MM ZC441: Human

Resource
Management
BITS Pilani
Hyderabad Campus
Lecture-15 Date 26 /3/17 Swati Alok

 BITS Pilani
Hyderabad Campus
Chapters to be Covered
Chapter- 17: Empowering Employees

Chapter- 21: Managing Separations

 BITS Pilani
Hyderabad Campus
Chapter- 17: Empowering Employees


Employee Empowerment
In a real sense, participative management exists when
employees are involved in decision making process, not
in mere job related activities, but at all levels of
management.
Participative Management can also be termed as
Industrial Democracy, Co-determination,
Employee Involvement as well as Participative
Decision Making.
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The Concept
Participative process that uses the input of
employees to increase their commitment to the
organizations success. Logic is that if we involve
workers in decisions that affect them and
increase their autonomy and control over their
work lives, employees will become more
motivated , more committed to the organizations
, more productive and more satisfied with their
jobs.
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Importance
Depends on
Organization
its nature
Functions
Processes
Associating employees at every stage of decision-making is not
possible still regular exchange of information, ideas, consultations,
thoughts, decisions and negotiations between employer and the
employees definitely is a boon to the organization.
E.g. Toyota, HSBC, British Airways, British Gas have achieved
considerable profits and value creation by implementing the most
amazing ideas of their employees.
Their success witnesses the importance of workers participation in
the process of decision making.

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Scope of Participative
Management
Involvement in managerial decision-making may extend
to social, economic and personnel decision making
But there is a difference of opinion about the extent to
which employees can participate in managerial decision-
making process.
Should they be equal partners and make joint decisions
or should workers be given opportunities through their
seniors to come up with the ideas.
The first school of thoughts favors the actual participation
of workers.
The second school of thoughts suggests the consultation
of workers in managerial decision making.
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Groups of Managerial
Decisions
How these three groups of managerial decision-making can affect any industrial
establishment:
Social Decision-Making: It refers to employee involvement in decision making
regarding hours of work, rules and regulations at workplace, welfare measures,
workers safety, employee welfare, health and sanitation. Employees have a say
in decisions in these areas. They may take an advantage of their liberty and
sometimes, can dominate the management. Here the concept of bounded or
restricted participation can work well.
Economic/Financial Decision-Making: It includes involvement in aspects such as
the methods of manufacturing, cost cutting, automation, shut-down, mergers and
acquisition and lay-offs. Inviting ideas from employees on various issues like
how to cut down the operating cost can work wonders.
Personnel Decision-Making: refers to recruitment and selection, work distribution,
promotions, demotions and transfers, grievance handling, settlements, voluntary
retirement schemes and so on. Participation of employees in these processes
can safeguard their interests and motivate them to work hard for the betterment
of self as well as the organization.
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Scale of Participation
Employee decide
unilaterally
Management joins with
Degree to which management
employees in making
preroga?ve is preserved
decisions
Management consults
employees before making
nal decision
Management
Degree to which employee are
communicates decision to
involved
employees
Management decides
unilaterally
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Methods/Ways of Participation
Employees can participate in decision-making process of any
organization by:
1) Participation at the Board Level
2) Participation through Ownership
3) Complete Control
4) Staff or work councils
5) Joint Councils and Committees
6) Participation through Collective Bargaining
7) Participation through Job Enrichment, Enlargement
8) Participation through Suggestion Schemes
9) Participation through Quality Circles
10) Empowered Teams
11) TQM
12) Financial Participation
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Methods/Ways of Participation
1. Participation at the Board Level: Representation of employees at the board level is known
as industrial democracy. This can play an important role in protecting the interests of employees.
The representative can put all the problems and issues of the employees in front of management
and guide the board members to invest in employee benefit schemes.
In 1970, the Government of India introduced another scheme of WPM in banking industry. The
Nationalised Bank appointed one director from among the workers and this scheme extended to
selected public sector undertaking on voluntary basis
2. Participation through Ownership: making them shareholders of the company. Inducing them
to buy equity shares, advancing loans, giving financial assistance to enable them to buy equity
shares are some of the ways to keep them involved in decision-making.
3. Participation through Staff or Work Councils: representation is entirely of employees. One
council or hierarchy of work councils, from shop-floor to the Board level. Functions range from
eliciting information on managements intentions to a full share in decision-making.
4. Participation through Joint Councils and Committees: representatives of employers and
employees. Functions may range from decision-making to merely advising the management as
consultative bodies.
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Participation at the Board
Level:
More then 1000 employees
51% of workers vote in secret ballot in favor of
participation
Workers director selected through election
Not successful in India (financial versus personal
matters)
Example: HMT, Hindustan antibiotics, nationalized
banks, Tatas (private)
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Participation through
Ownership:
Sachar committee in India recommended 10-15%
workers shares
Loan upto 1 year salary
Example: Otto India . Kolkata has 61% of employees
shares
Participation through Complete Control: This is called
the system of self management where workers union
acts as management. Through elected boards, they
acquire full control of the management. In this style,
workers directly deal with all aspects of management or
industrial issues through their representatives.
(Yugoslavia)
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Staff or work councils ( representation
entirely of employees)
Any industry having more then 100 workers
Decision based on consensus, not by voting
Councils can be at unit level, plant level or at shop level
Mainly dealing with improving of working conditions.
At unit councils for day to day activities
At plant council , decisions based on operational areas,
economical areas, personal matters, environment
measure. Plant council need to be established by central
public sector undertakings
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Joint Management Councils
The objectives of Joint Management Councils are as follows:
to increase the association of employers and employee
thereby promoting cordial industrial relations;
criteria for selection of enterprises where the JMCs could be
introduced. They are:
1. The unit must have 500 or more employees;
2. It should have a fair record of industrial relations;
3. It should have a well organized trade union;
4. The management and the workers should agree to
establish JMC
5. Trade unions should be affiliated to one of the Central
federations,
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Workers committees
These are consultative bodies. Their functions include discussion of
condition of work like lighting, ventilation, temperature, sanitation
etc., and amenities like water supply for drinking purposes, provision
of canteens, medical services, safe working conditions,
administration of welfare funds, education and recreational activities,
and encouragement of thrift and savings.
It shall be the duty of the works committee to promote measures for
securing and preserving amity and good relation between the
employers and workmen.
More then 100 workers
Decisions not binding to management
These committees functioned actively in some organizations like
Tata Iron and Steel Company, Indian Aluminium Works at Belur, and
Hindustan Lever. In all these, the management has evolved joint
committees independently of the statutory requirements.
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Participation through
Collective Bargaining
This refers to the participation of workers through
collective agreements and by deciding and following
certain rules and regulations. This is considered as an
ideal way to ensure employee participation in managerial
processes. It should be well controlled otherwise each
party tries to take an advantage of the other.
Formulation and termination of contract, condition of
service
Agreement is binding to both the parties
Lockout, strikes tactics , leads to mistrust
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 Methods/Ways of Participation
. Participation through Job Enlargement and Job Enrichment: Expanding the job content
and adding additional motivators and rewards to the existing job profile is a fine way to keep
workers involved in managerial decision-making. Job enrichment offers freedom to employees
to exploit their wisdom and use their judgment while handling day-to-day business problems.
. Participation through Suggestion Schemes: Encouraging your employees to come up
with unique ideas can work wonders especially on matters such as cost cutting, waste
management, safety measures, reward system, etc. Developing a full-fledged procedure can
add value to the organizational functions and create a healthy environment and work culture.
The company has been following suggestion schemes and employee involvement procedures for over
a decade now. The management receives almost 2,000,000 suggestions and ideas every year
and around 95 percent of these are implemented by the company. Who is not aware of
Toyotas success rate? Around five thousand improvements per year have made Toyota one of
the fastest growing organizations globally. The need is to develop and implement a
comprehensive company policy and everything works well.
Satyam is another great example. It has been implementing company-wide suggestion scheme, The
Idea Junction, since 2001. A real-time web-based portal is present in Intranet that can be
accessed by all its employees all across the globe to support the entire life cycle of an idea
right from its generation till its implementation. The main idea behind adopting this
management style was to create values and bring sense of belongingness in the employees
through ideas, suggestions and complaints. The whole procedure is backed by a strong and
comprehensive reward policy that encourages employees to perform better each time
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Job Enrichment Possible
Actions
8-0
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 Methods/Ways of Participation
. Participation through Quality Circles: A quality circle is a
group of five to ten people who are experts in a particular work
area. They meet regularly to identify, analyze and solve the
problems arising in their area of operation. Anyone, from the
organization, who is an expert of that particular field, can become
its member. It is an ideal way to identify the problem areas and
work upon them to improve working conditions of the organization.
. Empowered Teams: empowering refers to passing on authority
and responsibility. Empowerment occurs when power goes to
employees who then experience a sense of ownership and control
over their jobs. Its facilitated by factors such as organisational
values/ leadership actions, job structures and reward systems.
. Financial Participation: gain sharing, profit sharing, ESOP
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Quality circle
defines QCs as "a way of capturing the creative and
innovative power that lies within the work force".
Quality Circles are small groups of people doing similar work who, together
with their supervisors volunteer to meet for an hour a week to study and
solve work related problems which affect them. Circle leaders and
members are trained in simple problem solving techniques which identify
causes and develop solutions. At an appropriate time, presentations are
made by the quality circles to the management who decide whether to
accept, modify or decline the proposals".
QC is a form of participative management.
QC is a human resource development technique.
QC is a problem solving technique.
Definite life cycle (1-3 years)
Voluntary in nature, savings to cost ratio is high, promotion capabilities of
members (bhel, M&M, 71 QC in jeep division)
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Key differences between
Traditional and Empowered
teams
Element Tradi0onal Organisa0ons Self-directed Teams
Organisa0onal structure Layered/individual Flat/team
Job design Narrow, single-task Whole process/mul0ple task
Management role Direct/control Coach/facilitate
Leadership Top-down Shared with teams
Informa0on ow Controlled/limited Open/shared
Rewards Individual/seniority Team-based/skill-based
Managers plan, control,
Job process Teams plan, control, improve
improve
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TQM
Total Quality Management is "A process designed to focus on customer
expectations, preventing problems, building commitment to quality in
the workforce and promoting op en decision-making
Total quality management is based on the following four powerful
elements:
Focus on customer expectations, (meet customer need on time, first
time and 100 percent of time)
Employees' involvement,
Mastery of processes,(error free work, manage by prevention , not by
correction)
Team work.
.
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Methods of Participation
Employee decisions are
accepted
High High
Board level
Par?cipa?on
Ownership
Par?cipa?on
Management and employees decide Collec?ve
Bargaining
Works and Joint
Councils
Level in Degree
organisa?on Empowered Teams empower
Management communicate decisions Job Enlargement and
Enrichment
TQM
QCS
Management decides itself
Financial
Par?cipa?on
Sugges?on
Schemes
Low Form of involvement Many and Low
Few Employee skills requirement complex
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BHEL - example
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Participative
Management(Important)
A process of involving those who are inuenced by decisions, in making
decisions.
Where everyone makes certain that everyone gets their needs met.
Results in improved performance.
Improved performance is the outcome of three variables:
- removal of condiDons of powerlessness,
- enhancement of self- ecacy, and
- employee percepDon of empowerment.
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Participation and Performance
Remove condi+ons of
Powerlessness
Changes
Leadership
Reward System Percep+on of Empowerment
Job Competence
High value Performance
Job meaning
Enhance Job-related Self-
Increased use of talent
ecacy
Job mastery
Role models
Reinforcement
Source: Adapted from Organiza+onal Behaviour Human Behaviour at Work, by John N. Nwestorm and Keith Davis, New York, McGraw-Hill, p.247
Support
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Benefits of Participative
Management
1. Increase Productivity (Effectiveness and efficiency)
2. Better Decisions
3. Employee Morale
4. Improved job satisfaction
5. Greater Commitment
6. Faster Adaptation to Change
7. Greater trust
8. Better Communication
9. Better Teamwork
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 Conditions necessary for effective
participation
Congenial work environment
Well defined roles
Faith in the efficacy of the scheme
Wide publicity
Free flow of information throughout the
enterprise
Should be based on mutual trust
Decisions taken by different participatory forums
must be sincerely carried out in the stipulated
time
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Reasons for failure of WPM
Ideological differences between the employer and the
employees regarding the degree of participation.
Failure to imbibe the spirit of participation by the parties
Multiplicity of participative forums
Lack of strong trade unionism
Unhappy IR
Illiteracy of workers
Non co-operative attitude of the working class
Delays in the implementation of the decisions of the
participative bodies
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Key Terms
Empowered teams
Participative management
Job enlargement
Quality circle
Job enrichment
Self-directed teams
Joint councils
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 BITS Pilani
Hyderabad Campus
Chapters to be Covered
Chapter- 21: Managing Separations


Learning Objectives
After going through this chapter, you would be able to
understand
types of separations and how to manage them.
the nature, causes, and principles of transfers.
the nature, purposes and principles of promotion.
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Separations
Separations occur when an employee leaves the
organisation.
Reasons for separation
Voluntary: initiation is taken by employee
Involuntary: employer initiates
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Employee Separation- When
does it come?
An employee works for an employer and gets paid for
his work and nothing else. The relation of an
employer and employee has a beginning; they stay
together for a while and then they separate.
Beginning of the relation is called as recruitment
process or talent acquisition that passes through
selection phase and followed by induction.
Staying together in the relation comprises the
various phases such has performance management;
career management; professional growth;
development and etc.
And the final stage of the relation is the separation.
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Causes for Separation
Separa*ons
Voluntary Involuntary
Quits Re*rements Discharges Layos Retrenchment VRS Rightsizing
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Voluntary Work Separations
A work separation is voluntary if initiated by the employee.
That can happen several different ways:
Retirement - a special form of resignation with advance notice that
involves satisfying some kind of condition for leaving the
company with one form or another of continued benefits.
Quits An employee decides to quit when his or her level of
dissatisfaction with the present job is high or more attractive
alternate job is awaiting the individual. Reasons for
dissatisfaction may be:
Job itself
Job extrinsic factors: Supervision, company policy,
compensation, health, advancement opportunities etc.
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 Involuntary Work Separations
Reasons:
Lean period, unable to maintain existing labor
Correcting the hiring mismatch
Deviant behavior exhibited by employee
Methods:
. Layoff: Temporary separation of the employee at the
instance of the employer.
. Resignation: Termination of employment at the instance of
employee.
. Dismissal or discharge - same as discharge, but the
employer gives the employee the option of resigning as a face-
saving option.
. Retrenchment: because of replacement of labour by
machines or closure of a department due to continuing lack of
demand of products manufactured there.
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Layoff
Temporary separation
Definite period
Due to shortage of coal, or power or raw materials
Accumulation of stocks
Breakdown of machinery
Economic recession
Other any reasons
Compensation equal to half the normal wages
Based on merit or seniority
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Dismissal or discharge -
Termination of employment initiated by employer
Reasons:
Excessive absenteeism
Serious misconduct
False statement of qualification at time of employment
Theft of company property
Industrial capital punsihment
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Retrenchment:
because of replacement of labour by machines or
closure of a department due to continuing lack of
demand of products manufactured there.
Compensation equivalent to 15 days average pay for
every completed year of continues service.
Retrenchment differs from layoff: Layoff continues work
when recalled, retrenchment is sent home for good
Dismissal because of employee fault (1 or 2
max)whereas retrenchment is forced on employee
(several employees)
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Involuntary Work Separations
. Voluntary Retirement Scheme:
It is a technique used by companies to dispense off the
excess manpower and thus improve the
performance of the organisation.
It is also known as 'Golden Handshake' as it is the
golden route to retrenchment.
Managements prefer to pay hefty sums and reduce
staff strength than retaining surplus labor and
continuing to pay them idle wages.
Painless and time-saving
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VRS at SAIL
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VRS in NTC (National Textile
Corporation)
Number of Workers Re4red under VRS
State Total
1992-93 1993-94 1994-95
(up to April 1995)
Andhra Pradesh 735 260 62 1,057
Karnataka 558 347 166 1,071
MAHE 38 --- --- 38
Delhi 324 196 85 605
Punjab 189 44 3 236
Rajasthan 710 291 163 1,164
Gujarat 5,318 1,229 628 7,175
Maharashtra 6,551 3,077 1,328 10,901
Madhya Pradesh 3,396 740 137 4,281
Tamil Nadu 83 41 127 251
Pondicherry 60 --- 38 98
UNar Pradesh 4,021 1,292 590 5,903
West Bengal 2,013 165 321 2,499
Assam 47 --- 6 53
Bihar 335 6 39 380
Orissa --- --- 4 4
Total 24,378 7,641 3,647 35,716
Source: The Hindu, April 9, 1995
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Managing Separations
Functional:
Organizations become trimmer and leaner
Saving in wage and salary bill
New entrants hired to fill the vacant jobs bring new ideas and experience
Dysfunctional
Disrupts employee morale
Add to cost (rehiring, training, retirement etc.( eg: one technology company
calculated separation costs to average $ 200,000 per employee)
Merck- seperation costs are between 150 % to 250% of employee annual salary
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Performance-Replaceability Strategy Matrix
(manage turnover with less pain and more
pleasure)
REPLACEABILITY
Dicult Easy
High performers dicult to replace
High performers easy to replace
Highly dysfuncBonal turnover
High DysfuncBonal turnover
Retain/invest in employee
Retain/invest in employee
Develop backups
PERFORMANCE Average performers dicult to replace
Average performers easy to replace
DysfuncBonal turnover
Average DysfuncBonal turnover if replacement costs are high
Retain/provide performance incenBves
Retain/provide performance incenBves
Develop backups
Poor performers dicult to replace
Poor performers easy to replace
Short-term dysfuncBonal/Long-term funcBonal turnover
Low FuncBonal turnover
Improve performance or terminate
Improve performance or terminate
Develop backups
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Strategic Management of
Turnover & Retention
Copyright 2005 South-Western. All rights reserved.
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Exit interview
Why are you leaving?
What circumstances triggered your departure?
What did you like most/least about job?
What do you think of supervisor?
What would make this better place to work?
Example: coco-cola, dabur india
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Horizontal Movement of
Employees
Transfer refers to the shifting of employees form one job to
another within the same organization where salary,
responsibilities and category of the new job and the
previous job are almost same.
Transfer of an employee can be done in other department
of the same plant or office or to the same department
of plant or office located in other region/city.
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Reason / Objectives for
Transfer
Transfer can be done on the request of employee due to
personal reason like family problem orhealth problem.
Due to HR policy which states that one employee can work in
department or place for specific time period
Transfers are common in the organizations where the work load
varies timely.
If an employee is not able to do the work or job assigned
effectively he can be transferred to the other job where he can
use his skills properly according to his interest and abilities
Departmental vacancies can be filled with transfer of employees
from overstaffed department.
Employees can be transferred to the position or department with
the higher priority workload.
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Principles of Transfers
. The frequency of transfers and the minimum period between
transfers need to be decided upon and made known to all the
employees. E.g. Defence personnel and government
employees
. The authority which would handle transfers is to be decided
upon. The usual practice is that transfers in each department
are handled by the person in charge of that department. The
best course is to centralise the authority handling transfers, and
make the HR department responsible for them.
. The criteria for entertaining transfers need to be laid down
and strictly adhered to.
. The area of the organisation over which transfers can be
made need to be defined.
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 Principles (contd..)
1. The effect of the transfer on the pay and seniority of the
transferred employee may be clearly evaluated.
2. Transfers should be clearly defined as permanent or
temporary.
3. The performance of the employee needs to be assessed
before transferring him or her to a different job. Similarly, the job
itself must be properly described. Job description and employee
assessment enable the management to know whether the
individual fits the new job or whether he or she needs training
before taking up the new assignment.
4. The interests of the organisation are not be forgotten in
framing a policy of transfers.
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Upward Movement of
Employees
Promotion is defined as giving higher position to the employee, which
carries high status, more responsibilities. Promotion
means advancement of employee in terms of pay and status
also improvement in working conditions.

Promotions are used to fill the positions which are more important to fill
rather than the present position of employee.
It can be filled by external recruitment but employees having eligibility
and experience must be appointed for their motivation.
Also it will decrease labour turn over as external recruitment costs more.
Also increase in salary and status will increase job satisfaction.

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Principles of Promotion
New hires or internal promotions
Seniority (government undertaking, unionised establishment,
educational institutions)
Advantage: (easy to administer, labour union welcomes, loyalty is rewarded,
seniority and exp go hand in hand)
Disadvantage: (no relation with competence, young get frustrated)
or merit
Advantage(efficiency encouraged, productivity increases)
Disadvantage: scope of favouritism, loyalty not rewarded, opposition from
union leaders)
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Advantages of promotion:
Present employees if promoted can handle the
process products and problems easily as they are
already connected to organization but new
incumbent may take some to adjust him or may not
adjust himself at all.
The cost of training the insiders for the higher
position is nearly nil hence no extra training cost.
Employees will give their best as they know that
reward of giving good performance is sure.
High morale of the employees is achieved.
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Summary
Separations some of them voluntary and others forced
- need careful handling. While voluntary separations
occur because of retirements and quits, forced exits
include layoffs, discharges, retrenchments, and VRS.
Performance Replaceability strategy matrix helps
manage separators effectively.
Transfers are common in organisations. Though
common, transfers need to be based on set principles
and for genuine reasons.
Promotions too are common and like transfers they need
to be managed with care and caution
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Communication
NOT the part of exam communication chapter (its extra)
As I have mentioned in course handout
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 BITS Pilani
Hyderabad Campus
Chapter- 18: Communicating with
Employees


What is Communication?
Exchange of information and understanding among people.
It involves:
transmission and reception of messages,
People
process.
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Organizational
communication
Communication flows
Communication networks
Informal communication
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Factors influencing
Communication
Formal channel of communication (free flow of
information)
Authority structures (formal)
Job specifications (same jargon, personal styles)
Information ownership : means that individuals posses
unique information about the jobs. Individual donot like to
share such information with others.
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Communication Flows in
Organisations
Chairman External
Upward
Managing Director
Downward
Marke7ng Director Director Opera7ons Director Research
Diagonal Lateral
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Direction of Communication
LATERAL

11-0
Communication Channels
Channel
The medium selected by the sender through which the message travels to the
receiver
Types of Channels
Formal Channels
Are established by the organization and transmit
messages that are related to the professional
activities of members
Informal Channels
Used to transmit personal or social messages in
the organization. These informal channels are
spontaneous and emerge as a response to
individual choices
11-0
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Communication Channel
Communication Networks A A B
A
B C
D E B
D
C
C
E
Wheel Network
D Y- Network
Chain Network
A A
E B E B
D C D C
Circle Network All Channel Network
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Three Common Formal Small-
Group Networks
Chain:
Rigidly follows the chain of command
Wheel:
Relies on a central figure to act as the conduit for all
communication
Team with a strong leader
All Channel:
All group members communicate actively with each other
Self-managed teams
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Small Group Network
Effectiveness
Small group effectiveness depends on the desired
outcome variable
TYPES OF NETWORKS
Criteria Chain Wheel All Channel
Speed Moderate Fast Fast
Accuracy High High Moderate
Emergence of a leader Moderate High None
Member saFsfacFon Moderate Low High
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 Informal Communication
Three Main Grapevine Characteristics
Informal, not controlled by management
Perceived by most employees as being more believable and
reliable than formal communications
Largely used to serve the self-interests of those who use it
Results from:
Desire for information about important situations
Ambiguous conditions
Conditions that cause anxiety
Insightful to managers
Serves employees social needs
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Types of Grapevine system
A A A
B
B B C D
C
C G
E F D
F
D E
G H I
Chain System Gossip System
Cluster System
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 Reducing
Rumors
1. Announce timetables for making important decisions
2. Explain decisions and behaviors that may appear inconsistent or
secretive
3. Emphasize the downside, as well as the upside, of current
decisions and future plans
4. Openly discuss worst-case possibilitiesthey are almost never
as anxiety-provoking as the unspoken fantasy
5. Identify rumor mongers and discipline them
6. Get the root of the rumor and confront it with facts
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Choice of Communication
Channel
The model of media richness helps explain an individuals
choice of communication channel
Channels vary in their capacity to convey information
A rich channel is one that can:
Handle multiple cues simultaneously
Facilitate rapid feedback
Be very personal
High-performing managers tend to be very media-sensitive

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Media Richness Model
Low channel richness High channel richness

Source: Based on R.H. Lengel and D.L. Da3, The Selec:on of Communica:on Media as an Execu:ve Skill, Academy of Management Execu5ve, August 1988, pp. 22532;
and R.L. Da3 and R.H. Lengel, Organiza:onal Informa:on Requirements, Media Richness, and Structural Design, Managerial Science, May 1996, pp. 55472. Reproduced
from R.L. Da3 and R.A. Noe, Organiza5onal Behavior (Fort Worth, TX: Harcourt, 2001), p. 311.

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 Transactional Analysis (T.A.)
A psychoanalytic theory of psychology
developed by psychiatrist Eric Berne
in the late 1950s
Very useful for
Analysing interactions with others
Improving communication with
others
 Analysis of ego states
3 Ego States:
Parent
Adult
Child
 (T.A.) The Parent
Unconsciously acting
in similar ways to our
parents
Can be:
Nurturing:
permission, security,
guidance
Critical: controlling
 (T.A.) The Adult
Living in the present and
responding to situations
through rational thought.
 (T.A.) The Child
Unconsciously reverting to childhood
behaviours
Primitive
Impulsive
Demanding
Creative
The Three Ego States
Parent- Do as I do
Child- What shall I do?
Adult- I will be frank with you
 Look at the sentences below and match the
ego state to the sentence.
1. Its not my fault my
drink got spilt on your
new carpet
2. I wonder what might CHILD
have caused that
accident ADUL
3. For goodness sake, T
clean up that mess.
4. Shall we clean up the
mess together with a
wet cloth?
5. I refuse to get involved
in this incident. PAREN
T
 Analysis of Transactional
Three Basic Concepts: Parent, Adult and
Child
Transactions: Among P, A and C
P < -- > P
A < -- > A
C < -- > C
There are 9 possible transactions
 We Can be:
Child
Adult
Parent in our Transactions.
We shift from one ego state to another in
transactions.
 Transactions
Berne said that when people are in their different ego
states and they interact with other people, 3 main types
of transaction (or interaction) can happen.
To make it easy to analyse what is happening, Berne
developed a little diagram like this, to represent a person
with their three ego states Parent, Adult and Child.
P P
Interacts with Person B on
A right A
C C
Types of Transaction
Complementary Transactions
This is a
complementar
P P y transaction
because the
employee
A A accepts the child
ego state
assigned to him
C C by the manager
and responds in
child ego state.
MANAGER EMPLOYEE
Youre three hours Im really sorry, I
late, I want an slept through the
explanation. alarm, it wont
happen again, I
promise.
 Types of Transactions
Complementary Transactions: Appropriate
and Expected Transactions indicating
healthy human relationships.
Communication takes place when
transactions are complementary. A
stimulus invites a response; this response
becomes a stimulus inviting further
response and so on.
Crossed Transaction
This is a crossed
transaction because
P P although the manager,
parent ego state,
attempted to address
A A the employee as a
child, the employee
refuses this ego state
C C and responds in adult
ego state to the
managers ego state.
MANAGER EMPLOYEE
A crossed transaction
Youre three Oh, didnt you is any transaction
hours late, I get held up by where the person
want an that crash on being spoken to
explanation. the motorway refuses the ego state
as well? they are assigned by
the first speaker.
(T.A.) Transactions
Crossed:
What time is it?
Forget about what time it is,
get that report finished.
The 2 Rules of Communication in TA
1st Rule of Communication
So long as transactions remain
complementary, communication can
continue indefinitely.

 2nd Rule of Communication

When a transaction is crossed, a break in
communication results, and one or both
individuals will need to shift ego states in
order for the communication to be re-
established

 TA and communication
We can also use TA to help us plan transactions.
For example we can identify which ego state
would be most valuable for us to send the
message from and which ego state it would be
better for it to be received by. If we receive a reply
from the wrong (non expected) ego state then we
can either try to shift the other persons ego state;
or if we cannot do this it may be better to stop the
communication and try again another time when
the person may be in a different ego state.
TA & communication
We can listen to peoples communication
to identify if they are habitually in one ego
state and then decide if communication to
that ego state would be appropriate or not.
Invite them to move into Adult by:

Asking a question
Stating a few facts
Asking for their opinion
Asking for their preference
Asking for their view
Invite them to move into Nurturing Parent by:

Asking for their help
Asking for their advice
Asking for their expert opinion
Communicating your fears/worries
 Invite them to move into Natural
Being one yourself
Child (Free
Showing Child)
the funny sideby:
of the situation
Going to nurturing parent
Being enthusiastic
Showing an unconventional way of looking at
things.
Summary and Managerial
Implications
The less employees are uncertain, the greater their
satisfaction; good communication reduces uncertainty!
Communication is improved by:
Choosing the correct channel
Being a good listener
Using feedback
Potential for misunderstanding in electronic communication
is higher than for traditional modes

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Key Terms
Barriers to communication
Knowledge management
Communication media
Meta communication
Downward communication
Organisational
communication
Information technologies
Upward communication
Communication
Lateral communication
Communication networks
Non verbal communication
Grapevine
Rumour
Interpersonal
communication
BITS Pilani, Pilani Campus