February 9, 2011

Social Exchange Theory

S†MoN® says:
"Social exchange theory is based upon rewards and costs of a relationship. We base our decision to develop or maintain a relationship from the amount of profits that we could receive. Social exchange uses the equation: Rewards - Costs = Profits to figure out whether a relationship is worth the time. Usually, the typical person decides to pursue relationships where the rewards are greater than the cost. They understand that in order to get the rewards that there will be costs that they will have to deal with. Social exchange practice is based upon the degree of intimacy in a relationship. We disclose more and develop a closer relationship with the person we work with; we see him for numerous amount of hours a week, plan and act with him on tasks and develop campaigns from scratch. In the advertising world, such practice is observed to be essential between colleagues. The level of stress and frustration swallowed push each and every one to the limit. Individuals tend to crack under heavy loads of work and pressure. Therefore, time to unwind is very essential and vital. But we must not neglect that a person should have the ability to deal with others. Social exchange between colleagues positively affects the overall outcome and performance of a company. It also help increase the level of communication and talent of every party".  

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