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Organizational image refers to people's global impressions of an organization; it is defined as people's loose structures of knowledge and beliefs about an organization. Organizational image represents the net cognitive reactions and associations of customers, investors, employees, and applicants to an organization's name. Accordingly, it serves as a template to categorize, store, and recall organization-related information.

It should be noted that there is no such thing as the organization's image because an organization typically has multiple images. These multiple images result from various groups (also known as stakeholders or corporate audiences) holding different images of the same organization. At least, one might distinguish among the following organizational images. First, investors and executives hold an image of an organization as an economic performer. These investors typically rely on factual economic figures as a basis of their beliefs about the organization. Second, there is the image of an organization as a social performer in the general society (also known as corporate social performance). Third, customers or clients hold an image of an organization as a provider of goods and services. Fourth, each organization has an image as an employer among current employees and (potential) applicants (also known as company employment image or employer image). This is the image that is assessed in rankings such as Fortune magazine's “The 100 Best Companies to Work For.” These multiple organizational images might not always coincide. For example, the firm's image as an employer as held by either employees or job seekers might be different from its image as a provider of goods and services in the minds of customers or clients.

Organizational images typically develop over longer periods of time. They result from, among other things, media coverage, individual or group sensemaking, and communication on the part of the organization (as reflected in an organization's advertising, sponsorships, and publicity). However, it should be clear that organizational images are not static. Specifically, organizations often audit their images. In these image audits, the aim is to carefully determine which factors make up the image among various stakeholders. Next, organizations aim to strategically modify the image held by these stakeholders. For example, this might be done by increasing an organization's exposure or by highlighting specific attributes in advertising campaigns.

Components of Image

Generally, two components can be distinguished in an organization's image. First, people typically associate some objective attributes with an organization. These attributes might vary from factual or historical aspects of organizations to organizational procedures and policies. For example, in terms of a company's image as an employer, research has confirmed that applicants might have some knowledge about the attributes of the organization and the job that they might consider applying for. Examples include size, location, level of centralization, pay, benefits, type of work to be performed, advancement opportunities, and career programs.

A second part of people's general impressions of an organization refers to trait-related inferences. Trait inferences about organizations are different from the aforementioned objective company-related information for two reasons. First, trait inferences describe the organization in terms of subjective, abstract, and intangible attributes. Second, they convey symbolic company information in the form of imagery that people assign to organizations. For example, in terms of a company's image as an employer, research has discovered that applicants reliably and meaningfully ascribe traits to organizations. They refer to some employing organizations as trendy, whereas other employing organizations are seen as prestigious. Similar results have been found in research on consumers' image of the organization as a provider of products and services.

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