The Psychology of Organizations: A Social Identity Approach

1. The Psychology of Organizations:A Social Identity Approach Thomas A. Morton S. Alexander Haslam University of Exeter Natalia Ivanova HSE

2. The Social Identity Approach Implications for Leadership Empirical evidence from UK and Russia

3. 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

4. social identity personal identity The social identity approach Motivated by individual self-interest & personal gain Guided by personal values and standards Motivated by collective interest & collective gain Guided by shared values and standards • Our sense of self can be defined by: • individuality (personal identity — ’me’, ‘I’) • group membership (i.e., in terms ofsocial identity — ‘we’, ‘us’) • There is a qualitativedifference between behaviour that is based on personal identity (‘I’) and that based on social identity (‘we’).

5. organizational identity subgroup identity personal identity The social identity approach

6. organizational identity subgroup identity The social identity approach Self-esteem derived from personal achievements Self-actualization via comparison and competition with others Motivation to cooperate low personal identity

7. organizational identity subgroup identity personal identity The social identity approach

8. organizational identity The social identity approach Self-esteem derived from group achievements Self-actualization via comparison and competition other groups Motivation to cooperate within group high Motivation to cooperate across groups low subgroup identity personal identity

9. organizational identity subgroup identity personal identity The social identity approach

10. organizational identity The social identity approach Self-esteem derived from collective achievements Self-actualization via pursuit of shared goals Motivation to cooperate within group high subgroup identity personal identity

11. Shared Identity & Organisational Functioning Non-shared identity Shared identity • Situations/ structures that emphasise shared identity will facilitate organisational functioning • Situations/ structures that highlight non-shared identities will impair organisational functioning Motivation to coordinate, cooperate, communicate Barriers to coordination, cooperation and communication

12. 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 • Leadership

13. 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

14. 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)

15. Study in which Ps choose group leader from multiple candidates Choices made against an outgroup characterised as: Intelligent diligent 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) are those that typify us but not them Turner & Haslam, G@W (2001)

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. $ £ € 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)

17. Study in which leaders and followers are given different rewards for their contribution to a group task 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, PiO, 2001 Reward inequality de-motivates followers

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) • 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

19. 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

20. 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. Results (raw correlations) PerfPay PayPerf .40 .35 .59 .64 –.21 –.32 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   

21. Material and psychological distance between leader and followers Shared social identity fosters followership and group success Leader, but not followers, gets credit and reward for group success Lack of shared social identity compromises followership, cohesion and success Social Identity Approach to Leadership • A social identity model of the rise and fall of great leaders: Haslam, et al., (in prep) As 'one of us', leader builds social identity Old models of leadership not only fail to deliver group success, they may actually undermine it.

22. 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