ORGANIZATIONAL TRANSACTIONAL ANALYSIS AS A TOOL IN

THE HUMAN RESOURCES SECTOR TO ENHANCE

ORGANIZATIONAL PERFORMANCE

Maja Smilevska, DETRA Centar

maja@detra.edu.mk

Abstract

Organizational Transactional Analysis (OTA) offers systemic approach to growth and

change, both at personal level and at the level of groups and whole organizations.
As a theory in the field of social psychology, it promotes and improves
communication, enhances relations in the organization and organizational climate,
which contributes to increased productivity.
It is a powerful combination of deep philosophy and practices, which provides a
simple insight into how improved interpersonal relationships and effective
communication lead to improved performance and productivity of the organization. It
brings about increased awareness of how interpersonal relationships, organizational
processes and productivity are related.
All this makes OTA an especially useful tool for consultants, managers of human
resources at anyone working on improving processes and relations within the
organization. The present paper aims to identify the opportunities and benefits that
those who use and integrate this approach in their work with the people in the
organization have.

Keywords: Organizational transactional analysis, transactional analysis,

communication, human resources.

GOAL AND OBJECTIVES

This paper intends to put Organizational Transactional Analysis in the focus of

attention of the representatives of the business sector, top managers, managers of
human resources, representatives of the academic world. This will be accomplished
by giving a short introduction and explanation of the OTA specific approach, its
psychological and social aspects and models for diagnosis and intervention in
organizations. This paper also aims to affirm as a systemic approach with a holistic
view of the organization with a comprehensive understanding of the organizational
structure and dynamics and the factors that affect their efficient functioning, enabling
competitive market advantage.

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METHODOLOGY

For the purposes of the present paper, data from already conducted research,
analysis models, case studies and qualitative analyzes of the answers obtained from
in-depth interviews with practitioners, who have spent hours of professional training
in OTA, were used. Unfortunately, in Macedonia there aren’t people who have
professional training in OTA and whose work I could l use as source of information
regarding the application of OTA in Macedonian companies. Moreover, I hope that
this paper will arouse interest and create opportunities for future research on the
effects of using OTA in the Macedonian organizations.

INTRODUCTION

Although the official definition of the International Association of Transactional

analysis (TA) says that transactional analysis is a "theory of personality and
systematic psychotherapy for personal growth and personal change" TA has
methods and concepts that are useful and are used in three other fields: educational,
counseling and organizational. Today, the Organizational transactional analysis is not
only application of TA theory and practice in organizational context, but as in the
book “Working together”:

Whilst this might seem to be playing with language, there is important

distinction here. “TA in organizations” implies that there is a single body of
knowledge that you carry with you whether it be into therapy room, a school or
an organization. Organizational TA more accurately conveys the message that
there are specialist branches of TA – of which organizational work represents
one. (Mountain, Davidson, 2011:3-4)

The structure and dynamics of organizations and groups is the first piece of work in
which the author of this theory, Eric Berne roughly lays the foundations and
possibilities of application of TA concepts in working with groups and organizations.
Since then, through practical application of working with large groups and
organizations, his idea has been further evaluated, developed, modernized in
compliance with the current needs and the reality in which modern organizations
operate and function.

Today, OTA practitioners have amassed enough experience and case studies to be
able to freely talk about the existence of positive, supportive, expert
recommendations for the effects of OTA application as an approach to work with
organizations. However, at the same time, apart from these expert experiences, what

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 Psychotherapy  

Counseling  

Educational  

Organizational  

General  

Sum  
lacks is the scientific research aspect of OTA. The
one thing that lacks as to be understood as a
scientific approach is the deficiency of a significant  1963   1   1  
1964          
number of scientific research and evidence to            
1965  
support the usefulness of this theory and the 1966              
1967              
methods for work with organizations.
1968             1     1  
1969     1         1  
It the International Journal for research in the field of 1970                     1   1  
1971   1   3   4  
TA (Thomas Ohlsson, 2010), where the intention 1972   1     1     1       1   4  
was to identified the existing database of conducted 1973   6   3   4       4   17  
1974   1   1   7       3   12  
research in the field of TA, from 1963 to 2010, a
1975   9       13   1   7   30  
total of 326 studies have been identified (see Table 1976   3   2   13   2   6   26  
1, The Big List - TA research studies per application 1977   9   1   11       10   31  
1978   4   2   9   3   7   25  
field and year). Only 15 of the total number of 1979   3   1   6       2   12  
researches are in the field of Organizational TA. 1980   2       4   1   2   9  
1981   6   1   6   2   5   20  
What’s more, 14 of them were conducted in the 1982   7   1   3       2   13  
period 1975-1986 and one in 1991. According to the 1983   3   1   2       2   8  
1984   2       1   2   5   10  
foregoing information, no research in the field of
1985   3       1   1   1   6  
OTA was conducted in the period 1991 - 2010. 1986   2       1   2   3   8  
1987   2   1   1   4  
It is evident that there are a small number of studies 1988   3     1     4  
1989   2     1       2   5  
in the field of counseling and organizational TA. 1990   3     1   1       4   9  
These data may seem a bit surprising at firs. The 1991   3   1   4  
1992         0  
author of the study, Thomas Ohlsson explains the 1993             0  
lack of interest in research in OTA with the trend of 1994     1       3       4  
1995   2     1       3   6  
experts to be slightly more focused to the active, 1996       1   1  
practical use of methods rather than their scientific 1997     3       3     6  
1998   2         1   3  
proving and research. "… For organizations it is
1999   2       1     4   7  
possible that they generally have higher incentives 2000   1               3   4  
to actually use TA than to study its methods 2001   3   1   4  
2002   2         5   7  
scientifically.." (Ohlsson, 2010:6). 2003   1         1  
2004           8   8  
2005           1   1  
Another thing you may notice regarding these data 2006     1       1     2  
is the fact that the period of greatest interest and 2007   2         2  
2008   2           2  
research in the field of OTA generally coincides with
2009       1       1  
the period when interest in TA in all areas is the 2010     1                 1   2  
greatest. Sum   97   15   100   15   99   326  

 Table  1.    The  Big  

  List  -­‐  T   A  research  
   
studies    
per  
application  field  and  year.  

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Record interest in TA was observed after publication and popularization of the
bestseller books Games People Play (E.Berne 1964/1967), I'm OK, You are OK
(E.Harris 1967/1973), Born to Win (James & Jongerward, 1971/1975).

Rosa R Krausz in her article "Transactional Analysis and the Transformation of

Organizations" (Krausz, R.R. 1996) gives a brief historical overview of organizational
change and practices developments in this period. It is the period when the
organizations begin to apply humanistic theories in managing the organizations.

Many managerial effectivness models have been influenced by humanistic

theories that emphasize the need to transform autocratic managers by using
new managerial tools such as motivation, communication, problem solving,
leadership, team building and human relations. (Krausz 1996, p. 53).

According to Rosa R. Krausz in that period, TA had weak or even negative impact
with its image among the managers in the business sector, and it failed to present
truly its real advantages in working with organizations. Moreover, the reasons for that
laid in the insufficient practical experience of the TA trainers, experts and the lack of
knowledge about the functioning of organizations. (Krausz 1996, p. 54)

In addition to this, in the same period Thomas J. von der Emse and Herbert C. Brown
came to an interesting finding. Namely, they started from the assumption that the
presence of TA in professional journals from which professionals and top managers
get informed is insufficient, meager, scanty and without the potential to develop
serious substantive interest. In their research in the management literature (Von der
Embse, JT and Brown, CH, 1980), they reviewed the presence of articles covering
TA as a theme in such professional managerial literature. Going through all journals
listed under the index of business magazines and journals in social sciences from
1974 to 1977, they registered only 30 articles in managerial literature. Here's how
they evaluated the research results:

It is clear to us that the current management literature offers a largely

superficial exposure to transactional analysis. Even in those instances where
specific concepts are discerned, the level of depth is insufficient for the reader
to effectively use the information. Thus, while the reader might find the
material interesting, he/she might also develop the image of TA as a nice idea
with little substance. " (Von der Embse, JT and Brown, CH, 1980, p. 25-26)

The basic principles on which the theory of TA is founded, presented in the popular
literature were interesting and easily acceptable. But it seems that it also contributed

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to strengthening the notion that TA is a psychological theory useful for self-
assistance, for individual, personal growth and development, which in some way at
that time limits the realizing the benefits of its application in complex organizational
systems. According to the findings of the research conducted by Thomas J. von der
Emse and Herbert C. Brown in that period of greatest popularization of TA, the
opportunity was missed to indicate its systematic approach and its applicability to
complex systems and organizations. Among the managers, typically remains known
through its basic popular terms: ego states, transactions, Parent, Adult, Child, I am
OK - You're OK. Or, as they stated: “It is also a fact that TA has enjoyed nearly a
decade of public popularity (based on Harris’ first publication date of 1967), but has
had a little success in reaching the top executive chambers of the largest and most
influential U.S. corporations, such as Genral Motors, U.S. Steel, Ford and Exxon."
(Von der Embse, JT and Brown, CH, 1980, p. 25-26)

FROM TA TO OTA

Berne was a psychiatrist, he was into clinical practice and it is natural that he put the
emphasis on the application of TA in the clinical area. However, it is of great
importance that he noticed the importance and the possibilities for application of his
theory with greater groups and systems. Although unfinished and rough, Berne’s idea
for application of TA in organizations brings a strong potential and provides direction
for development of OTA and its practical application in real organizations.

In Structure and dynamics of organizations and groups (1963), realizing the

organizational structure as essential to achieving organizational objectives, Berne
describes the three basic organizational structures whose specifics give the
organization identity and determine its effectiveness and activity. (Elliot M Fox, 1975)

Figure 2. Structural diagrams

  5  
In this simple model, by setting the outer boundary between the rest of the
environment, a group is formed. Having done this social segregation, the group
within the boundaries gets its distinctive social life, social dynamics in which the
individual psychological and social variables in the group dynamically interact. This is
very important because it involves the social aspect of the TA theory, and from
individual, personal intra-psychological level we go to review of the relationships
between the group members, in the organizations and systems. On the other hand,
in the analysis of the relations, processes and dynamics in the social systems, in
addition to the prescribed, formal institutional structure expressed through rules,
norms, control, TA adds its strong side, that is the human aspect, the psychological
aspect, the motives and the needs that affect relations among the people who are
members of that system. In this way TA reaches its social framework, and to the
social systems, it upgrades consistent psychological framework for examining the
relations among people and how they affect the functioning of the system as a whole.

“Only by considering both formal and informal levels of relationship is it

possible to look behind organizational systems to obtain a realistic picture of
the dynamics of group processes (Berne, 1964/1967) and their effectiveness
as well as to determine how much of what happens escapes consciousness.
(Ashforth & Fried, 1988; Kets de Vries, 1988; Krausz, 1993; Schein, 1983)"
(Krausz, 1996, p.53)

Defining the structure of the organization by external and internal borders, Berne’s
model enables a description and analysis of simple and complex systems; whole
systems, parts of the system, separate sectors; by reviewing the situation and the
permeability of borders outwards or inwards, it gives an overview of communications,
including: communication with the environment, communication among sectors,
relations between subordinates and managers etc. This first model of Berne’s,
although seeming rough and simple, is still up to date today in the presentation of the
situation and reality in complex organizations.

Furthermore, based on this model, Elliot Fox (1975) prepared a diagram that
connects the main ideas and relations among the elements Berne’s model. (See
Figure 3)

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 Figure 3: Fox’s diagram

This complex diagram pictures the structure and dynamics in organizational systems
through OTA concepts. It also represents an important map which helps understand
the scope and the possibilities OTA offers for diagnosis and interventions in
organizations. This model shows that OTA has a comprehensive view at the
functioning of organizations, across all elements at all organizational levels, taking
into account also the external ones which affect the functioning of the system.

The left side of the diagram is the part that Bernie called group’s authority and which
consists of leadership and canon. These two parts inter-complement and upgrade,
the leader usually behaves in compliance with the canon of the organization, but at
the same time, especially the major leader, passes or modifies the canon. What also
affects the drafting of the canon is the environment in which the organization
operates, i.e. the laws, culture, and social conditions in the society. The canon, via
the shared organizational culture, is also indirectly affected by all employees.

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The right side of the diagram is the group of employees, the people who by their work
are direct or indirect creators of the product or the service of the organization. This
section has two aspects: the activity i.e. the assignment related to the organizational
goals and the processes related to the group dynamics between the members which
arises from the private structure. Through the activity, the group produces a product
or service, while through the processes, it ensures the survival of the group. In order
to survive, the group must withstand the pressures that come from the mutual
relations, the different perceptions of the group, the relations with superiors, the
apparatus, the pressures from outside, the environment.

This model outlines how the activities and the employees’ and the organization’s
performance interact and depend on the processes that occur in the organization.
The private structure is a section on which group cohesion and the dynamics
between the employees and the leader depend. The generated energy from the
relations in the private structure can be used by the group in productive activities or
in unproductive structured time. If the group spends most of his time and resources
on adjusting the group imago, games, or on maintenance of cohesion, then it is less
productive in meeting the needs of external customers. At the same time, the group
is the most productive in the phase of secondary imago, where the sense of
belonging and cohesion decrease the loss of energy on internal tear and wear and
adjustments. With such condition of the group, the organization responds to the
stimuli from the environment most effectively and most efficiently.

The processes in the group and its survival are also affected by the changes in the
environment, apparatus, canon, and any change in these sections causes a change
in the group processes. The better these groups are managed, the easier the
organization reaches its optimal condition, which implies ability to quickly adapt and
meet the needs of the customers and the market in a quality manner. The advantage
of OTA over other approaches is that it understands the character of these processes
which often move along below the level of awareness Through its practices, it
enables there awakening, recognition and easier management.

Same as the goal of individual work with TA is achieving awareness, so, in working
with groups and organizations, the goal is that the group and the system become
aware of the capacities, the processes in which they are involved; to understand the
relations, the personal and group positions in regard to the leader in terms of
organizational goals, in terms of market and competition. This awareness, knowledge
and relations enable that the decisions and activities are rational and managed,
taking into account the realistic capacities and relations the system has at disposal.

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OTA enables development of relations in which the employees have balanced use of
all three ego states of Parent, Adult and Child, which is important because integrated
employees working in compliance with the organizational goals are the most
productive part of employees.

CONCLUSION

Modern organizations are under everyday pressure of change in order to conquer or

maintain their market position. All stimuli, to which organizations must quickly
respond, require frequent changes that may fail unless the psychosocial factors that
influence and intervene in any process of change through which the organization
goes, are understood. These processes should be managed and OTA provides a
comprehensive framework, as a support system for acceptance of those changes by
including the employees in the relations and activities. If this segment of the
organization’s life is not run, it is likely that the desired changes will be short-life,
expensive and that more time and resources will be spent. In this way, OTA impacts
the performance by facilitating the influence of these processes and as a support
system helps the organization remain competitive in the dynamic contemporary
environment.

In the following text, I present a summary of important conclusions from interviews

conducted with professionally trained persons in the field of OTA working at
managerial position, as human resources managers, human resources specialists,
consultants in the field of human resources and communications:

• OTA has a comprehensive system with the capacity to respond to the

organization as a whole

• OTA has systemic - constructive approach in working with organizations

• In time and with experience, new models and approaches for dealing with
modern organizations have been developed

• OTA may intervene as a facilitator on topics related to improving performance

• By application of the methods of OTA, there are always benefits both for the
people and for the organization

• Most frequently used concepts in working with organizations: life positions,

ego states, games, "strokes", drivers, transactions, BOT, Fox’s diagram.

• The biggest number of TA educated managers use TA as a personal tool to

support working with people

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 • The concepts of OTA are used combined with NLP, Tukman model, Freud's
mechanisms of defense, the classical concepts of motivation

• Group’s "TA literacy" is not required for usage of TA concepts in group work

• OTA enables description of mechanisms that normally take place

unconsciously in the organization

• Managers still most easily accept and apply TA through the form of "popular"
trainings and team – buildings

• Practitioners using TA concepts which have not been professionally trained for
OTA and have no experience in working with organizations and systems,
create a wrong picture about what organizational transactional analysis is.

BIBLIOGRAPHY

Bolle-Reddat, B. (2010) Exploring the FOX diagram in 3D , ITAA Conference,

Montreal, August, 12th 2010. Available from:http://www.quintessence-
coaching.com/pdf/FOX_3D_US.pdf

Fox.EM (1975). Eric Berne's Theory of Organizations, Transactional Analysis

Journal, 5:4, pp 345-353, San Francisco, USA: ITAA

Krausz, RR (1996). Transactiional Analysis and the Transformation of Organizations,

Transactional Analysis Journal, 26:1, pp 52-57

Kreyenberg, J. (2005). Transactional Analysis in Organizatons as a Systematic

Constructivist Approach, Transactional Analysis Journal, 35:4, pp 300- 310

Moreau, J. (2005). Using Transactional Analysis to Increase Organizational

Performance, Transactional Analysis Journal, 35:4, pp 355-364

Mountain, A. and Davidson, C. (2011). Working Together, Surrey: Gower Publishing

Limited

Ohlsson, T. (2010). Scientific evidence base for transactional analysis in the year
2010, International Journal of Transactional Analysis Research, 1:1, pp 4-11

Von der Embse, JT and Brown, CH (1980). TA in the Management Literature ,

Transactional Analysis Journal, 10:1, pp 25-27

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