Organisational informal structures: social identity perspective

Abstract

The aim of this paper is to explore how the cognitive elements of social identity within informal structures influence employees' perceptions and, in turn, impact corporate strategy. This study proposes a framework for managing such informal structures relevant to both theory and practice by employing a social identity theoretical framework. The research examines the impact of informal structures on corporate strategy within the context of a case study involving a South African mining company. The paper establishes that norms, values, and thought processes toward corporate strategy are informally shaped by social identity groups. It suggests that in future research, employing an alternative theoretical framework could serve to establish the reproducibility of the results. Furthermore, a shift towards quantitative research methods would enhance the comprehensiveness of validity testing through methodological triangulation. The proposed framework offers a comprehensive theoretical perspective that contextualizes the interaction between cognitive components of social identity and corporate strategy. It illustrates how aligning personal goals with corporate objectives, maintaining consistent communication, implementing fair employee recognition practices, and equitably sharing resources can mitigate opposition from social identity groups toward corporate strategy. The research presents a pioneering case study of a mining company that employs social identity theory to delineate the informal structure and ascertain how social identity elements influence corporate strategy.