The Psychology of Organizations:

A Social Identity Approach

Thomas A. Morton
S. Alexander Haslam
University of Exeter

Natalia Ivanova
HSE
1. The Social Identity Approach

1. Implications for Leadership

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2. Empirical evidence from UK and Russia

The social identity approach

• Incorporates principles from:

• social identity theory (Tajfel & Turner, 1979)
• self-categorization theory (Turner et al., 1987, 1994).

• The self is context-dependent and can be

defined at different levels of abstraction:
• Personal, social, organisational, national, human

• Different bases of self definition have

consequences for motivation, behaviour and
interaction

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The social identity approach
Motivated by individual self- Motivated by collective
interest & personal gain interest & collective gain

Guided by personal values Guided by shared values

and standards and standards

personal identity social identity

• Our sense of self can be defined by:

• individuality (personal identity — ’me’, ‘I’)
• group membership (i.e., in terms of social identity — ‘we’, ‘us’)
• There is a qualitative difference between behaviour that is based
on personal identity (‘I’) and that based on social identity (‘we’). 4
The social identity approach

organizational
identity

subgroup
identity

personal
identity

5
The social identity approach

Self-esteem derived from personal achievements organizational

Self-actualization via comparison and competition with others
identity
Motivation to cooperate low

subgroup
identity

personal
identity

6
The social identity approach

organizational
identity

subgroup
identity

personal
identity

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The social identity approach

Self-esteem derived from group achievements organizational

Self-actualization via comparison and competition other groups
identity
Motivation to cooperate within group high
Motivation to cooperate across groups low

subgroup
identity

personal
identity

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The social identity approach

organizational
identity

subgroup
identity

personal
identity

9
The social identity approach

Self-esteem derived from collective achievements

organizational
Self-actualization via pursuit of shared goals identity
Motivation to cooperate within group high

subgroup
identity

personal
identity

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Shared Identity & Organisational Functioning

Non-shared identity Shared identity

Motivation to coordinate, cooperate, communicate

Barriers to coordination, cooperation and communication

1. Situations/ structures that emphasise shared identity will facilitate

organisational functioning

2. Situations/ structures that highlight non-shared identities will impair 11

organisational functioning
Shared Identity & Organisational Functioning

• The social identity approach offers an alternative

approach to understanding issues of organisational
behaviour based on identity

• Has been successfully applied to a range of

organisational questions:
• Motivation and commitment
• Power and influence
• Communication and coordination
• Decision-making
• Productivity and performance
• Organisational conflict and stress
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• Leadership
Social Identity Approach to Leadership

• Traditional approaches in organisational psychology

focus on the leader:
• What are the personality characteristics of good leaders?

• Although intuitively appealing, these approaches to

leadership have proven theoretically and empirically
unsatisfying

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Social Identity Approach to Leadership

• According to the Social Identity Approach, leadership

is not an individual quality but the outcome of a group
process

• It’s not just about leaders,

it’s about followers

• It’s not about me, it’s

about us

• It’s not about power over

people, it’s about power
through people (Turner,
2005)

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 Social Identity Approach to Leadership

• Leaders are more effective the more they are perceived to

represent a social identity that we share.

The characteristics we value

in leaders (e.g., intelligence) Turner & Haslam, G@W (2001)
are those that typify us but
not them

Study in which Ps choose group

leader from multiple candidates
Choices made against an outgroup
characterised as:
a)Intelligent
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b)diligent
Social Identity Approach to Leadership

• Things that set (or are perceived to set) leaders apart from
the group can undermine the effectiveness of their
leadership.

$£€
At the start of C20 J.P. Morgan noted that the only feature shared by his
poorly performing clients was a tendency to overpay those at the top of the
company (Drucker, 1986; see also Hollander, 1995).

Very high salaries at the top, concluded Morgan — who was hardly
contemptuous of big money or an ‘anti-capitalist’ — disrupt the team. They
make even high-ranking people in the company see their own top
management as adversaries rather than as colleagues. ... And that
quenches any willingness to say ‘we’ and to exert oneself except in one’s
own immediate self-interest. (Drucker, 1986) 16
 Social Identity Approach to Leadership

• Things that set (or are perceived to set) leaders apart from
the group can undermine the effectiveness of their
leadership.

Reward inequality de- Haslam, PiO, 2001

motivates followers

Study in which leaders and

followers are given different
rewards for their contribution
to a group task
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Social Identity Approach to Leadership

• Things that set (or are perceived to set) leaders apart from
the group can undermine the effectiveness of their
leadership.

Haslam, et al., (in prep)

• Archival study of British Universities (1998-2007)
• Obtained measures of:
• Vice-chancellor’s pay (rankings)
• Average staff member pay (rankings)
• University performance (Times League Table) *

*
Includes: Student Satisfaction, Research Quality, Entry Standards,
Student-Staff Ratios, Services & Facilities Spend, Completion, Good
Honours and Graduate Prospects 18
Social Identity Approach to Leadership

• Things that set (or are perceived to set) leaders apart from
the group can undermine the effectiveness of their
leadership.

Haslam, et al., (in prep)

• Hypotheses:
H1. V-C Pay will be positively
correlated with performance
H2. Staff Pay will be positively
correlated with performance
H3. Discrepancy between V-C
and staff pay will be
negatively correlated with
performance

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Social Identity Approach to Leadership

• Things that set (or are perceived to set) leaders apart from
the group can undermine the effectiveness of their
leadership.

Haslam, et al., (in prep) Results (raw correlations)

• Hypotheses: PerfPay PayPerf

 H1. V-C Pay will be positively

correlated with performance
.40 .35

 H2. Staff Pay will be positively

correlated with performance
.59 .64

 H3. Discrepancy between V-C

and staff pay will be –.21 –.32
negatively correlated with
performance

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Social Identity Approach to Leadership

• A social identity model of the rise and fall of

great leaders:

Haslam, et al., (in prep)

Lack of
Material and
Shared social shared social
psychologica
As 'one of us', identity fosters identity
l distance
leader builds followership compromises
between
social identity and group followership,
leader and
success cohesion and
followers
success

Old models of leadership not only fail to deliver

group success, they may actually undermine it.
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Summary

• The social identity approach re-frames organisational

psychology
• From individual values, motivations and personality qualities
to shared values, motivations and identity

• Useful theoretical tool for understanding a range of

organisational problems:
• Communication, coordination, motivation, stress,
productivity… and leadership

• Organisation and leadership is more successful when

individuals interact based on shared identities rather
than interpersonal or intergroup divisions
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