Search This Blog

Saturday 5 October 2013

Management of Corporate Identity at Individual and Corporate Level



Many thinkers of the day have transferred the concept of human identity to the firm (Simoes, Dibb and Fisk, 2005). Coming up with a strategy that helps in shaping the overall identity of the firm is one of the major chores for the managers in contemporary business (Stuart, 1999). Identity and image is simply the way persons (natural or corporate) think or perceive themselves and what they purport to be. The portrayal of the image at both the individual and corporate level is an important endeavour in the modern day. Companies nowadays have their own identity in terms of character, distinctiveness, essence as well as meaning. Today, managers seek to maintain the identity of their employees which helps the maintenance of their corporate image.

Concept of corporate identity

Albert and Whetten (1995) describes organisational identity as comprising of the attributes that the organisation’s members regard essential and distinctively descriptive of the organisation and which persist over time. It can be described as a combination of a firm’s tangible and intangible assets that contribute to its uniqueness (Bernstein, 1984). Identity at the organisational level is not only what a firm views itself as being, but also what it says about itself to the public (Ronald & Jackson, 2010). Organisational or corporate identity, corporate image and corporate personality are at times seen confusing (Gray and John, 1998). Moffit (1995) sought to separate these terminologies by suggesting that while identity may be taken to refer to content, image may refer to form. He argues that when a firm undertakes to project its identity, its image is formed in the mind of the individual and thus a corporate image is arrived at. Olins (1995) on the other hand talks of corporate personality as being the soul and the spirit of the firm which is unique to that firm alone. Albert & Wheeton (1995) perceive corporate personality in a slightly different perspective where they equate it to organizational character.

Corporate identity strategy is the systematic approach towards using or applying effective as well as an integrated communications for the purpose of developing relationships between a firm and its stakeholders. Corporate identity is therefore the manifestation of a firm’s mission statement coupled with values as well as corporate purpose plus a host of behavioural aspects that help a firm improve its general personality (Ranchhold & Marandi, 2007).
It has nowadays become a factor of the firm’s articulation of both the mission as well as the vision summary (Ronald and Jackson, 2010). For instance, the mission statement of Microsoft reads, “There will be a personal computer in every desk running Microsoft software”; this simply depicts them as giants in the software industry, an opinion that consumers subsequently buy. Other formal statements such as credos and slogans have the effect of conveying so much about a firm. Prudential’s slogan of “own a piece of the rock has been quite effective in saying much about the firm’s financial strength.

Another related concept is the concept of organizational identity. While corporate identity is clearly affected by the feelings and attitudes of both the employees and the members concerning a firm, organisational identity is on the other hand liked to the opinions and thoughts of the employees and stakeholders of a firm (Ronald & Jackson, 2010). Other facets of this concept include corporate culture and corporate strategy in addition to organizational design. Strategy defines the overall plan that describes the firm’s market targets. For instance, Southwest Airlines being regionally based chose a strategy of low costs as well as fares
Corporate culture comprises of the common felt values and beliefs. Southwest Airlines has a corporate culture of customer focus and internal co-operation. These values support the corporate identity of the firm. Organizational design constitutes the basic choices that leaders have in developing the organizational relationship patterns.

Individuals who get employed in some organisations today get their lives restrained by their employers for the purposes of retaining image. Current employees tend to represent the internal constituency of the firm that a corporate body must consider while communicating their corporate identity. The management of the individuals posing as employees starts with the recruitment (Dowling, 1994). Firms like Maeck and Hewlett Packard are some of the firms that due to their sterling reputations encourage top-notch applicants. For instance, purchasing a car is a personal decision but most of the car manufacturers like Toyota insist on their employees to own cars from the firm so as to retain their corporate image (Dutton, Dukerich and Harquail, 1994).

Corporate bodies also may seek to retain their employees whose personal identity is considered admirable in the eyes of the public. A good example is case of the former Apple Company’s CEO, Steve Jobs. Due to his superior personality and public image, Apple Company had to retain him as the CEO even with his health having deteriorated however with his duties delegated (Dutton, Dukerich and Harquail, 1994).)

The employee is the backbone of any organisation’s operations (Balmer and Wilson, 1998). It therefore follows that for a corporate image to be seen as effective and reflective of the firm there must be an observed level of consistency between the values projected by the employees and the organisation. The corporate image is largely influenced by the vision and objectives of the organisation. Although the process of strategy definition may involve the input of individual employees, the resultant vision and mission statements often differ significantly from the initial perspectives assumed by the employees due to the incorporation of a variety and often conflicting views (Bernstein, 1984). This necessitates the process of concise communication by the organisation to employees in order to create the sensitisation on the resultant organisational image which they must diligently project in their daily operations (Bernstein, 1984).

The process of ensuring the effectiveness of a corporate image requires full cooperation by the staff members across the whole functions of the organisation. The concept of tying individuals to the organisations is increasingly important in the rapidly changing business environments which tend to influence employee behaviour across several industries (Balmer, 2008). The self definition is a function of the individuals’ perception of the corporate identity and subsequent realignment with the corporate image at the individual level. This brings to the fore the communication theory of identity which views the development of collective and individual identities as a function of communication. By implication, this theory requires that the organisations communicate their organisational image concisely to the employees (Bernstein, 1984). It is only after the employees have gained accurate understanding of the corporate image that they can realign their behavioural traits and preferences to be in synergy with the organisational values. The organisational image can be said to be coherent only when the organisation and the individual image can be seen as ‘one’ (Balmer and Wilson, 1998). This results in a situation where the individuals no longer view themselves as distinct and independent components of the organisation but rather as members of the organisation whose lives and aspirations are integrated into the corporate vision and mission.

The alignment of employees’ integration into the corporate image often follows a process of identity-comparison that evaluates individual values vis a vis those of the organisation. The stronger the level of identification, the closer the employee is to full congruence with the organisational values that define its corporate image. Identification occurs through cognitive attachment (Dutton, Dukerich and Harquail, 1994). This means that the employees not only focus on the perceived identity (what they think of the firm), but also on the perceived image (what they believe others to think of the organisation). Other scholars have diminished the significance of the cognitive approach and propose the promotion of identity through the creation of emotional bonds between the organisation and individual employees (Balmer, 2008). This view proposes the use of motivational factors to promote strong identification with the corporate image at the individual level. The level of identification of individual employees with the corporate image may also be a function of the cultural context in which the organisation operates (Balmer, 2008). Cultures that promote adherence to group visions and goals tend to provide the motivation for employees to strongly identify with the corporate image of their organisations. Organisations also have a significant role to play in ensuring that employees embrace the process of identification by ensuring that they understand the employee behaviours (Dutton, Dukerich and Harquail, 1994). This understanding has been proven to be effective in the development of motivational factors aimed at encouraging stronger levels of identification.

The most common approaches to corporate identity include the graphic design approach, the synthesis approach, and the integrated communication approach (Ranchhold and Marandi, 2007). The graphic design approach conceptualises corporate identity as closely associated with the visual identity; organizational nomenclature, design of the logo, and the like (Olins, 1978, 1995). According to Duncan and Everett (1993), the integrated communication approach is described as the strategic harmonization of all the messages as well as the media applied by a firm to add value on its brand. It takes into consideration the various concepts of public relations (Schultz et al., 1994). Emphasis is laid on those procedures that are applied to strategically develop, change as well as manage a firm’s corporate identity and effectively improve the public image. The synthesis approach presumes that the corporate identity is attained through a combination of both the behavioural as well as the communication strategies, and also through symbolic elements coupled with visual appearance (Ranchhold and Marandi, 2007).

Basically, corporate identity deals with the questions regarding the firm’s strategy, the firm’s business, the firm’s performance, the firm’s vision and objective and so on (Hatch and Schultz, 2004). By looking at these aspects of the business, a firm can be said to be managing its corporate identity. In some way, the corporate identity management can be seen as a strategic tool that can be used by the firm to gain competitive advantage. In their work, Albert Stuart (1999) suggests of three ways of managing corporate identity as listed below. Firstly, corporate identity deals with a claim of character. That is, it deals with answering questions such as “what is the objective of the firm?” or “how important are certain features about the organization for the employees?” Secondly, the management of corporate identity involves some particular distinctiveness. A corporate identity is formulated through giving answers to questions like, “how is this firm different from others?” or “how does the firm’s stakeholders perceive this firm to be different from others?” Thirdly, the need to maintain and preserve corporate identity has to be sustained over time. At this point, the managers need to ask themselves such questions as “can the firm maintain the current market leadership over time?” or “can it succeed in maintaining sameness over a given period of time?”
It can also be argued that strategic approach to corporate identity is not only laid on these questions but also on establishing on the depth of their application on determining what the organization wants to be. This means that the strategic corporate identity programme should set the pace for articulating the vision of the firm.

Firms need to manage their images at the individual or corporate level. The need for maintaining identity has most probably increased due to environmental factors which include increased competition in the market, globalization of many businesses and so on.
This concept of corporate personality is adopted by firms for similar roles as those played by branding in relationship marketing; that is for the purposes of gaining competitive advantage as well as for the need to differentiate. For example, where say, a telephone services provider may have enjoyed a monopoly on services as such, it is now a different case altogether and the former monopoly has to struggle to keep afloat in the now competitive environment. Faced with stiff competition, the telephone company seeks to develop its corporate identity as the start point.

Identity also forms the basis for the image as well as the reputation of a firm. Identity forms the basis in which marketers pursue when they attempt to position themselves in the market. Over some period of time, a good corporate identity builds a good corporate image. Good reputations in turn, nurture good reputation. However, researchers have met difficulties while attempting to quantify the direct impact of reputation or corporate image on sales due to methodological problems (Ronald & Jackson, 2010). Even so, it is undisputable that a good reputation is of great value to a firm. Looking at a recent case involving the Nissan motor company, one can notice that in the 1980s this company enjoyed the image of a customer oriented leadership in the manufacture of automobiles with a great deal of reputation as pertains automotive engineering. By the period between 1993 and 1997, due to some poor leadership, its image as top-notch car producer had declined a lot leading to declining sales as well as the profits. Customers now perceive it as a conservative maker of awkward cars after its engineering leadership image compromised.

The concept of identity is a concept that has been approached differently by many academicians. The models used in this study may be different to many other models that may be applied in different reference materials. However, the convergence of these approaches is that the different models touch on the key elements of the very paradigm. The application of these models in the firm has become a necessary phenomenon that managers have to embrace. As established earlier in analysing the benefits of applying this concept, despite there not being a means to calculate the direct benefits of this concept in business, it is undeniably true that the paradigm in question has direct correlation with expanded customer base and consequently higher profits for the firm whether in the long or short term under condition that all things remain equal.

For more theory and case studies on: http://expertresearchers.blogspot.com/

References
Albert, S and Whetten, D 1985, ‘Organisational identity’, Research organisational behaviour. 7,  263-295
Balmer, J., 2008. Identity based views of the corporation. European Journal of Marketing, 42: 9/10, pp. 879–906
Balmer, J., Wilson, A., 1998. Corporate identity. There is more to it than meets the eye. International Studies of Management and Organization, 28: 3, pp. 12–31
Bernstein, D., 1984. Company image and reality: a critique of corporate communications. Eastbourne: Rinehart and Winston
Dowling, G. 1994.  Corporate Reputations: Strategies for Developing the Corporate Brand. London: Kogan Page.
Duncan, T and Everett, S 1993, ‘Client perceptions of integrated Marketing Communications’, Journal of advertising research, 33(3), 30-9
Dutton, J.E., Dukerich, J.M., Harquail, C.V., 1994. Organizational images and member identification. Administrative Science Quarterly, 39:2, pp. 239–263
Gray, E and John M. 1998, "Managing Corporate Image and Corporate Reputation." Long Range Planning 31, no. 5 (October, 1998): 695-702.
Hatch, M and Schultz, M 2004, ‘Organizational Identity: A reader’: New York: Oxford University Press
Moffit, M.A 1995, ‘Collapsing and integrating concepts of “public” and “image” into a new theory’, public relations review, 20(2), 259-2170
Olins, W 1978, ‘The Corporate Personality: An inquiry to the Nature of Corporate identity, London: Design council.
Olins, W 1995, ‘The new guide to identity’, London: Gower Publishing
Ranchhod, A and Marandi, E 2007, CIM Course book 07/08 Strategic Marketing in Practice: 07/08 Edition. Oxford: Butterworth-Heinemann
Ronald, L and Jackson, I 2010, ‘Encyclopaedia of Identity’. London: Sage Publishers.
Saren, M 2006, Marketing Graffiti: ‘the view from the street’. Oxford: Butterworth-Heinemann
Schultz, D., Tannenbaum, S and Lauternborn, R 1994, integrated Marketing Communications: Pulling it together and making it work, Chicago: NTC business books.
Simoes, C., Dibb, S and Fisk, P, 2005, Managing Corporate Identity: An Internal Perspective, Journal of the academy marketing science, 33(2); 153-168.
Stuart, H 1999, ‘Exploring the corporate identity/corporate image interface: An empirical study of accounting firms’, Journal of Communication management, 2(4) 357-371

No comments:

Post a Comment