Report: Organizational Behaviour Analysis of Ryanair's Culture

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This report provides an in-depth analysis of Ryanair's organizational behavior, focusing on its culture, power dynamics, and their impact on the company's performance and employee behavior. The report begins with an introduction to Ryanair, its structure, and subsidiaries, then dives into an examination of its organizational culture, influenced heavily by O'Leary, applying Handy's model to assess power distribution and cooperation levels. It evaluates the impacts of this culture, including stakeholder satisfaction and employee issues. The report then assesses process and content theories, specifically Maslow's theory, to enhance team performance and success rates. It explores the application of various team types, including Belbin's theory and the path-goal theory, to resolve emerging issues within Ryanair. Finally, the report identifies barriers to implementing new firms in the global market, offering a comprehensive overview of organizational behavior within the airline industry. The report also discusses political behavior and how the manager's behavior affects the organization.
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Organizational Behaviour
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Table of Contents
INTRODUCTION..........................................................................................................................................................3
TASK 1...........................................................................................................................................................................3
a) Organisation culture - ...........................................................................................................................................3
Impact of these culture on Ryanair............................................................................................................................5
By start with the low cost airline there was a new concept is developed that is of low fares the whole industry is
revolutionised again. Companies created average to go with low budget airline industry. The second impact on
the organisation is that stakeholder of company like customer are not satisfied because if a flight is cancelled
than the company did not return the fare because they already charged low price from their customer. Employees
are facing regular problems because of union strike. Employees have to faced the monetary problems because
pays are not provided to them on regular basis. This problems dis-motivated the employees and reduce their
productivity. So this result that companies performance will came down and employees face negative
environment in the inside the company. ...................................................................................................................5
TASK 2 ..........................................................................................................................................................................6
a) Evaluate Process and Content theory to raise effectiveness in team performance as well as success rate of
Ryanair. ....................................................................................................................................................................6
TASK 3...........................................................................................................................................................................8
a) Explain various teams to resolve the emerging issues in Ryanair and how they are important in firm’s success.
.................................................................................................................................................................................10
b) Belbin theory has nine clusters which are as follows:........................................................................................11
c) Path goal theory...................................................................................................................................................13
d) Barriers in implementing new firm in the global market. ..................................................................................14
CONCLUSION: ...........................................................................................................................................................14
REFERENCES..............................................................................................................................................................16
2 ....................................................................................................................................................................................16
3 ....................................................................................................................................................................................16
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INTRODUCTION
The term organizational behaviour can be explained as studying of human behaviour in
firm setting, the interface between human resource and organization. Ryanair is an
Irish low cost airline founded in the year 1984. There are 13,000 employees working
globally. It's total net income is €1.145 bilion and it's fleet size is 439. Firm slogans is
Low fares, made simple. It's revenue €7.151 billion. It's website is www.ryanair. It is
located in Dublin, Ireland. The subsidiaries offered to the customers by the airline
company are Ryanair sun, Ryanair Limited, Laudamotion and more. This report
overview on culture, power and how does it affect the functioning of the Ryanair
company. This company will further help in understanding the organisational culture and
its impact of companies. Other than this content and process theory will also be
discussed to measure the and success rate. Barrier in implementing new firms in global
market will also be analysed. (Aithal and Kumar, 2016).
You have provided too brief introduction to Ryanair. Mention its sector, how
it has developed. You could also be discussed where it is today.their
statistics, turnover, employees.
TASK 1
Too brief explanations and definitions, please explain more detailed
a) Organisation culture -
It is known as experience, expectation and value that a company has been following. In
these company tell there members that how to behave with the outside world. Culture
can also be shared with attitude, belief, custom, that the members of a company believe
in. Organisation culture has been developed in companies as their belief and value
become valid as time spent by the members in the organisation. Ryanir culture is very
much influenced by O'Leary. It is focusing on strengthening the notion of the corporate
culture in the global market. It is covering emotional, cognitive and behavioural culture
of people so that growth and expansion can be done globally. While attempting
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corporate culture airline company the former analogy has become more prominent.
Ryanair corporate culture is focusing more on airline company which is based in Ireland
and are representing Irish culture, reliable, organize etc.
Ryanair airlines apply Handy model of organisational culture:
In handy model there are two dimension first is of power distribution and other is of level
of cooperation. Power distribution refer how the top management is working from top to
bottom or down to up approach like the owner is only a person who take the decision in
any business and other is level of cooperation which describe the cooperation between
various departments like cooperation between finance and hr department. These both
dimension have four sub parts. First is role culture which is applied in bureaucratic
organisation and their employees are job oriented like they want security and stability of
their job as much as possible. With apply of role culture Ryanair can reduce their
employee turnover by providing there employees job security. Second is power culture
that refer all entrepreneurial decision lies in the hands of top management like in small
business or organization. Third is person culture which is followed by professional
companies in person culture employees have complete freedom because these
employees are highly educated and are expertin their work. Last is task culture in these
organization will follow companies project and are more focused towards result. In task
culture power is distributed equally and their employees have a problem solving
oriented approach. Ryanair should apply task culture because there is already a conflict
between employee union of Ryanair and top management so task culture help the
company in completion of their work and employees are also benefited as now they
authority and responsibility to take decision and they can find more solutions of their
problem which create barrier in their work.
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Impact of these culture on Ryanair.
By start with the low cost airline there was a new concept is developed that is of low
fares the whole industry is revolutionised again. Companies created average to go with
low budget airline industry. The second impact on the organisation is that stakeholder of
company like customer are not satisfied because if a flight is cancelled than the
company did not return the fare because they already charged low price from their
customer. Employees are facing regular problems because of union strike. Employees
have to faced the monetary problems because pays are not provided to them on
regular basis. This problems dis-motivated the employees and reduce their productivity.
So this result that companies performance will came down and employees face
negative environment in the inside the company.
Power - it refer that each individual has the power to discuss about his view and to take
their own decision. Power can help a person to do a action with his concerion.
(Alvesson and Sveningsson, 2015). A powerful individual has the ability to tell other
person that how to behave in the society, like in professional world employees should
follow the norms of office. Example in office a employee has to follow the order of his
superior. Ryanair airlines can use the power which is suggest by French and Raven in
which there are five forms. First is coercive power like in these a person is forced to
complete the task against his will. Second is reward power in this a person is awarded
to complete the work. Third is legitimate power which include the punishment and
reward policy. It is very complex because legitimate power can be easily overcome
when a person loses his position. Fourth is referent power in easy words it is describe
as the power which is held by celebrity they have may be society's role model or people
will follow them because of their charm. Last is expert power which can be applied by
Ryanair airlines like they have in-depth information they can employ those employee
which are expert in their field as mentioned above in culture already as well as also in
French and Raven power. The expert power help the company to complete the work
and project with in a particular time. Employees of Ryanair are also comfortable with the
expert power because now employee have power to complete the task as per their
comfort. So in expert power employee have more freedom which increase the
productivity of their work.
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You have Provided a brief definition of political behavior and how this
affects an organization. You could further cite relevant theory for e.g.
Chanlat. Provide evidence to support this.
Political behaviour- It is very difficult to understand the political behaviour of a
organization. In these behaviour many persons can be influenced by the organization
to protect their company's self-interest and to achieve the goals of company. Political
factors examples are tax policy, trade restrictions, funding grants etc. If Ryanair follow
governing bodies norms, policies, rules and regulations then smooth functioning of
business can be carried out easily. There will be government interventions and brand
image can be created in the eyes of the customers. As company is operating in
Eurozone countries the political climate of this region is peaceful and good for business
and enables ongoing operations. Characteristic of effective manager behaviour:
Manager must have to be confident like they must believe in their own strength.
They should forecast or predict the growth for upcoming future.
To create transparent policy and communicate these rules from bottom to top
level.
Divide the policy as per equal responsibility and authority so an employee cannot
confused to delegate the work to also monitor the work regularly.
How the culture you identified in (a) have affected the feelings and
behavior of staff and ultimately the performance of Ryanair.
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TASK 2
a) Evaluate Process and Content theory to raise effectiveness in team performance as
well as success rate of Ryanair.
1
Content Theory: This theory explains why human needs, demands and
preferences gets changed with the time duration accordingly. There are various types of
motivation theories but the firm Ryanair is using Maslow theory to improve the team
performance and expansion of business at global stage which is explained as follows:
Physiological Needs: It includes the basic needs like (food, water, shelter, cloths) for
this fulfilment every individual work day and night. If Ryanair is able to fulfil the basic
needs than effective employees will retain in the firm for long duration and better
outcomes can be seen. If this needs are fulfilled they individual will work more effectively
and efficiently so that goals can be meet on time. Ryanair is able to meet the needs of it's team
then effective employees can be retained for longer time duration.
Safety Needs: It includes (protection, security of job, financial security, absence of
violence) and if Ryanair firm provides safe environment to its employees and ensure
them the sense of safety regarding jobs and finance it will indirectly lead to more
effective results as well as employees turnover can be reduced to a large extent. Rynair
employees will be giving productive results when the employees will be assured job and
health security. When team and individuals are satisfied with the safety needs then
productivity level of the employees will be raised automatically.
Belongingness Needs: Ryanair should ensure employees that they are the part of the
business and all the staff are their friends and family members. It directly leads to raise
productivity of employees and customers needs can be satisfied accordingly. Ryanair
shows love and belongingness to it's team and individuals then staff members will retain
for longer time period and effective results can be seen in short time period.
Esteem needs: In companies point of view this has been divided into two parts internal
(prizes, promotions, awards etc.) and external motivator which push the employees to
work more efficiently to meet the set targets on time (Higher Education. Ryanair should
motivate it's employees by monetary or non monetary incentives soi that set standards
can be meet on time. Timely encouraging the employees leads to more productivity in
the business and chances of growth increases in the competitive market.
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Chmiel and Sverke, 2017).
Self actualization: In this case employees of the Ryanair actually realize what they
wanted to do in all this year. It helps the employees to realize the apex potential one is
holding in oneself so whole corporation by aligning themselves with a mission or targets
that extends beyond generating profits.
Process theory: This theory explains the methods or ideas how an individual
can change themselves and get developed. Its focus is on understanding the way
something happened. Process theory also emphasises on psychological process and
behavioural process which help in motivating people. Individual's need influence their
behaviour and it support findings and observations. By using this theory in Ryanair
company they can changes themselves within as well as employees can be changed which will
lead to productive results. It also focus on psychological process and behavioural process which
helps Ryanair organization to motivates it's employees so that effective results can be obtained.
Vroom's Expectancy Theory: It is important and essential theory which will help an
organisation to motivate their employees. This theory also help them to retain
employees for long time in the organisation.
Apply at least one content theory and one process theory of motivation to
Ryanair
Relate your answer to both individual and team performance and how this
will help the organization to succeed?
Avoid simply describing the models/theories! Be more specific applying
them towards Ryanair
TASK 3
Identify and explain the different types of teams which operate within
Ryanair (i.e. functional, problem-solving, project and virtual teams) and why
this range of teams is important to the success of the organization.
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Explain briefly, the importance of effective team working in organizations
today.
Cover each team type: functional; problem-solving; project; virtual
Applied your coverage of team types to Ryanair
Brought the coverage of team types together to explain why all of these
types of teams are important to Ryanair.
Using relevant team theory, such as Belbin’s team types and Tuckman and
Jensen’s group development models, analyze what would make the teams
at Ryanair more effective.
Introduced this section with detailed coverage of why it is important to have
effective teams/groups in the workplace.
Analyze how the application of Belbin’s and Tuckman and Jensen’s work
(and/or the work of other researchers) could improve team effectiveness in
Ryanair? (to do this you need to consider what is behind both of these
models and then you can address the question)
Provide examples as to how the models would make a difference.
Evaluate how the use of path-goal theory could improve team performance
and productivity in Ryanair.
You have too briefly provided a cited definition of path-goal theory?
You should apply the elements within the module to evaluate how these
could improve performance and productivity.
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You should provide evidence back to what currently happens in Ryanair, to
demonstrate how this model could help?
Identify and explain what you think will be the main barriers to
implementing a new organizational structure in Ryanair?
You have clearly identified a number of barriers.
You should relate these barriers to relevant theory – e.g. resistance to
change, leadership, contingency, organizational culture, communication,
etc.? Note: there is a wide range of theory you could use here, so select
a range that best fits the barriers you are discussing
You should provide evidence from your research of Ryanair as to why
these are barriers
You should link these barriers to the implementation of a new
organizational structure in Ryanair i.e. have you addressed the question?
a) Explain various teams to resolve the emerging issues in Ryanair and how they are
important in firm’s success.
2
Team is a group of people working together for accomplishment of common goals and
objectives of an organisation.
Functional Team: Ryanair firm is using functional team which allot set of activities and
skills to particular department so that smooth functioning can be carried out and
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conflicts can be reduced as proper allotment of work is assigned to different
departments. Importance of this team is that organisation's activities are performed
systematically without any confusions and as a result possibility of confusions, conflicts
and turnover get reduced. Business hires typical team to examine both internal and external
operations of an organization to have more understanding about the customers demand and
preferences. Generally Marketing, Accounting etc. are some of the examples of functional
team.if all this functions effectively in Ryanair then probability ratio can be raised.
Project Team: Project team basically includes members from different functions,
groups and activities for the same project, which help the Ryanair company to
understand the desired needs of the customers from various diversified people. This
leads to generate huge profit from the customers. Importance of this team is that it bring
creativity in their performance because many people are working together for common
goals. Other than this it also build a relationship between departments which create a
friendly environment for their workers and as a result organisation's performance will
improve. Ryaniar project team helps the customers to have smooth and comfort journey
so that they can bind them for longer time duration. Project team find out the main
reason of problem and tries to solve it so that brand images does not hamper and better
services is offered to the customers.
Virtual Team: Ryanair firm faces issues from various geographical locations so to
resolve the issues virtual team is set so that effectiveness of employees does not get
affected and goals can be achieved on time. This team solve the problems with the help
of FAX, emails, video conferencing in order to collaborate. These teams are important
for the company because it help them to reduce their cost or expenses of office space,
real estate, electricity, water etc. this also increases productivity of the organisation and
reduces time consumption. Rynair has virtual team in the organization so that gap
between employer and employees needs to be solved so that effective results can be
found out. It also helps the business associates to retain effective employees for longer
time duration.
The difference between effective team and ineffective team are as follows:
Basis Effective team Ineffective team
Meaning Effective team means a group
of people who work together
to achieve a common goal in
Ineffective team means lacking
behind certain characteristics
which does not allow the team
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positive manner. to function more effectively
and productively.
Listening
In effective team members
listen to each other and a best
idea or solution is generated
by listening carefully.
In effective team staff
members do not listen to each
and ignore the idea and are
over ridden many times.
Decision making In effective team decisions are
made by a form of consensus
in which it assures that
everybody is in general
agreement.
In ineffective team actions are
taken prematurely before the
real action is examined.
Style diversity Effective team uses style
diversity for making the team
success.
Ineffective team does not uses
style diversity so they are
perform ineffectively.
b) Belbin theory has nine clusters which are as follows:
Belbin Team Roles are applied to analysis behavioural strengths and
weaknesses in the workplace of an organisation. Whether resolving conflict, developing
people and fine-tuning high performance. This theory gives the language in order to see
that an individuals and teams communicate as well as work together with better
understanding.
Resource investigator: Firm uses this theory to find innovative ideas to retain
employees in the organization for long duration. (Gupta and Khatri, 2016). Ryanair have
to use this theory to reduce employees turn out ratio and cost cutting can be done.
Rynair uses resource investigator in their organization so that smooth business
operations can be done in the competitive market. It will help the firm to retain effective
employees for longer time duration and cost can be saved.
Teamwork: Ryanair should use the teamwork cluster to achieve targets on time and
more revenue can be generated. The strengths of the team is cooperative, diplomatic
and perceptive which help the firm to capture more share in the market. Having sufficient
teamwork in the airline industry helps the business to serve satisfactory survives to the customers
and is able build positive image for the brand in the eyes of the customers.
Coordinator: Coordination in work helps the organization to flourish in the international
market which helps to create goodwill. Effective employee can be drawn out and
responsibilities can be delegated accordingly to meet the dynamic needs of the
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