Lesson 18: Social Exchange Theory

Question 1

Abraham Maslow’s Hierarchy of Needs

Answer 1

A theory articulated by Abraham Maslow in A Theory of Human Motivation (1943). Maslow’s Hierarchy of Needs is a point of departure for a wide array of motivation theories. The mudel speculates that categories of human needs are arranged in a predetermined in order of importance. This order is often depicted as a pyramid consisting of five levels: the lowest level is associated with physiological needs, while the uppermost level is associated with self-actualization needs. Once an individual has moved upward to the next level, needs within the lower level will no longer be seen as a priority by the individual. The implications of this model in understanding human motivation are fundamental.

Question 2

Bases of Social Power Theory

Answer 2

Body of thought develoffed by John R.P. French and Bertram Raven in 1959. They identified five bases or sources of social power (this lesson describes as organizational power). The original five bases were: reward, coercive, legitimate, referent and expert (or Information). This theory is based on the premise that power and influence involve relations between at least two parties. It recognizes that influencers (called leaders in this lesson) draw from sources of power most often in combinations to motivate a recipient or the influence (referred to as a follower or subordinate in this lesson).

Question 3

Reward Power

Answer 3

Control derived from the fact that one person, known as an influencer (Leader), has the ability to reward another person, known as the influence (follower or subordinate), for carrying out expressed or implied directions.

Question 4

Coercive Power

Answer 4

The negative side of reward power. The ability of the influencer (leader) to punish the influence (follower or subordinate).

Question 5

Legitimate Power

Answer 5

Authority that exists when a subordinate or influence acknowledges that the influencer has a “right” or is lawfully entitled to exert influence-within certain bounds. Also called formal authority.

Question 6

Referent Power

Answer 6

Authority based on the desire of the influence (follower or subordinate) to be like, or identify with, the influencer (leader).

Question 7

Expert Power

Answer 7

Control based on the belief or understanding that the influencer (leader) has specific knowledge or relevant expertise that the influencee (follower or subordinate) does
not. Also called information power.

Question 8

Compliance

Answer 8

The acceptance of the leader’s influence evidenced by the follower’s behavior.

Question 9

Identification

Answer 9

The acceptance of influence because the source is an attractive, likeable source worthy of emulation.

Question 10

Idiosyncrasy Credits

Answer 10

Leadership concepts, as identified by Edwin Hollander, that are analogous to the principles of banking and account management, Hollander described that individuals bank “influence” credits in the minds of their followers and workers.
The more “idiosyncrasy credits” that leaders have in their accounts, the more influence they have over followers. If enough idiosyncrasy credits are earned-typically earned by subscribing to group norms the person can then function on the frontier of group norms or perhaps outside group norm parameters. This capacity is key to leading groups and makes the understanding of idiosyncrasy credits fundamental in understanding leadership.

Question 11

Internalization

Answer 11

The acceptance of the leader’s influence including the leader’s underlying beliefs.

Question 12

Power

Answer 12

The ability to exert influence; that is, the ability to change the attitudes or behavior of individuals or groups.

Question 13

Resistance

Answer 13

The overt or covert refusal to respond to the leader’s attempt to influence.

Question 14

Theory X and Theory Y

Answer 14

Principles of human motivation created and developed by Douglas McGregor at the MIT Sloan School of Management. These theories articulate two very different sets of beliefs about motivating workers that reflect the core beliefs of the School of Scientific Management and the Human Resource Schools of Thought. McGregor’s article is recognized as the stepping-off point for a wide array of research within the School of Human Resources in how to motivate and lead workers.

Question 15

School of Human Relations

Answer 15

The initial departure from the School of Scientific Manage-ment. It suggested that workers are motivated by being included in management planning.
This school of thought was made famous by the Elton Mayo and the Hawthorne Experi-ments. Although a significant departure from the beliefs inherent in the School of Scientific Management, this school of thought fell short of assumptions inherent in the School of Human Resources- which is that workers will actively seek to meet organizational goals as psychological and social needs are met.

Question 16

School of Human Resources

Answer 16

The origin of modern theories of motivation and organizational goals; the initial departure from the School of Human Relations and the third school of thought, in a trend to rely increasingly upon workers (followers) to contribute to organizational goals. This thinking subscribes to the notion that once core physical needs are met, people are motivated by social and psychological needs.

Question 17

School of Scientific Management (Taylorism/Taylor system)

Answer 17

A concept that suggests that work should be scientifically analyzed, allowing a cost benefit perspective on work flows that should minimize all inefficiencies. Tasks should be broken down to small repetitive functions. Underlying beliefs for this school of thought are that workers are basically lazy and cannot really contribute to organizational goals.

Question 18

Social Exchange Theory

Answer 18

A concept that all human interaction is a product of a type of cost-benefit analysis and the comparison ot alternatives. For example, when a person perceives the costs of a relationship as outweighing the perceived benefits, then the theory predicts that the person will choose to leave the relationship. The theory, rooted in economics, was first articulated by George C. Homans in 1958.

Question 19

Symbiotic Relationship

Answer 19

A cooperative, mutually beneficial connection between two people or groups. It is the relationship articulated within the Social Exchange Theory.

Question 20

Venn Diagram

Answer 20

Overlapping circle-style illustrations of a logical relationship between things.
Venn diagrams were conceived by John Venn, circa 1880.