The individual will then indicate to the group members that they will find it rewarding to let this person into their group. Leaders of groups emerge in much the same form. An individual will conduct competitive exchanges that signal to the other group members that this person can offer more rewards to the group as a whole. This is one example of how groups may become differentiated by certain individuals obtaining more power than others. .
The subordination of the remaining persons in the group is sometimes given reluctantly. In Blau's observations, subordination can be an uncomfortable or unwanted experience by individuals who may not agree to the power of the one (1975). This being the case, the processes of integration must transpire. To assist the individuals to integrate, the leader(s), once they have achieved power, will make an endeavor to point out ways in which the subordinate persons are superior, implying the leadership is being assumed reluctantly by the leader. These displays of "humility" on the part of the leader remind subordinates that the leader does not have power over every aspect of their lives. This assists the group to hold together under the power of the leader, but in ways that may further differentiate the status of the group as a whole (Blau 1964). .
A vital part in the exchange process is the concept of values. For groups values can be asserted as "particularistic values" (Blau 1964). These would bring unity to a given group in a manner that "reflects an in-group/out-group dynamic" (Blau 1964). But there are also common values across groups, which make exchanges possible between them. This exchange of values entails not only the group level, but the individual level as well. .
Another conception of Blau's theory indicated that relationships are produced for various reasons, but rewards must be exchanged for the relationship to continue or be enhanced rewards must be exchanged.
