Transactional Analysis and Power Dynamics in Organizations
Mineela Chand, M.Div., LMFT
Bespoke Coaching for Leaders and Professionals Who Want to Achieve More with Less Burnout | Licensed Psychotherapist | TEDxJnJ Speaker
As my teen prepares to enter university, we’ve spent countless hours reviewing her AP courses for the year.
Five in total: Economics, Literature, Government, Statistics, and Art, plus a couple of honors-level classes thrown in for good measure.
Naturally, I had to ask - why take on so much in her senior year?
What was she hoping to achieve by overloading herself?
Her response was thoughtful and, frankly, a little unexpected: “Because I’m an adult now, and I need to understand how the world works so I can engage with it responsibly. I do listen when you tell me these things!”
My teenager is not just prepping for college but actively seeking to understand the world through multiple lenses: economics, politics, literature, psychology....
There is a common thread running through these subjects: power.
Each subject, in its way, sits within the context of power dynamics. And, by being aware of these different systems in which power exists, she was creating and building a power of her own.
(Well done, Mama! Patting myself on the back.)
Whether it’s the study of governments and economies or human behavior and culture, these systems reveal who holds power, how it's maintained, and what is deemed worth learning and doing. What gets taught and how it’s taught, what information she has access to, and even what is excluded from the curriculum all point back to larger questions of power and control.
This focus on power was not new to our conversations.
Power became particularly relevant when she landed her first job.
Sometimes, we dissected workplace incidents through the lens of power. Who held authority, who was in control of decisions, and how these dynamics played out in small, everyday interactions.
These discussions weren’t just about her job - they were about understanding life and relationships - how the world is set up.
Power, it turns out, isn't confined to textbooks or political systems. It shows up in our daily interactions, in our relationships, and, most notably, in the workplace.
Power dynamics in an organization can be complex and nuanced, often operating beneath the surface. They influence everything from decision-making to communication patterns, and even who gets heard and who doesn’t.
It can get quite complicated, but this is where transactional analysis (TA) offers a valuable lens.
TA is a psychological framework that helps us understand human behavior and communication by analyzing social transactions - how people interact with one another, and the underlying power plays that shape those interactions.
In the context of an organization, TA provides insight into how the different roles people assume are rooted in early-life experiences, play out in the workplace, and can affect everything from leadership styles to team dynamics.
The beauty of TA lies in its ability to expose these dynamics so that individuals can consciously adjust their behavior. It helps break down the invisible power structures that can stifle communication and hinder collaboration.
The workplace is a context where power is constantly shifting due to promotions, budget allocation, “workforce reductions” (a euphemism for layoffs), leadership changes, or team realignments. Understanding dynamics is crucial for anyone looking to advance in their career, manage relationships more effectively, or simply create a healthier, more equitable work environment.
Understanding Human Interactions at Work
Transactional Analysis (TA), a communication theory developed by psychiatrist Eric Berne, provides a framework for decoding power dynamics and offers a deeper look into how power, control, authority, influence, and cooperation play out in everyday interactions.
This understanding of power dynamics helps individuals and teams operate more effectively, creating a workplace that’s not only efficient but also more human-centered.
Ego States – Parent, Adult, and Child
At the core of Transactional Analysis are ego states - distinct patterns of thoughts, emotions, and behaviors that influence how we communicate.
Berne identified three primary ego states: Parent, Adult, and Child.
The names might sound simplistic, but these ego states represent complex ways of interacting, each carrying its own power implications.
Parent
The Parent ego state represents behaviors, attitudes, and feelings we have learned from authority figures in our lives - parents, teachers, mentors.
This state is split into two forms:
1. Nurturing Parent
In this form, power comes through support, guidance, encouragement, and care. It’s a positive influence when done right, helping to build confidence and trust in others.
In an organizational setting, a leader operating from a Nurturing Parent state might offer encouragement, mentor their team, set clear boundaries and directives, kindly hold others accountable, allow consequences, and provide safety and reassurance.
The activities where the Nurturing Parent needs to come forward are those that need guidance, care, and emotional reinforcement:
2. Critical Parent
On the other hand, the Critical Parent can become overbearing, judgmental, or dismissive. Power is wielded through control and correction.
A boss who constantly criticizes, micromanages, or uses authority to suppress others is acting from a Critical Parent state. This dynamic can undermine creativity and lead to resentment, breeding an environment where people feel controlled rather than empowered.
Adult
The Adult ego state is where we process information rationally and objectively while also being aware of and managing emotions, focused on the best outcomes for all individuals. We operate from the Adult when we solve problems, make decisions based on facts, and respond thoughtfully and with wisdom to situations rather than react emotionally.
When power is exercised from an Adult state, it’s less about control and more about cooperation. This is where collaboration thrives - decisions are made logically, communication is clear, and problems are addressed without unnecessary emotional baggage.
In an ideal world, most organizational interactions would take place from this ego state, as it fosters equality and mutual respect. This state is proper in activities where balanced, strategic thinking is needed:
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Child
The Child ego state represents the emotions, impulses, and behaviors we developed in childhood.
This state is also split into two forms: the Free Child and the Adapted Child.
1. Free Child
In its positive form, the Free Child is creative, spontaneous, curious, joyful, and playful. Power in this state is rooted in innovation and fresh perspectives.
The Free Child State is vital for ideation and creative brainstorming because its strength is generating fresh and innovative ideas. It encourages free-thinking, unfiltered brainstorming without judgment, a moment of breakthrough, or a playful approach to problem-solving. This is the stage where imagination and curiosity take center stage, and no idea is too unconventional to explore.
Leaders who tap into their Free Child might be more open to taking risks, driving change, and embracing innovation.
2. Adapted Child
The Adapted Child can be more problematic in organizational settings.
Here, powerlessness often manifests - whether through compliance, avoidance, or resistance.
Someone behaving out of the Adapted Child might be overly deferential to authority, afraid to speak up, or alternatively, rebel against rules in an unproductive way or overly emotional and incapable of accessing the logical adult.
A workplace where this dynamic dominates can quickly become a place of frustration and disengagement, where employees feel stifled, and their contributions go unheard.
By consciously engaging the right ego state for each activity - whether the Child for creativity, the Parent for support and guidance, or the Adult for logical decision-making - individuals and teams can enhance their effectiveness in the workplace. Understanding when to engage each one leads to better communication, collaboration, and productivity but can also effect whether power is misused unconsciously (unconscious biases and microaggressions), intentionally abused (outright and obvious racism or sexism), hoarded (as in the case of bullying), taken away (dis-empowering), or shared.
Understanding Power Dynamics Through Ego States
Once you understand these ego states, it becomes easier to recognize how power is exchanged in any given interaction.
In organizations, these transactions shape everything - from daily communications between peers to the larger dynamics between managers and their teams. Power isn’t just about who holds a title or position; it’s about how people influence each other in every interaction.
For example, a manager who often uses from a Critical Parent state, will point out what’s wrong and rarely acknowledging what’s right. This creates a power imbalance where employees, consciously or unconsciously, slip into an Adapted Child state. They may become hesitant to express new ideas, unsure of whether their contributions are valued.
Even if the manager doesn’t mean to stifle innovation, the power dynamic discourages it.
Conversely, a team leader who functions from an Adult state encourages Adult-Adult transactions - interactions where both parties are respected, and communication is grounded in mutual understanding. Here, power is more evenly distributed. Employees feel valued for their input, and decision-making becomes a shared process.
Power in interactions is fluid, not static. It shifts based on the roles people play in their transactions. By being aware of which ego state you’re working from, and which state your colleagues are responding with, you can better navigate these dynamics.
Toxic Power Dynamics
Toxic power doesn’t always come from blatant authoritarianism. It often works in subtle, insidious ways and can show up in the way meetings are run, who gets heard in conversations, and whose ideas are prioritized.
In organizations where Critical Parent and Adapted Child transactions dominate, you’ll often find high levels of stress, low morale, and a culture of compliance rather than contribution. People might feel like they’re always being corrected or judged, leading them to suppress their true thoughts and ideas.
Over time, this fosters a culture where innovation is stifled, and people become disengaged.
When power is used to control or intimidate rather than to inspire and support, employees feel compelled to "play it safe." They may go along with decisions they don’t agree with, avoid giving honest feedback, or withhold ideas for fear of criticism.
The result?
A stagnant, risk-averse, and fear-based workplace where true potential is never realized.
Fostering Healthy Power Dynamics
If unhealthy power dynamics are so destructive, how can leaders and organizations cultivate healthier ones?
By fostering more Adult-Adult interactions - where power isn’t wielded as a tool of control but shared in a way that empowers everyone involved.
Here are a few practical steps:
1. Self-awareness and Reflection
Start by reflecting on your own default ego state.
Do you tend to take on a Critical Parent role in meetings, offering more critiques than constructive feedback?
Or, do you find yourself slipping into an Adapted Child state when confronted with authority?
Being aware of your natural tendencies is the first step in changing the dynamics of your interactions.
2. Creating Space for Dialogue
Leaders can set the tone by encouraging open, respectful communication. Adult-Adult transactions thrive when there’s room for honest discussion. Leaders can ask for feedback, listen actively, and involve employees in decision-making processes.
When people feel like their voice matters, they’re more likely to contribute meaningfully, and power becomes something shared, not hoarded.
3. Recognizing and Shifting Unhealthy Patterns
Sometimes, organizations fall into unconscious patterns of interaction. A team might unknowingly create a culture where Critical Parent-Adapted Child dynamics dominate. Bringing the unconscious patterns into consciousness is key to breaking them.
Leaders can consciously shift towards more supportive, Nurturing Parent behaviors when guidance is needed or move into Adult-Adult transactions during decision-making processes.
4. Empowerment Through Flexibility
Power doesn’t always have to reside in one role.
Healthy organizations encourage flexibility, where different team members can take the lead depending on the context.
This might mean letting the Free Child loose during brainstorming sessions or turning to the Nurturing Parent when support is needed.
By recognizing which ego state is most right for a given situation, leaders can help their teams work more effectively.
Power as a Shared Resource
Ultimately, power in organizations doesn’t have to be a zero-sum game.
When we understand how ego states influence interactions, we can foster a culture where power is something that’s shared and distributed, not something to be wielded over others.
By encouraging Adult-Adult interactions, promoting open dialogue, and recognizing the power dynamics at play, organizations can become places where people aren’t afraid to speak up, take risks, or contribute their best ideas.
So, which of your ego states are going to come out and play today?
How are you going to engage with others responsibly?
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