Social Exchange theory was created by George Homans in 1958. Since its publication as “Social Behavior as Exchange”, several other theorists like Peter Blau, Richard Emerson, John Thibaut, and Harold Kelley have contributed to the theory. Before diving into the biggest concepts of this theory, two main properties need to be discussed. This theory is all about social exchanges, which are essentially reactions and decisions in relationships. The two properties are self-interest and interdependence. They are the two fundamental interactions between two individuals who each have something of value to the other. When an individual is looking out for their own self-interest, they are looking out for their own economic and psychological needs …show more content…
Any social exchange results in some sort of dependence on one another, if it ends with a positive outcome, it will drive a positive relationship and it will drive the two to continue working together. The worth determines the decisions the individuals will make in the future. Blau mentioned, from his experience and education about microeconomics, that since the market is always changing, human interactions were similar to those done in the marketplace (DeLamater, 2006). The one big difference between social exchange and exchange with the market is that social exchange is more varied and more flexible so they have no set exchange rate or value like what would be in place in the market. While the cost and benefits can be found in almost all aspects of life, Homans and company focuses in on the human aspect of it, how it affects relationships, and how individuals decide in their relationships. When an individual uses this cost-reward system, they have a certain method to go through before they make their decision. People are bound to pick the decision which yields the largest reward. If there are multiple decisions that amount to the same costs, such as two things taking the same amount of time, then they will pick the decision that has the most rewards. The same type of idea applies when there are two decisions of equal reward, the person will pick what has fewer costs so that they end up with a higher worth. If the immediate outcomes are equal then the individual will
Interpersonal communication is a form of communication that takes place between two people who have an established relationship. There are many different levels of interpersonal communication and theories of interpersonal communication. One of the theories that is used to explain changes in social behavior is the social exchange theory. The social exchange theory proposes that social behavior is the result of an exchange process between two people. The basic concept of the exchange theory is that it emphasizes the cost between the interactions of people and their social environment. Exchange theory attempts to explain human behavior under the content of a balanced-equal ratio within the distribution of giving and receiving. "At the heart
Though one may favor exchange processes that conclude with a social association that values the idea of equality, however Blau states that exchange processes can “give rise to differentiation of power” (Blau 1964: 114), which results with relation to superordination and subordination. Blau explains this disequilibrium as a result of needs for resources from unlike partners and efforts among equals to gain advantages over the other (Blau 1964: 114). Relating to intrinsic rewards, if one counterpart gains a reward from the exchange, the other counterpart expects repayment in the form of future wards – hence the principle of reciprocity (Blau 1964: 121). Reciprocity between unlike counterparts creates this sense of imbalance
Social exchange theory includes the following concepts: success, stimulus, value, deprivation, satiation, aggression, and approval. Homans defined each of these concepts explicitly in his book and various articles. The success concept which he defines is the principle of reward. (Homans, 1983, p. 33) While stimulus is defined when a stimulus presents itself and it resembles a previously rewarded activity, that individual is likely to repeat that action again. (Homans, 1950, Chapter 4) Homans defined value as a system of rewards and punishments. (Homans, 1983, p. 32) Deprivation and satiation was defined as the more often a reward has recently been received, the less valuable further rewards become. And if forced for a long time to go without a certain reward, an individual will lose interest and move on. (Homans, 1983, p. 33) Lastly, aggression and approval falls under the principle of distributive justice. When behavior does not receive the expected reward the response is anger. Yet, when the individual receives a greater reward than what is expected or does not receive punishment he will be pleased. (Homans, 1950, Chapter 4).
In everyday interactions people are always looking to have a positive experience among those with whom they interact. According to the Social Exchange theory, with each interaction an individual has with another, that individual attempts to maximize the positive outcomes and minimize the negative. The purpose of this paper is to apply the Social Exchange theory to an authentic real life situation to best illustrate the theory and the key concepts that it holds. In applying the social exchange theory from demonstration, to application, to then explanation, a better understanding in
In exchange theory, a human being’s behavior has been perceived as a logical decision where one tries to optimize benefits while minimizing cost or pain. According to different sociologists, when someone engages in a social interaction they tend to weigh the reaction of other people about what they are doing or saying and their behaviour will be dictated by the behaviour of others. This, somehow, is similar to what we are seeing in Canadian marriage where a man’s or woman’s involvement in marriage is determined by economic factors (Hou & Myles,
According to Thibauilt and Kelley (1959), people weigh their costs and benefits of their relationship to determine satisfaction and commitment. Essentially meaning people form relationships in which the incentive is more significant than the action. George Homans summarizes his proposition into three sections: (1) rewards
For my familiar relationship, I chose my roommate, who has also been my friend for four years. After I logged and reflected on our conversations, I noticed I was reviewing the conversations as either a negative or a positive, thus realizing the social exchange theory applied best to my familiar subject. However, social penetration is exemplified when we talked about sensitive topics. Social penetration is supported more by my unfamiliar subject, or my coworker, but social exchange is also exemplified when we shared similar characteristics.
The Social Exchange theory applies to everyone at one time or another. We make exchanges with friends, family, and in the workplace. We cooperate with others and make reasonable decisions to achieve a reward. Sometimes we make sacrifices with the hope of receiving something of value in return in the future.
Social Exchange Theory – Social behavior exchange theory is an exchange between parties as a representative of consent and status (Homans, 1958, p.
Sen-Trust: Smith’s point is not entirely true. / Trust is what ultimately makes exchange works, if we do not trust others, nothing would ever het done. We may be self interested, but we
He argued that every human being has unique preferences which greatly influence them when making choices (Breen and Rottman 1995). People are mostly motivated by money and are likely to carry out a cost-benefit analysis before settling on a decision. It is based on the following premises: human behavior is based on rational calculations, human beings act with rationality when making choices and these choices are aimed at maximizing gains or pleasure. In a similar manner, Interactionist Theory (IT) is used to study social interactions among people. It does not study the entire population at once, but rather studies smaller social groups. It focuses on how individuals act and how they make behavioral choices depending on the way they interpret situations (Hindess, 1998, p.42). From another perspective, it states that human beings only react to social stimuli. As such, they are social actors, and must adjust their behaviors in consideration to the behaviors of other human
The ability to create relationships based solely on mutual understandings and shared common interests have fed the social
George Homans (1974) had the theory of Stimulus proposition under the social exchange theory that says, “If in the past
In this case analysis we shall be examining the unintended contradictory results that reward systems bring about and recommendations in solving the issues highlighted
To explain human relationships further, the social exchange theory can be another definite explanation to help distinguish how we feel to be with other people and how one perceives to be with them, either to rekindle their relationship or to question the decisions that make to be in a relationship (Kelley 1959). The social exchange theory can be defined as a term that allows behaviour to be exchanged to allow a relationship between two people to happen (Huston et al., 2013). An individual social life involves interactions between two people which can be viewed as social exchanges in terms of costs and benefits (Nakagawa et al., 2013). By taking the view of human relationships the social exchange theory argues that individuals engage in a cost benefit analysis which forms their relationship with others (Milkie et al., 2004). When the costs and benefits are equal in a relationship, it is defined as equitable (Siddiqui 2008). Moreover, romantic relationships may be difficult for some people as it involves interpersonal skills in order to make them mutually satisfying therefore requires constant maintenance. Recently, Psychologists have begun to look at the breakdown of relationships and the characteristics which requires them to fail. The breakdown of relationship is a theory which explains the failure of certain human relationships and the factors that may be involved such as lack