Social Identity Theory

Leadership is about humans. There’s probably a school of thought on how leadership relates to AI, but for today’s practitioners, that’s too disconnected from daily reality to affect our lives. Everyday leadership, the type of leadership that matters now, is all about how humans interact with each other. That makes understanding other humans – and ourselves – incredibly important. If we understand how humans interact, we can better appreciate how to lead (and to follow).

Before we get too far into this article, take a moment to think about someone you dislike. Don’t think too hard about them or why you dislike them. Just think about who they are, and whether your low opinion of them is fixed forever. At the end of this, there will be some questions about them – and you. 

There is a plethora of models and frameworks that help us understand how humans interact, and how we think about ourselves and each other. One such is known as Social Identity Theory. It’s an intuitive model once you get the hang of it, but it can take some time to get your mind around how it works and how it can be used. This article will explain a little bit about the theory behind the Theory, and in the next article, we’ll look at how it applies in leadership.

Social Identity Theory

Social Identity Theory (SIT), developed by social psychologist Henri Tajfel, explores how individuals derive a sense of identity and self-esteem from their membership in social groups. In other words, we consider who we are as a person based on the groups we are in.

SIT also explains how group membership influences our behaviour, attitudes, and intergroup relations. According to the theory, people strive to maintain a positive social identity by enhancing the status of their particular in-group and differentiating it from out-groups. In plain terms, humans want to do things that make them more like stereotypical members of groups they think they are a part of.

Let’s have a look at some of the key academic concepts of the theory, then we’ll pull it together to better understand how it plays out in real life.

Key Concepts of Social Identity Theory

Social Categorisation: Individuals categorise themselves and others into social groups based on shared characteristics such as nationality, race, gender, occupation, or even fandoms. This categorisation helps simplify and organize the social world. Put simply, we all continuously classify ourselves and others into socially identifiable groups, e.g. males, or Australians, or netball players, or Nissan drivers.

Social Identity: Social identity refers to the part of an individual's self-concept that is derived from their membership in a particular group. It involves a sense of belonging, pride, and value associated with the group. For example, someone may identify strongly as a "cricket fan" or a "Nissan driver." We often tie this identity to our jobs – we think of ourselves as our career title, and define others by theirs e.g. “Tim is a pilot.”

In-Group Favouritism: People tend to show a preference and favouritism towards their own in-group (the group they personally identify with). They may display positive attitudes and behaviours towards in-group members and perceive their group as superior to out-groups. This bias can lead to intergroup conflicts and discrimination. If you’ve ever seen Holden vs. Ford rivalries, or AFL vs. netball, or opposing political party affiliates arguing, you have seen this in action.

Out-Group Homogeneity: Out-group homogeneity refers to the tendency to perceive members of out-groups as more similar to each other than they actually are. This perception can lead to stereotyping and generalisations about out-group members. Unfortunately, this plays out often; think of the tropes about Asian drivers, or Italian mums, or indigenous youths. We tar people with a brush based on them not being like us.

Social Comparison: Individuals engage in social comparison processes to enhance their self-esteem. They compare their in-group with relevant out-groups, striving to perceive their in-group as superior or more favourable in various domains, such as intelligence, competence, or moral values. Lots of social interactions revolve around these comparisons, especially in a competitive business setting, or when workers discuss management decisions.

Intergroup Conflict: Social Identity Theory explains how intergroup conflicts can arise due to competition for resources, status, or power between different social groups. Negative stereotypes, prejudice, and discrimination often emerge because of these conflicts. A quick scan of the news shows any number of examples, perhaps none so prevalent as the growing divide between political parties in many countries.

Applications of Social Identity Theory

We can see from the theory of the Theory that there are a wide range of applications. Social Identity Theory can be applied to marketing, leadership, followership, and even friendship. It helps us understand the world around us, and our interactions with other humans as we go about our daily lives.

Here are some examples of Social Identity Theory in action. You can derive others from these, and from the information above; this is just a small list of possible applications that you might observe. 

Intergroup Relations: The theory helps explain intergroup conflicts, prejudice, and discrimination. Someone who identifies as a straight white male is likely to judge homosexual black females before they know them personally, and generally speaking, the judgement will be both negative, and wrong. Understanding social identity processes can contribute to interventions aimed at reducing conflicts and promoting positive intergroup relations. If we remember that people are humans first, and that our judgement is instinctively based on group membership, we can get to know them as a person rather than judging them based on their group memberships.

Organisational Behaviour: Social Identity Theory is relevant to understanding group dynamics, leadership, and organisational culture. We can see this in the workplace, at schools, in club sports or any other group. It provides insights into how group identities and social categorisations influence behaviour and employee engagement. The classic line for identifying how SIT plays out in an organisation is, “this is the way we do things around here.” As soon as there’s a ‘we’ used in the sentence, the speaker is drawing group boundaries, and defining the group’s culture and behaviours.

Consumer Behaviour: Social Identity Theory is a salesperson’s or marketing expert’s bread and butter – even if they don’t know it. By inferring that someone is a member of a certain group, they can be influenced into certain behaviours – like buying certain products. If we strengthen those group affiliations, we can generate lifelong customers. If someone identifies themselves as a Woolworths shopper, they’ll probably avoid Coles even when it’s easier or cheaper to buy there. A rusted-on Ford driver will never consider buying a GM product, even if it’s better quality or better suited to the driver.

Health and Well-being: Social Identity Theory can be leveraged to help people maintain a healthy lifestyle, or sometimes, to maintain an unhealthy one. People who identify as a cigarette smoker will act to affirm that belief. But, if that belief is altered, the behaviours can be changed. If someone changes their identity from “smoker” to “non-smoker”, then there’s a higher chance they’ll quit. Individuals who join fitness clubs with a strong sense of belonging (think Crossfit) may be positively influenced to train more often and participate in more healthy behaviours like diet modifications.

In summary, Social Identity Theory explains how group membership shapes our sense of self, influences intergroup relations, and impacts behaviour and attitudes. It highlights the importance of understanding group dynamics and the role of social identities in various domains of human interaction. We are who we think we are based on the groups we are part of. We judge others based on who we think they are, which we derive from the groups we believe they are part of. These groups then are compared to our groups, and we make a judgement about the other person.

Armed with this knowledge, we can change the way we look at the world, and potentially change the way we interact with others. A simple example might be to review the perception we have of someone we dislike – is it based on a genuine disagreement about fundamental values, or have we assumed their values based on the groups we’ve classified them into? It’s easy to infer that because they look and act differently, they must be wrong somehow.

To finish, try this thought experiment; the person you thought of at the start of this article is probably part of several different groups to you – out-groups to your subconscious mind. Now try to consciously place them in a group you are both part of. Do you both drive Toyotas? Follow a certain sporting code, or team? Born in the same state or city? Try to determine an in-group that includes you both, then decide whether your opinion remains fixed about them. Can you change your opinion? And if so – how can you apply this to your leadership?

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