[5] Organizational identity is formed by top leaders' establishment of the core values and beliefs that guide and drive the organization's behavior.
Organizations use four identity-building actions when identifying and discussing: storytelling, use of analogies, procuring social evaluations and establishing alliances.
[7] According to the work of Albert and Whetten, the task of managing organizational identity is often neglected until an organization reaches a point where it is unavoidable.
This may happen in situations when an organization has experienced significant growth, downsizing, or fostered multiple identities that have become irreconcilable.
When addressing this question, an organization must undertake the task of identifying which of their aspects truly define themselves and how they should react to those characterizations.
[1] Organizational identity is sometimes viewed as a social construction under constant creation through interactions [8] between combinations of internal and external actors.
[8][9] Identity instability is theorized to be beneficial in allowing organizations to adapt to changing operating environments.
[8][9] Gioia et al. theorize that the basic components of identity endure, but their meanings are reinterpreted over time.
For example, a city with oppressive civil rights laws is likely to affect the diversity of an organizations identity within its jurisdiction accordingly and vice versa.
This can be attributed to many factors such as deeply rooted cultures in an organization and strong leaders that are resistant to change.
If it is essential for two identities to cooperate with each other for the well being of an organization, a manager may seek to create a high amount of synergy between the two.
Depending on the narrative chosen by the organization, the management style of the company will inspire different beliefs and social values.
It is they who have the power to minimize their present and past mistakes, which have had an impact on the public's perception of the companies image.