The Social Construction of Organizations Organizational Cognition and the Role of Networks

Resource dependence theory is related to the institutional theory in the way that resource dependence affects the setup of social norms, rules, structures, and schemes set up by the institutional theory. The social exchange theory postulates that a person while involving in a material exchange also expects some non-material favors such as recognition, acceptance etc. People enter into exchange relationships for this purpose. This theory is related to the institutional theory as it affects as well is impacted by the social structure formed by the intuitional theory. An employee expects certain recognition and incentives from providing his services. This expectation is affected by the structure in which he is working. It also impacts the relationship between the boss and the subordinate. The social exchange theory is related to resource dependence theory as both the theories attempt to define the dependency of a person on other for exchange of either material good or non-material behavior. Once a person enters into an exchange relationship, he expects certain things in return to the services renders by him. A perceived completion of this expectation will lead to satisfaction. This satisfaction may lead to a continuation of the social exchange relationship setup. Every person expects fairness in the relationships he enters. So, if he enters into a relationship that makes him give more than what he earns, he might feel dissatisfied with it and may discontinue the relationship. Thus, equity theory is related to the expectation-confirmation theory. It is also related to social exchange theory as it