This article studies "Grounded Theory" as one of the methods of qualitative research which allows the researcher to explore the concepts directly from the facts by relying upon a heuristic and inductive approach and to develop a theory himself. It first discusses the philosophical foundations of research from positivism to interpretationism and then drawing upon the assumptions of the new paradigm and realizing that most of the existing organizational theories have not been adequate for solving the organizational problems of Iranian organizations, it elaborates on the methodology of grounded theory and its practical framework. It aims to channel organizational studies towards developing indigenous theories based on the lived experience of leaders and staff.
)