- Social exchange theory proposes that social behavior results from a cost-benefit analysis where people aim to maximize rewards and minimize costs in relationships. Costs involve things like time and effort while rewards include friendship and support. - The theory was introduced by George Homans in 1958 and views human relationships as formed through subjective evaluations of alternatives based on costs and benefits. It has been expanded on by other sociologists like Frazer, Malinowski, and Homans himself. - Key concepts include direct and generalized exchange, rewards and costs, and rules of reciprocity and negotiation that govern exchanges between parties in relationships. The theory provides a framework for understanding relationship development and outcomes based on subjective worth calculations.

1. SUBJECT ROLL NO NAME
 Definition and back ground. 16 Khola
 Concepts different Sociologist 42 Naveed
 Cost and rewards 21 Tahreem
 Theoretical propositions 47 Ussama
 Homans propositions 39 Temur
 Exchange structures 37 Mehwish
 The Rules of Exchange 34 Sundas
 Strengths and Weaknesses 14 Sobia
 Implementation of the theory 23 Farhat

8. INTRODUCTION
• 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.

9. INTRODUCTION
• People weigh the
potential benefits
and risks of social
relationships.
• When the risks
outweigh the
rewards, people
will terminate or
abandon that
relationship.

10. INTRODUCTION
• Costs involves things that
are seen as negatives to
the individual such as
having to put money, time
and effort into a
relationship.
• The benefits are thing
things that the individual
gets out the relationship
such as fun, friendship,
companionship and social
support.

11. INTRODUCTION
• Social exchange theory
suggests that we essentially
take the benefits and minus
the costs in order to
determine how much a
relationship is worth.
• Positive relationships are
those in which the benefits
outweigh the costs, while
negative relationships occur
when the costs are greater
than the benefits.

12. INTRODUCTION
• Social exchange theory includes two
approaches to social interaction and
relationships.
• The first approach views people,
and individuals in particular, as
rationally trying to get what they
want or need by exchanging valued
resources with others.
• The second approach focuses on
exchanges between groups or social
systems as a whole and believes that
by participating in a social system
based on loyalty and sharing,
individuals may contribute and
derive benefits from their overall
participation in the system.

13. INTRODUCTION

14. AIM
• To explain the Social Exchange theory
moving from history and origins to its
implications and concluding with
comments.

15. 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.

16. Background
• Social exchange theory was
introduced in 1958 by the
sociologist George Homans with
the publication of his work "Social
Behavior as Exchange“.
• It posits that human relationships
are formed by the use of a
subjective cost-benefit analysis
and the comparison of
alternatives.
• Social exchange theory views
exchange as a social behavior that
may result in both economic and
social outcomes.

17. Concepts of different
Sociologist
• Homans (1958)
• According to Homans, it was
developed to understand the social
behavior of humans in economic
undertakings.
• The fundamental difference between
economic exchange and social
exchange theory is in the way actors
are viewed.
• Exchange theory “views actors
(person or firm) as dealing not with
another actor but with a market”
•

18. Concepts of different
Sociologist Cont…
Sir James Frazer 1919
• Individuals are constantly trying to
satisfy basic needs
• As behavioral interactions constantly
produce “payoffs”, certain patterns of
social interactions are developed
• These patterns contribute to social
structures and lead to power
distribution in social
groups/relationships.

19. Concepts of different
Sociologist Cont…
Bronislaw Malinowski In 1922
• Humans are selfish and only act for
the needs and desires of themselves
•“Unhealthy” relationships are often
caused by an unbalanced costs and
benefits
•Individuals are valued on their
abilities and what they can provide
•Able to better understand decision
making within families Assumptions
made about the theory

20. Cost and rewards
• Costs are the elements of relational
life that have negative value to a
person, such as the effort put into a
relationship and the negatives of a
partner. (Costs can be time, money,
effort etc.)
• Rewards are the elements of a
relationship that have positive
value. (Rewards can be sense of
acceptance, support, and
companionship etc.)

21. Worth
• Worth = Rewards – Costs
• If worth is a positive number, it is a
positive relationship.
• If worth is a negative number
indicates a negative relationship.
• The worth of a relationship
influences its outcome, or whether
people will continue with a
relationship or terminate it.

22. Theoretical propositions
• Individuals choose those alternatives
from which they expect the most
profit.
• Cost being equal, they choose
alternatives from which they
anticipate the greatest rewards.
• Rewards being equal, they choose
alternatives from which they
anticipate the fewest costs.
• Immediate outcomes being equal,
they choose those alternatives that
promise better long- term outcomes.

23. Theoretical propositions
• Long-term outcomes being perceived
as equal, they choose alternatives
providing better immediate
outcomes.
• Costs and other rewards being equal,
individuals choose the alternatives
that supply or can be expected to
supply the most social approval.
• Costs and other rewards being equal,
individuals choose statuses and
relationships that provide the most
autonomy.

24. Homans propositions
• For all actions taken by persons, the more often a
particular action of a person is rewarded, the more likely
the person is to perform that action.
• In terms of his "Person-Other" example, this proposition
means that a person is more likely to ask others for
advice if past advice has been useful.

25. The Stimulus Proposition
• If in the past the occurrence of a
particular stimulus, has been the
occasion on which a person's
action has been rewarded, then
the more similar the present
stimulus are to the past ones, the
more likely the person is to
perform the action, or some
similar action.

26. The Value Proposition
• The more valuable to a person is the
result of his action, the more likely he
is to perform the action.
• If the rewards each offers to the other
are considered valuable, the actors are
more likely to perform the desired
behaviors than they are if the rewards
are not valuable.

27. The Deprivation-Satiation
Proposition
• The more often in the recent past a
person has received a particular
reward, the less valuable any further
unit of that reward becomes for him.
• Cost of any behavior is defined as the
rewards lost in forgoing alternative
lines of action.
• Profit in social exchange is seen as the
greater number of rewards gained
over costs incurred.

28. The Aggression-Approval
Propositions
Proposition A:
• When a person's action does not receive the rewards as
expected, or receives punishment he did not expect, he will be
angry.
• He becomes more likely to perform aggressive behavior and the
results of such behavior become more valuable to him.
• If Person does not get the advice they expected and other does
not receive the praise they anticipated, both are likely to be
angry.

29. The Aggression-Approval
Propositions
Proposition B:
• When a person's action receives the
reward they expected, especially a
greater reward then they expected, or
does not receive punishment he
expected, he will be please .
• He becomes more likely to perform
approving behavior, and the results of
such behavior become more valuable to
him.
• When Person gets the advice they expect,
and Other gets the praise they expect,
both are more likely to get or give advice.
Note: Proposition A on aggression-
approval refers to negative emotions,
whereas Proposition B deals with more
positive emotions.

30. The Rationality Proposition
• In choosing between alternative
actions, a person will choose that one
for which, as perceived by him at the
time, the value, V, of the result,
multiplied by the probability, p, of
getting the result, is the greater.
• When earlier propositions rely on
behaviorism, the rationality proposition
demonstrates the influence of rational
choice theory on Homans's approach.

31. Exchange structures
Direct Exchange
• It refers to the complementation and sharing of costs and rewards that
take place between two individuals.
Generalized Exchange
• When correspondence includes people other than the two involved in the
relationships. These people can be the society, other friends and family.
• The complementation is indirect in a way such that a person does not
return the favor to the same person who gave it.
Productive Exchange:
• The interchange here happens when both of the parties experience costs
and rewards in the same time.
• In this case both individuals have to endure the costs to later gain the
rewards.
• The reward can be for the befit of either or both.

32. The Rules of Exchange
Reciprocity Rules:
• Refer to the gives and takes of a
relationship.
• In other words, when an individual in
a relationship gives time, effort, money
or emotions; he/she expect to receive
the same in return.
Negotiated Rules:
• These rules refer to the attempt of the
individuals involved in a relationship to
grasp a mutually advantageous
arrangement.
• The negotiated arrangements tend to
be clear and overt.
• In a negotiate arrangement, the
responsibilities shared by the parties
involved are moderately specified.

33. Strengths and Weaknesses
Strengths:
1) The Social Exchange Theory permits
courses of logical thinking.
2) The Social Exchange Theory is simple
to comprehend for it adopts basic
economic concepts understood and
practiced by the public.
3) The Social Exchange Theory assumes
behavioral approach in explaining
relationships.
4) The ease of implementing the Social
Exchange Theory on family affairs
research and studies.

34. Strengths and Weaknesses
Weaknesses:
1. The Social Exchange Theory supposes
human reasonableness and economic
logic indecision making.
2. The social exchange Theory fails to
explain unselfishness and humane
actions.
3. The Social Exchange theory assumes
hierarchical development of
relationships, ignoring the fact that
sometimes relationships progress and
retreat skipping or repeating stages.
4. The Social Exchange Theory ignores
personal perceptions of what is
considered as a reward and what might
be considered a punishment.
Communication theories.

35. IMPLEMENTATION
• Humans in every society implement the Social Exchange theory
daily in their lives.
• The implementation of the theory occurs when everyday people
make decisions to continue or discontinue their relationships with
their families, spouses and friends.
• It is assumed that the nature of human beings is self-centered.
People who help out during a barn raising can expect that their neighbors will return the
favor at a later time

36. IMPLEMENTATION
• When individuals make
decisions they always consider
what is best for him/her to
accomplish his/hers desires
and goals
• On one hand it is possible that
several personal relationships
exist on the basis of the social
exchange theory.
• Many consider the rewards
they might receive from other
comparing them to the costs
they might endure prior to their
decision of making a decision to
enter a relationship.
During family meals such as
Thanksgiving, individuals benefit
emotionally from serving others.