This paper proposes a generalized and a universal approach towards collective and individual identity formation, and one which is expected to work in practically every conceivable scenario across cultures. Our approach also has at its core, the concept of the ‘Psychic unity of mankind’ which implies that human thought processes, urges and impulses are essentially the same in all cultures and societies, though the nature of enculturation may vary from context to context. This approach works in globalized scenarios as well, and includes pro-active approaches for meaningful identity modulation. It also discusses the importance of identity dilution and neutralization to the extent it is realistically possible and desirable, and discusses the dangers of Identity polarization, while introducing several new concepts in this context. This approach is also linked with other frameworks such as Anthropological Pedagogy, the Sociology of Science, the latest theories in Cognitive Psychology and Human growth and development, and all the other concepts of the Symbiotic Approach to Socio-cultural change i.e., the Theory of Cultural and Societal orientations, the Theory of Mind-orientation, the Ethnography of Mindspace, the Ethnography of Enculturation and Acculturation. More importantly, our approach is consistent with our philosophy of the ‘Globalization of Science’, and discourages intellectual elitism and ivory-tower scholarship though Ethnographic fieldwork in diverse, representative contexts. This approach has been developed after analyzing different subjects and case studies from varied contexts, and comprises many recommendations such as ethnographic fieldwork in diverse contexts and pedagogical reform to modulate identity for better ethnic and communal harmony.