Discuss your reactions to the concept of relationship rewards based on social exchange theory. Do you think this concept has merit?  Why or why not?

 

Social Exchange Theory

            Social exchange theory is a result of an exchange process. The theory assumes freedom of choice and situations that require decision making based on cost and benefit analysis. Therefore, a social relationship is based on the assumption that rewards received in a relationship should be proportional to the costs they bear (Cropanzano et al., 2017). For example, the relationships that provide us with the most benefits with the least effort are the ones we value. Therefore, when one party perceives the cost of being in the relationship outweighs the perceived rewards or benefits, they can choose to leave the relationship.

            While the concept might seem like an individualistic notion that neglects the cultural contexts and variations of cultures, it has merit. The concept is essential because it allows individuals to understand that people need to sustain balanced relationships by contributing. The concept motivates individuals to understand that to attain something valuable, they must forfeit something of value (cost). According to Cropanzano et al (2017), the concept involves initiating actions and reciprocating responses. For example, a friend who does not own a car needs a ride to attend his niece christening. He offers to pay for the gas and buy lunch. Both parties reach an agreement based on comparing reward and benefit (a ride home and lunch). The social exchange theory argues that the costs incurred are the car wear and tear and giving up your time, while the rewards are the free lunch and gaining a friend appreciation for support offered.