Ryanair's Strategic HRM Analysis

This assignment delves into the strategic human resource management practices of Ryanair, a leading low-cost airline. It critically evaluates internal and external factors influencing the firm's HRM strategies, with a focus on recruitment and selection processes, compensation techniques, and workplace policies. The analysis also considers passenger safety and security measures implemented by Ryanair. By examining these aspects, this assignment aims to provide insights into how strategic HRM can contribute to Ryanair's competitive advantage and future success.

STRATEGIC HUMAN RESOURCE
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Critical evaluation of external factors for organisation..........................................................1
TASK 2............................................................................................................................................4
Human resource policies:.......................................................................................................4
TASK 3............................................................................................................................................5
Recommendations to attract and retain talent:.......................................................................5
CONCLUSION................................................................................................................................8
..........................................................................................................................................................1

INTRODUCTION
Strategic human resource management refers to bridging the gap between human
resources and objectives in order to increase the performance of business as well as to create and
improve the organizational culture that encourage innovation, flexibility and competitive
advantage. Ryanair Ltd. is a British low-cost airline which was found in the year 1984
(Armstrong and Taylor, 2014). Its headquartering is in Dublin, Ireland. It was the largest airline
of Europe in 2016. Its route networks provide 34 countries in majorly 3 continents that is Africa,
Europe and Middle East. Its mission statement and goals are accordant with its strategy mix. Its
mission statement is to provide low rate fare to its customers on all routes and permitting
modifications to their bookings. In this report, analysis of the internal and external factors of the
firm along with the assessment of policies and procedures of human resource and suggestions
relating to attract and retain the employees for the better future performance.
TASK 1
Critical evaluation of external factors for organisation
There are some macro environmental factors which are needed to be analysed in order to know
about the entire markets where the cited organisation operates. SWOT and PESTLE are the main
essential tool in order to assess the macro-environmental factors.
EXTERNAL ANALYSIS
SWOT Analysis of Ryanair Strengths: The strengths of Ryanair provide competitive advantage over its competitors.
These are: It provides point-to-point service, that means the transportation system which
can be done by bus, train or air plane that travels directly to the spot rather than going by
a central hub. There is large number of seat availability that reduces the cost of the ticket.
Punctuality in the flights and no delays are there. It eliminates extra cost as 100%
booking is done through their official website. They use high quality fleet. The charges of
the airport are reduced which in turn cut down the cost. It covers the cost and risk that is
incurred in terms of fuel and protecting. Weaknesses: One of the major difficulties a company is suffering is in handling the
customers as well as in quality of services they are offering. The company has collected
taxes which are hidden and services provided for the customers that are restricted
1

(Armstrong, 2011). The business entity has faced many problems that affected majorly
by the lack of strategic decision making in various sectors of human resource especially
in relation to the policies of trade union. Opportunities: Ryanair with its administration framework and it do not have any
geopolitical threats. It also opens new chances to make the business more grounded as
well as surpass from all its competitors in the industry. The opportunities that it would
avail be able to advancement of vital cooperation, openings in centre and non-centre
territory.
 Threat: As European aircraft industry is the most focused commercial centre so, Ryanair
is confronting inescapable risk of hardened rivalry. Other risk for Ryanair is fast
increment in fuel costs which can generally influence its aggressive edge of giving
minimal effort admissions to its clients (Boxall and Purcell, 2011). The development of
its operations to different range refers to the modification according with the exchange
strategies and also issues regarding political territory. Dynamic needs and requests of
clients filled in as a test to the administration. The quick paced innovative progression
can be an incredible threat to Ryanair as it might be conceivable that individuals learn
towards video conferencing. Another threat is increment of cost that is charged at the
terminal.
PESTLE ANALYSIS
Pestle analysis is mainly the concept of marketing principles. It is utilised to view and
understand the external environment the company is functioning. Nature changes and it has
distinctive effects on various levels of organization. An issue that must be confronted is that the
scope of factors is probably going to be great to the point that it may not be conceivable or
sensible to distinguish and see everyone. Consequently, it is important to distil out of this
multifaceted nature a perspective of the key ecological effects on the association (Storey, 2014).
If there should arise an occurrence of Ryanair it can broke down its large scale condition
utilizing PESTEL Analysis. The key drivers of progress that would impact be able to the
methodology of Ryanair. At that point, the key drivers can be utilized to develop situations of
conceivable future.
2

In PESTEL evaluation, Political, Economic, Social, Technological, Environmental and Legal
elements that would affect the future system of Ryanair with respect to threats and opportunities
are described as follows: Political: Political factors draw attention to duties of governments that can have
immediate or aberrant effect on development, intensity and thus, the future procedure of
Ryanair. For the aircraft business, some out of many issues are confine on travelling to
few destinations. The safety controls and in vast majority, the cases for the administration
assistance is for national carriers. Ryanair has been confronting some of these kind of
issues in the past and have these sort of difficulties later on. The duty arrangement is
distinctive for various nations (Guest, 2011). New European Union directions and
presence of new courses implies new rivalry. Economical: This aspect alludes to macro-environment elements. For instance, trade
rates, business cycles and differential financial development rates far and wide which can
have coordinate effect the general goals and strategies of the company which is to give
least passages to their clients and consequently remain as the cost pioneer over the long
haul. Thus, these elements must be plainly measured to remain steady and for getting
upper hand for its rivals. A portion of the threats which are for the firm as well as for a
similar industry in this setting are the risk of expanding oil costs, charges, loan fees and
rise of air terminal taking care of charges and trade rates. Social: This factor involves the security and safety of the traveller. The passengers
prefers this airline as the give high quality services to them that includes hospitality and
low cost of the tickets. If the passengers does not feel the sense of safety, they will avoid
going with this airline. In this way, the company will face problem as it will reduce the
income of the firm and trust issues of the worker will increase. Technological: With the use of internet and innovations in the technology has made
modification in the whole aviation industry. It also gave the video conferencing services
to the individual and business people and make it easy as they do not have to travel that
particular place. This also gives the audio songs as well as movies on the flights. They
even had launched new technologies for the development of the cited firm. Environmental: Environment worries about greenhouse gases from carbon release keep
on increasing the people in general and political scheme around the world, particularly in
3

Europe, with more prominent concentration on the effect of avionics. As per the report,
cautioned that inability to shorten nursery gasses would prompt disastrous human and
financial outcomes (Kehoe and Wright, 2013). Henceforth, the airline business should
pay duties for the commitments they make regarding global warming. Ryanair is
essentially restricted to any type of natural tax assessment (ticket charge, fuel impose,
outflows demand and so forth). The mix of operations and business initiatives and firm's
heavy investment in new air plane has prompted a total decrease in fuel utilization.
 Legal: European Union commission is repeated on a regulation against illicit state
endowments. It has expected to set up the reasonable arrangement condition in European
airline industry. EU choices depends on non-separation enactment maintaining the air
plane terminals from offering differential arrangement to various carrier administrators.
The interests of European airline industry were secured by non-segregation enactment.
Legitimate issues that goes up against to aircraft industry are illicit endowments from air
plane terminals, rivalry laws in avionics business and directions about carbon outflow
level.
TASK 2
Human resource policies:
Basic viable human resource management policies is a joint effort on strategies amongst
HR and company's initiative in light of the fact that firm's prosperity lays on its workforce. As
per the research, around 65% of an enterprise's esteem depends on its staff members, the nature
is driven by HR management as well as policies and procedures. Its policies are fundamental for
maintaining a feasible business.
Following are some of the policies of strategic human resource management: Employment-relations policy: Ryanair's strategies is to concentrate on the low cost
through reduction in the wage rate as well as control of staff workers. The staff members
are required to pay for their grooming and training sessions for the cabin crew
approximately €2800 and their meals along with uniforms for €25. The company's HR
are facing many problems by their employees regarding increased complaints such as
difficulties in customer service and workers being arrogant to the customers. The firm has
reduced the teams level of expectation and matches with that of business model.
4

 Consistency policy: Setting the establishment for human resource management is the
place where the cited company positioned concerning consistence with government and
state work along with employment laws (Jackson and Muller Camen, 2011). For instance,
guarantee that holding fast to Fair Labour Standards Act arrangements for the lowest pay
permitted by law, extra time pay, and absolved and non-exempt workers categorization.
In respect to Title VII of the Civil Rights Act and the Americans with Disabilities Act is
critical to guarantee legitimate or legal consistence and to give equal chance to candidates
and workers. Strategic Development policy: A principal venture in making human resource
management policies and procedures is guaranteeing that HR and official leadership are
working towards similar objectives. In the long run, HR works as an authoritative and
focuses on the expansion of the business as opposed by upper management as a vital
assistant. Building an elite workforce helps Ryanair's objectives to accomplish and results
out to be gainful for the firm. The company need not to have a HR division to distinguish
employees objectives. For private companies, HR management approaches are basic for
two essential reasons. They moderate the entity's risk for choices that aren't upheld by a
working environment strategy. Additionally, creating a plan of approaches removes the
need slowly and carefully to manufacture the working environment strategies.
 Work environment Policies: Work environment approaches and standard working
systems furnish the cited company with quite required structure. Working hours, pay
data, well-being measures, advantages and execution desires are centre themes to address
in a worker handbook. An equivalent open door work approach and proclamation about
the firm's zero-resilience for segregation or badgering ought to be a piece of the
association's implicit rules (Alfes and Soane, 2013). These approaches recognize the
business commitment to give a protected workplace where representatives feel like
esteemed contributors.
TASK 3
Recommendations to attract and retain talent:
Hiring workers is only a beginning to make high human capital. But there is a need to
retain them so that they could contribute to the firm in a better manner. Now, this has been seen
that the business can attract and retain the talented staff for the development of the firm. This
5

will help the cited organisation to get the future performance of the company. Here are some
recommendations are given so that the business can retain those talented staff. Providing focused advantages that suit the needs of workers: Giving medical coverage,
life insurance and a retirement-investment plan are important factors in retaining the staff
members. The two different advantages of this are: strategic scheduling and the
alternative of working from home. Giving some small perks: Free burgers or pizzas on Fridays as well as dry-cleaning
pickup and conveyance may appear to be immaterial. Yet in the event, they enable
workers to better deal with their lives and they'll value it. Direct "stay" interviews: Notwithstanding, after performing post employment surveys it
resulted to realize why workers are leaving and also to see request for the longer-tenured
representatives for what good reason they remain (Tooksoon, 2011). Make inquiries, for
example, Why did the workers come to work here? Why the employees remained? What
may make the staff clear out? Also, what are employees non-negotiable issues?
Something should not be said about the company's managers? What might workers
change or move forward? At that point utilize that data to fortify the representative
maintenance procedures. Promote from inside at whatever point conceivable: Also, give staff a reasonable way to
work on the improvement. If this not happens then usually the workers end up noticeably
disappointed and may quit attempting in the event. Also they see no reasonable future for
themselves in an organization. Support workers advancement: This may be prepared to take in another job ability or
educational cost repayment to assist the encouraging members training. Make an open communication amongst workers and management: Hold general
meetings in which representatives are able to offer the concepts and to make enquiries. It
also has an open-entryway policy that encourages the workers to be honest with their
chiefs without dread of consequences. Get managers included: It needs managers to invest strength in training the workers,
aiding employers who are efficient must move to new positions and limiting those who
has poor performance.
6

 Communicate business' main goal: Feeling associated with the firm's objectives is one
approach to keep staff rationally and sincerely attached to Ryanair. Give financial rewards: It consider the offerings that are investment opportunities or
other monetary honours for workers that meet the execution objectives and remain for a
certain era like three or five years. Additionally, it gives significant yearly raises
(Renwick and Maguire, 2013). On the off chance that you can bear the cost of it, offer
more to the top performance employees. Or, on the other hand, on the off chance that
would prefer not to be screwed over thanks to extensive changeless increments, make a
reward structure where workers can acquire a yearly reward on the off chance that they
meet pre specified execution objectives. Expectations of the workers: It might appear to be essential, however, frequently in little
organizations, workers have a various rules and regulations to follow (Jabbour, 2013). On
the other hand, they do not know exactly what is involved in their job also what the
company require from them. Hire a HR expert: In the event that cited firm is nearing 100 workers, consider procuring
a HR chief to regulate and streamline the workers structure and procedures. Putting one
individual accountable for overseeing representative advantages, livens, audits and
related assignments takes a tremendous load off of you and ensures employees are dealt
with decently. HR directors are likewise more up and coming on work laws and patterns
(Barney and Wright, 2011). They would set be able to up different projects along with
perks that might not have known existed.
 Adopting new approaches: Some of the methods that can be adopted are as follows:
1. Compensation: Remuneration and favourable circumstances methodologies and systems
begin with making pay strategy. This system should be documented plans with utilitarian
strides for execution. There are three essential pay systems that is, publicize pioneer,
centered with grandstand and underneath promote (López-Nicolás, 2011). Progressive
method is an immense variable to choose pay procedure and techniques, which is another
inspiration driving why human asset must collaborate with upper organization as a key
business accessory. Managers whose goals are to pull in the best qualified pros may pick
that transforming into the market pioneer in pay sharpens gives them an unmistakable
7

favored outlook over their adversaries. Underneath promote compensation technique puts
the association at danger for high illustrative turnover and less-qualified masters.
2. Recruitment and selection: Recruitment is the essential thing under which the
organization welcomes new and capable individuals to have them with the goal that the
organization could develop in a superior way. Enrolment is a wide procedure as it
incorporates qualified and inadequate competitors. That is the reason, it is the positive
procedure. While determination is the tight procedure as it pick a portion of the hopefuls
out of the aggregate candidates. This mirrors a negative sign as, this incorporates just
qualified staff and others are to be cleared out. the Enhancing the estimation of its work
compel lays on the association's enrolment and choice system (Schuler and Tarique,
2011). The discernment of all enrolment courses of action is proportional open entryway,
however more specific choosing strategies consolidate HR correspondence with division
pioneers about their staffing needs, work postings and meeting steps, and utilizing
administrators' essential authority master. Enlistment and assurance approaches are
arranged to a constrained degree on the compensation technique (Foss, 2011). All the
more essentially, the organization's general framework for accomplishment drives HR
administration's approaches change and execution.
3. Working environment strategies: Working condition arrangements and standard
working systems equip the alluded to refered to organization with exceptionally required
structure. Working hours, pay data, thriving measures, purposes of intrigue and execution
wishes are center themes to address in a master handbook. An equivalent open portal
work approach and pronouncement about the association's zero-adaptability for
confinement or harassing ought to be a touch of the connection's comprehended
principles (Choi and Ruona, 2011). These approaches see the business duty with respect
to give a guaranteed workplace where delegates feel like respected givers.
CONCLUSION
From the above report, it has been concluded that Ryanair, British low cost airline
company. It has been discussed the critical evaluation of factors facing in the present which
affects the firm internally and externally as Ryanair is using latest technology to have grounds in
the market also they take care of the passengers in terms of safety and security. By utilizing
8

appropriate concepts of strategic human resource management and analysing various policies
and procedures of the company for the development of the firm. In this it will also form the basis
of the company's future strategies in the means of strategic recommendations so that the
enterprise can induce to get sustainable competitive advantage and can attain success in the
future.
9

1

2