A distinctive feature of IIMA's culture is faculty administration. The faculty structure is flat, with all faculty members reporting directly to the director. Faculty members head all major academic and most major non-academic activities. Chairpersonships are rotational and the seniority principle is not emphasized in appointing them. Chairpersons have few formal powers, and take decisions collectively. Faculty members have considerable freedom in deciding what to teach, what research to do, what contribution to make to management training, etc. within institutional norms.

The Director generally takes decisions in consultation with faculty members and faculty fora. Although planning and budgetary control systems exist, the primary modes of control are by missions and goals, professional self-control, and peer evaluation.