BLOG #02 : Principles of Learning — How People Actually Learn

 

Principles of Learning - How People Actually Learn in Organizations

 

Introduction

Learning and development are central to organizational success. In dynamic industries such as banking, employees must adapt quickly to regulatory changes, technological innovations, and evolving customer expectations. Understanding how people actually learn in organizations provides leaders with the tools to design effective learning strategies that drive both compliance and innovation.

Expanded definition and explanation

Learning in organizations is a complex, multi-faceted process that goes beyond traditional training programs. It involves acquiring, processing, and applying knowledge and skills in ways that improve individual and organizational performance. The principles of learning in organizations are grounded in psychological, social, and systemic theories that explain how people absorb and use information.


Theory

Organizational learning draws from several foundational theories:

 Behaviorism (Skinner, 1953): Learning occurs through reinforcement and repetition. In organizations, compliance training often uses behaviorists principles.

• Cognitivism (Piaget, 1970): Focuses on mental processes, memory, and problem-solving. This is useful for complex tasks such as product design or financial modelling.

• Social Learning Theory (Bandura, 1977): People learn by observing and modelling others. Mentoring and shadowing programs in organizations reflect this principle.

• Experiential Learning (Kolb, 1984): Learning through experience, reflection, conceptualization, and experimentation. Case simulations and role plays are examples.

• Learning Organization (Senge, 1990): Emphasizes continuous learning through systems thinking, shared vision, and team learning.

 

Comparative Table of Learning Theories

Behaviorism

Behaviorism focuses on observable behaviors and the ways they can be shaped through reinforcement and repetition. In organizational settings, this translates to structured training programs where desired behaviors are rewarded, and undesired behaviors are discouraged. For example, compliance training in banking often uses quizzes and certifications to reinforce knowledge of regulations.

cognitivism

Cognitivism shifts the focus to internal mental processes such as thinking, memory, and problem-solving. It recognizes that learning involves understanding and organizing information, not just responding to stimuli. Organizations apply cognitivist principles by designing workshops and simulations that challenge employees to think critically and solve complex problems, such as designing new financial products.

Social Learning Theory

Bandura’s social learning theory highlights the importance of observing and modelling others. Learning is not just an individual cognitive process but a social one. Organizations foster this through mentoring, coaching, and peer learning communities where employees learn from the experiences and behaviors of their colleagues.

Experiential Learning

Kolb's experiential learning model indicates direct experience, reflection, conceptualization, and experimentation that must be brought about in a continuous process of learning. It allows learners to integrate theory into practice. Organizations use this approach in case studies, role plays, and project-based learning to develop the skills that are difficult to teach through lectures alone.

Learning Organization

Senge’s concept of the learning organization integrates systems thinking and continuous improvement. It encourages organizations to develop shared visions and foster team learning to adapt to changing environments. This holistic approach is critical in sectors like banking, where rapid technological and regulatory changes require agility and collective knowledge.

Informal and Tacit Learning

Beyond formal programs, much organizational learning happens informally through daily interactions, storytelling, and shared experiences. Tacit knowledge—unwritten, intuitive know-how—is often the most valuable and hardest to capture. Organizations that create cultures encouraging knowledge sharing and collaboration unlock this hidden potential.

Technology-Enabled Learning

Modern organizations leverage technology to enhance learning through e-learning platforms, gamification, virtual simulations, and mobile learning. These tools provide flexible, scalable, and engaging ways to deliver content and assess understanding, especially important in geographically dispersed teams.

Practical implications

Understanding these principles helps organizations design learning ecosystems that are effective and sustainable. For example, combining formal compliance training with mentoring and experiential simulations can improve both knowledge retention and practical application. Embedding learning into everyday work processes ensures that learning is relevant and continuous.

Challenges

Organizations face challenges such as resistance to change, information overload, and balancing formal and informal learning. Leaders must create supportive environments, provide resources, and align learning initiatives with strategic goals to overcome these barriers.

Future Trends

The future of organizational learning includes personalized learning paths powered by AI, increased use of data analytics to measure learning impact, and greater emphasis on social and collaborative learning. Organizations that adapt to these trends will be better positioned to thrive in complex, fast-changing industries.

Learning within organizations happens via many channels:

•Formal learning: Structured programs such as workshops and compliance courses.

• Informal learning: Peer collaboration, mentoring, and communities of practice.

•Technology-enabled learning: E-learning platforms, gamification, and simulations.

• Experiential learning: Case studies, role plays, and project-based learning.

Bar Chart of Learning Methods

•Formal training: 40%

•Informal peer learning: 25%

Technology-enabled learning: 20%

• Experiential Simulations – 15%


Analysis

The different theories apply to different organizational contexts.

• Behaviorism is effective for compliance training where the rules are clear.

• Cognitivism supports problem-solving in complex financial products.

• Social learning thrives in mentoring and peer collaboration.

• Experiential learning is powerful in the simulations involving risk management.

• Senge's learning organization model underlines the role of shared vision in digital transformation.

Line Graph of Performance Improvement

• Improvement in compliance training (%): [5, 10, 15, 18, 20, 22]

•  % improvement in Experiential learning: [7, 15, 25, 35, 45, 55]

This would prove that experiential learning produces faster and more sustained performance improvement than approaches based on simple compliance.


Critical Insight

Organizations often over-rely on formal training, neglecting tacit knowledge and informal learning. Embedding learning into daily workflows ensures relevance and sustainability. In banking, fraud detection skills are enhanced not only through training but also by reflecting on real cases and sharing insights across teams. Continuous, contextual learning aligned with organizational strategy is essential.

Conclusion

Principles of learning explain how individuals and organizations acquire, retain, and apply knowledge. In banking, where regulation and technology evolve rapidly, applying these principles ensures resilience and adaptability. Organizations that embrace multiple learning theories foster innovation and compliance simultaneously.


Takeaway

• Learning is multidimensional: behavioral, cognitive, social, and experiential.

• Organizations must combine formal and informal approaches.

• Examples from the banking sector illustrate the fact that survival in dynamic environments requires contextual, continuous learning.


References

• Bandura, A. 1977. Social Learning Theory. Englewood Cliffs: Prentice Hall

•Kolb, D. (1984) Experiential Learning: Experience as the Source of Learning and Development. Englewood Cliffs: Prentice Hall.

•Piaget, J. (1970) Science of Education and the Psychology of the Child. New York: Viking.

•Senge, P. (1990) The Fifth Discipline: The Art and Practice of the Learning Organization. New York: Doubleday.

• Skinner, B.F. (1953) Science and Human Behavior. New York: Macmillan

•Playablo Corporate Learning Blog: Learning Theories in Organizational Behaviors. Available at: https://www.playablo.com/CorporateLearning/Blog/learning-theories-in-organisational-behaviour

•Infed.org: The Learning Organization — Principles, Theory and Practice. Available at: https://infed.org/dir/welcome/the-learning-organization/

•The Systems Thinking Blog: Peter Senge and Learning Organizations. Available at: https://thesystemsthinking.com/peter-senge-and-learning-organizations/

Comments

  1. This is a well-structured and insightful overview of how different learning theories shape the way employees actually acquire and apply knowledge in organizations. I especially appreciate the clear connection between theory and practical application, particularly the use of experiential and social learning in fast-paced sectors like banking. The emphasis on combining formal, informal, and technology-enabled learning provides a realistic and balanced perspective on what truly drives continuous capability development.

    ReplyDelete
    Replies
    1. YThank you for your insightful comment, I agree completely; integrating experiential and social learning with a balanced mix of formal, informal, and technology enabled learning is the only realistic way to drive continuous capability development in today's fast-paced organizations.

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  2. This blog does a great job unpacking how learning truly happens inside organizations, especially in fast-paced sectors like banking. I really appreciate how you connected classical theories like behaviorism and cognitivism with modern approaches such as experiential and technology enabled learning. The comparison between compliance focused learning and experiential improvement was particularly insightful. What stood out most is your emphasis on informal and tacit learning, which many organizations overlook. Overall, the article clearly shows why a blended learning ecosystem is essential for long term adaptability and innovation.

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    Replies
    1. Thank you for your insightful comment, Nilukshan, agree completely; integrating classical theories with modern experiential and social approaches is critical. Acknowledging and nurturing informal and tacit learning through a blended ecosystem is what truly drives long-term adaptability and innovation.

      Delete
  3. Thank you very much for this analysis which is excellent for dissecting how Behaviorism, Cognitivism, Social Learning, and Experiential Learning all contribute to a holistic L&D strategy. It correctly identifies the critical insight: organizations often over-rely on formal training, neglecting the powerful impact of informal, contextual learning (e.g. reflection on real cases). By stressing that sustained success in dynamic sectors like banking requires integrating these theories moving beyond simple compliance to foster continuous, applied knowledge the blog provides a vital framework for building organizational resilience and innovation.

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  4. This blog offers an excellent and comprehensive explanation of how multiple learning theories shape effective organizational learning, especially in fast-paced sectors like banking. I particularly appreciate the emphasis on experiential learning and continuous, workflow embedded development, which strongly supports modern HRM capability building. One improvement would be to expand more on measuring learning impact using analytics, as this would strengthen the link between learning strategy and organizational performance.

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    Replies
    1. Thank you for your insightful comment, Indika. I agree completely; expanding on measuring learning impact using analytics is crucial to solidify the link between the learning strategy and demonstrable organizational performance outcomes.

      Delete
  5. This article connects classic learning theories with practical workplace design. In this also you have emphasis on combining formal, informal and hands-on experiences in the banking sector. Overall, the article brings strategic clarity to learning and development and only one suggestion would be improving the discussion to measure the impact on these different learning methods.

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  6. The article insightfully highlights Kolb’s experiential learning and Bandura’s social learning theory, showing how case simulations and mentoring strengthen organizational adaptability. The emphasis on embedding tacit knowledge into daily workflows makes the content practical and relevant. A thoughtful & well-grounded read!

    ReplyDelete
    Replies
    1. Thank you for your insightful comment. I agree completely; expanding on measuring learning impact using analytics is crucial to solidify the link between the learning strategy and demonstrable organizational performance outcomes.

      Delete
  7. Thank you for this comprehensive overview of organizational learning principles grounded in multiple theories. Your integration of Behaviorism, Cognitivism, Bandura's Social Learning and Kolb's Experiential Learning with Senge's Learning Organization concept provides a strong theoretical foundation. The comparative table and banking examples make abstract theories accessible. The insight that organizations over rely on formal training while neglecting informal and tacit knowledge is particularly valuable. How do you recommend measuring the effectiveness of informal learning channels?

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  8. This article clearly highlights how organizational learning goes beyond formal training. I like the focus on experiential, social, and technology enabled learning, showing that real growth happens when learning is embedded in daily work and shared across teams. The insights on tacit knowledge and continuous improvement are especially relevant for dynamic industries like banking.

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  9. Hi Sandaru, this is an excellent and very comprehensive explanation of how learning actually happens inside organizations and why leaders need to understand more than just traditional training methods. What I really valued in your discussion is the comparison of major learning theories and how you linked each of them to real applications in banking such as compliance, product design, and fraud management. That connection makes academic theory feel very relevant and practical. Your point about tacit learning and informal knowledge sharing is especially compelling because it highlights what most organizations overlook. Overall, a well-structured, insightful piece that brings clarity to a very complex topic.

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  10. This is an insightful exploration of how learning truly happens within organizations. I especially appreciate the emphasis on combining formal training with experiential, social, and technology-enabled learning. Embedding learning into daily workflows, rather than treating it as a separate activity, is crucial for building adaptability and sustaining performance. A great reminder that organizational learning is not just about compliance it’s about fostering innovation and continuous growth

    ReplyDelete
  11. This blog provides an excellent breakdown of how different learning principles shape real organizational development. I appreciate how you connect theories like behaviorism, social learning, and experiential learning directly to banking practices—it makes the content highly practical. Your emphasis on informal and technology-enabled learning is especially insightful, given how much tacit knowledge drives performance. A very comprehensive and well-structured explanation!

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  12. This blog offers a comprehensive and well-structured overview of how individuals learn within organizational settings, effectively integrating core learning theories with practical applications. The comparison of behaviorism, cognitivism, experiential learning, and social learning highlights the multidimensional nature of workplace learning, while the link to Senge’s learning organization adds a valuable systems perspective. Your emphasis on informal and tacit learning is particularly strong, as these forms of knowledge transfer are often overlooked despite their strategic importance in high reliability sectors like banking. The analysis is strengthened by the use of performance trends, demonstrating why experiential and socially embedded learning yield deeper, sustained improvement. Overall, the discussion successfully connects theoretical foundations with organizational realities, underscoring the need for blended and continuous learning ecosystems.

    ReplyDelete
  13. This article offers a clear explanation of core principles of learning and how people acquire new skills or knowledge. It emphasizes important factors like engagement, repetition, and feedback, which help optimize learning outcomes. I appreciate how it connects learning theory with practical implications for training and development in organisations. Overall, it is a useful and meaningful contribution to understanding effective learning practices.

    ReplyDelete
  14. Your integration of Behaviorism, Cognitivism, Social Learning Theory, and Experiential Learning effectively demonstrates how organizations must blend formal, informal, and technology-enabled approaches. The emphasis on tacit knowledge and workflow-embedded learning reinforces sustainable capability development.

    ReplyDelete

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