Theory E²: Working with Entrepreneurs in Closely-Held Enterprises X: Interplay between Entrepreneurship and Organizational Structures and Operations, and Organizational Culture

Theory E²: Working with Entrepreneurs in Closely-Held Enterprises X: Interplay between Entrepreneurship and Organizational Structures and Operations, and Organizational Culture

The idea-rich culture tends to honor and encourage people who are very skillful and knowledgeable in specific area(s) of expertise. Task-related competence is critical in this culture. This culture also supports those people who possess and make effective use of the technical competencies that are needed to perform their appointed functions. When this culture is successful, employees want to be effectively supervised by the formal management of their group. Managers are formally designated and they, in turn, delegate appropriate responsibility with a comparable amount of authority to members of their work group. With regard to commitment and priorities, people working in a culture of ideas want to be clear about the goals, purposes and aspirations that have been assigned to their group. They also want to be compensated fairly and appropriately for their accomplishment of assigned tasks. Ideally, timely rewards and promotions are given for both individual and group achievements.

In general, the culture of ideas is most closely aligned with the assertive approach to entrepreneurship. The assertive leader encourages risk-taking and the generation of innovation practices. When trusted (with regard to intentions, competencies and perspective), the assertive entrepreneurial leader provides a safe holding environment that encourages the generation and enactment of new ideas.

Culture of Diversity

In addition to the three distinctive cultures just identified, there is a fourth culture that blends the other three cultures. The culture of diversity is one in which all three perspectives are honored. Information flows throughout the organization, intentions are given serious and ongoing consideration, and ideas are generated and actions are taken at all levels of the organization. A participating approach to entrepreneurship is clearly needed if a culture of diversity is to flourish, for diversity inherently requires the emergence of entrepreneurship at all levels of the organization.

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William Bergquist

William BergquistWilliam Bergquist, Ph.D. An international coach and consultant, professor in the fields of psychology, management and public administration, author of more than 45 books, and president of a graduate school of psychology. Dr. Bergquist consults on and writes about personal, group, organizational and societal transitions and transformations. His published work ranges from the personal transitions of men and women in their 50s and the struggles of men and women in recovering from strokes to the experiences of freedom among the men and women of Eastern Europe following the collapse of the Soviet Union. In recent years, Bergquist has focused on the processes of organizational coaching. He is coauthor with Agnes Mura of coachbook, co-founder of the International Journal of Coaching in Organizations and co-founder of the International Consortium for Coaching in Organizations. His graduate school (The Professional School of Psychology: www.psychology.edu) offers Master and Doctoral degrees in both clinical and organizational psychology to mature, accomplished adults.

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