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Module - 6

Transaction Analysis
MBA 3rd Semester HRD Lecturer Notes
Module - 6 Transaction Analysis

1. Table of Contents
1. Table of Contents ..................................................................................................................................1
1. Human Resource integration and maintenance .................................... Error! Bookmark not defined.
2. Emotional Intelligence – IQ Vs EQ.........................................................................................................2
3. Creativity and its role in management..................................................................................................3
4. Building positive attitude ......................................................................................................................3
5. Time Management ................................................................................................................................3
6. Stress Management ..............................................................................................................................6
7. Transaction Analysis..............................................................................................................................8
7.1. Meaning & Purpose of Transaction Analysis ................................................................................8
7.2. Conflicts Resolution ................................................................................................................... 16
7.3. Enhancement of Interpersonal Relationship through Transactional Analysis........................... 16
8. Question Bank .................................................................................................................................... 17

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Module - 6 Transaction Analysis

2. Emotional Intelligence – IQ Vs EQ

What is Emotional Intelligence (EI)?


 The capacity for recognizing our own feelings and those of others, for motivating
ourselves, and for managing emotions well in ourselves and in our relationships.
 Studies show that:
 For all levels of jobs, EI competencies are twice as effective as IQ in determining
an individual’s success rate.
 The higher the level of a position in an organization, the more EI seems to
matter.
 Executive Leaders show an 85% correlation between EI competency and
success.

Intelligence Quotient
A person's IQ, measures concepts like logical reasoning, word comprehension, and math skills
rather than creative potential or emotional abilities.
People with a high IQ may be able to learn certain subjects very quickly and make connections
between ideas that others miss. They often have great academic success, although they may

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struggle to find classes that challenge them. The ability to acquire knowledge does not
necessarily mean people can recognize and manage their own emotional states.

Differences between EQ and IQ

IQ EQ
Helps you get in the door Helps you succeed at job
Measure of ability to learn or understand Measure of ability to use your emotions
and logical skills
Trying to convince someone by facts Trying to convince someone by reasoning
Being at the mercy of emotions because Understanding and managing emotions and
you don’t understand them using them for good reasons
Book smart Heart smart
Gets you through school Gets you through life

3. Creativity and its role in management

4. Building positive attitude

5. Time Management

Need for time management


• Increased effectiveness and efficiency
• Increased leisure time
• Enhanced job satisfaction
• Reduced stress
• More room for forward planning
• Higher creativity

5 Time management mistakes


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1. Starting the day without planning


2. Getting out of balance in life– between health, family, job, social life.
3. Working in cluttered environment / messy desks
4. Not getting enough sleep
5. Not taking lunch breaks
Getting Organized
 Monitor your time– The first step is to find out where you spend our time.
 Making your Action list – List down all the activities that need to be done.
 Maintaining Daily / Weekly planners—Ensure that you do not miss out important activities
 Long term calendar – could be on monthly basis and reusable every month

Planning
• Drucker’s Dictum “Doing things right is not as important as Doing the right things”.
• Failing to plan is planning to fail
• Use a”to do” list.
• Plan for the day, week, month and year.
• Update your plans
• Separate plans from actions

Prioritizing
 The A-B-C rule : Assign the more important activities as value of A then B and the least
important activities C. Focus on A’s
 Pareto Principle -The 20-80 rule
It is said that only 20% of activities result in 80% of the results. Focus on these 20% i.e.
there are critical few and trivial many tasks
 Parkinson's Law - "work expands so as to fill the time available for its completion".

Causes for poor time management


• Relying on mythical time—I will do later
• Underestimating demands on time—Not estimating unexpected tasks.
• Task hopping—Result of poor concentration and moving from one job to another

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Common time wasters


• Procrastination
• Disorganization
• Perfectionism
• Visitors and interruptions
• Telephone, e-mail, internet
• Day dreaming and distractions
• Lack of focus
• Accepting too many tasks at once

Strategies for beating telephonic interruptions


• Be conscious of time spent on each call
• Keep social chit chat to a minimum
• Arrange a call back time
• Make a list of items to be discussed before returning calls
• Learn to summarize and terminate conversations

Strategies for overcoming unexpected visitors


• Make appointments
• Establish a quiet time with no interruptions
• Be specific
• Summarize the conversation to avoid a call back.

Strategies to handle too much information


• Divide mail into categories –top priority / when is time available file
• Deal with pending file at a specific time each day.
• Throw out useless documents
• Review your filing system atleast once every year.

Make the most of your time


• Work smarter not harder
• Avoid unnecessary disturbances

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• Use waiting time


• Discover your peak time and accomplish tasks which require concentration at that time.

6. Stress Management

What Is Stress
• Stress is the body’s automatic response to any physical or mental demand placed on it.
• Stress refers to how the body responds to any number of physical or emotional stimuli
(i.e., stressors).
• Effects of this response are sometimes perceptible-such as an increased heart rate,
respiratory rate, sweating, skin problems, or tense muscles. Other changes, though
common, are not perceptible: increased blood pressure, metabolism, and changes in
circulating fats. Continued exposure to stressors, especially of a negative type, will often
lead to mental and physical symptoms such as anxiety, depression, heart palpitations,
and muscular aches and pains.

Types of Stress
• Eustress- Eustress can be defined as a pleasant or curative stress. We can't always avoid
stress, in fact, sometimes we don't want to. Often, it is controlled stress that gives us
our competitive edge in performance related activities like athletics, giving a speech, or
acting
• Distress - Distress is an unpleasant or disease-producing stress. Chronic, sustained,
uncontrolled stress of a negative type may lead to a compromised immune system,
illness, and even death.
• Stressors
 School
 Work
 Family
 Relationships
 Legal
 Finances
 Health/illness

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 Environment
 Living Situation

Negative Effects of Stress

1. Physical
- Weight gain/loss
- Unexpected hair loss
- Heart palpitations
- High blood pressure
2. Emotional
- Mood swings
- Anxiety
- Can lead to depression
• Can also lead to unhealthy coping strategies (i.e. alcohol, drugs, etc)

Managing Stress
• Stress Relief Strategies
1. Body relaxation exercises
- breathing techniques
- guided imagery
2. Physical exercise
-yoga
-workout routine
3. Meditation
4. Counseling
-talk therapy
-life coaching
Other Helpful tips
• Changing perceptions and expectations
• Break jobs/tasks into manageable parts
• Set reasonable/realistic goals
• Avoid procrastination
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• Set boundaries
• Don’t compromise your values/beliefs
• Schedule “me” time

Benefits of Stress Management


• Physical health gets better
-more energy and stamina
• Emotions stabilized
-positive attitude
-hopeful/happier
• Ability to focus improved
-able to learn and achieve

7. Transaction Analysis
7.1. Meaning & Purpose of Transaction Analysis

 “Transactional analysis is a technique used to help people better understand their own
and other’s behaviour, especially in interpersonal relationship.”
 A psychoanalytic theory of psychology developed by psychiatrist Eric Berne in the late
1950’s
 Very useful for
 Analysing interactions with others
 Improving communication with others
Transactional Analysis: Essential Principles
 People’s interactions are made up of transactions
 These involve a stimulus and response
 Earliest transactions include
 Stimulus: Hi, How are you?
 Response: I am Fine,thanks

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EGO STATE
Study of ego state is an important part of transactional analysis, it explains psychological
behaviour pattern of an individual. Study of ego state is related to the way an individual thinks,
his feelings and subsequent behaviour. People interact with each other in terms of
psychological positions of behaviour known as ego state. Sigmund Freud was the first to
advocate that in every individual there are three ego states residing within him i.e. parent ego,
adult ego and child ego. They stimulate, monitor and control individual behaviour. The ego
state is not related to the age of an individual. He further states that a person can change ego
state depending upon situation and modify his behaviour. Berne states, “Although we cannot
directly observe these ego states, we can observe behaviour of an individual and can infer
which of the three ego states an individual is transacting at a particular moment”. Let us study
these ego states.
Parent Ego
Parent Ego refers to the personality attributes like value, attitude and behaviour of parent like
people, inherited by a person when he was child. This behavioural pattern becomes basics for
behaviour as individual copy parent figures like teacher, father, mother, brother or any other
person who is elderly and displays an advisory behaviour, which is copied by a child and
subsequently displayed in his lifetime when such situations arise. Parent ego can be of two
types.

(a) Nurturing parents


Nurturing parent ego is characterized by over protectiveness, helpful, distant, dogmatic,
indispensable and upright parent behaviour. When such behaviour is displayed to a child, he
inherits the same pattern of behaviour.

(b) Critical parents


Critical parents ego state is characterized with the behaviour, which is hurtful, waging finger at
the other and conveys displeasures. The behaviour is strict which usually quotes rules, laws and
has great reliance on successful people.

Adult Ego

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Adult Ego is based on reasoning, seeking from subordinates and providing information. A
person having adult ego views people equal, worthy of undertaking any job and responsible.
They behave rationally and think logically. Physical signs can identify their behaviour, which
displays controlling type. People with adult ego, verify their behaviour and update their parent
and child ego continuously. They block parent and child ego state based on experience. The
person updates data to determine what is valid thus he controls emotional expression. Adult
ego is considered to be valid ego state comparatively.

Child Ego
Child ego state is inner feelings, experience and adaptation. Person having child ego generally
displays creativity in his action. He conforms to the situation and people who interact with him
and displays anxiety, depression, dependence, fear and hate. Child ego can be perceived by
observing an individual who displays physical signs like silent compliance, attention seeker in
certain situations he displays temper, tantrums, giggling and coyness. The individual thinks
non-logical and wants immediate action on various issues. Such behaviour is formed unto 5
years of age by accepting inputs of behaviour of various individuals around in childhood days.
Child gets a social birth and inherits various patterns within the child ego state. These are:-

(a) Natural Child


Natural child generally displays following behavioural pattern
 Affectionate
 Does what come in the way
 Fearful
 Self-indulgent
 Self-centered
 Aggressive

(b) Adaptive child


Adaptive child is psychologically trained in obeying instructions from parents though not to his
liking and does whatever because parents insist to do so. It has the tendency to get involved in
NOT OK transaction. Rebellion, frustration becomes part of his personality.

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(c) The little professor


The little professor is intuitive, creative and manipulative. He believes in magic and uses this
ego state with adult ego state and achieves good interpersonal relationship. He responds to
non-verbal communication and play hunches. He is imaginative.

Analysis of Transactions
One of the barriers of communication is crossed transaction. TA is a technique for examining
the nature of interpersonal communication between the two individuals and to analyse its
effectiveness. Every piece of conversation is treated as a transaction. For example when A talks
to X it is one transaction and when X replies to A it is another. Each transaction of an individual
emanates from parents ego, adult ego or child ego state. As stated earlier, parent ego state (P)
is authoritarian, the adult ego state (A) is rational and logical in approach and lastly the child
ego state (C) is impulsive. Every person transacts from all the three ego states but each one of
us has one ego state as dominant. Transaction is effective when stimulus and response is from
the same ego state and the complementary in nature. Crossed transactions create conflict and
problems for interpersonal behaviour. Let us study patterns of complementary transaction.
(a) Complementary Transaction
Complementary transactions are those communications where stimulus and response (S—R) is
from identical ego state. Message from one person gets almost predicted response and the
transaction is parallel. There are nine such complementary transactions:-
(i) Adult – Adult Transaction
Both individuals are transacting from adult ego state. The stimulus and response are based on
logical thinking and rationale. This type of communication is considered most ideal in any
organization. There is least chance of conflict among the workers. See figures below:

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(ii) Adult – Parent Transaction


In adult – parent ego state, manager speaks from adult ego state which is rational and backed
by rules and regulations while the employees speak from the parent ego state which is
authorization, is not likely to smooth in the long run. Parent ego state (workers) will try to
control and dominate the manager. The employees may develop hostile attitude towards the
boss. See figure below:

(iii) Adult – Child Transactions: Adult-child ego transactions are shown below:

This type of transaction is effective if child ego is of little professor category where employees
can work with certain amount of creativity. Manager in this type of situation has to keep
guiding and tolerating childlike behaviour of employees which is characterized by loose control,
and lot of fun and enjoyment, which is not productive for the organization.
(iv) Parent – Parents transactions
Parent ego state is characterized by admonitions, rewards, and work by rule, praise and
punishment. If both i.e., the manager and employees have the above characteristics of ego
state, the stimuli and response will be dominating from either side. While manager would put
forward his ideas, the employees would reject it and put up a fresh idea and would want to be

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Module - 6 Transaction Analysis

accepted by the manager. Manager will have to take up a nurturing parent attitude for
transaction to be fruitful and thus have a productive communication. See figure below:

(v) Parent – Adult ego state


The boss is transacting from parent ego while he subordinate is responding from adult ego
state. Such type of relationship may not last long. Employees rational and logical thinking will
be marred by parent ego state, which may diminish good working relationship of the two
parties. One will have to switch over to the corresponding ego state. See figure below:

(vi) Parent – Child ego state


This transaction is workable in the organization where the manager will get the work done
from subordinates by advising, guiding, and by assigning rewards for good work and
punishment for non-performance. The subordinates (Child ego) will listen to manager and look
forward for advice, guidance, and assistance at each stage of production cycle. Manager may
get frustration because he may develop the feeling that he is controlling an inefficient work
force. See figure below:

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(vii) Child – Parent ego state


This is not a very effective style of communication whose manager has a child ego state and
employee’s parent ego state. In such situation employees would control the manager. The
latter would always perceive employees as threat and look forward for their advice from time
to time. It will be lassie-faire type of command. Instances of manager being ridiculed and talked
about loosely by subordinates will be a common phenomenon. See figure below:

(viii) Child – Adult ego state Transactions


When manager acts from child ego, there will be poor decisions based on whims and fancies
and emotions. This will pose a problem for employees who want to work rationally. Unless the
ego state of the manager is changed, this is going to be problem in the organization. No growth
can be expected with child ego manager at the helms of affairs. See figure below:

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Module - 6 Transaction Analysis

(ix) Child – Child ego state


Such transaction is not good for the organization. This organization even can be called as
leaderless. Manager with child ego dominant is more of a liability to the organization.
Performance of the organization will be poor, no growth, no new ideas, and lithargy will prevail
in the system. In such situation, the manager should be replaced. See figure below:

Non-Complimentary Transactions
Non-Complimentary transactions are those transactions which a sender sends the message on
the basis of his ego state, but the response is from an uncompatible ego state on the part of
receiver. Such behaviour occur when stimulus and response is not parallel. Following figure
depicts non-complimentary transaction.

Stroking
Stroking is an important aspect of transactional analysis. Stroking is an act of implying
recognition to other person. Stroking is recognition that a person gives to his subordinates for
good work done or even bad work done. Lack of stroking has an adverse psychological and
physiological effect on individual.
Stroking is a basic unit of motivation that can be seen from the following

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a) (a) The quantity and the quality of strokes serve as either positive or negative
motivation for employees.
b) (b) Good share of psychological satisfaction we get from work is from strokes available
from other persons.
c) (c) We get strokes from the work itself.
There are positive and negative strokes. Positive strokes are recognition, pat on the back and
affection shown by superiors, who make subordinate feel okay. It is the recognition of the work
that employees get boost to do even better. Negative strokes on the other hand are the feeling
“you are not okay” conveyed by superiors by way of criticism, hating and by scolding for the job
not done well. It serves as negative encouragement and a feeling of failure is created among
the workers. Negative strokes received by individual also serves as positive strokes because an
individual who has done a mistake expects a negative stroke from his boss, so that mental
tension is relieved and a social equilibrium is achieved in the relationship. When the work is
challenging, the worker gets an ultimate satisfaction from the work itself that serves as a
motivator. It is therefore necessary that managers/supervisors assign to their subordinates the
work, which, in itself is rich and has a motivational value. Positive strokes must be used as
frequently as possible.

7.2. Conflicts Resolution

7.3. Enhancement of Interpersonal Relationship through Transactional


Analysis

BENEFITS OF TRANSACTIONAL ANALYSIS


In this chapter we have studied awareness improvement, ego state, and analysis of
transactions, script analysis, life positions, Psychological games and stroking. These are all
psychological factors that must be applied intelligently in working environment so that
performance of each element is positive and contribute to better understanding. Some of the
benefits of TA are given below

(a) Development of positive thinking

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Transaction analysis brings positive feelings in the individual, which has remarkable impact on
attitude change

(b) Interpersonal effectiveness


Transactional analysis improves:
• Interpersonal relationship
• Understanding of ego state
• Better Communication
• Problem solving

(c) Motivation
Transactional analysis is basically applied to improve motivation of employees. When applied, it
satisfies the human needs. Enrichment of job is achieved by helping fellow workers thereby
achieving intrinsic value. It helps to change management style from theory X to Theory Y whose
transformation takes place from parent – Child relationship to transaction involving adult –
adult relationship, from “I am Okay, you are not okay to I am Okay – You are okay life positions.

8. Question Bank

1. Define EQ.

2. What is Parent Ego State?

3. Define Stress. Discuss the factors causing stress

4. “Transaction analysis offers a mode of expression of personality and dynamics of self and its
relationship with others”. Explain the above statement.

5. What are various methods to improve interpersonal transactions?

6. What are various ego states? Explain complimentary transactions.

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Module - 6 Transaction Analysis

7. Explain crossed (non complimentary) transactions with the help of diagram.

8. What is ulterior transactions? Please quote an incidence of such transaction you have
known in the recent past.

9. What do you understand by life script? How would you ensure that children form a winner
personality?

10. Write short notes on the following:

 (a) Stroking (d) Ulterior transactions

 (b) Psychological games (e) Little professor

 (c) Benefits of transactional analysis

HRD Lecturer Notes | Question Bank 18

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