Individual-Organization Exchanges
May
11
Social life suggested that power and exchange are important considerations. in understanding human behavior. There are three categories of exchange relationships people have with organizations committed, calculated and alienated involvements. Characterized committed involvements as moral relationships of high positive intensity; calculated involvements as ones of low positive or low negative intensity, and alienated involvements as ones of high negative intensity. Committed involvements may characterize a person’s relationship with a religious group, and alienated involvements may characterize a person’s relationship with a prison system. Calculated involvement and Blau’s ideas about power in social exchange are the best frameworks for understanding a person’s relationship with a work organization.
Calculated involvements are based on the notion of social exchange in which each party In the relationship demands certain things of the other and contributes accordingly to the exchange. Business partnerships and commercial deals are some examples of calculated relationships.
Each party to the exchange demands upon the other. These demands express the expectations that each party has of the other in the relationship. The organization expresses its demands on the individual• in terms of organizational goals, job, expectations, performance, feedback. These are among the primary and formal instruments through which workers learn about organization demands and expectations of them. While. the organization ha some demands, the individual has needs to be satisfied as conceptualized in the theories of Maslow, McClelland arid others. Different individuals have different needs.
The demands from both parties imply contributions from each to make the exchange. Employees are able to satisfy organizational demands through a range of contributions. These may include skills, abilities knowledge,, professional contacts, hard work and efforts and natural talents and creativity. On the other hand, organizations have a range of contributions in terms of benefits, security, status, advancement opportunities and social contacts. Some organizations are richer in resources and better able to meet employee needs, others have fewer resources available to meet employee needs.
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