Prizes are the components of a relationship that have positive esteem. Similarly, as with everything managing the social trade hypothesis, it has as its result fulfillment and reliance of connections. The social-trade point of view contends that individuals figure the general worth of a specific relationship by subtracting its expenses from the prizes it gives. The value of a relationship impacts its result, or whether individuals will proceed with a relationship or end it.
Generally speaking, exchange theory analyzes the mutual gratifications people provide to one another that are sustaining to social relations. The basic assumption of social exchange theory is that people establish social associations because they expect the associations to be rewarding. Thus, they continue the social interaction and enlarge it because of the rewarding nature of the associations. Even though people seek social associations, they are often hesitant to initate initial interaction for fear of being rejected. People often try to overcome this fear of rejection by trying to impress others with whom they are interested.
Employees tend to compare their person... ... middle of paper ... ...e, and ensure rewards are relevant and valued. A balance between different rewards should be implemented to satisfy the diverse needs of employees. Management should motivate associates to perform at their optimal level to achieve company objectives. Job status rewards impose benefits, however, they can cause potential issues. Rewards given based on job status and individual performance can develop a status mindset, discourage creativity, and not support a bureaucratic hierarchy.
Costs are defined as objects that have a negative value and are avoided by individuals. Rewards in regards to relationships are things like support, friendship, and acceptance, while costs are things like energy spent, time, and money. Essentially this theory states that every individual is trying to maximize their wins or their worth and end up with something that is more positive than negative. Worth equ... ... middle of paper ... ...omans, G. C. (1958). Social Behavior as Exchange.
The rational choice perspective is a great way of understanding society and larger systems. When I read in our book how human behavior is based on self-interest and rational choices about effective ways to accomplish goals (Hutchison, 2008, p. 46), my past interactions made so much more sense. This is because human interaction involves trade of social resources, such as love, approval, information, money, and physical labor (Hutchison, 2008, p. 46). One is simply trying to maximize benefits, what you get, and minimize costs, what you lose. One’s values, norms, and expectations, as well as alternatives, influence the assessment of rewards and costs (Hutchison, 2008, p. 46).
This means that a relationship will result in a positive outcome if rewards outweigh costs. A negative outcome is the result of costs outweighing rewards. As we move further into Social Exchange Theory and view critiques and criticisms we’ll examine the economic principles in more detail. First, what must be made clear are the measures of evaluating Social Exchange Theory. Before discussing the theory further there must be an understanding in how theories are evaluated.
The first theory is incentive theory which suggests people are motivated to do things because of external rewards after an action is preformed which is linked to behaviourist approach. According to (Bernstein 2011, P301-302) he stated with a famous quote “People are pulled toward behaviours that offer positive incentives and pushed away from behaviours associated with negative incentives”. In other words, differences in behaviour from one person to another or from one situation to another can be traced to the incentives available and the value a person places on those incentives at the time. Furthermore people are pulled towards actions which are positive and will be against doing negatives; this can be seen in day to day life. Bernstein 2011 can be closely linked and related to behaviourist approach such as operate conditioning where behaviours are performed in order to either gain reinforcement or avoid punishment.
The second one is when the company works with personal growth as a motivator. This can change the way employees think about work, making them more capable, which can give them a significant purpose in coming to work along with maximizing employees motivation The credibility of the research is something that cannot be taken for granted but needs to be a conscious reflection of the one conducting the study. Validity briefly means that data reflects the truth and reality. Regarding the research methods to obtain data the validity addresses the issue whether or not you have attached the appropriate indicators and to what degree accurate results are obtained.8 All of our respondents were part of the reward system we examined, meaning that they had or should have had sufficient knowledge about the questions we asked. Furthermore, since they all knew the context of the interview (rewards and motivation), they were prepared to talk about these subjects.
Social capital is about the worth of social networks, bonding similar people and bridging between diverse people, with norms of reciprocity. (Jenkins, 2002). The existence of a network or connections is necessary in order to maintain useful relationships that can provide material or symbolic profits. According to Bourdieu, every social class has a Habitus which is a set of unspoken rules, tastes and classifications. (Holt, 1998).