Exploring the Relationship between the Learning Capabilities of Organization and its Impact on Performance

Abstract :

This study is a descriptive research examining the relationship between the organization learning capabilities and its impact on the firm’s performance. Although it is evident in the literature that organizations that are learning are also high performing organization, the researcher hardly found any empirical study in Pakistani perspective regarding this aspect of relationship between learning organization and its impact on performance. Based on Learning Organization Questionnaire developed by Watkins, K.E. and Marsick, V.J. (2003) scale will be used to measure learning capability of a sample from big five banks namely HBL,UBL,MCB,NBP and Allied Bank Ltd. Financial data is also being obtained from these banks. Methodology we have used is survey method. Result of the study show that there is no relationship between learning capability and Return of Assets, however there is a moderate relationship between learning organization and Return on Equity.