Unlike Social Exchange Theory that argues how people try to maximise rewards and minimise costs in relationships, Equity Theory suggests
that partners are concerned about fairness in relationships
. Fairness is achieved when people feel they get approximately what they deserve from relationships.
Social Exchange Theory (sub of Reinforcement): -assumes freedom of choice and situations that require decision making; cost/benefit analysis -people are hedonistic – they try to maximize rewards and minimize costs -views social relationships primarily as exchanges of goods and services among persons -include equity …
The basic definition of social exchange theory is that
people make decisions by consciously or unconsciously measuring the costs and rewards of a relationship or action
, ultimately seeking to maximize their reward.
Equity theory builds upon the assumption of Social Exchange Theory
that romantic relationships can be viewed as rewards – costs
. … If one partner is benefiting from more profit (rewards – costs) than the other, then both partners are unlikely to feel satisfied.
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.
Social exchange theory proposes that social behavior is the result of an exchange process. The purpose of this exchange is
to maximize benefits and minimize costs
. According to this theory, developed by sociologist George Homans, people weigh the potential benefits and risks of social relationships.
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.
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 people’s actions in a variety of settings and within a multitude of relationships. Related: How to Manage Employees.
The fundamental concept of the theory of social exchange is cost and rewards. This means that
cost and reward comparisons drive human decisions and behavior
. Costs are the negative consequences of a decision, such as time, money and energy. Rewards are the positive results of social exchanges.
The exchange theory of aging, proposed by James Dowd in 1975, is
a social theory that addresses a perceived loss of status and power associated with aging
. … Rewards could be in the form of currency, information, goods, services, respect, power, social support, social acceptance, social approval, etc.
What is equity theory relationship?
Equity theory focuses
on determining whether the distribution of resources is fair to both relational partners
. It proposes that individuals who perceive themselves as either under-rewarded or over-rewarded will experience distress, and that this distress leads to efforts to restore equity within the relationship.
What is an example of equity theory?
Equity Theory is based on the idea that individuals are motivated by fairness. … As an example of equity theory,
if an employee learns that a peer doing exactly the same job as them is earning more money, then they may choose to do less work, thus creating fairness in their eyes
.
What is equity theory communication?
Equity theory. A
theory predicting that a good relationship is one in which a person’s ratio of cost and rewards is equal that of the partner
. Communication Privacy management theory. Theory that explains how people manage the tension between privacy and disclosure.
There are three forms within these matrices:
Reciprocity, Generalized Exchange, and Productive Exchange
. In a direct exchange, reciprocation is confined to the two actors. One social actor provides value to another one and the other reciprocates.
In families, a social exchange perspective argues
that family relationships become inter- dependent, or interactional
. In this respect, power becomes characteristic of the relationship dyad and understanding family relationships includes assessing the power that is held among the actors in those relationships.
Limitations of Social Exchange Theory
That is,
people do not always act in self-interested ways
(i.e., maximizing rewards and minimizing costs). For instance, in intimate relationships, people act communally, working for the benefit of their partner or relationship, sometimes even at great cost to oneself.
