Defining organizational identity

Organizational identity is the "shared beliefs and self-conceptions held by organizational participants" (Scott & Davis, 2007, p. 154). Organizational identity reflects the characteristics that define and differentiate the organization, influencing member perceptions, and behaviors. Organizational identification occurs when an individual integrates beliefs about one's organization into their identity (Pratt, 1998, p. 172). Organizational identification becomes a fundamental building block of organizational culture and socialization. Organizational leaders emphasize and promote differentiating characteristics like mission, philosophy, and values to influence how participants identify themselves with the organization. Kreitner and Kinicki (2007) offer Harley-Davidson motorcycles as an example of a company with such strong organizational identification that many of its employees have the company logo tattooed on their bodies. "Working at Harley Davidson is not just a job; it is a lifestyle," they say (p. 150).

Forms of organizational identity

From the perspective of organizational members, identity can take two forms: how the members perceive the organization and how they perceive non-members perceiving the organization. Elsbach and Kramer (1996) argue that members of an organization believe the organization reflects their personal identity. To maintain positive perceptions about their social identities, individuals attempt to maintain positive perceptions about the organizations to which they belong. Threats to the organization's defining characteristics challenge the organization's identity, affecting the social identity of its members. To maintain positive perceptions, members accentuate positive attributes of their identity, develop favorable status among peers, and build homogeneity among peers (Elsbach & Kramer, 1996).

Organizational identity and image

Organizational identity and image are interdependent, but not the same (Gioia, Schultz, & Corley, 2000). While some scholars view identity as fixed characteristics perceived by members (Kreitner & Kinicki, 2007), Gioia et al. (2000) argue that organizational members dynamically reconstruct organizational identity through their interpretations, actions, and interactions with the outside environment. Image is the internal and external perceptions that the organization sends and receives. Image can take various forms, including the image an organization creates and projects to target audiences, the corporate identity the organization manages through branding strategies, and the reputation the organization earns through its long-term actions and achievements. Image influences identity, rendering both concepts dynamic and interrelated. Such instability compels the organization to adapt to the demands of the dynamic environment. Maintaining a consistent organizational identity may not only be ill-advised; it might be impossible in a complex environment. Gioia et al. (2000) propose that organizations should stop attempting to preserve a consistent or fixed identity, but learn how to manage and balance a flexible identity to meet the demands of a dynamic environment.