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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
2. Emotional Intelligence – IQ Vs EQ
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
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.
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
5. Time Management
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".
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
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
HRD Lecturer Notes | Stress Management 7
Module - 6 Transaction Analysis
• Set boundaries
• Don’t compromise your values/beliefs
• Schedule “me” time
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
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.
Adult Ego
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:-
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:
(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
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:
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
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.
Transaction analysis brings positive feelings in the individual, which has remarkable impact on
attitude change
(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.
4. “Transaction analysis offers a mode of expression of personality and dynamics of self and its
relationship with others”. Explain the above statement.
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?