1.1 IntroductionChange has become inevitable in this fast-paced, competitive and resource-hungry world. Organizations that learn quickly and adapt to these changes are in a better position to sustain themselves than organizations that are reluctant and traditional in their approach. This is due to the phenomenon of globalization which has made the world increasingly competitive and struggling for scarce resources of human and financial capital. In this ever-changing environment, whether business, culture or politics, the one constant we can rely on is change itself. Although the phenomenon of globalization is not new and can be traced back to the industrial revolution, the phenomenon of modern globalization is new in the respect that the world has become interdependent on a variety of things. With the advent of globalization, the world that was a simpler place to live and work has become more complicated. The interdependence factor has increased our vulnerability to events that could happen in some more remote part of the world. This in turn forced us to quickly adapt to the shock waves. Another aspect that emerged from the phenomenon is competition. We live in a world that is now characterized by an increased level of competition, whether it is natural resources, financial resources or human resources; they are all sought after goods. This competition has also brought changes in the scientific and technological fields. These changes have made the world more complex to live in. The predictability factor has almost disappeared and events and changes cannot be predicted with certainty. Keith Yamashita and Sandra Spataro (2004) highlight that change is inherent in..... . half of the card ......rformance. There are currently no fixed criteria for evaluating these higher education institutions. The present research is important from Pakistani perspective as HEC is now emphasizing quality and has launched a quality assurance program for all universities. In addition to quality, another aspect that is emphasized is research orientation. Higher education institutions are places of learning and to be effective they must also organize themselves as learning organisations. Therefore, the present study focuses on learning and its relationship to organizational effectiveness. The findings of the study will facilitate higher education institutions to identify their weaknesses with respect to learning capabilities and whether they are effective in responding to the changing needs of society. and the external environment and initiate appropriate response strategies to achieve competitiveness.