Social Exchange Theory

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Social Exchange Theory

• Boise State University
• Social Dimensions of Human Behavior

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A conversation according to Social exchange theory

• Kirst-Ashman (2008). Human Behavior,
  Communities, Organizations, and Groups in the
  Macro Social Environment An Empowerment
  Approach. pp 49.
• A Conversation Between Horace and Francine
• Rate the cost of each social exchange and effort
  given

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Historical Development

• Based on the original economic work of Adam
  Smiths The Wealth of the Nations.
• Key Concepts
• Self-Interest is the Driving Economic Force
• Competition Mitigates Greed
• The Invisible Hand regulates the ebb and flow of
  free markets we seek mutually beneficial options.

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Historical Development

• Adam Smith continued
• Once economic forces become stable then
  institutions emerge from the stability of
  economic forces
• Institutions form societal structures
• Thus social exchange is very vulnerable to those
  who have status or power within institutional
  hierarchies.

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Historical Development Continued.

• George Hormans (1974)
• Proposed that social exchange is based upon the
  concepts of operant conditioning.
• Actions are increased by rewards or the absence
  of punishment
• Actions are based upon the perception that
  greater rewards can be obtained
• Anger or pleasure results from the unexpected
  withholding or provision of rewards.

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Key Concepts in Social Exchange

• Social exchange (relationships) are based upon
  four concepts
• Cooperation-
• I am a proud member of the NASW and want to
  contribute to the greater cause of social work
  so I am getting my MSW
• Competition
• John at the office is getting his MSW, so I
  should probably get minecant let him get ahead.
• Conflict
• I hate my supervisor I could be a better
  supervisor. I am going to get my MSW so I can
  become his or her boss.
• Coercion
• My supervisor to me to get my MSW or leave the
  agency.

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Key Concept is Social Exchange Theory

• A goal oriented human behavior is directed by the
  goal of profits
• Profits Rewards minus the Cost of Invested
  Behavior
• Rewards
• Material (Economic)
• Symbolic (Attention, advice, status)
• Diminished Marginal Utility The reward is
  received so often it no longer has value.
• Scarcity Increases the value of reward
• Power Possessing a skill that is scarce or
  highly coveted
• Principle of the Least The person least
  interested in the reward has the most power.

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Class Discussion

• What is your perception of this theory based on
  your own morality?
• What moral presuppositions do you base this
  perception on?
• Based upon Kohlbergs Theory of Moral
  Development what is necessary to be moral in a
  social exchange culture?

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The Moral Balance in Social Exchange Theory

• Morality regulates the exchange processes
• The Rule of Distributive Justice
• Rewards are proportional to what is invested
• Investments are Achieved or Ascribed
• Achieved is earning an MSW
• Ascribed is being recognized as an expert in a
  specific field of social work (status)
• Thus one groups investment may be perceived as
  more highly valued then another groups investment
  even though they both contribute the same amount.
• Status congruence refers to the preference of
  participants to be of the same status.

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The Law of Social Exchange (Nye, 1982, 20-21)

• Individuals chose alternatives from which they
  expect to profit.
• Cost being equal, they chose alternatives that
  produce the greatest reward
• Rewards being equal, they chose the alternatives
  that anticipate the fewest costs
• Immediate outcomes being equal, they choose those
  alternatives that promise better long term
  outcomes
• Long-term outcomes being equal, they choose
  alternatives with better short term outcomes.
• Cost/benefits being equal people choose the most
  socially approved option.

• Individuals choose options that provide them with
  the most autonomy.
• Individuals choose options with the least
  ambiguity in regards to future events and
  outcomes
• People choose the options that offer the most
  security for them
• People pair up with like minded individuals and
  avoid people who are different in order to
  maintain status
• The more alike you are to someone the more you
  are likely to value them
• Individuals choose opportunities that are likely
  to produce the greatest financial gain with the
  least cost.

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The Dynamic Yet Cyclical Force of Exchange Theory
(Peter Blau, 1964)

• Exchange transactions lead to
• Differentiations in Status and Power, which leads
  to
• Legitimation and Organization, which leads too
• Opposition and change.
• From this we derive status, power, and norms.

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French Raven (1968) Power Types

• Coercive Ability to commit violence or deprive
  of livelihood
• Reward Ability to give or withhold material
  reward or symbolic reward
• Expert Ability to inform
• Legitimate Ability to prescribe behavior
• Referent Ability to command anothers respect
  (charming or charismatic)

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Social Exchange Case Studies

• How does social exchange theory apply to the
  following real life cases?
• Clients with mental illness are denied treatment,
  based upon the fact there is a cut in funding and
  the clients that once were deemed worthy of
  receiving active treatment are no longer
  considered eligible for service based upon
  symptomology.

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Social Exchange Case Study

• A nursing home limits the number of Medicaid
  patients they will take due to the lower payment
  received by State/Federal reimbursement
  ironically Medicaid is the biggest payer of
  long-term care services.

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Social Exchange Theory

• Foster care parents in the State of Washington
  decided to unionize even though they are
  considered contractors not employees of the
  State of Washington. They are demanding better
  pay, benefits, and additional training. Some
  individuals have noted that social workers have
  too much power in the system and foster care
  parents want more say in what goes on in the
  childs life.

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