When two people interact, each exchange is a transaction, and a persons habitual way of interacting with others becomes his/her interpersonal style. Ego states and the existential positions play significant role for the success or failure of each and every transaction. Many of our problems come from transactions which are unsuccessful. Transactional Analysis Theory involves identification of the ego states that directs the transaction stimulus and executes the transaction response. The case uses Transactional Analysis Theory and Transactional Style Inventory as tools to help the respondents (130 management students) examine their transactional styles and develop strategies to enhance their interpersonal effectiveness. Interpersonal communication competence is essential in the realization of effective leadership (Macik-Frey, 2007) and effective management. The exercise will help students understand themselves and others better. With the help of this inventory they can learn to adapt their communication styles with those of the others, in turn becoming more proficient communicators and better managers.