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Founder-culture in organizations - its impact on organizational growth, dynamism and innovativeness by Mathew Manimala (Working Paper, No. 1987/661)

By: Manimala, Mathew.
Material type: materialTypeLabelBookPublisher: Ahmedabad Indian Institute of Management 1987Description: 33 p.Subject(s): Organizational growthDDC classification: WP 1987 (661) Summary: Organizational culture has recently emerged as one of the prominent focuses of organization research. This is partly because of the disillusionment with the research on the more objective phenomena such as structure and technology. Several researchers point out that culture could be the most important factor that determined the other characteristics and performance of an organization. It may be naturally asked how an organizations culture evolves. One of the hypotheses of this paper is that a major influence on the development of organization culture is the founder. A review of existing research shows that the founders influence is critical and is difficult to change except during a crisis created by changes in the environment. It is also proposed that the type of culture would vary with the type of founder. An external (or organization) oriented founder (as opposed to a self-oriented one) is likely to create a professional, dynamic and sometimes innovative organization. On the other hand, the organization created by the self-oriented founder would remain non-professional, and non-innovative, characterized by limited growth and dynamism except if it changes its culture in response to a change in the environment and a consequent crisis within the organization. The change, which may take place either through theoretical in an incremental fashion, or through new leaders in a discontinuous fashion, can turn these organizations around to make them adaptively or innovatively dynamic. The paper discusses these influences and changes through a model of founders influence on organizational culture along with eight other propositions.
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Working Paper Working Paper Vikram Sarabhai Library
WP 1987 (661) (Browse shelf) Available WP000661

Organizational culture has recently emerged as one of the prominent focuses of organization research. This is partly because of the disillusionment with the research on the more objective phenomena such as structure and technology. Several researchers point out that culture could be the most important factor that determined the other characteristics and performance of an organization. It may be naturally asked how an organizations culture evolves. One of the hypotheses of this paper is that a major influence on the development of organization culture is the founder. A review of existing research shows that the founders influence is critical and is difficult to change except during a crisis created by changes in the environment. It is also proposed that the type of culture would vary with the type of founder. An external (or organization) oriented founder (as opposed to a self-oriented one) is likely to create a professional, dynamic and sometimes innovative organization. On the other hand, the organization created by the self-oriented founder would remain non-professional, and non-innovative, characterized by limited growth and dynamism except if it changes its culture in response to a change in the environment and a consequent crisis within the organization. The change, which may take place either through theoretical in an incremental fashion, or through new leaders in a discontinuous fashion, can turn these organizations around to make them adaptively or innovatively dynamic. The paper discusses these influences and changes through a model of founders influence on organizational culture along with eight other propositions.

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