Home Organizational Psychology Organizational Types / Structures Theory E²: Working with Entrepreneurs in Closely-Held Enterprises IX: Interplay Between Entrepreneurs and Maturity, Tasks, Problems and Environment

Theory E²: Working with Entrepreneurs in Closely-Held Enterprises IX: Interplay Between Entrepreneurs and Maturity, Tasks, Problems and Environment

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A different kind of response to organizational problems is evident in Type Two settings. Entrepreneurs in this setting typically place considerable emphasis on training and development, on career planning and advancement, and on the recognition of employee accomplishments. These leaders were made famous during the early 1980s by Peters and Waterman, in their search for corporate excellence,  and by Kanter in her thoughtful study of change masters.

Both inspiring and participating entrepreneurs are appropriate in these people-oriented Type Two settings. The inspiring entrepreneurial leader helps to build support, as well as offering frequent review of the extent to which members of the closely-held enterprise actually do what they say they are going to do concerning human welfare and involvement. It is particularly tempting for many contemporary entrepreneurs to talk about their commitment to the people working in their organization, given the growing public support for such an enterprise. It is much harder to actually enact such a commitment, given the complexity of Type Two problems.

The inspiring entrepreneur thus can help to keep a closely-held enterprise honest regarding its commitment to people. The participating entrepreneurial leader is also needed, given her interpersonal orientation and concern for group commitment and community. In many ways, the participating leader is a product of this new emphasis on people in the organization. The participating leader, therefore, can often guide this type of initiative. She can identify appropriate processes and procedures to address various types of people-related problems facing a closely-held enterprise that has made a strong commitment to its employees.

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