Explore

S3V2

Today we're talking about organizational identity and culture. We want to better understand the importance of identity and culture for organizational change. To do so, we have the following learning objectives:

Understand the concept of organizational identity and see how it might drive resistance to change.

Examine the role of organizational culture and its interrelation with identity.

Explore how identity threats might lead to disengagement from the organization.

Let's start with an example of how organizations shape identity: Patagonia. Patagonia’s mission is “We’re in business to save our home planet.” The company clearly focuses on environmental sustainability, creating a workplace where employees actively participate in environmental causes. By encouraging employees to engage in environmental projects, providing programs like environmental internships, and emphasizing transparency and responsibility, Patagonia enhances employees’ identification with the organization as environmental protectors.

How can we explain that employees identify with their organization? We can turn to social identity theory. According to social identity theory, individuals strive to maintain a positive social identity. Part of one’s self-concept and self-worth is derived from belonging to valued groups. Organizational membership can be one of these groups, making organizational identity a form of psychological attachment to the defining characteristics of the organization. This attachment can affect employees’ commitment, cooperation, and effort, as well as their decisions.

We can consider three levels of self-concept: personal, relational, and collective.

The personal level: People define themselves by their personal attributes and unique characteristics.

The relational level: People define themselves by their relationships with others.

The collective level: People define themselves by their memberships in social groups, such as their organization, profession, or ethnic group.

Identification often involves social categorization, identification, and comparison. Individuals categorize people into groups, identify with certain groups, and compare their in-groups with out-groups to achieve positive distinctiveness. Organizational membership can provide a source of positive identity if the organization is well-regarded and aligns with the individual’s values.

How does organizational identity relate to organizational culture? Organizational culture can be defined as a pattern of basic assumptions, shared beliefs, and values that guide members’ behaviors and provide meaning. Culture consists of visible elements (artifacts like office layout, dress code, ceremonies) and invisible deeper structures (values, norms, ethical standards). Culture and identity are closely linked. A strong culture provides members with a clear organizational identity.

A strong culture is characterized by specificity (clearly defined values and beliefs), adoption (the entire workforce embraces the culture), and implementation (cultural values are part of daily practice). A strong culture can have functional effects, such as behavioral consistency and a clear sense of identity. It can also have dysfunctional effects if it leads to pressure to conform, creating barriers to change.

Why might identification lead to resistance to change? Organizational identity threats occur when changes challenge the distinctive attributes of an organization with which members identify. For example, a corporate scandal or a technological shift might threaten members’ sense of what the organization stands for, leading to either solidarity (standing together) or disengagement (falling apart).

Employees may respond to identity threats through:

Social change: Working harder to improve external perceptions of the organization.

Social creativity: Shifting reference groups or reframing how they view the organization to maintain a positive identity.

Social distancing: Distancing themselves from the organization, possibly leading to turnover.

The nature of the threat (internal or external, stable or unstable, controllable or uncontrollable) influences whether employees choose social change, social creativity, or social distancing as a response.

In summary:

Organizational identity represents a psychological attachment. Members adopt the defining characteristics of the organization, influencing their behavior and cooperation.

Employees categorize themselves and others into groups, shaping roles, motivation, and self-esteem.

Organizational culture shapes behavior through visible and invisible elements (artifacts, values, assumptions). A strong culture provides consistency and identity but can also lead to resistance if threatened by change.

We look forward to our next video.

Want to print your doc?
This is not the way.

Try clicking the ⋯ next to your doc name or using a keyboard shortcut (

CtrlP

) instead.