Blau's social exchange theory

George Homans-Social Exchange Theory

Introduction

George Homans (1910-1989), a Harvard University Sociology professor, created what is known as the Social Exchange Theory (SET). Though Homans did not originate the theory, his research greatly contributed to our understanding of how people engage in social exchange. SET focuses on the economic exchange of benefits that occur within social relationships. Social exchange models describe the dynamic between individuals, and societies, as a form of transactions where both parties get something that they need or want.

Definition of Social Exchange Theory

Social Exchange Theory (SET) is a theoretical perspective that suggests that social interaction is based on an exchange of goods or services. It is sometimes referred to as Social Exchange Analysis or Social Relational Systems Theory. The SET operates at the individual and group leve, and the view is that in relationships and interactions, people are motivated by selfishness and reciprocal rewards. An exchange is both a positive and a negative reinforcement. People engage in exchanges because they believe they will benefit from them, they need the other person, they are dependent on the other person, and they tend to act as if people are equal in their interactions.

Background of George Homans

George Caspar Homans was born in St. Paul, Minnesota, on March 23, 1910. During his academic career, he was professor of sociology at Harvard University where he remained from 1945 until his retirement in 1975. At Harvard he served as department chair from 1959 to 1962. Homans was among the first to bring together the disciplines of sociology, economics, and psychology in developing the terminology for the field of social exchange theory. Homans received many awards for his work in sociology, including the American Sociological Associations W.E.B. Du Bois Award for “contributions to the scientific study of race and ethnicity”

Overview of the Social Exchange Theory

The basic principle of SET is the “exchange” relational concept. Homans believes that the exchange of goods and services are fundamental to human relationships, and that this exchange is the basis for social relationships. He argues that people engage in social relationships, because they expect to benefit from that relationship. In other words, individuals evaluate potential relationships, and decide whether or not to enter into that relationship, based on the perceived rewards that they will receive.

The SET framework begins by examining the individuals use of rewards and cost in evaluating potential relationships. A reward is something that the individual will get from the interaction. A cost is something that the individual must give up in order to enter into the interaction (be it money, energy, or time). An individual evaluates the rewards and costs and makes a decision about whether or not to enter into that exchange, based on the perceived benefits.

The SET framework then shifts to the group level, and examines how exchanges occur in relationships and organizations. Homans argued that the exchange of goods and services is fundamental to social relationships and organizations. In order for a successful exchange to occur, each party must see that it is in their best interest to enter into the exchange. This involves evaluating current and potential rewards and costs and deciding whether or not to enter into the exchange.

Applications of Social Exchange Theory

Homans proposed that social exchange is used to explain most of our social interactions. SET has been used to explain a variety of social phenomena, such as why people stay in relationships, why organizations form, and how they function, and how people behave in teams and workplaces. It has also been used to examine how we make decisions and respond to social influences.

The SET also can help to explain why people help others, what motivates people to give, and why people donate to charity. Homans argued that people help and give to others, not out of pure altruism, but because there is an exchange of rewards for doing so. In other words, people help and give to others because they believe that it will benefit them in some way, either directly or indirectly.

Moreover, SET has been applied to the study of politics. It is possible to apply exchange theories to the study of how politicians interact and make decisions. For example, a politician might decide to enter into an exchange with another politician if it has the potential to benefit him or her in some way.

Conclusion

George Homans’s Social Exchange Theory (SET) is a theoretical perspective that suggests that social interaction is based on the exchange of goods or services. It is the view that in relationships and interactions, people are motivated by selfishness and reciprocal rewards. SET can be used to explain a variety of social phenomena, such as why people stay in relationships, why organizations form and how they function, and how people behave in teams and in the workplace. SET can also explain why people help others, what motivates people to give, and why people donate to charity. Its application to the study of politics allows us to assess how politicians make decisions and interact with others. The Social Exchange Theory is an important theoretical perspective in sociology.

George Homans, a noted sociologist, first proposed his Social Exchange Theory in 1958. At its core, the theory suggests that many of the most basic interactions between people, ranging from situations in which people are merely acquaintances to those in which people are in committed relationships, are driven by a cost-benefit analysis. The theory suggests that when people interact with each other, they do so in order to maximize their version of the rewards or outcome and minimize their perception of the costs or inputs.

The exchange of rewards, costs and the balance between them will look different in various scenarios. Homans suggested that when it comes to relationships, rewards can include tangible rewards such as money, material goods or assistance, and intangible rewards such as friendship, admiration and respect. The costs associated with relationships can include time, effort and any negative feelings or emotions that the interaction may have inspired. The Social Exchange Theory suggests that when the rewards outweigh the costs of an interaction or relationship, the interaction is more likely to be experienced positively.

Homans proposed that when making decisions about interactions, humans use reinforcements. If people are reinforced positively, they will be encouraged to repeat their behavior, and if theyre punished they will be dissuaded from repeating it. This theory suggests that the type of reinforcement a person receives can shape the cost-benefit analysis of the interaction. If a person finds that the rewards are greater than the costs, they will be more likely to continue the behavior; if the cost outweighs the benefit, they will likely discontinue the behavior.

The basic premise of the Social Exchange Theory is that because interactions are inherently unstable and variable, they must continuously be monitored and negotiated in order to maintain a balance between rewards and costs. This balance is shaped by each individuals preferences, as well as their ability to assess and accept varying levels of risk. George Homans Social Exchange Theory is still used extensively in social science today as a way of analyzing and understanding the behavior between people in many contexts.