The passage discusses two cognitive biases: the halo effect and stereotyping, as well as the

concept of transactional analysis in understanding interpersonal behavior at work.

The halo effect is a cognitive bias where people let their judgment about one trait or aspect of a
person, brand, place, or product influence their overall judgment. This bias can be positive or
negative and can impact how individuals perceive and make judgments about others. In the
context of management and supervision, the halo effect can lead to limited or biased judgments
based on a single trait, such as good or bad timekeeping, becoming the sole criterion for
evaluating overall performance. The danger of the halo effect is that it can make individuals
perceptually blind, causing them to ignore subsequent observations or information that
contradicts their initial perception.
Stereotyping is another cognitive bias discussed, which involves making quick, simplified
judgments about a group of people based on perceived similarities and general categorizations.
Stereotypes can be unfair and inaccurate because they overlook the individual differences
within a group. Typecasting is related to stereotyping and occurs when individuals are expected
to act in certain ways based on their past experiences or perceived characteristics, such as
nationality, gender, age, appearance, or speech.
The passage also briefly mentions sex stereotyping, where certain jobs are still perceived as
suitable primarily for one gender. This type of stereotyping can limit career choices and reinforce
gender-based assumptions about job suitability.
Transactional analysis, rooted in the ideas of Sigmund Freud, is introduced as a means of
understanding interpersonal behavior at work. It categorizes personality into three ego states:
parent, adult, and child. The parent state relates to feelings about right and wrong, authority, and
caregiving. The adult state represents rational and objective thinking, while the child state is
associated with emotional responses, impulsiveness, and behaviors developed through
childhood experiences.
In summary, the passage explores cognitive biases such as the halo effect and stereotyping, as
well as the concept of transactional analysis. It emphasizes the importance of recognizing and
managing these biases in work settings to promote fair judgments and effective interpersonal
interactions.