Fundamentals of Management: Ryanair Airline Organizing Analysis Report

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This report provides an analysis of Ryanair Airline's organizing perspective, focusing on customer service and employee efficiency. It identifies issues such as poor customer service ratings and the need for improved employee performance. The report examines Ryanair's background, mission, and initiatives. It identifies problems related to customer service and employee inefficiency, suggesting solutions to improve customer satisfaction. The recommended solutions include a focus on employee training and development programs, enhanced communication skills, technical skill enhancement, and comprehensive knowledge of services. The report emphasizes the importance of creating a loyal customer base through excellent customer service, advocating for strategic planning and ethical business practices. The analysis highlights the need for Ryanair to transform its human resources into an efficient workforce capable of delivering optimal customer experiences.
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RUNNING HEAD: FUNDAMENTAL OF MANAGEMENT
FUNDAMENTAL OF MANAGEMENT
Name of the Student:
Name of the University:
Author’s Note:
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1FUNDAMENTAL OF MANAGEMENT
Executive summary
This report aims to analyse the organising factor of Ryanair Airline. This report identifies that
though this organisation offers the lowest fare in Europe yet the customer service of this
company is not in good condition. The authority of this company has to develop a training and
development program to transform the workforce of this company into an efficient workforce.
This company has to focus on training and development program, communication skill, technical
skill, and overall knowledge about the services, provided by this company. It will help this
company to develop an efficient workforce. It will help this company to create a loyal customer
base by providing the best customer service.
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2FUNDAMENTAL OF MANAGEMENT
Table of Contents
Introduction:....................................................................................................................................3
Company background:.....................................................................................................................3
Analysis of organising perspective of Ryanair:...............................................................................4
Customer service of Ryanair:......................................................................................................4
Identification of the problem:......................................................................................................5
Initiatives of Ryanair:..................................................................................................................6
Recommended solution:..................................................................................................................6
Outline of the plan:..........................................................................................................................8
Training and development program:...........................................................................................8
Communication skill:...................................................................................................................9
Technical skill:.............................................................................................................................9
Detailed knowledge about the services:....................................................................................10
Conclusion:....................................................................................................................................10
References:....................................................................................................................................12
Appendices:...................................................................................................................................14
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3FUNDAMENTAL OF MANAGEMENT
Introduction:
The success of a business organization depends on the appropriate leading approach,
organizing ability, controlling ability and planning. In the 21st century, there are various
management strategies, framework and tools are used by the manager to overcome any business-
related challenges. This report aims to analyse Ryanair Airline. This report will identify areas,
which needs to be modified, among planning organising, leading, and control. The area needs to
be identified which is underperforming. An appropriate initiative of the management of this
company can help this company to become more effective and efficient. It can be said that the
customer service of this company is not adequate. This report will analyse the customer service
of this company as a part of organising ability of Ryanair Airlines and provide a solution to
improve customer service. It can help this company to provide the best customer experience.
Company background:
Ryanair Airline was formed in 1984. Headquarter of this company is situated in Dublin,
Ireland. Ryanair Dac, Buzz, Malta and Lauda are the parent company of Ryanair Airline
(Ryanair.com 2020). Present CEO of this company is Michael O’Leary (Ryanair.com 2020).
According to the senior executive of this company, Ryanair Airline is the greenest and largest
airline group. This airline connects more than two-hundreds of destinations in forty countries
(Ryanair.com 2020). The mission of this company is “to offer low prices that produce improved
passenger traffic while maintaining a constant focus on cost containment and efficiency
operation” (Ryanair.com 2020). The vision of this company is to establish as Europe’s leading
scheduled passenger airline through constant development and low fair service. The vision
statement of this business organisation is to create a world where passengers fly for free. In 2019,
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4FUNDAMENTAL OF MANAGEMENT
the total number of employees in this company was 18640 (Mazareanu 2020). In 2019, the
annual revenue of this business organisation was near about 7.7 billion euros (Statista 2020). The
budget airline of this company enhanced near about thirty-seven per cent while comparing with
2013 (Statista 2020).
Analysis of organising perspective of Ryanair:
Customer service of Ryanair:
As a leading low fare Airlines of Europe, the customer service and customer care of
Ryanair Airline will be discussed in this part. This organisation emphasizes on paid aspects
which are reliable, value, choice, care and safety. This organisation is interested to provide the
best customer service and customer satisfaction based on these five features. To ensure
reliability, this organisation offers appropriate timing. 90 per cent of flights of this company is on
time. The rate of cancellation is low. In case this organisation has to cancel any flight the
authority of this organisation offers instant options of refunds, reroute or rebook. To ensure care
Ryanair Airline offers help when the passengers need it. Customer care of this organisation is
available 24/7. Within 10 days all valid EU261 and baggage claims are paid by this company.
Customer care service provider of this company response instantly through phone, social media
and chat. Simple and user-friendly application and website are offered for the customer by this
company. Providing clear and timely communication for the customer is important for this
organisation. This organisation prioritise safety both for the employees and passengers. This
company is successful to maintain the leading safety record in the airline industry. For this
purpose, the best-trained safety professionals are hired by this company. To ensure the value of
the money, Ryanair Airline offers the lowest fares and best deals for the passengers. This
organisation offers promotions and discounts for the ticket. This company is interested to offer
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5FUNDAMENTAL OF MANAGEMENT
the lowest fare for the passenger. The aim of this organisation is to become the best choice for
passengers. Convenient schedule and more flights are used by this organisation provide better
customer service. To fulfil customer needs, this company offers a tailored product. Great inflight
experience is offered by this company. By availing the service of Ryan airline passengers can
travel to the best choice of destinations. Besides that, the senior executive of this company
prioritises punctuality because it can enhance customer satisfaction. In February 2020, 93 per
cent of flights of Ryanair Airline has arrived on time. According to Kenny Jacob, head of the
marketing team of this company, in February 2020, this organisation has successfully carried
over 10.5 million passengers. Among these passengers, 89 per cent of passengers were satisfied
with the customer service provided by this company. Besides that this company offers the lowest
fares in Europe. According to the CEO of this company, Ryanair Airline has several plans to
improve customer service.
Identification of the problem:
In this part, the organising perspective of Ryanair Airline will be analysed to identify the
area, which needs modification. The customer service of Ryanair Airline is not in good
condition. According to the result of the annual survey of short-haul airlines, Ryanair Airline has
been marked as the worst airline for the sixth consecutive year (Topham 2019). Based on the
boarding, food, cabin environment, seat comfort, drink and customer service passengers provide
with their ratings. According to the report of the survey, Ryanair Airlines carries more
passengers than any other airline in Europe. For example, it can be said that due to 48 Hour work
out of the UK pilots of Ryanair Airlines, this company had to cancel or delay several flights.
Passengers of this organisation had to face problems. However, this organisation did not
compensate customers by claiming that the strike was extraordinary circumstances. Because of
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6FUNDAMENTAL OF MANAGEMENT
poor customer service, the Civil Aviation Authority took legal action against a Ryanair Airline in
2019 (BBC News 2019). So it can be said that the customer service of this company is not in
good condition. Employees of this company are not efficient. As a result of this, Ryanair Airline
is unable to provide customer satisfaction. Due to the unmotivated and inefficient employee, the
brand reputation of this company is affected. Complains and issues of the customer are not
properly dissolved. Though this company offers the lowest fare yet there are hidden charges yet
the passengers of this company are facing problem due to the poor customer service of this
company.
Initiatives of Ryanair:
In 2019, the senior executive of Ryanair Airline declared its Ryanair Customer Care
Improvements 2019. The aim of this plan was to ensure a wide range of customer care
improvements in 2019. This organisation will officers most choices, lower fares, and great care
for the customer. This organisation is confident that flight fare offered by this company is lowest
in Europe. If a passenger finds a flight ticket with lower fare within 3 hours of booking then the
passenger will get the difference and extra 5 Euro. Who ensured better customer service this
company is committed to fulfilling a 90 per cent on-time arrival objectives. New Boeing 737
MAX aircraft of this company will offer new interiors, more seats, and more legroom for the
passengers. Customer care charter of this company is modified to help the customer
appropriately. To provide extra benefits to the customer this organisation has started offering 48
hours free of charge grace time for minor booking changes. A new frequent flyer program is
offered by this company for an annual membership fee of €199. New Ryanair Choice will offer
free seats, priority boarding for members.
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Recommended solution:
The customer service of Ryanair Airline as a part of organising is not adequate. It needs
modification. The management team of Ryanair Airline has to develop a plan to improve the
customer service of this company. To accomplish business objectives, a business organisation
has to focus on customer satisfaction. It will help a business organisation to increase market
share. According to Oud and Genzinger, the success of a business organisation depends on good
services. A business organisation has to modify the organisational structure and other facilities to
support the good service (Oud and Genzinger 2016). It will help the business organisation to
enhance customer satisfaction and achieve success. It can help a business organisation to create a
loyal customer base. It can generate positive word-of-mouth about the business organisation.
Investing in customer service is an excellent process to enhance customer lifetime value.
According to Batra, Customer experience is important for a company. For customer service
excellence, a business organisation has to focus on customer experience. To provide an excellent
customer service a business organisation has to create a positive relationship with the customers.
A happy customer will return often. A happy customer will be interested to spend more (Batra
2017). According to McMurrian and Matulich, by following ethical nosiness practice a business
organisation can add costs to the company. The ethical business adds value for the consumers
and delivers the desired outcome. Ethical business practice can improve the business
performance of a company (McMurrian and Matulich 2016). Customer retention is less
expensive than customer acquisition. The brand image mission and values of a company can be
represented through appropriate customer service. An efficient customer service provider can
deliver significant insights about customer experiences. To create marketing opportunities, a
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8FUNDAMENTAL OF MANAGEMENT
business organisation can utilise proactive customer service. By providing an appropriate
customer service business organisation can gain a competitive advantage.
This organisation can develop strategic planning to improve customer service. This
organisation has to create an efficient and effective customer service provider to ensure customer
satisfaction. To do that, this organisation has to provide communication skills training and
development program improved technological scheme and clear information about the services,
this company offered. So it can be seen that the alternative solution to improve the customer
service should prioritise training and development program, communication skill, technological
skill and knowledge about the organisation. Justification for recommending please solution is it
can Transformer the human resource of these organisation to an efficient human resource which
can deliver the best customer experience.
Outline of the plan:
This organisation has to create an efficient workforce who can deliver the best customer
experience. The practise of active listening, knowledge to prioritise the customer, use of
appropriate language, improvement of technological skill, clear information about the services,
and appropriate communications skill are the features which can help a customer service
provider team to deliver the best quality service. The HR department of this company has to
provide a training and development program for the employee of this company. It will help the
customer service providers of this company to acquire the necessary skills for customer service.
Training and development program:
The authority of Ryanair Airline has to provide a training and development program for
the customer service provider, which will allow this organisation to strengthen the necessary
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9FUNDAMENTAL OF MANAGEMENT
skills. To transform the human resource of this company, the proposed training and development
program will be helpful. It will help this organisation to utilise the strengths of this company to
manage its weaknesses (Saina and Tuei 2015). It can improve the level of morality, efficiency
and productivity of the employees. In the training and development program, the employee will
learn how to maintain active listening. From this program, the employee will learn to use the
appropriate and positive language with the customer. The customer service provider should have
adequate knowledge to prioritise the customer. This training and development program will
allow the employee to acquire the necessary skills. Having appropriate knowledge about the
services of Ryanair Airline will help the customer service provider to deal with customer
appropriately (Suwandej 2015). So it can be said that the trading and development program will
help the employees to acquire necessary skills and knowledge. In future to manage the customer
properly, this knowledge and skill will be useful for the employees.
Communication skill:
Customer service sector it is very significant to have appropriate communication skills to
communicate with the customer. Appropriate communication skill will help the customer service
provider to solve any customer-related issue. It will help the employee to understand the
psychology of the customer. Based on the customer psychology the employee will deliver the
appropriate message at the appropriate time (Memon, Salleh and Baharom 2016). Appropriate
communication skill will help the employee to ask effective questions and to manage the anger
of the customer. Through proper training, the employee will learn to use effective
communication with the customer.
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10FUNDAMENTAL OF MANAGEMENT
Technical skill:
To provide better customer satisfaction the employee should have adequate technical
skills. It will help the employees to reduce technical problems and ensure customer satisfaction.
The customer service provider of this company has to analyse the compensation for submitted by
the customer (Gabriel et al. 2016). It will be easier to analyse the compensation form with the
help of technology. The training and development program offered by this organisation wheeling
allow the employees together adequate technical skills to manage the customer service
appropriately. It can be said that to make an efficient customer service providing the authority of
Ryanair Airline has to include 'a practical course for technical skills' in the training and
development program. In this program, the employee will learn to use the computer and specific
application, which is necessary to solve the customer problem quickly (Kasiri et al. 2017).
Detailed knowledge about the services:
Adequate knowledge about the services can make the customer service team confident,
competent and efficient. It will help the customer service team to reflect the company’s offering
while interacting with the customer. It can help Ryanair airline to enhance its business and
customer satisfaction. In the training and development program, the employee of this
organisation will get complete knowledge about the services offered by Ryanair airline. To solve
any customer related issue computer knowledge about the companies of green will be helpful for
the employee.
To implement the plan this organisation will take 1 year. Within 1 year, the authority of
Ryanair Airline will transform the human resource of this organisation to an efficient workforce.
At the end of one year, the success of this program will be evaluated. A proper analysis of the
outcome of the training and development program is necessary. It will help this organisation to
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11FUNDAMENTAL OF MANAGEMENT
identify areas of the program, which needs modification. In the appendices part, the
implementation plan is provided.
Conclusion:
This, this report concludes that the authority of Ryanair Airline has to focus on customer
service as a part of organising ability. Though this organisation is the largest airline service
provider of Europe yet it can be said that to compete in an intensely competitive market this
organisation has to ensure customer satisfaction. By providing the bust customer satisfaction this
company can generate its loyal customer base. As this organisation offers the lowest fare so it
can be said that it will be easy for this company to muscle out its competitors. This organisation
has to improve customer service and solve the customer-related problem as early as possible.
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12FUNDAMENTAL OF MANAGEMENT
References:
Batra, M.M., 2017. Customer experience-an emerging frontier in customer service excellence.
In Competition Forum (Vol. 15, No. 1, pp. 198-207). American Society for Competitiveness.
BBC News, 2019. Ryanair Rated 'Greedy And Arrogant' By Customers. [online] BBC News.
Available at: <https://www.bbc.com/news/business-49433807> [Accessed 4 April 2020].
Gabriel, A.S., Cheshin, A., Moran, C.M. and van Kleef, G.A., 2016. Enhancing emotional
performance and customer service through human resources practices: A systems
perspective. Human Resource Management Review, 26(1), pp.14-24.
Kasiri, L.A., Cheng, K.T.G., Sambasivan, M. and Sidin, S.M., 2017. Integration of
standardization and customization: Impact on service quality, customer satisfaction, and
loyalty. Journal of Retailing and Consumer Services, 35, pp.91-97.
Mazareanu, E., 2020. Ryanair: Employment Figures By Type 2019 | Statista. [online] Statista.
Available at: <https://www.statista.com/statistics/1038876/ryanair-employement-figures-by-
type/> [Accessed 4 April 2020].
McMurrian, R.C. and Matulich, E., 2016. Building customer value and profitability with
business ethics. Journal of Business & Economics Research (JBER), 14(3), pp.83-90.
Memon, M.A., Salleh, R. and Baharom, M.N.R., 2016. The link between training satisfaction,
work engagement and turnover intention. European Journal of Training and Development.
Oud, J. and Genzinger, P., 2016. Aiming for service excellence: Implementing a plan for
customer service quality at a blended service desk. Journal of Access Services, 13(2), pp.112-
130.
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13FUNDAMENTAL OF MANAGEMENT
Ryanair.com, 2020. About Us. [online] Ryanair.com. Available at:
<https://www.ryanair.com/gb/en/useful-info/about-ryanair/about-us> [Accessed 4 April 2020].
Saina, P.C. and Tuei, A.C., 2015. Effect of training and career development on employee
performance: a case of KCB branches in the north rift region, Kenya. International Journal of
Advanced Research in Management and Social Sciences, 4(5), pp.38-49.
Statista, 2020. Ryanair: Annual Revenue 2013-2019 | Statista. [online] Statista. Available at:
<https://www.statista.com/statistics/756060/ryanair-annual-revenue/> [Accessed 4 April 2020].
Suwandej, N., 2015. Factors influencing total quality management. Procedia-Social and
Behavioral Sciences, 197, pp.2215-2222.
Topham, G., 2019. Ryanair Ranked 'Worst Airline' For Sixth Year In A Row. [online] the
Guardian. Available at: <https://www.theguardian.com/business/2019/jan/05/strike-hit-ryanair-
ranked-worst-airline-for-sixth-year-in-a-row> [Accessed 4 April 2020].
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14FUNDAMENTAL OF MANAGEMENT
Appendices:
Initiative Time Measurement
Training and development
program
1 year At the end of the training and
development program, the employee
of this company has to clear the
written test.
Technical skill 1 year At the end of the training and
development program, the employee
of this company has to clear the
practical test.
Communication skill 1 year At the end of the training and
development program, the employee
has to communicate with the
customer. A feedback of the employee
performance will be collected by this
company to measure the improvement
of the communication of the
employee.
Knowledge about the company’s
service
1 year The employee has to clear the written
test after the of the training program
end.
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15FUNDAMENTAL OF MANAGEMENT
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