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Group Theory Project Presentation
Social Exchange Theory

Definition
Social exchange theory: is a social psychological and sociological perspective that explains social change and stability as a process of negotiated exchanges between parties. Social exchange theory posits that human relationships are formed by the use of a subjective costbenefit analysis and the comparison of alternatives. The theory has roots in economics, psychology and sociology. Social exchange theory features many of the main assumptions found in rational choice theory and structuralism. Example

History of Social
Exchange Theory
Social exchange theory has its origins in Structural Anthropology, Behavioral
Psychology, Utilitarian Economics, Sociology, and Social Psychology. Social exchange theory was introduced in 1958 by the sociologist George Homans.
He defined social exchange as the exchange of activity, tangible or intangible, and more or less rewarding or costly, between at least two persons.





George Caspar Homans
Claude Lévi-Strauss
Peter Michael Blau

George Caspar Homans
● Biography
● Leading Social Exchange Theorist
● Field Systems & Settlement Patterns

Claude Lévi-Strauss
● Biography
● Exponent of Structuralism
● “Mythologiques”

Peter Michael Blau
● Biography
● Societal Level Social Structures
● Bureaucratic Organizational & Social
Structures

Explanation
From the day you’re born you are educated to maximize benefits, minimize costs while avoiding punishment. Accordingly people weigh the potential benefits and risks of social relationships. When the risks outweigh the rewards, people will terminate or abandon that relationship.

Effects on the Individual

● Outcome to different social interactions ● Reliant on Recipocity

● Subtracting costs from the benefits

Effect on Relationships

● Relationships are based on personal gain. ● “People are attached to those who grant them rewards.”

Effect on
Workplace/School
● Employee/Student Interaction
● Customer Experience
● Atmosphere
● Group Achievements



References: Tsai, M., Chang, H., Cheng, N., & Lien, C. (2013). Understanding IT professionals ' knowledge sharing intention through KMS: a social exchange perspective Tsai, M., & Cheng, N. (2012). Understanding knowledge sharing between IT professionals – an integration of social cognitive and social exchange theory

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