How using effective transaction can revitalize a depressed economy or business
Transactional analysis is built on the psychology of group dynamics, group cohesion and effective interpersonal relationship, wedged between effective communication. When people interact, it is believed by transactional analyst that a kind of -social transaction is taking place and that if the transaction is effective, it can bring about other transactions such as economic transaction.
Transactional analysis was developed by Eric Berne (1950) for psychotherapy meant to solve personality problems. But by 1964 it turned to become managerial skill for mangers. The objective of Transactional Analysis (TA)). s to provide better understanding of how people relate to each other, so that they may develop improved communication and human relationship which in turn brings about cooperative and improved performance.
According to Berne there are three psychological positions from which people interact with each other. These psychological positions are known as “Ego States”. They are:
(i) Parent Ego State
(ii) Adult Ego State
(iii) Child Ego State
Each of the ego state has its own behavioural characteristics. Any of the three can dominate people’s behaviour and a person can switch from one ego state to another within transaction. This implies that the three ego states are simultaneously present in individuals, only that one is dominating at any point in time.
How to Apply Transactional Analysis in A Depressed Economy
It has been said earlier that monetary and fiscal policies cannot effectively deal with depressed economy. Attention must shift to people who are active players in the economy through transactional analysis. We have now come to the application aspect of this transactional analysis. Transactional analysis assisted by life position can bring about the following:
- Improved communication
- Positive attitude towards others
- Positive self-perception
- Increased motivation
- Improved interpersonal relationships
- Improved group dynamics and group cohesion
- Improved performance
We shall now take each of these benefits and explain how TA can bring them about.
- Improved Communication
If employers and other players in the economic sphere could employ complementary transaction of adult to adult type, communication can be tremendously improved. Adult to adult transaction sustain communication until effective decision is reached. Whereas parent to child and crossed transaction kills initiative and terminates communications prematurely.
(ii) Improved Interpersonal Relationship
Using adult to adult transaction can increase self-confidence and therefore effective interpersonal relationships.
(iii) Improved Group Dynamics and Group Cohesion
Organization is people oriented, and aggregate performance is a consequence of joint efforts. Therefore, people must continue to cooperate and do things together. Adult to adult transaction is the most effective in bringing this about.
(iv) Positive Attitude
In depressed economy, the life positions of employer and employees is usually I’m ok versus you’re not ok or I’m not ok versus you’re ok. Hence, the negative attitude of employees which is the greatest obstacle to economic recovery.
Therefore, employers and governments should in their transactions with employees steer them toward position 4 which is I’m ok versus you’re ok. This can make employees develop positive attitude towards organizational activities.
(v) Positive Self-Perception
A person who feels he is not ok while others are ok occupies two extreme positions behaviorally. It is either he behaves like a wounded lion with willful vengeance towards organizations or the society that has so much made him unfulfilled. The other extreme is total complacency, inactivity and disinterestedness. Through life position of I’m ok versus you’re ok such people develops positive self-perception which is a necessary ingredient in organizational effectiveness.
(vii) Increased Motivation
A motivated worker is a productive worker says Lawler (1971). Through complementary transaction of Adult to Adult assisted by positive life positions of I’m ok versus you’re ok, employees are likely to show intrinsic interest in their jobs and this bothers on high motivation.
(viii) Improved Performance
A depressed economy needs overwhelming performance to get out of the woods. Transactional Analysis can bring about improved performance because it focuses on the personality aspect of workers rather than on monetary and fiscal policies only.