and performance increases rapidly at the beginning (Musali, et al., 2021).


Figure 1 - Diminishing- Return Learning Curve (Source: Quan, 2021)

        I.            Increasing -Returns Learning Curve

The performance is low at the beginning and gradually increases over period until employees obtained the full knowledge. This curve is applicable for learning complex task within organizations (Musali, et al., 2021).

Figure 2 -Increasing- Return Learning Curve (Source: Quan, 2021)

 

        I.            Increasing- Decreasing Returns of Learning Curve (S Curve)

The initial stage of the curve shows less performance as employees are new to the tasks and then employees tend to proficient in tasks gradually and the end part of the curve emphasizes increasing employee performance (Musali, et al., 2021).


Figure 3 – Increasing- Diminishing Return Learning Curve (Source: Quan, 2021)

 

Significance and Application of Learning Curve

The learning curve is largely contributed to organizations identifying whether workers and procedures are performing effectively with organizational resources and identifying the improvement needs. Organizations can identify employees’ performance levels through the shape of the learning curve such as increasing, decreasing, stagnation or fluctuation. Then, an organization can understand the future performance of the organization and get decisions regarding employee performance and learning based on the curve (Argote & Kane, 2003).

Conclusion

Learning curve theory can be applied within organizations to identify employee performance and development needs to achieve future performance and it leads to get better organizational decisions about employee and organizational performance.

  

References

Anzanello, M. J. & Fogliatto, F. S., 2011. Learning curve models and applications: Literature review and research directions. International Journal of Industrial Ergonomics, 41(5), pp. 573-583.

Argote, L. & Kane, A. A., 2003. Learning from direct and indirect experience in organizations. Group creativity: Innovation through collaboration, p. 277.

Dar-EL, E. M., 2013. Human learning: From learning curves to learning organizations. s.l.:Springer Science & Business Media.

Musali, S., Schulze, w. S. & De Castro, J. O., 2021. How Long Does It Take to Get to the Learning Curve?.. Academy of Management Journal, 63(1), pp. 205-223.

Quan, K., 2021. Getting People Right. [Online]
Available at: https://gettingpeopleright.com/resources/learning-curve/
[Accessed 17 November 2021].

Wang, F. K. & Lee, W., 2001. Learning curve analysis in total productive maintenance. Omega, 29(6), pp. 491-499.

 

 

 

 

 





Comments

  1. It is a useful model for tracking progress, learning curve theory is a way to understand employee performance improvement or investment over time. improve productivity and ensure that company
    achieves certain operational goals.Thanks for sharing.

    ReplyDelete
  2. This is very much helpful to adapting the organization culture & breathing time for handling as well.it ‘s a one kind of method for increasing the employees satisfaction & performance.

    ReplyDelete
  3. Other than three learning curves you have mentioned, the fourth type is Complex learning curve. This model represents a more complex pattern of learning and reflects more extensive tracking.

    ReplyDelete
  4. This is a valuable topic. Because The learning curve indicates that performance improves with each iteration of the task. Organization that use the learning curve concept have several advantages.

    ReplyDelete
  5. Useful article. Organization can understand the employee performance from the learning curves and it shows direction to take the necessary actions. Interesting blog with good explanation. Thanks for the sharing.

    ReplyDelete
  6. Very important subject, structured way of applying learning needs and addressing. Thank you for sharing.

    ReplyDelete
  7. Useful topic to be discussed. It's reflects the individuals track records and forcasting future performance to some extent. Thanks for sharing.

    ReplyDelete
  8. Organizational learning is important to improve knowledge of employees. Organizational learning should be done in order to create a better working environment and improve the performances of employees.

    ReplyDelete
  9. Dear Thushara , a very well structured and a graphical analysis on Learning and Learning curves. LCs are considered as effective tools for monitoring the performance of employees exposed to a new task and I agree that Learning Curves provide a mathematical representation of the learning process that takes place as task repetition occurs. A very good article Thushara !

    ReplyDelete
  10. While the term "learning curve" came into use in the early 20th century, Dr. Hermann Ebbinghaus described this theory as early as 1885. A learning curve is a correlation between a learner's performance on a task and the number of attempts or time required to complete the task; this can be represented as a direct proportion on a graph. You have mention some point of pros & cons. thanks for sharing.

    ReplyDelete

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