Abstract: The formation of institutional identity is the practice verification on the basis of unification of the cognitive expectations and normative expectations of institutional norms. The significance of ideology in the construction of institutional identity lies in:first, ideology can achieve the directional control over system information and influence people's cognition and understanding of system; second, by exerting the function of "possession of others will", ideology can change or replace the original ideological understanding and values of the general public and shape the normative expectations of the system. Ideology provides the ideological basis for the system identity, but because the institutional identity is not only a question of theoretical rationality, but also a question of practical rationality. The ultimate recognition of institutional identity depends on whether people's cognitive expectations and normative expectations of the system can be met in the system implementation process, which constitutes the limit of ideological function. In the forming of institutional identity, it is necessary to give full play to the function of ideology, and to strengthen the supervision and administration of the correctness and justification of the system and the system implementation process, so as to provide the necessary "rules of thumb" for the construction of institutional identity.

Key words: ideology, institutional identity, institutional performance, hourly wage, piece wage