Grounded theory is an inductive, theory discovery methodology that allows the researcher to develop a theoretical account of the general features of a topic while simultaneously grounding the account in empirical observations or data (Glaser & Strauss, 1967). This article explicates the utility of a grounded theory approach to research on work organizations. Following a general introduction to the grounded theory method, the authors'review of the organizational literature using grounded theory illustrates the variety of issues and topics studied through this approach. The authors describe and explain specific strategies for conducting grounded theory research in and on organizations, including note taking and note writing, concept discovery, and concept definition and preliminary elaboration of theory. Throughout the article emphasis is placed on grounded theory's ability to facilitate understanding and to identify desirable improvements in work contexts.