The Influence of the Social Perspective on the Performance of Employees

Employee performance is crucial for organizational success, significantly influencing productivity, innovation, customer satisfaction, organizational culture, and financial outcomes (Armstrong, 2020). High-performing employees boost productivity, optimize resources, and foster a culture of creativity and continuous improvement, leading to business growth and adaptability. Enhanced employee performance also improves customer satisfaction, promoting repeat business and a strong organizational reputation (Harter et al., 2002). This paper examines how social factors within an organization impact employee performance through the lens of Social Exchange Theory (SET) and Social Identity Theory (SIT). SET emphasizes reciprocal relationships and mutual benefits, enhancing performance through perceived support, trust, and fairness. SIT focuses on group identity and belonging, where strong identification with a group fosters team cohesion and organizational pride. This study's comparative analysis highlights the strengths and applications of both theories, providing actionable insights for managers to improve employee performance by fostering reciprocal relationships, building a strong organizational identity, and developing supportive leadership styles. Ultimately, understanding and leveraging social factors can create a more supportive and productive work environment, ensuring sustained organizational success.