Identity is often defined in terms of how an institution, a social group or an individual understands itself. This view implies there is a core or an ‘essence’ representing how an organization, group or individual coherently defines itself. It is not about objective characteristics, but about how the people concerned sees these qualities. Identity is, like culture, used in many different ways for a variety of purposes. It is, however, fairly common to argue that organizational identity represents the form by which organizational members define themselves as a social group.

Within organization studies the concept of identity is used also in referring to social identity and self-identity. Social identity means that a person or a group uses a social category (group) to define himself or themselves. Self-identity refers to how the individual views him- or herself as an individual and what is distinct and important in terms of a sense of self: who am I and what is important for me? The three levels mentioned – organization, group and individual – can thus be linked. It is assumed that an organization’s members shape and are shaped by this organizational identity.

Answers to questions of self-identity at work are seldom a matter of purely individual responses, but are closely related to organizational cultures, as the practices and values characterizing the organization tend to guide responses. Other parts of organizational identity have a strong overlap with organizational culture studies.