Introduction. In any organisation, the effectiveness of a manager depends not only on technical skill but also on his ability to understand and manage human relationships. Why do people sometimes react childishly, sometimes rationally and sometimes like strict parents? Why do discussions suddenly turn into arguments? Why do some people repeatedly fall into the same negative patterns in their dealings with others? To answer such questions, behavioural scientists have developed a powerful tool known as Transactional Analysis (T.A.). Introduced by Eric Berne, T.A. provides a systematic and easily understandable framework for analysing human behaviour, interpersonal communication and personality. The book Psychology for Managers (Kalyani Publications) presents transactional analysis as an important technique for improving personal effectiveness and organisational relationships.
Meaning / Concept of Transactional Analysis
The word “transaction” means a unit of social interaction – whenever two people meet, speak, look at each other, send messages or respond, a transaction takes place.
Transactional Analysis may be defined as a method of understanding and improving human behaviour by analysing the transactions (interactions) between individuals in terms of their ego states.
In simple words, T.A. studies how people speak and behave with each other from different psychological positions called ego states – Parent, Adult and Child – and how these patterns affect relationships, communication and performance.
Important features of this concept are:
- It is both a theory of personality and a technique of communication analysis.
- It focuses on “here and now” behaviour rather than on remote unconscious drives.
- It is presented in a simple, diagrammatic and practical form so that even non-psychologists (like managers) can use it.
Basic Concepts Underlying Transactional Analysis
Before explaining various models, certain basic concepts must be understood:
1. Ego States: Parent, Adult and Child (P–A–C)
According to T.A., every person’s personality consists of three major ego states:
- Parent (P): This ego state contains attitudes, values and behaviours copied from parents and authority figures. It may be:
- Critical or controlling parent: gives orders, criticises, sets rules – “You should…”, “You must…”.
- Nurturing or supportive parent: cares, protects, comforts – “Let me help you”, “Don’t worry”.
- Adult (A): This ego state represents the logical, rational and objective part of personality. It collects information, analyses facts and takes decisions based on reality – “What are the facts?”, “What options do we have?”.
- Child (C): This ego state carries feelings, impulses and behaviour experienced in childhood. It may be:
- Natural or free child: spontaneous, creative, fun-loving, impulsive.
- Adapted child: obedient, anxious, rebellious, depending on how the child adjusted to parental control.
At any particular moment, a person thinks, feels and behaves mainly from one of these ego states, and this influences the type of transaction formed with others.
2. Transaction
A transaction is the basic unit of communication. It occurs whenever one person (Sender) addresses another (Receiver) and receives a response.
- Example: Manager (Parent ego state) says, “You never complete reports on time.” Subordinate (Child ego state) replies, “You are always blaming me.”
Transactional analysis examines which ego states are interacting and whether these interactions are smooth or conflicting.
3. Stroke
A stroke means a unit of recognition or attention that one person gives to another – it may be verbal (praise, criticism) or non-verbal (smile, nod, frown).
- People have a deep need for strokes, even if some strokes are negative; this need drives much of their behaviour.
4. Life Positions
On the basis of early childhood experiences, people develop basic life positions about themselves and others, e.g., “I am OK – You are OK”, “I am not OK – You are OK”, etc. These positions influence how they approach relationships and conflicts.
5. Games and Life Scripts
- Games: Repeated, dishonest patterns of transactions with hidden motives, which end in negative feelings.
- Life script: A more or less fixed life plan formed in childhood based on parental messages – “winners”, “losers”, “always rescuers”, etc.
Having understood these basic elements, we now explain the various models of transactional analysis through which a manager can examine behaviour.
Various Models of Transactional Analysis
T.A. is generally explained through a set of interrelated models or frameworks. The main models are:
- Structural model (ego state model),
- Transactional model (types of transactions),
- Stroke model (recognition and stimulation),
- Life position model,
- Game and script models (briefly).
I. Structural Model (Ego State Model)
The structural model is the foundation of T.A. It depicts the personality of an individual as consisting of three ego states – Parent, Adult and Child – usually drawn as three stacked circles labelled P, A and C.
1. Parent Ego State
- Represents the internalised voice of parents and authority figures.
- Contains “do’s” and “don’ts”, rules, values and moral judgements.
- Two main aspects:
- Critical parent: commanding, judging, punishing (“You never…”, “You must…”).
- Nurturing parent: caring, supporting, protecting (“Let me help you”, “Take care of yourself”).
2. Adult Ego State
- Represents the rational, objective and problem-solving part of personality.
- Collects data, checks reality, analyses options and takes logical decisions.
- Not emotional or moralistic; focuses on “What are the facts?” and “What is the best solution?”.
3. Child Ego State
- Represents feelings, needs, impulses and behaviour of the person as a child.
- Has two sides:
- Natural (free) child: spontaneous, fun-loving, curious, creative, joyful.
- Adapted child: obedient, anxious or rebellious depending on how the child adjusted to parental control.
Managerial implications of structural model
- Managers can observe whether they are responding mainly from critical parent (ordering, blaming), adult (logical discussion) or child (emotional outburst).
- For effective leadership, managers should strengthen their Adult ego state and use Nurturing Parent and Free Child appropriately, rather than overusing Critical Parent or Adapted Child.
II. Transactional Model (Types of Transactions)
This model analyses the actual exchanges of communication between people. Every transaction involves a stimulus (message from one ego state) and a response (message from another ego state).
1. Complementary (Parallel) Transactions
- Transactions in which the expected response is received and the lines of communication are parallel.
- Example: Adult to Adult (A → A):
- Manager: “What is the latest sales figure for this month?” (Adult)
- Subordinate: “₹12 lakh, sir, compared to ₹10 lakh last month.” (Adult)
- Other complementary forms: Parent → Child and Child → Parent (e.g., instruction and obedience).
- These transactions are generally smooth and stable; communication can continue normally.
2. Crossed Transactions
- Transactions in which the response comes from an unexpected ego state and the lines of communication cross.
- Example: Manager (Adult): “Why is this report delayed?” Subordinate (Child): “You always find fault with me; you never appreciate my work.”
- Here, an Adult stimulus received a Child response; communication breaks down and conflict starts.
- Crossed transactions are the main source of misunderstanding, arguments and tension.
3. Ulterior Transactions
- Transactions in which there are two levels of messages – an open, social level and a hidden, psychological level.
- Example: A sarcastic compliment – “You did that very fast; I hope it is at least half correct.”
- Ulterior transactions are often used in manipulation, games and politics; they can create deep confusion and hurt.
Managerial use of transactional model
- Managers should aim mainly at Adult–Adult complementary transactions for rational problem solving.
- They should learn to recognise and correct crossed transactions by shifting their own response to Adult.
- They should avoid habitual use of ulterior and manipulative transactions which damage trust.
III. Stroke Model (Recognition and Stimulation)
The stroke model is based on the idea that people have a basic need for recognition, attention and stimulation. A “stroke” is any act that gives recognition to another person.
Types of strokes
- Positive strokes: smile, praise, thanks, appreciation, supportive touch.
- Negative strokes: criticism, scolding, insult, frown.
- Conditional strokes: given for what a person does (“You did this job very well”).
- Unconditional strokes: given for what a person is (“You are important to this team”).
Implications
- People prefer positive strokes, but if they are not available, they may even seek negative strokes rather than no recognition at all.
- Effective managers use adequate positive and constructive strokes to build self-esteem, motivation and healthy relationships.
IV. Life Position Model
This model describes the basic attitudes that people hold about themselves and others. Eric Berne identified four life positions:
- 1. I am OK – You are OK Most healthy position; person respects both himself and others. Leads to cooperation, open communication and problem solving.
- 2. I am OK – You are not OK Person feels superior, looks down upon others; may become critical, dominating and exploitative.
- 3. I am not OK – You are OK Person feels inferior and dependent; may show submissive or self-pitying behaviour.
- 4. I am not OK – You are not OK Person has negative view of self and others; leads to hopelessness, withdrawal and destructive behaviour.
Managerial importance
- Managers should try to operate from the “I am OK – You are OK” position, which creates mutual respect and trust.
- Awareness of one’s own and others’ life positions helps in understanding patterns of conflict, cooperation and resistance.
V. Game and Script Models (Brief)
1. Game Model
- A game in T.A. is a repetitive series of ulterior transactions with a hidden motive, which leads to a predictable negative outcome.
- Examples: “Why don’t you – Yes, but…”, “Look how hard I try”, “Now I’ve got you”.
- Games waste time, create bad feelings and avoid real intimacy or problem-solving.
- Managers should learn to recognise and interrupt games by bringing communication back to an open Adult level.
2. Script Model
- A life script is a more or less fixed life plan that a person unconsciously creates in childhood, based on parental messages and early decisions.
- Some people live out “winner” scripts (success-seeking), others “loser” scripts (self-defeating), and many “non-winner” scripts (average, play-safe).
- Understanding one’s script enables a person to re-examine early decisions and make new, more constructive choices.
Overall Managerial Benefits of Transactional Analysis
From the various models of T.A., managers obtain several practical benefits:
- Better understanding of own personality and ego states.
- Greater ability to analyse and improve interpersonal communication (e.g., avoiding crossed transactions).
- Improved handling of conflict, criticism and feedback.
- More effective use of positive strokes to build self-esteem and motivation.
- Awareness of basic life positions and their impact on leadership style.
- Reduction of destructive games and rigid scripts in organisational life.
Conclusion. To conclude, transactional analysis is a powerful and practical approach for understanding human personality and communication in organisations. It defines behaviour in terms of three ego states — Parent, Adult and Child — and examines how these ego states interact in various transactions. The major models of T.A. include the structural model (ego states), transactional model (complementary, crossed and ulterior transactions), stroke model (need for recognition), life position model (“I am OK, You are OK” and other positions), and, in broader sense, game and script models. Together, these models provide managers with a clear language and set of tools to analyse behaviour, improve communication, resolve conflicts and build healthier, more effective relationships at the workplace.