Chapter 04 Transactions
Chapter 04 Transactions
Chapter 04 Transactions
UNITS OF COMMUNICATION
INTRODUCTION
Human personality is multifaceted. The Freudian concepts of id, ego, and superego represent
factions that frequently collide with one another to manifest themselves in thoughts, feelings,
and behaviours. This theory influenced Eric Berne, who formalized his theory of transactional analysis based on the dimensions of personality. The credit of imparting a unit to
communication belongs to Berne. He defined transaction as the fundamental unit of social
intercourse and stroke as a fundamental unit of social action.
Thus, transactional analysis is the method of studying interactions among individuals.
With this definition, Berne defined the basic unit of analysis. In his book Im OK Youre OK,
Thomas Harris claimed that with transactional analysis, a new language of psychology had
been found.2
As Berne pointed out, when one is analysing transactions, it is important to look beyond
words and concentrate on how the message is being conveyed. This takes into account the
non-verbal signals that identify the ego state from which the person is communicating. The
importance of non-verbal communication was also emphasized by Mehrabian3, another
prominent scholar. According to Mehrabian, when an individual is speaking, 7 per cent of
the listeners attention is focused on the actual words, 38 per cent on the way the words are
delivered (tone, emphasis on certain words, and so on), and 55 per cent on facial expressions.
This indicates the degree of importance the listener places on non-verbal communication.
At least initially, it can be said that the listener forms an impression based on the non-verbal
cues that the speaker uses to influence the audience.
The theory of transactional analysis can be incorporated in the teaching of business communication in the classroom. This tool can help students understand themselves and others
better, as well as appreciate the individual strengths and weaknesses of others. With its help,
students also learn to adapt their communication styles with those of others, becoming more
proficient communicators in turn.
Communication
Bytes 4.1
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Eric Berne and Sigmund Freud approached communication differently. While the Freudian approach involved
questioning patients about themselves, the Berne approach called for direct observation during the time a
transaction took place.
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STROKES
Berne defined a stroke as the fundamental unit of social action. A stroke is a sign of recognition or an acknowledgement. Inspired by the work of Ren Spitz, a pioneer in the area
of child development, Berne introduced the concept of strokes in transactional analysis.
Spitz observed that infants deprived of cuddling, touching, and hugging (in other words,
infants who did not receive any strokes) were prone to emotional and other difficulties. Berne
included positive contact such as smiles, nods, and handshakes as strokes. He also postulated
that any stroke, be it positive or negative (which would include frowns, curled lips, and so
on), is better than no stroke at all.
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The child state is the response to sensory experiences. It includes feelings like wonder, surprise, and glee.
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The three ego states change with time, context, audience, and
individual maturity.
COUNTERPOINT
POINT
84
is comprised of the felt-concepts. Some phrases one might utter in the child state include
the following: Wow! The cake looks really yummy! and Isnt my PowerPoint presentation
looking good?
ANALYSING TRANSACTIONS
Transactional analysis involves the identification of the ego state that directs the transaction stimulus and executes the transaction response. There can be nine types of interaction
between the three states of parent (P), adult (A), and child (C). Among these three states, the
initiator of the transaction is called a transactional stimulus or the agent, while the response
is called the transactional response. The nine kinds of interaction are:
Parent
Adult
Child
Parent
Parent
Adult
Adult
Child
Child
Parent
Adult
Child
Adult
Child
Parent
Child
Parent
Adult
Complementary Transactions
Appropriate and expected responses make up healthy transactions and are called complementary transactions. According to Dr Berne, communication will happen if the transactions
are complementary. In a diagrammatic representation, the transactions make a parallel line.
Some examples of complementary transaction are:
The supervisor (parent state) asks the new recruit whether he was feeling comfortable
and the latter (child state) replies in the affirmative.
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85
The nervous new recruit (child state) asks the supervisor about the ways he would like
the report to be presented and the boss (parent state) guides the new recruit.
The child (child state) asks her mother to give her food, and the mother (parent state)
readily complies.
The critical parent (parent state) advises his teenage son against smoking cigarettes and
the son promises to remedy the addiction (adult state).
Seema (child state) says to her colleague: You know the boss really praised my work in
front of everybody! I was thrilled. The colleague (adult state) replies, Oh thats wonderful! I am so happy for you!
Crossed Transaction
The transactions that yield unexpected responses are called crossed transactions. These are
represented by crossed lines. They are the cause of most difficulties and roadblocks in business, personal, and social situations.
Some examples of crossed transactions are:
A wife (child state) asks her husband, How am I looking? The husband (adult state)
replies, Oh, I think you should remove the makeup. Its rather excessive, isnt it?
Parent (parent state) advises a young child to always plan her study schedule. The child
(adult state) replies that planning is useless and doesnt yield results.
Manager (child state) exclaims, Isnt my PowerPoint presentation for the conference
looking good? to a subordinate. The employee (Adult stage) replies, I feel that the colours are too bold and you should reduce the number of slides.
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Effective transactions result in great rapport. Rapport serves two functions, namely, enjoyable interactions and personal connection.
STRUCTURAL ANALYSIS
One way to understand transactional analysis is by conducting a structural analysis, that is,
the analysis of individual personality. It is a method of analysing a persons thoughts, feelings,
and behaviour based on the phenomena of ego states.
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87
When interacting with others, people take certain specific psychological positions and
conclude any one or more of the following:
I am smart.
I am nervous.
I do not know anything.
I am a loser.
I know nothing.
I know everything.
When thinking about others, people may conclude any one or more of the following:
Child State
The following questions/ideas might prove helpful in determining if one is in the child state:
Think of something you did as a child that you still do now.
Think of a reaction of yours that was quite childlike in retrospect.
Consider if you have acted unreasonable or stubborn recently.
Experiences
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Psychological
positions
Reinforcing
behaviour
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88
Information
Bytes 4.1
The game Why Dont You, Yes But is a favourite in the corporate sector. Here is how it goes:
A leader calls a meeting and invites suggestions from the attendees. As soon as he or she is given a
suggestion, he or she responds with, That is a good idea, but it wont work because. In this manner,
each suggestion is met with an elaborate excuse. This goes on until the leader comes up with a chosen idea
that is proclaimed as the best decision.
The team has really no option but to agree; the leader, for his or her part feels that he or she has done
their bit for promoting participative decision-making.
Parent State
In order to understand whether one is in the parent state, the following questions might be
considered:
Do you use words like your parents did?
Do some parental messages reverberate in your mind?
Are you by nature maternal, paternal, or authoritarian?
Adult State
In order to understand whether one is in the adult state, the following line of thought might
be helpful:
Think of situations where you gathered evidence and then reacted.
Think of situations where you prevented yourself from making a hasty judgment.
Think of situations where you controlled your feelings and acted in a mature manner.
Structural analysis leads to a process of self-discovery. This helps us to change positions, look
for new experiences, and capture them in our memory. A transactional analyst with a strong
adult ego state can help another individual strengthen their adult ego state by discarding
fixated material from the past and updating the content of the parent and child ego states. The
content of the ego states can be updated throughout life with new feelings and ideas based on
current reality. The changed mind changes the personality structure and is observable in
the persons behaviour. Exhibit 4.2 explains this in a nutshell.
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Experiences
Psychological
positions
Behaviour
Structural
analysis
New position
(Desired)
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89
this problem, You must, and so on. People generally avoid such advisors because
they are unable to provide the empathy people are looking for. This, in turn, makes the
listener feel inadequate.
Certain people make the mistake of talking confidently about something, even though
they are ignorant about the situation. They underestimate the listeners competency and
fool themselves into believing that they know much about the topic, situation, or event
at hand. This results in people doubting the worthiness and credibility of the person.
Some people also have the habit of interrupting others before they finish speaking. This
results in the original speaker being annoyed. Assertive speakers may request the person
to let them complete their sentences.
Sometimes people indulge in direct disagreement while communicating; this is a
characteristic trait of aggressive personalities. Phrases like I do not agree with you or You
are wrong might be used by this kind of a person. Generally other people tend to avoid
speakers like this. Even healthy discussions might be avoided to minimize unpleasantness.
SUMMARY
Transaction analysis offers a frame of reference that
most people can understand and observe in their lives.
Research in the fields of psychology, psychotherapy,
and psychiatry corroborates much of the theory propounded by Berne in transactional analysis. Many of
Bernes concepts and techniques are applied by psychologists, counselors, educators, and consultants in their
respective fields.
That transaction is a unit of measure of interpersonal
communication (what people do and say to one another)
is well established; it also provides a contextual basis to
communication, making it more scientific and practical.
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Nurturing Parent
Adult
Instance 1:
Manager to new recruit: Can you please repeat the
instructions that I just gave you? Have you understood
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what I am saying? Is there anything you dont understand? I want the instructions to be followed exactly as
I have dictated.
Instance 2:
A: Why didnt you tell me earlier that you will not be
able to do the work assigned to you?
B: I told you that this work is difficult for me.
A: See Bhaskar, you have to do whatever you are told
todo.
B: In that case, you can go to hell! You are not my senior
in any case.
C to A and B: Why dont we seriously resolve this issue?
Apparently there is some misunderstanding.
Instance 3:
A to his Manager: You always listen to B and not to me!
This is not fair!
Manager: This is ridiculous A. You know I am fair and
impartial; I have evidence that indicts you.
Instance 4:
Recruiter: Describe one incident that shows your leadership skills.
Candidate A: See, here are my testimonials. I was
the football captain of the school. These pictures
will give you a clear idea of my excellent leadership
skills.
Candidate B: I believe that leadership is learned in
more ways than one. More rhetoric does not make a
leader. Leadership is action. There are two instances
that depict my leadership skills.
Instance 5:
Child: Mummy, please look at the picture!
Parent A: Its not wise to disturb somebody while they
are sleeping.
Parent B: Be quiet and do your work.
Parent C: Oh wonderful! You paint beautifully.
Parent D: See even I can paint as well as you can!!
2. Read the following situations and answer the questions
that follow:
Situation 1:
Vivek Sharma is a sales representative marketing
high-end servers to institutions. He represents a well
known multinational firm. Today, he has a meeting
with a large account, a client with whom the company
has had a long-standing relationship. The company
is planning to install three new servers in the clients
new facilities and Sharmas firm is one of the important vendors. He is quite confident of cracking the
deal, as he puts it. Sharma reaches the venue exactly
on time. Here is a transcript of the meeting that
follows.
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AP: (the clients purchase manager): Oh hello Mr Sharma!
Come in, come in. Take a seat. Youre from ABC Limited,
arent you?
VS: Yes, thanks. You see, we have been your suppliers
for high-end servers for the past 5 years.
AP: Oh, you were the ones who supplied us with those
servers?
VS: Yes. There were absolutely no complaints about
them. That is why I believe you should opt for us as the
preferred vendors for your new servers.
AP: Well, I can say that youre wrong there. Our log
shows that there were no less than seven issues with
those specific servers, and reports reveal that we had a
great deal of downtime. Please check your records.
VS: I can assure you that our records are in place. You
must be confusing us with some other firm. Please
check with Mr Sahai of your company. We were dealing
with him before this.
AP: Confused? Oh no. I assure you that our records are in
place. I do not know what arrangement you had with
Mr Sahai, but right now I am heading the department and
VS: Oh, we did not have any arrangement as such
AP: Well, all I have to say is that we faced a lot of serv
ice issues with your firm and we would like this to be
sorted out before any further discussion. Do get me in
touch with a senior manager and I would like to renegotiate terms with ABC Limited before we arrive at a
concrete deal.
Questions:
Did the meeting go as planned? What do you think
went wrong?
Comment on the ego states used by VS and AP.
Suggest alternate transactions for the dialogue in the
given passage.
How is transactional analysis useful for sales professionals?
Situation 2:
Its time for the annual performance review. Sarvesh
Bahri is the HR manager who is interviewing the new
management trainee, Krishna S. The time has come for
the confirmation of the new trainees, and this interview
is important for Krishna. Here is the transcript of the
appraisal interview. (SB is the HR manager and KS is the
trainee.)
SB: Come in Krishna. Please be seated. How have you
been? I have not seen you since you joined. I conducted
your campus interview, didnt I?
KS: I am good, Sir. Its a pleasure to meet you. Yes,
I recall that you conducted my selection interview.
I really enjoyed being interviewed by you. I still remember
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Questions:
Critically comment on the process of the interview.
Do you think AB could have done a better job?
What could have been appropriate transactions on
the part of AB? Which ego states were involved?
What interview tips can you give AB as far as transactions are concerned?
Situation 4:
10 am meetings are a routine feature at Interlay Corporation, a sales firm. The usual agenda consists of a
review of the sales visits, sharing experiences, discussing strategies, and so on. Lasting for about an hour, the
meetings are led by the branch head, Sanjiv Gupte. The
team comprises five to six professionals. They are AB,
CD, EF, GH, and IJ. SG is leading the agenda. Here is
the edited transcript of one such meeting.
SG: Hello everybody. Welcome to the meeting. Where
is AB? He should be here.
All: Hello Sanjiv.
EF: AB, our star performer, is always late. Havent you
noticed?
SG: Well we can grant some liberties to our star performer. Here you are AB! Come in quickly! We were
just talking about you
AB: I bet.
SG: Now let me set the agenda right away. First, the
expense for sales calls has shot up considerably. I want
to discuss this. Second, client XYZ has expressed displeasure at our service and maintenance. No, do not
interrupt me, EF and GH. Let me finish what I have
to say. Third, team cohesiveness is a big issue with me.
I propose to invite Professor Vaidyanathan from my
alma mater to deliver a talk on team building and innovation the day after tomorrow.
AB: Wow!
EF: Oh no! That theoretical stuff they teach you at fancy
MBA schools! Surely we dont need that Sanjiv!
IJ: Day after tomorrow is a Sunday; I cant possibly
come to work on that day.
SG: Sorry guys! The meetings been fixed.
(Collective groans are heard. Only AB does not say
anything.)
EF: Now can I say something about the service and
maintenance issue?
SG: No. Lets proceed in order. First, lets talk about the
expense factor. The entertainment allowance has been
exceeding the stated budget. I want an explanation
for this. The outstation allowance has also been high
and the mobile expense bill has shown a tremendous
increase. Any ideas here, guys?
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CD: This is not something extraordinary, Sanjiv.
SG: I did not say so, CD. Your bills are the highest.
CD: That is what I am saying, Sanjiv. I think we discussed last time that whenever we are looking for new
clients, the mobile bills and other expenses are bound
to shoot up. It is more of investment. After my 12 years
of service to the company, I can hardly be accused of
pilfering.
SG: Nobodys accusing youI am just talking generally.
CD: But just now you said
SG: Well, forget it. But do keep track of these expenses
as they lower bottom lines and consequently the
incentives.
EF: Can I say something now? Do I have permission?
SG: Go ahead.
EF: The client in question is quite tiresome. Ask GH.
SG: Lets not blame others. Remember, the customer is
always king.
GH (mumbles something): Uherum
EF: Well, I wish that you would just listen to us
SG: No. You know my stand. The customer is always
right. No more complaints.
EF (shrugging): In that case
SG: All right guys. Buck up team. Weve got to beat the
competitor! Also, remember Professor Vaidyanathan
on Sunday! I am getting late for the next meeting.
Seeyou all!
Questions:
Analyse the transactions as shown in the transcript. What can you deduce about the communication style of each of the participants and the
team lead?
What roles do meeting chairs play in conducting
meetings?
3. You are about to leave for the office. Suddenly you hear
a loud shriek. Your small child has hurt himself. You
tell the day caregiver to fetch the cotton. You console
the child, apply medicine, and sit with him for a considerable time. By this time, the child has gone off to
sleep. You give the caregiver some instructions and
rush to office.
When you reach your office, your supervisor is waiting for you and gives you a long lecture about the negligence of duty you have expressed by not reporting for
work on time.
After going through the given situation, answer the
following questions:
What do you think is the best thing to do under the
circumstances?
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WEB-BASED EXERCISE
1. Refer to the following Web site: <http://www.businessballs.com/transactionalanalysis.htm> There is a section
on the contamination of the ego states. Under what
FURTHER READING
Eric Berne, Games People Play (New York: Grove Press,
1964).
Thomas A. Harris, Im OK. Youre OK (New York:
HarperCollins Publishers, 1967).
C. Steiner, Scripts People Live: Transactional Analysis of
Life Scripts (New York: Grove Press, 1971).
ENDNOTES
1. Taken from <http://www.ericberne.com/transactional_analysis_description.htm>, accessed on May 11,
2011.
2. Thomas A. Harris, Im OK. Youre OK (New York:
HarperCollins Publishers, 1967).
CASE STUDY 1
Strike at Omkara Tea Estate: Communicating
With Labour Union Leaders
Summary
This is a case study concerning a labor problem in a tea
garden which led to a major crisis due to the ineffective
communication on the part of the manager. The communication barriers arose because the people working there,
spoke different languages. The problem was further fuelled
by ego conflicts and poor persuasive appeals.
Introduction
In the Omkara Tea Estate in West Bengal, Mr Madhur
Kulkarni was the newly appointed Assistant Manager in place
of Mr Gupta. Prior to this, he reported to Mr Sharma who
had been working as the manager at Omkara tea estate for
the last 10 years. Ms Manjula Chatterjee, a young lady in her
Chapter 04.indd 93
Problem
Being new to the area, Mr Kulkarni had no knowledge of
Bengali and the local dialects. The labourers were unable
to clearly understand what he spoke because his Hindi
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him but the assistant manager presented him with his side
of the story.
Impact
The labourers got agitated due to delay in the payment and
called for a strike leading to a lot of tension. The strike was a
major one leading to a halt in the tea leaves picking work. As
the management did not take any major steps to address the
issue, the labourers stopped the managers car, forced him to
get down and manhandled him. The police was called in to
control the situation.
The senior management got worried as such a situation
had never happened at the tea estate. The manager briefed the
senior management over the phone and explained to them
the problem the way the assistant manager had briefed him.
There was no copy of the labourers demands in his possession as it was filed by the PA of the assistant manager as a
routine piece of paper as per his directions.
Finally the district magistrate and the superintendent of
the police had to intervene. A joint meeting between the top
management and the labour leaders was fixed in the presence
of the district administration. The charter of the demands
was discussed and the management agreed to release the
bonus to the satisfaction of the labourers. The labour leaders
agreed to return to work. Due to the strike, the tea estate lost
a business of about 30 cr which created a feeling of distrust
between the management and the labourers.
Questions
1. What do you think was the root cause of the problem?
2. How could this problem been avoided?
CASE STUDY 2
Change: Engaging the Employees
Summary
This case deals with the problem of the declining sales of a
regional magazine of a major publishing house due to the
growing popularity of the internet amongst its users. As a
result, the top management have decided to go digital and
come up with a website that has online journals, articles,
links to informational blogs, etc. But this shift requires hiring of more technical people with expertise in the field of
the digital media. Due to this, there are rumours of possible
downsizing in near future. The employees feel alienated from
the company as they have no role to play in company decisions and their view point is not being considered. Moreover, email is the only medium of communication between
the employees and the top management, and sometimes it
fails to convey the emotions of both the sides. Due to misinterpretation of the cues, the employees react impulsively.
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Introduction
Expression Education was a major publishing company
in India that had unmatched market presence for several
years. It was established in 1994 and continued to expand
its market across the nation. The company published a daily
national newspaper and several monthly and fortnightly
regional magazines. It was one of the pioneers of magazines
for children in the age group of 8-14 years.
The company had its head office in Delhi and regional
offices in various cities. The top management used to head
the main office and the regional managers looked after
the proceedings of the regional offices. The employees at
regional office were supposed to report to the regional manager who in turn reported to the head office. The organization did not follow a flat structure.
Nandan-Kanan was one of the regional magazines
published in the city of Allahabad. Its circulation was limited
to the state of Uttar Pradesh. The magazine was a fortnightly
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Problem
With the advent of social media and increasing rivalry from
the online content, the sales of the magazine plummeted.
Over the last three years, the subscription and newsstand
sales dwindled to around 28% of the total market share.
Facebook, Twitter, LinkedIn had become the latest fad in the
market. When information was just a click away, people were
turning away from printed media. For several years there
had been virtually no competition for Nandan-Kanan but
gradually, the consumer preferences had changed. Printed
media was getting wiped out and social media and internet
were moving to monopolize the market.
The employees of the regional office were well aware of
this market shift and the declining sales. For the last few
months there had been rumours that the head office had
decided to completely stop the publication of NandanKanan and go digital. There was also a buzz that the new
hiring that was currently taking place in the regional office
was to bring in a new wave of innovation and freshness in
the digital world to increase the revenue for the company.
The downsizing of older employees was also big news.
95
The employees did not like what they were hearing. They
were also concerned with the growth of the company and felt
that a change was inevitable in the wake of the market shift.
But what they did not understand was the logic behind firing experienced workers. The employees were not a part of
decision making and their ideas and insights were also not
welcomed by the top management. The employees demanded
a face to face meeting with the top management but their
request was repeatedly turned down. At the critical time
when the job insecurity was taking a toll on the attitude of
the employees, e-mail was the only means of communication.
Most of the mails were left unanswered by the management.
The employees in turn vented out their anger by speaking
ill of the company in the media and resorting to a strike. The
candidates coming for the interviews were not allowed to
enter the campus, and hence, the recruiting process came to
a standstill. Some of the aggressive employees even resorted
to vandalism in the campus.
Impact
This had a negative impact on the morale of the employees and
the image of the company in the general. Even the new hires
were demotivated by such an activity. Apart from the loss of
face in media, the company also suffered a financial loss.
Questions
1. How do you think the management should have handled the situation?
2. What tenets of communication should be employed in
times of change management?
CASE STUDy 3
Change of Guard: Thrusting Change on
Employees
Summary
The case is about a family owned, manufacturing based
business firm that recently saw its long-time chairman succumb to a chronic disease. The company was now headed
by the only daughter of the late chairman who has returned
from US, armed with a MBA degree. Most of the employees
of the firm are over 45, with at least 25% being over 55 years
or more. The new chairman is interested in fresher perspectives and innovative ideas and wants a change of guard at
the workplace.
Introduction
Shikha Goyal was the newly elected chairman of the manufacturing firm XYZ Ltd., and has just arrived from the US,
completing her MBA degree. She had a vision for the wellknown manufacturing firm and wanted to add a new dimen-
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Problem
Shikha had appointed Mr Nathulal as her deputy who was
previously with the firms sales division. His aggressive marketing skills have proved to be successful. Mr Nathulal now
called a board meeting where he proposed a new schedule
for the on-going production process which would meet
their targets well before time, thus leaving time for the firm
to squeeze in few more orders. The original schedule for
the orders were for 12 months which were now reduced to
around six months with the introduction of a new E
nterprise
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Management System, which was different from the one, followed by the company for a long period of time.
The employees were now expected to work at least an
hour more than what they usually did with the possibility of
extended weekends operations if deemed necessary to keep
up with backlog. The expectation was that, the employees
would continue to give the same effort as they have being
giving in the past but now for an extended period of time.
Emphasis was given on written communication to all
the employees concerned. In this instance, replacing the
more accepted verbal way of communication was prevalent for routine jobs. Strict actions could be taken against
non-compliance with the newly proposed working schedule and style. The other members of the board were a little
taken aback by the sudden changes in management style but
choose not to comment at the moment.
Impact
Mr Nathulal was pleased that the motion got passed unopposed and felt no further need to reach out to the experienced
people present in the board to solicit their opinions and viewpoints on the proposed changes. While he was aware of a few
glares and grunts directed in his way every time he crossed
some of the employees, he attributed it to temporary phenomena due to a slightly increased workload.
But gradually he kept noticing lack of feedback and ideas
Questions
1. How should the issue have been dealt with ideally?
2. What would you now advise?
Quotes
Name: Siddhartha Todi
Organisation: Jardine Lloyd Thompson (JLT)
Designation: Manager, Risk Analytics (Insurance and Reinsurance)
Effective communicationmeans that people working in the organization should:
1) Always try to be aware of the various levels of people aroundthemand their motivation level for better communication.
2) Keep in mind the bigger picture of the organization for appropriate messaging while aligning with the goals of the
organization.
3) Be aware of the words used in the conversation.
4) Understand the culture of the team, the organization, and various other levels if one is communicating with multiple
stakeholders within and across different offices globally.
5) Structure your thoughts to draw out the desired response from the audience.
6) Set the agenda and context for the audience to respond favorably to the idea proposed by you.
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