Social exchange theory proposes that social behavior is the result of an exchange process. According to this theory, developed by sociologist George Homans, people weigh the potential benefits and risks of social relationships. When the risks outweigh the rewards, people will terminate or abandon that relationship.

What is social exchange theory examples?

A simple example of social exchange theory can be seen in the interaction of asking someone out on a date. If the person says yes, you have gained a reward and are likely to repeat the interaction by asking that person out again, or by asking someone else out.

What type of theory is social exchange theory?

Social exchange theory is a social psychological perspective that explains social change and stability as a process of negotiated exchanges between parties. Social exchange theory posits that all human relationships are formed by the use of a subjective cost-benefit analysis and the comparison of alternatives.

What is a strength of social exchange theory?

ADVANTAGES OF SOCIAL EXCHANGE THEORY It tells one how to sustain and keep relationships. It is a timely and systematic approach. The theory is almost applicable in all situations. It helps us to understand that when we give something in any relationship then we expect something in return to maintain the relationship.

What is social exchange theory in the workplace?

Social exchange theory is essentially a cost-benefit analysis that evaluates the risks and rewards of pursuing or continuing a relationship. Social exchange theory is used to explain peoples actions in a variety of settings and within a multitude of relationships. Related: How to Manage Employees.

What are the advantages of Social exchange theory?

ADVANTAGES OF SOCIAL EXCHANGE THEORY It explains that individuals minimize their costs and maximizes their rewards within a relationship. It tells one how to sustain and keep relationships. It is a timely and systematic approach. The theory is almost applicable in all situations.