This is a communication theory that seeks to explain why people communicate and when it is most likely that they communicate. It uses communicational behavior to partition the general public into smaller segments that are likely to communicate about certain issues. This theory explains why some publics are active while others are passive. It goes ahead to identify which publics will communicate actively, passively or not at all about organizational decisions that affect them.
The first stage is to identify a problem and this is the extent to which individuals recognize a problem facing them and look at what needs to be done to improve the situation. They then look into themselves and see their behaviors as being limited by factors beyond their control. This may be physical or psychological factors. Then there is the level of involvement about personal reality where we measure how personally and emotionally relevant a problem can be to an individual.
Thirdly, members then search for information and try to understand the information when they obtain it. Then there is the passive communication behavior whereby people process information that comes to them randomly without any effort on their part.
Social Exchange Theory
It is based on a central premise; that the exchange of social and material resources is a fundamental form of human interaction. It focuses on how interaction patterns are shaped by power relationships between individuals and the resulting efforts to achieve balance in exchange relationships. In deciding what is fair, we develop a comparison level with which we compare give and take ratio. And so we consider cost and benefit to predict behavior.
Therefore employees should be awarded, motivated and communicated to well enough for positive organizational growth.