TA is a theory of personality and a systematic psychotherapy for personal growth and personal change.

1. As a theory of personality, TA describes how people are structured psychologically. It uses what is perhaps its best known model, the ego-state (Parent-Adult-Child) model to do this. This same model helps understand how people function and express themselves in their behaviors.
2. As a theory of communication it extends to a method of analyzing systems and organizations.
3. It offers a theory for child development, where it ties in very neatly with the Freudian developmental stages -oral, anal, phallic.
4. It introduces the idea of a “Life (or Childhood) Script”, that is, a story one perceives about ones own life, to answer questions such as “What matters”, “How do I get along in life” and “What kind of person am I”. This story, TA says, is often stuck to no matter the consequences, to “prove” one is right, even at the cost of pain, compulsion, self-defeating behavior and other dysfunction. Thus TA offers a theory of a broad range of psychopathology.
5. In practical application, it can be used in the diagnosis and treatment of many types of psychological disorders, and provides a method of therapy for individuals, couples, families and groups.
6. Outside the therapeutic field, it has been used in education, to help teachers remain in clear communication at an appropriate level, in counseling and consultancy, in management and communications training, and by other bodies.

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