Social exchange theory

‡ A social psychological and social perspective. ‡ Explains social change and stability as a process of negotiable exchanges. ‡ Theory has roots in economics, psychology and sociology.

.Equity theory ‡ Is a social exchange process theory of motivation that focuses on individualenvironment interaction. ‡ Assumes that people have a strong need to balance their inputs of labour and rewards.

‡ ‡ ‡ ‡ . When compared to other people. Why do we need motivated employees? The answer is survival Motivated employees are needed in our rapidly changing workplaces. ‡ Example in a workplace . recognizes that motivation can be affected through an individual's perception of fair treatment in social exchanges. individuals want to be compensated fairly for their contributions.Equity theory of motivation in a workplace Initiated by Psychologist john stacey adams 1963. ‡ Equity theory of motivation.

and sympathetic help with personal problems. . job security. full appreciation of work done. promotions and growth in the organization. feeling of being in on things.Motivating factors for employees ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ interesting work. good working conditions. personal loyalty to employees. good wages. tactful discipline.

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