Analyzing HRM Strategies at Ryan Air: A Case Study (017-2 Module)

This case study report analyzes the human resource management (HRM) practices of Ryan Air, a prominent budget airline. The report begins with an executive summary and table of contents, followed by an introduction to HRM and its significance in achieving organizational, social, and individual objectives. The core of the analysis involves environmental analysis, utilizing SWOT and PESTLE frameworks to evaluate Ryan Air's internal and external environments. The SWOT analysis identifies strengths such as low costs and a strong network, while also highlighting weaknesses like seasonal earnings and negative customer perceptions. The PESTLE analysis examines political, economic, social, technological, environmental, and legal factors impacting the airline. The report then delves into problem analysis, focusing on people management challenges within Ryan Air, before concluding with recommendations for improved HRM approaches to ensure business success. The report provides detailed insights into the airline's operations and suggests strategies for addressing its challenges. The document is contributed by a student to be published on the website Desklib. Desklib is a platform which provides all the necessary AI based study tools for students.

Running head: HUMAN RESOURCE MANAGEMENT
Human Resource Management: Ryan Air
Name of the Student
Name of the University
Author’s Note:

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Executive Summary
The objective of this report is to understand the case study of a popular airline organization
called Ryan Air. In spite of having several advantages in human resources, a few issues
related to people management and HRM has been identified in the organization. The
organizational members are well aware of the distinct steps that are to be taken for the
betterment of the organization and also to ensure that every staff is highly satisfied with his or
her work. This report has analysed the internal and external environments of Ryan Air with
suitable recommendations regarding issues related to the management of people.

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Table of Contents
1. Introduction............................................................................................................................3
2. Environmental Analysis.........................................................................................................3
2.1 Internal Environmental Analysis of Ryan Air.................................................................4
2.2 External Environmental Analysis of Ryan Air................................................................6
3. Problem Analysis...................................................................................................................8
4. Conclusion..............................................................................................................................9
5. Recommendations................................................................................................................10
References................................................................................................................................12

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1. Introduction
Human resource management or HRM could be referred to as the procedure of
recruitment, selection, induction of staff, providing proper orientations, impartment of
training as well as development, appraising overall performances of the staff, providing
motivation and many more to maintain a better relationship with them. HRM is majorly
involved with procurement, maintenance as well as the development of the human resources
(Noe et al. 2017). As a result, it is instrumental in achieving different objectives related to
social, organizational and individual aspects. Moreover, team collaboration and coordination
are also included in this department and ensuring better effectiveness and efficiency in the
respective organization. It is eventually designed for increasing performance of staff within
the services of different strategy based goals of the company (Mondy and Martocchio 2016).
Ryan Air is a popular and significant budget airline organization that was founded in
the year 1984 and had headquarters in Swords, Dublin. Ireland. More than 18000 employees
are working in this particular organization presently, and the net income in the year of 2018
was around 1.145 billion euros. The organization have always concentrated over the most
unique strategies as well as ideas for ensuring that better efficacy is easily and promptly
gained without much complexity (Ryanair.com. 2019). The following report outlines a brief
analysis of the significant case scenario for managing people in Ryan Air with suitable
recommendations, after analysing the internal and external environment of the company.
2. Environmental Analysis
Environmental analysis is an important strategic technique, which is required for
identifying every external and internal element that could impact the overall organizational
performances (Noe et al. 2015). The respective strategic planners eventually utilize the
confidential information that is being assembled from the environmental analyses for

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predicting of trends in future. It is required for evaluating the significant level of
opportunities or threats these factors might be present and all of these assessments are being
interpreted into the procedure of decision making (Bratton and Gold 2017). Such a distinct
analysis is beneficial for aligning the strategies with the overall environment of the
organization. Several new things subsequently develop over time, and the entire scenario
could easily alter in a limited amount of time (Cascio 2015).
Few essential factors are present that help in demonstrating the current situation of the
organization and what steps should be taken for controlling different aspects in the most
effective manner (DeCenzo, Robbins and Verhulst 2016). The organizational environment
majorly influences the businesses, and every situational factor can determine normal
circumstance for effecting the firms. Several distinct tools of strategic analysis are present
that could be utilized by the organization, and the most used means include the SWOT
analysis and PESTLE analysis. SWOT analysis is required for evaluating the internal
environment of the company, and PESTLE analyses would be required for assessing the
external environment of the company (Chelladurai and Kerwin 2018). A detailed analysis of
the internal and external environment of Ryan Air is provided below:
2.1 Internal Environmental Analysis of Ryan Air
SWOT analyses of Ryan Air would be required for understanding the internal
environment of the company accurately, and detailed SWOT analysis of the company is as
follows:
i) Strengths: The first and the foremost strength of Ryan Air is that they have the
lowest cost base (Brewster 2017). The expenses of 1 passenger in Ryan Air are the weakest
in entire Europe by a certain margin. As a result, they get a maximum of their customers
efficiently and promptly without any complexity. The overall bargaining power of the

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customers is majorly focused on the type of services offered by the organization and the total
costs of these services (Sparrow, Brewster and Chung 2016). They have always focused on
low prices, and it is their key towards success and also initiatives every vital choice. The
other significant strength of this particular airline company is its most economical fares.
Since they have a direct follow up over the lowest expense base, this specific organization
even comprises of the lowest average fares within the entire market of Europe (Cascio 2015).
A grouping of the competitor capacity restraints, as well as competitor fuel surcharge, have
enabled the company in raising the average fares in the recent years, hence holding a specific
discount in prices.
Another significant and noteworthy strength of this particular airline company would
be its distinct network (Jackson, Schuler and Jiang 2014). They are currently covering more
than 1500 routes in twenty-eight countries within North Africa and Europe and are landing in
around one hundred and seventy-eight airports all over the world. This particular organization
even comprises of the largest short-haul network of any particular transporter within Europe.
The next vital and significant strength of this particular airline company, Ryan Air is its fleet
(Ryanair SWOT & PESTEL Analysis. 2019). The respective fleet of the company comprises
of a single type of aircraft, called the Boeing 737-800. Moreover, the average age of their 305
aircrafts is nearly around four years and hence they get several advantages over others like
fuel efficiency, customer perceptions and maintenance costs. They have even taken the
delivery of the final aircraft under the existing contract of Boeing and have gained major
efficiency without much complexity (Anderson, Fontinha and Robson 2019). The
management focus is the next vital and noteworthy strength of this organization, which has
resulted in them in gaining maximum competitive benefits within their businesses.
ii) Weaknesses: The first and the most significant weakness of Ryan Air is its
seasonal earning (Storey 2014). In spite of having major advantages, the earnings of this

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particular organization are highly seasonal, and the profits mainly increase in the summer
season and have an offset or loss in the winter. As a result, more than 80 aircrafts are
grounded in the winter season, hence hampering the business to a high level. The lower
frequency is the next significant weakness of this organization (Kramar 2014). They have the
tendency of offering lowered frequencies over the routes than their competitors and the
departures take place at extremely inconvenient time. As a result, they are unable to attract
high yielding business passengers and hence facing losses (Purce 2014). Moreover, Ryan Air
is frequently featured in various surveys and have been recognized as the weakest brands in
the entire aviation sector of Europe. The perception of customers about this company is that
extremely negative, as compared to the other airline companies in the world (Brewster et al.
2016). As soon as the airline develops as well as consolidates the position, this particular
perception can initiate to have an adverse effect over sales.
iii) Opportunities: One of the major opportunities that the organization comprises of
in their business include better market growth as well as market share gains. In spite of the
fact that the current phase of the European aviation sector is in a growing phase; Ryan Air
could obtain better market shares in the medium to long term plans (Albrecht et al. 2015).
Involvement with other companies in the next significant opportunity of the company.
iv) Threats: The external events like volcanic ash disruption and earthquake are the
major threats of Ryan Air. Moreover, they have a loss of competitor capacity discipline and
as a result, the business is highly impacted (Wilton 2016). The higher price of fuel and
movement in currencies are the other vital threats that are quite common for the organization.
2.2 External Environmental Analysis of Ryan Air
A detailed PESTEL analysis of Ryan Air is provided below:

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i) Political: There had been several changes in the rules and regulations governing the
air traffic within the United Kingdom as well as other EU countries (Ryanair SWOT &
PESTEL Analysis. 2019). The agreements might become a failure in ensuring restriction-free
flights between different countries, and as a result, major issues could arise. The unfavourable
Brexit results are the next significant political factors that affect the business of Ryan Air.
ii) Economical: A recession may take place in the overall airline UK market, and it
would be affecting the economic background of the organization majorly (Anderson,
Fontinha and Robson 2019). They might not be able to deal with the complexities related to
economic turmoil and the potential to remain on a stable position might not be possible for
them. The low cost airline industry might have the ability of managing the Brexit invoked
economic uncertainties.
iii) Social: The organization of Ryan Air is a low-cost airline and as a result and they
hence have a stronger effect over the customers, who strength of this particular airline
company cannot afford high-cost airlines (Jackson, Schuler and Jiang 2014). Moreover, this
particular organization even tries to provide a high level of customer satisfaction, and hence
the customers remain satisfied with every aspect. As a result, the social aspects of the
organization are highly increased (DeCenzo, Robbins and Verhulst 2016).
iv) Technological: Due to the high popularity of the organization, they have to focus
on their technological growth and development (Sparrow, Brewster and Chung 2016). They
have majorly integrated digital channels into different marketing and distribution strategies
for ensuring that the best ideas and strategies are being undertaken on top priority. An
increased dependency on the technology eventually offers the airlines with a major scope for
gaining a deep understanding of customer behaviours after analysis of the customer data to be
shared on digitalized platforms (Chelladurai and Kerwin 2018).

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v) Environmental: One of the major concern of environmental analysis in Ryan Air is
the different heat waves that are caused due to the rising temperatures, affecting the ground
operations temperature (Ryanair SWOT & PESTEL Analysis. 2019). Climate changes are
also affecting the organizational environment.
vi) Legal: Ryan Air has always focused on their rules as well as regulations to make
sure that the decisions are appropriate and would be effective for reaching legal consensus in
the business to a high level (Purce 2014). They have brought innovation in the business,
however have maintained legal aspects eventually.
3. Problem Analysis
People management is the significant effort for helping out employees in doing their
best work, so that it becomes easier in achieving the larger objectives in the company
(Bratton and Gold 2017). Several responsibilities and duties are required to be considered for
people management and 5 distinct categories are needed to be taken into consideration, which
include selection, monitoring, interaction, rewards and finally discipline. When an
organization follows all of these categories, it is evident that better effectiveness would be
gained related to employee satisfaction and management (DeCenzo, Robbins and Verhulst
2016). It is one of the most effective methods for helping to turn the underperforming
employee around and reducing complexities to a high level. The entire concept of this
employee management includes a variety of strategies and processes, which help measure,
monitoring as well as interacting with the entire workforce within the company (Chelladurai
and Kerwin 2018).
Ryan Air has been facing specific issue related to political and economic external
factors, and these are needed to be eradicated on time. Moreover, they are also having a few
internal weaknesses and threats, which are affecting their performances and organizational

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productivity (Ryanair SWOT & PESTEL Analysis. 2019). The issue related to seasonal
earning can be eradicated by involving major effectiveness in people management. When
better productivity and new strategies like entering into Asian and the US markets would be
required, such issues would be resolved successfully (Wilton 2016). Moreover, Ryan Air
should arrange for training sessions of their employees to make sure that they are providing
maximum productivity even in the winter season.
The other weakness of lower frequency of service than the customers could be
eradicated with better recruitment and training sessions would be sufficient for such
situations (Sparrow, Brewster and Chung 2016). For changing the perceptions of customers,
the organization should consider every vital aspect related to customer services. They should
think about the services of their competitors so that better customer satisfaction is being
gained under every circumstance (DeCenzo, Robbins and Verhulst 2016). It would be
possible only after employees would be well trained and engaged in every decision to be
taken for the business. Periodical meetings are required to be organized for understanding the
point of views of every employee in the organization. As a result, transparency would be
maintained amongst the organizational members and every issue related to people
management and employee satisfaction would be eradicated successfully (Mondy and
Martocchio 2016).
4. Conclusion
Hence, a conclusion can be drawn that HRM comprises of several functionalities such
as planning of the human resources, conduction of job analysis, job interviews, selecting and
recruiting appropriate human resources to make sure that better efficacy and efficiency is
obtained under every possible situation. HRM is the significant strategy based approach for
effective control of employees within a company, in such a manner that the business gained

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competitive advantages. The HRM department is responsible to check the design of
employee benefits, performance appraisals, reward management as well as many more. The
entire department of HRM is mainly concerned with people management in the organization
that focuses over systems and even policies.
It even concerns about industrial relations and organizational changes. Ryan Air is
one of the most significant and vital airline companies in the entire world, has always
emphasized on the variety of new ideas and strategies for maintaining new balances between
organizational practices and employees in the most effective manner. This report has
analysed the detailed description of the airline company, called Ryan Air, after focusing over
the internal as well as external environment and providing appropriate recommendations for
managing people in the company.
5. Recommendations
Suitable recommendations to Ryan Air for resolving their issue related to people
management, as identified in the internal and external environmental analyses are as follows:
i) Employee Engagement and Communication: The first and the foremost
recommendation for Ryan Air to resolve the issue associated to people management would be
employee engagement and communication. The organization should arrange for periodical
meetings and hence ensuring that every employee is engaged and included in the discussion
for every decision taken by them. It would allow them to feel engaged and provide suitable
solutions for all types of issues and complexities. Moreover, they would be able to share their
point of views, and the company would understand their employees in the most effective
manner.
ii) Arranging Training Sessions: The next suitable recommendation for Ryan Air to
resolve the issue associated with people management would be arranging training sessions for

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the employees. If any type of change is being implemented in the company, it is essential and
significant to attend training programs, for clearing all kinds of doubts and issues effectively.
It would also reduce the complexities for the company as the employees would be giving
better production to the company.
The action plan for implementing these two above mentioned recommendations is provided
below:
Actions to be taken Cost of the
Action
The timescale for
implementing the action
The priority of
the action
Employee engagement and
communication (Meetings)
1 million
euros
1 to 3 months 1st priority
Arranging training
sessions
3 million
euros
4 to 6 months 2nd priority