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Introduced by Stuart Albert and David Whetten, organizational identity generally refers to the central and enduring features of an organization that its members believe distinguish it from other organizations and groups. Research on organizational identity is practically and theoretically significant because it can be used to explain organization-specific phenomena, such as organizational leadership, performance, culture, and many other organizational happenings. The need to understand organizational identity and identification transcends disciplinary demarcations by drawing interest from a variety of diverse domains such as social and organizational psychology, management, leadership, sociology, persuasion and communication, corporate relations, and marketing.

Albert and Whetten presented two uses of organizational identity. First, researchers can delineate and describe certain features of organizations. Second, organizational identity is a concept that organizations can use to define themselves. That is, organizations can decide, to a large extent, how they want to be categorized. These uses imply that organizational identity has a certain degree of fluidity, affording the organization some degree of a malleable identity. This can provide organizations with a means to reinvent their identities, replace managers or leaders, or integrate newly acquired companies or departments in a manner that is beneficial, effective, and efficient for the organization. The ability to reinvent an organizational identity is important for many organizations because without this capacity, many organizations would dissolve or find themselves unable to cope with a constantly evolving globalized economy.

This entry first discusses organizational identity's necessary conditions and core attributes. Then this entry explores the importance of organizational identity and the use of metaphors in defining an organization's identity. Finally, this entry details some of the controversies associated with organization identity research.

Conditions for Organizational Identity

Three defining and necessary conditions of organizational identity were presented by Albert and Whetten: (1) the essence or central criteria of the organization, (2) organizational distinctiveness, and (3) temporal continuity. Of these three conditions, the central character and distinctiveness are closely linked. The core attributes of the organization also distinguish it from other organizations. Defining attributes of the organization, however, are fluid in that they have the capacity to change depending on the organization's current purpose, needs, perspectives, products, goals, culture, or salient outgroups. Organization leaders play an important role in embodying the central characteristics of the organization via social identity processes. A leader is defined as an individual or group who has a disproportionate amount of power and influence over a group. Leaders are able to influence a group's agenda, goals, and achievements; thus, leaders can strategically position the group to accentuate commonalities or differences within and between groups to define and distinguish the organization. This allows organizations to define themselves in manners decided by the organization and its members while permitting placement of the organization into multiple categories. Placement in multiple categories provides the organization the possibility of change while not restricting identification to a single category.

Consistent with Henri Tajfel and John Turner's social identity theory, Albert and Whetten argue that the continuity of organizational identity is critical. That is, one's organizational identity must be enduring in addition to being central and distinctive. Through enduring identities, organizations are capable of creating and maintaining roles within and between organizational communities. For example, Google has created many identities for itself, but it is most commonly known as an Internet search company and technological innovator. The extent to which Google's identity is enduring, distinct, and central can be summed up in a brief, two-word sentence: “Google it.”

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