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Social Exchange Theory “There is no duty more indispensable than that of returning a kindness” Cicero

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Page 1: Social’Exchange’Theory’ · Social’Exchange’Theory’ • Blau’(1964)’disHnguishes’social’and’economic’ exchange,’where’the’nature’of’the’economic’exchange’

Social  Exchange  Theory  

“There  is  no  duty  more  indispensable  than  that  of  returning  a  kindness”  

Cicero  

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This  is  not  a  lecture  

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“Everything  you  need  to  know  in  life  you  learned  in  the  kindergarden”  

•  Why  do  we  share?  

Page 4: Social’Exchange’Theory’ · Social’Exchange’Theory’ • Blau’(1964)’disHnguishes’social’and’economic’ exchange,’where’the’nature’of’the’economic’exchange’

But…  What  about  

knowledge??  

•  It’s  not  tangible!  

Page 5: Social’Exchange’Theory’ · Social’Exchange’Theory’ • Blau’(1964)’disHnguishes’social’and’economic’ exchange,’where’the’nature’of’the’economic’exchange’

Playing  devil’s  advocate…  

•  If  I  tell  others  what  I  think  won’t  they  steal  my  ideas??  

•  Take  credit  for  what  I’ve  done??  •  Take  my  money???  •  Steal  my  clients?  •  Consider  me  not  indispensable?  

Page 6: Social’Exchange’Theory’ · Social’Exchange’Theory’ • Blau’(1964)’disHnguishes’social’and’economic’ exchange,’where’the’nature’of’the’economic’exchange’

Does  this  line  of  thought  make  sense  today?  

•  What  kind  of  characterisHcs  does  na  entrepreneur  need  to  have  in  this  kind  of  economy,  tecnology  development  culture…  age?  

•  How  do  people  start  businesses?  

Page 7: Social’Exchange’Theory’ · Social’Exchange’Theory’ • Blau’(1964)’disHnguishes’social’and’economic’ exchange,’where’the’nature’of’the’economic’exchange’

RelaHonships  maLer!  

•  We  could  go  on  and  on  about  how  society  has  changed  in  the  past  few  years  

•  We  could  discuss  how  Facebook  has  distracted  us  from  what  is  important,  how  students  find  it  so  easy  to  cheat  through  wikipedia  and  google,  how  we  don’t  talk  to  people  anymore.  

•  BUT  

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RelaHonships  maLer!  

•  Service  vs  Product  – What  is  good  service  

•  Pitch  opportuniHes  •  Fast  establishment  of  relaHonships  – Why  do  you  hire  people?  

Page 9: Social’Exchange’Theory’ · Social’Exchange’Theory’ • Blau’(1964)’disHnguishes’social’and’economic’ exchange,’where’the’nature’of’the’economic’exchange’

Social  Exchange  Theory  

•  “Social  exchange  theory  is  a  social  psychological  and  sociological  perspecHve  that  explains  social  change  and  stability  as  a  process  of  negoHated  exchanges  between  parHes.  Social  exchange  theory  posits  that  all  human  relaHonships  are  formed  by  the  use  of  a  subjecHve  cost-­‐benefit  analysis  and  the  comparison  of  alternaHves.  The  theory  has  roots  in  economics,  psychology  and  sociology.”  

•  Yes,  the  Wikipedia.  

Page 10: Social’Exchange’Theory’ · Social’Exchange’Theory’ • Blau’(1964)’disHnguishes’social’and’economic’ exchange,’where’the’nature’of’the’economic’exchange’

Social  Exchange  Theory  

•  There  is  no  more  fundamental  obligaHon  in  a  human  being  than  that  of  returning  a  favour,  aknowledging  a  good  deed,  not  harming  someone  that  has  done  us  good.  (Cicero)  

 

Page 11: Social’Exchange’Theory’ · Social’Exchange’Theory’ • Blau’(1964)’disHnguishes’social’and’economic’ exchange,’where’the’nature’of’the’economic’exchange’

Social  Exchange  Theory  •  Blau  (1964)  disHnguishes  social  and  economic  exchange,  where  the  nature  of  the  economic  exchange  is  usually  an  explicit  and  formal  one,  where  each  party  fulfills  specific  obligaHons;  social  exchange,  in  contrast,  involves  unspecified  obligaHons:  “favors  that  create  and  diffuse  future  obligaHons,  not  precisely  specified  ones,  and  the  nature  of  the  return  cannot  be  bargained  about  but  must  be  le\  to  the  discreHon  of  the  one  who  makes  it”  (Blau,  1964:  93).    

•  Thus,  one  party  needs  to  trust  the  other  to  discharge  future  obligaHons  (i.e.  reciprocate)  in  the  iniHal  stages  of  the  exchange  and  it  is  the  regular  discharge  of  obligaHons  that  promote  trust  in  the  relaHonship.  

Page 12: Social’Exchange’Theory’ · Social’Exchange’Theory’ • Blau’(1964)’disHnguishes’social’and’economic’ exchange,’where’the’nature’of’the’economic’exchange’

The  norm  of  reciprocity  

•  Gouldner  (1960)  made  this  process  more  explicit  through  his  seminal  work  on  the  “norm  of  reciprocity”,  staHng  that  this  norm  implies  two  demands  “  

(1)  people  should  help  those  who  have  helped  them  and    (2)  people  should  not  injure  those  who  have  helped  them”  

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The  norm  of  reciprocity  

•  Gouldner  (1960)  argues  that  the  strength  of  an  obligaHon  to  repay  is  conHngent  upon  the  value  of  the  benefit  received.  Benefits  are  more  valued  when    

(a)  the  recipient  is  in  greater  need;    (b)  the  donor  cannot  afford  to  (but  does)  give  the  benefit;    (c)  the  donor  provides  the  benefit  in  the  absence  of  a  moHve  of  self  interest;  and    (d)  the  donor  was  not  required  to  give  the  benefit.  Therefore,  highly  valued  benefits  create  a  stronger  obligaHon  to  reciprocate.  

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SET:  derivaHves  

•  The  norm  of  reciprocity  plays  an  important  role  in  the  development  of  social  exchange  relaHonships  by  perpetuaHng  the  ongoing  fulfillment  of  obligaHons  and  strengthening  indebtedness  – Psychological  contract  

Page 15: Social’Exchange’Theory’ · Social’Exchange’Theory’ • Blau’(1964)’disHnguishes’social’and’economic’ exchange,’where’the’nature’of’the’economic’exchange’

Why  is  this  idea  hard  to  sell  to  CFO’s?  

Page 16: Social’Exchange’Theory’ · Social’Exchange’Theory’ • Blau’(1964)’disHnguishes’social’and’economic’ exchange,’where’the’nature’of’the’economic’exchange’

So…  

•  Call  it  Karma  •  Call  it  God’s  hand  •  Call  it  the  Universe  needs  to  be  balanced  •  Call  it  Social  Exchange  Theory  

•  What  you  do  will  probably  get  back  to  you    

That  includes  knowledge  sharing  

Page 17: Social’Exchange’Theory’ · Social’Exchange’Theory’ • Blau’(1964)’disHnguishes’social’and’economic’ exchange,’where’the’nature’of’the’economic’exchange’

Sharing  knowledge  has  consequences  

•  Helps  you  build  relaHonships  –  “If  you  want  to  make  a  friend  ask  for  help”  (Frances  Cole  Jones)    

–  Empathy,  reaching  people  •  Helps  you  build  an  image  of  competency,  of  a  valid  player  in  the  game,  gives  you  added  value  –  “What  do  you  do?”  

•  Where  that  came  from,  there  is  probably  more  •  Helps  you  figure  out  how  (and  who!)  NOT  to  share  your  ideas  with    

•  Helps  you  figure  out  the  market  value  of  your  ideas…  And  the  market  you  can  best  implement  them  

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Always  remember  

•  You  are  more  than  just  one  idea.    •  Rarely  if  ever  do  people  accomplish  anything  on  their  own  

Page 19: Social’Exchange’Theory’ · Social’Exchange’Theory’ • Blau’(1964)’disHnguishes’social’and’economic’ exchange,’where’the’nature’of’the’economic’exchange’

Share  your  insights!  

Page 20: Social’Exchange’Theory’ · Social’Exchange’Theory’ • Blau’(1964)’disHnguishes’social’and’economic’ exchange,’where’the’nature’of’the’economic’exchange’

Helena  MarHns  

•  You  can  can  contact  me  and  find  me  on  the  social  networks  with  my  email  [email protected]  

Life  moLo:    What  you  give  is  yours  forever  (O  que  tu  dás  é  teu  para  sempre)      

Page 21: Social’Exchange’Theory’ · Social’Exchange’Theory’ • Blau’(1964)’disHnguishes’social’and’economic’ exchange,’where’the’nature’of’the’economic’exchange’

   MUITO  OBRIGADA!  

[email protected]    

Page 22: Social’Exchange’Theory’ · Social’Exchange’Theory’ • Blau’(1964)’disHnguishes’social’and’economic’ exchange,’where’the’nature’of’the’economic’exchange’

If  you  really  saw  all  the  slides  and  kept  on  going  you  deserve  a  prize  

 So  here  goes  the  “secret  bonus  track”,  to  give  you  an  extra  insight  on  some  of  the  stuf  we  

talked  about  J    

hLps://www.youtube.com/watch?v=52e7i-­‐2D6HU