The Theory of (Almost) Everything

People simply don’t like it when scholars mention theories. Some think all theories are like the theory of relativity, which is too complicated to be quickly understood; others think theories are too rigid to fit the intricate needs of the ever-changing workplace. What if I tell you there is a theory about the workplace that is neither perplexing nor stiff? What if I tell you this theory has been used in thousands of publications to help solve work-related problems? It is the theory of almost everything—the social exchange theory.

First brought up in 1960 by Alvin Gouldner,[1] an American sociologist, the social exchange theory soon became one of the most-used ways to guide explanations of relationships and interactions in social settings. So, what is social exchange theory? One of the most important principles of it is that if all parties abide by certain norms of exchange and mutual benefit, then trusting, loyal and committed relationships will evolve over time.

Since every workplace is a miniature society of its own, using this theory to explain workplace phenomena and outcomes has become widespread. The simple but clear view of the theory helped people better understand why organizations and leaders should treat their employees with kindness and fairness, why they should pay attention to the needs and voices of those who work for them, and why they should care about individual goals, values and development.

At the organizational level, when employees’ perceptions of being supported is high, they are more likely to engage in altruistic and helpful behaviors toward both the organization and their coworkers, have higher job performance, have more affections for the organization, have lower rate of absenteeism and are less likely to leave.[2]^,[3]

At the individual level, when supervisors care about employees personal concerns, give frequent positive feedback and coaching, stand by their employees and have their backs, they would pay them back with loyalty, trust, and more hard work.[4]^,[5]

Simple and obvious as it sounds, company leaders often forget this. They spend too much time thinking about how to get their employees to work harder — but not enough time about what they can do for these workers. Policies, rules and quotas can force people to achieve certain levels of performance; it is the care and support that ultimately motivate them to overcome barriers and accomplish goals that benefit the organization and leaders.

Surely, the strengths of such reciprocal relationships also depends on the interactions of different parties, sometimes even the culture that fosters these relationships. But when you care about your people, more likely than not, they will repay you with kindness, trust, loyalty, and productivity to some degree. And that’s the theory of almost everything.

[1] Gouldner, A.W. (1960). The norm of reciprocity: A preliminary statement. American Sociological Review, 25, 161-178.

[2] Eisenberger, R., Stinglhamber, F., Vandenberghe, C., Sucharski, I. L., & Rhoades, L. (2002). Perceived supervisor support: Contributions to perceived organizational support and employee retention. Journal of Applied Psychology, 87, 565-573.

[3] Riggle, R. J., Edmondson, D. R., & Hansen, J. D. (2009). A meta-analysis of the relationship between perceived organizational support and job outcomes: 20 years of research. Journal of Business Research, 62, 1027-1030.

[4]Aryee, S., Budhwar, P. S., & Chen, Z. X. (2002). Trust as a mediator of the relationship between organizational justice and work outcomes: Test of a social exchange model. Journal of Organizational Behavior: The International Journal of Industrial, Occupational and Organizational Psychology and Behavior, 23, 267-285.

[5] Ilies, R., Nahrgang, J. D., & Morgeson, F. P. (2007). Leader-member exchange and citizenship behaviors: A meta-analysis. Journal of applied psychology, 92, 269.