Functionalism, Social Exchange and Rational Choice Essay

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This paper is set to explore the functionalism theory, the social exchange theory, and the rational choice theory. As we shall see herein, these three theories share very close ties, and together they are seen to be more useful in describing human actions together than they do individually. The theories complement each other in many ways and all share a foundation in psychology, economics and sociology.

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The functionalism theory

The functionalist theory describes society as an entity that is made up of different parts; these parts have different purposes that are essential to the functioning of society. The society is described using the metaphor of a living organism, a living organism has several organs that are organized into a functioning system, the various organs have different functions, for example, a human being has a kidney, a heart, lungs among others and the function of these organs is to sustain the human being, Similarly, members of a society can be thought of like cells in a person body, the institutions that exist in society are seen as its organs. The functionalist theory seeks to analyze the significance of each of the constituents of the society and establish the purpose they serve to ensure that social stability is maintained. (Farganis 2008: pp172) Functionalism theory has been supported by a number of sociologists, all of them having their own understanding of theory of functionalism, some of these theorists include; Émile Durkheim was one of the leading scholars who developed the functionalist theory, he was concerned with how societies maintain stability and survival he emphasized that moral consensus plays a vital role in maintaining social order and establishing equilibrium in society. Durkheim proposed that societies are differentiated into different parts with all parts being held together by solidarity, there are two forms of ‘glues’ in the society, that is, the things that held society together, mechanical and organic solidarity. Mechanical solidarity consisted of shared roles and duties, in modern societies the members perform different tasks, resulting in interdependence, while organic solidarity embodied a shared culture that consisted of shared values, symbols, or systems of exchanges. Talcott Parsons had his views on functionalism, he viewed society in terms of four social systems; these are personality, society, culture, and behavior. Each of these systems has to meet four needs for it to function; these needs include adaptation, integration, goal attainment and latency. Robert K. Merton studied functionalism in terms of the society’s functions, these functions were latent and manifest. Manifest functions occur as a result of the intended adjustment of society to various social stimuli. Latent functions occur as a result of a cultural idea that is not intended by the members of a society (Farganis 2008: pp 168) however, functionalism has a number of shortcomings, these include the fundamental perspective that functionalism is opposed to major social change. Functionalism does not explain the changes that take place in society rather it focuses on the maintenance of the existing social order. Other sociologists regard functionalism as a theory that can only be used in the analysis of data in research but is not able to come up with new areas of study.

Social exchange theory

Social exchange theory grew from the intercourse of sociology, economics and Psychology. Social exchange theory postulates that relationships are built on a symbiotic foundation; people assess the value of relationships based on what they pose to gain in the future. (Farganis 2008: pp 251) Social exchange theory tries to explain how people feel in regards to a relationship depending on the individual’s perception of what they invest into the relationship, what they expect to receive from the union, and the likelihood of making that relationship a better one. Individuals in a relationship of any given nature need to know what is fair in their relationship i.e. what they expect to gain given their input and in this way they develop a comparison level. This comparison level varies greatly from relationship to relationship depending on what is at stake, the degree of cohesion between the individuals, and their expectations. The expectations that individuals have from each other in a relationship are called a ‘balance of exchange’. How much is an individual expecting from another and how much is he willing to divulge? the balance of exchange is different in the different stages of a relationship, for example in the early stages of a romantic relationship couples are normally very generous with each other and hence the balance of exchange is often ignored but as the relationship matures on the couples become more and more aware of the balance of exchange and they start demanding fairness in the relationship. Exchange theory describes social order as built on negotiation between people in a relationship. It explains that relationships are formed on the basis of a cost-benefit analysis, people accept to do favors for their friends because they know that in time the favor will be returned. Before they do something, they ask themselves, ‘ what is in it for me?’ when people give a lot into a relationship, they also expect a lot in return (Homans 1961: pp 112)

Rational choice theory

Rational choice theory is a model that is set on explaining socio-economic behavior. rationality literary means ‘logical’ or ‘sane’ or ‘level headedness’ it implies that people’s behaviors are normally based on a rational choice, that is, they seek to maximize utility they receive as a result of their course of action based on their individual tastes and preferences given the level of constraints that they face. The individual’s actions are perceived as a means to an end. Rational choice theory is based on the assumption that social situations are a result of the action of each individual member of a group. A society’s behavior is a result of all the individuals’ behaviors that are set on maximizing utility at the least costs and therefore this is perceived as the society’s aggregate behavior is rational (Elster 1989: pp13). The rational choice theory, therefore, adopts a utilitarian basis that an individual is a reasoning entity who considers costs, benefits, and the means before he makes a rational decision.

A critique of rational choice theory and social change theory

Katherine Millar in her book ‘communication theories’ criticizes the social exchange theory on the basis that it reduces human interaction to an economic foundation, Millar also addresses the fact that this theory addresses all relationships from the point of view that it is an open relationship whereby all the facts are laid out barely and nothing is hidden from either party involved however this is not normally the case as some people conceal their intentions at the beginning of relationships in order to gain an upper hand as the relationship matures. Another problem involves is collective action. The existence of social norms and social structure renders the theory crippled, the society is built on the norms of helping others, if individuals calculated the economic gain before taking any action then that means individuals would never help others. social norms also pose a threat to the theory of rational choice and social exchange because individuals accept and follow social norms that eventually lead them to act in ways that do not benefit themselves but the society as a whole for example people pay taxes, the taxes do not benefit the individual himself but the society as a whole. This argument is described by Talcott parsons as the Hobberian problem related to order. If every individual action is self-interested then how is social life possible?

The idea of rational choice and social exchange is based on the principles of behavioral psychology. Human behavior is no different from the behavior of other animals; it is determined by the gains and punishments that may be received. People act in ways that they may be rewarded and try their level best to avoid punishment. This is the determining factor of human behavior. Human beings are motivated by an array of factors, these include economic gains, love, approval, power and prestige. This does not change the way human behavior is to be explained, the mechanisms involved are the same. The study of human behavior is built on the assumption that an individual’s behavior is primarily motivated by economic gain. It employs the idea that human beings are rational in their actions. This theory applies to social interaction as exchange theory.

Conclusion

As it has been discussed in-depth, the theories of functionalism, rational choice, and social exchange are very effective when they are used together as these theories complement each other, each theory has its own weaknesses but these weaknesses are downplayed when the theories are used together. These three theories are all set on the same basis of Psychology, Economics and Sociology.

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Reference list

Farganis, J. 2008. Readings in Social Theory: The Classical Tradition to Post-Modernism. Boston: McGraw Hill.

Elster, J.1983. Sour grapes. Cambridge: Cambridge university press.

Homans, G. 1961. Social behavior: Its elementary forms. London: Routledge and Kegan Paul.

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IvyPanda. 2021. "Functionalism, Social Exchange and Rational Choice." December 18, 2021. https://ivypanda.com/essays/functionalism-social-exchange-and-rational-choice/.

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IvyPanda. "Functionalism, Social Exchange and Rational Choice." December 18, 2021. https://ivypanda.com/essays/functionalism-social-exchange-and-rational-choice/.

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