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This paper outlines the results of research currently being carried out at Victoria University, Australia, into what is a learning organization, how organizations learn, and how to develop a learning organization. The objective of the present study was to identify the components that underpin the development and operation of a learning organization, i.e. the foundations, or organizational learning mechanisms, that support the development and maintenance of a learning organization. The study identified four facilitating mechanisms: the learning environment, identifying learning and development needs, meeting learning and development needs and applying learning in the workplace. Factor analysis of the learning environment questionnaire identified 12 scales that supported the structural hypotheses, 11 of which had minimum reliability coefficients of 0.70 and above. This research provides an instrument for systematically measuring and monitoring progress towards achieving a learning organization.
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