Social Exchange Theory

Examples of Social Exchange Theory in the following topics:

• Exchange

  • Social exchange theory applies this type of equation to social relationships.
  • Nevertheless, social exchange theory argues that forming relationships is advantageous because of exchange.
  • Social exchange theory is only comprehensible through the lens of rational choice theory.
  • Several assumptions undergird social exchange theory.
  • Explain how social exchange theory is based upon rational choice theory

• Altruism: Helping

  • The social-exchange theory argues that altruism only exists when the benefits outweigh the costs—i.e., when your behavior helps you even more than it helps the other person.
  • According to the social-exchange theory, when the risks or costs of a relationship outweigh the benefits, the relationship is abandoned or ended.
  • Reciprocity involves an exchange of positive actions between people.
  • Reciprocal actions are important to social psychology as they can help explain the maintenance of social norms.
  • Distinguish among the social-exchange theory, the reciprocity norm, and the empathy-altruism hypothesis of altruism

• The Psychology of Employee Satisfaction

  • Below are several theories.
  • There are some drawbacks to applying this theory.
  • Social-exchange and equity theory examines the impact of exchange on motivation.
  • A manager who uses social-exchange theory might try to emphasize that the company is more of a family than a workplace in order to achieve the first type of relationship.
  • The need for power takes two forms: socialized power, which benefits a group, and personalized power, which benefits the self.

• Managerial Perspectives on Motivation

  • Managers can employ motivational theory and reinforcement tools to motivate employees and increase efficiency.
  • Need-based theories of motivation focus on an employee's drive to satisfy needs by working.
  • Secondly, without a good culture for social interaction, employees will find it difficult to achieve high levels of creativity and problem-solving.
  • Equity theory is derived from social-exchange theory.
  • Management must assess the value of the job objectively and clearly explain the exchange (time and efforts for money/benefits/job satisfaction) to the employee prior to the onset of work.

• The Economy

  • In the most simple of terms, economies consist of producing goods and exchanging them; they are fundamentally social systems.
  • In the most simple of terms, economies consist of producing goods and exchanging them.
  • Economies are fundamentally social systems.
  • Capitalism functions in distinction from socialism, or various theories of economic organization that advocate public or direct worker ownership and administration of the means of production.
  • Informal economic activity is a dynamic process which includes many aspects of economic and social theory: exchange, regulation, and enforcement.

• New Social Movement theories

• Microeconomics

  • Market exchange is based on quid pro quo.
  • Market exchange can occur between anonymous individuals.
  • Trust, social institutions and legal sanctions may be used to enforce the terms of market exchanges.
  • Theory is an explanation about the way the world works.
  • As a set of tools, economic theory can be envisioned as a road map.

• Economic Sociology

  • Economic sociology is the study of the social causes and social effects of various economic phenomena.
  • Economic sociology is the study of the social causes and social effects of various economic phenomena.
  • Contemporary economic sociology emphasizes the social consequences of economic exchanges, the social meanings they involve, and the social interactions that they facilitate or obstruct.
  • In some cases, contemporary economic sociology borrows mathematical tools and economic theories such as utility maximization and game theory.
  • Some economic sociologists provide a social explanation to questions traditionally addressed by economists.

• Computer Mediated Social Communication

  • What are the social implications of CMC?
  • Does communicating through text make CMC low in "social presence" without necessary social contextual cues like eye contact?
  • Social presence theory contends that CMC is incomplete compared to face-to-face communication in social context cues like facial expressions, posture, dress, social status indicators, and vocal cues (Sproull & Kiesler, 1991).
  • In contrast to what would be expected from social presence theories (e.g., communication on the computer is impersonal and cold), friendly and relaxed communication styles have been associated with increased use of CMC (Rice, Chang, & Torobin, 1992).
  • Alavi and Leidner (2001) conclude that the internet will probably never replace face-to-face meetings for cultivation of primary group relationships, but it is possible that communities can be created that provide emotional support and companionship to support our traditional exchanges.

• Institutions and Costs

  • There are also costs of using exchange.
  • Social institutions and organizations are a social response to reduce the costs of exchange and eminent domain.
  • Social institutions also facilitate and enforce reciprocity.
  • The costs of using exchange are referred to as "transaction costs" (see Coase, "Nature of the Firm," 1937).
  • George Stigler (1911-1991) described a "capture theory of regulation. " (Stigler, 1971, Published first in 1962 with Claire Friedland) He argues that when an industry is regulated, it is in the interests of that industry to capture the regulatory agency and influence its policies.