Report on Organisational Behaviour at Ryanair Holdings, Europe

This report provides an in-depth analysis of organisational behaviour within Ryanair Holdings, focusing on the influence of culture, politics, and power on individual and team performance. It examines Ryanair's organisational culture through Handy's and Hofstede's models, highlighting the impact of power distance, individualism, and uncertainty avoidance. The report also explores the application of French and Raven's model of power and the effects of political behaviour on employee morale and collaboration. Furthermore, it discusses the use of motivation theories, specifically Herzberg’s Two-Factor Theory and Maslow's Hierarchy of Needs, to improve employee engagement and address recent strikes and deteriorating employer-employee relationships. The study emphasises the importance of team building and applies relevant concepts to enhance the overall organisational environment within Ryanair. Desklib offers similar solved assignments and study resources for students.

Organisational
Behaviour

Contents
INTRODUCTION...........................................................................................................................3
ACTIVITY A...................................................................................................................................3
ACTIVITY 2...................................................................................................................................7
ACTIVITY 3.................................................................................................................................10
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Organisational Behaviour can be defined as a study of group as well as individual
performance within an organisational context and constantly identifies and analyses the current
market trends so that work place environment of the company can improve (Jayakody and
Gamage, 2015). Ryanair Holdings is Europe’s largest Airline Company and recently it has been
in news due to its deteriorating employer employee relationship and inefficient work structure. In
the current report, the influence of culture, politics as well as power in the organisational context
has been analysed and identified and their contribution in individual as well as team performance
will be analysed. Further in this report, motivation theories that can be used in an organisation
will be analysed and linked with individual and team performance again. This report will also
highlight the manner in which tem building can be done in the company and lastly, appropriate
concepts and philosophies will be applied in the organisational context by analysing various
business situations.
ACTIVITY A
Analyse the influence of culture, politics and power on the behavior of other in an organization
context
Organization Culture
Organizational culture is a system of shared assumptions, values, and beliefs, which governs how
people behave in organizations. These shared values have a strong influence on the people in
the organization and dictate how they dress, act, and perform their jobs. Organization culture
has played a very crucial role in improving the performance of Ryanair in the organization.
Culture of organization can be better understood with the help of the different model.
Handy’s Model of organizational culture
As per Handy’s model there are four type of organizational culture which is their in the
organization.
Power Culture: Power culture is the type of culture in which the power of taking and making
decision in the organization used to be taken by just few senior authorities in the
organization. This type of culture was followed by Ryanair as all the key decision in the
organization was taken by the CEO of the organization Michael O’Leary This has helped the
organization in improving the quality of decision in the organization and which has
eventually played crucial role in organizational success for Ryanair
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Role Culture: This type of the culture was found in Ryanair as every employee in the
organization was clear about the role which they have to perform to achieve the
organizational goal. Everyone in the organization was clear about what they have to perform
in the organization which has eventually increased the efficiency of the organization
(Podsakoff, Mackenzieand Podsakoff, 2016).
Task Culture: It is the type of the culture in which all the organization used to form different
teams in the organization and team used to perform the task in the group to achieve the
organizational goal. This culture was followed by the organization from the starting point
itself it eventually increase the efficiency of solution and also invest more than on mind in
the operation which help the company in increasing the flow of idea in the organization.
People culture: In organizations with person cultures, individuals very much see themselves as
unique and superior to the organisation (Osland, Devine and Turner, 2015). The organisation
simply exists in order for people to work. This type of culture was not seen in Ryanair as a
result many employee was also not happy in the organization.
Hofstede's cultural
Hofstede's cultural dimensions theory is a framework which defines cross-cultural
communication developed by Geert Hofstede. This theory elaborate society's culture on the
values of its members, and also how these is related to behavior, using a structure derived
from factor analysis.
This model see’s the culture in six different dimensions
Power Distance Index was high in Ryanair as the power to take decision was just with the CEO
of the organization Michael O’Leary.
Individual versus Collectivism is the relationship in between the different employee this culture
was moderate in the organization as the entire employee used to help each other in carrying
out business operation.
Masculinity versus femininity shows the equality in the role distribution in men and women this
factor was moderate in the organization as organization not used to differentiate between the
employees on basis of gender (Miner, 2015).
Uncertainty avoidance Index is another dimension which sees at ignorance or avoidance level of
the employee in the organization.
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Another two dimension of model does not look at the organization they used to look at national
culture. Name of two dimensions are Long- Versus Short-Term Orientation and Indulgence
Versus Restraint.
Power
Power is the ability to do something or act in a particular way in the organization. Power also
used to influence team behavior and performance of Ryanair employees. In order to analysis
power influence here is select French and raven model of power are as follows:
French and Raven model of Power:
This model was developed by French and Raven in the year 1959 which used to contain 5 power
which used to influence the work of employee in the organization. In total this model used to
show the five power which can influence the work of employee in the organization.
Legitimate Power: This power used to come in the employee when there is a formal belief that
they are having the power to demand someone to work or has the right to make decision in
the organization. This power in Ryanair was enjoyed by CEO of the organization Michael
O’Leary has uses his experience at its best to make decision in the organization which has
helped the company in using the resources available at its best use and helped the company
in improving the performance of the organization (Lăzăroiu, 2015).
Reward power: This is the type of the power which is received by the senior authority who can
give reward to the employee in the organization for the extraordinary performance. This
type of power was only enjoyed by senior authority in the organization. This was the big
reason many employee was having the problem in the organization as they were not able to
get the comfort they are expecting from organization side. Whether it was on the wages side
or whether it was of a extra benefit.
Expert power: It is the type of the power which is received by the individual on the basis of the
skill set which is possessed by the individual. This power was with the Team leader and
manager of the organization on the basis of same they used to influence the work of
different employee in the organization this has helped the organization in keeping the link
between the individual goal and the organizational which has helped the company in
achieving the success in the market.
Referent Power: This is the type of the power which used to enjoy by the individual who are
respected by other employee in the organization. For example: Manager of Ryanair is
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respected by all the employee in the organization so it get easy for him o influence the wok
of the employee as these employee are ready to follow the order of the manager very easily
in the organization.
Coercive Power: It is the type of power which used to come in the individual who believes that
they are having the power to punish anyone in the organization this power used to build the
negative environment in the organization. In Ryanair organization always take a step to
build good working environment in the organization (Kinicki and Fugate, 2017).
In the year 1965 one more power was added in the model by French and Raven to make it six
dimension power model.
Informational Power: This is the type of the power which looks at a person ability to manage the
information in the organization which other are in need of accomplishing. This type of the
power is generally help the organization in getting the competitive advantage in the
organization and drives other employee to take a step more proficient to collect the power
which helps the organization in bringing the séance of competition in the organization which
eventually help the Ryanair in influencing the behavior of employee in positive way.
Chantal’s Characteristics
Political behavior is the subset of Human behavior that involves politics and power. Political
behavior has also played a very vital role in influencing the behavior of the employee in the
organization in both negative and positive way which has impacted the Ryan air in past also.
For example there are many employee including the manager and supervisor in Ryanair who
are having political mindset in the organization they used to create the negative environment
in the organization or try to build the conflict between two employee in the organization for
the sake of getting success in the organization. This sort of activity in the organization used
to create the negative impact in the organization and the team behavior used to change in the
negative ways the entire employee are against each other and are not ready to work together
for achieving the organizational goal.
Political environment in the organization also influence the work and the behavior of employee
in positive way as well. As manager in the organization always try to create situation in the
organization where he drives employee to compete friendly with each other in the
organization. As competition is the best way to bring best out of the employee it helps the
organization in improving the efficiency of the business it also help the organization in
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building the competitive skill in the employee. Manager generally used to motivate the
employee by keeping a sort of reward for the individual to be achieved. This type of political
behavior helps the manager in influencing the team behavior and performance in positive
way. This eventually helps the Ryanair in building the trust factor among the different
employee in the organization (Borkowski, 2016).
ACTIVITY 2
Motivation Theories
Motivated workforce is an essential part in the success of any organization and motivation
basically can be defined as that underlying drive or urge in individuals that pushes them to work
harder and achieve more than what is currently within their reach. Author, Golembiewski,
defines motivation as the degree up to which an individual is ready to pursue a desired set of
goals and objectives that are to be achieved (Motivation Theories, 2016). When the personnel
that is being employed works in a motivated manner, it gets easier to achieve the organisational
goals and objectives. Presently in the Ryanair company, the employer employee relationship are
really deteriorating and there have been n increasing number of strikes which has led to decrease
in the customer satisfaction level with the services provided by the company. In order to improve
the current scenario of the company and facilitate the impending restructuring in the top
management of the company, it is essential to ensure that the employees of the company are with
them and accept the changes that are being implemented in the company.
In order to motivate the employees, there are two major theories of motivation that can be
applied that will improve bother team behaviour as well as individual performance. These are
content theories of motivation and process theories of motivation:
Content Theories: These type of motivation theories address the “what” aspect behind
motivation of an individual i.e. it analyses the internal factors that impact an individual
behaviour (Cassar, Bezzina and Buttigieg, 2017). Some of the major theories categorised under
content theories include Maslow’s need hierarchy theory, Alderfer’s ERG Theory, Herzberg’s
Two factor theory and McCleland’s Theory. Out of these, two major theories that can be linked
back to the individual and team performance on Ryanair Company are Herzberg’s Two factor
theory and Maslow’s Need Hierarchy theory.
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Herzberg’s two factor theory states that there are two major motivational factors, one that
cause satisfaction and the other that cause dissatisfaction. The motivating factors are the
satisfying factors and usually involve things like recognition at the workplace, achievement,
growth etc. And the hygiene factors are the one causing dissatisfaction and these can be
categorised as salary, working conditions, relationship at work place etc. Therefore,
organisations like Ryanair etc. can apply this theory for increasing individual and team
performance in following manner: The individual performance can be improved by giving the
employees regular growth and advancement amongst fixed intervals along with appropriate
recognition and praise. This will motivate them to work harder and affect their peers as well to
achieve the praise and recognition that they are getting. On the other hand team performance can
be improved through Herzberg’s theory as well since while working in team, all are either
satisfied by the work structure or are dissatisfied and this integrity in the basic system helps them
in working in a collaborative manner thus improving their overall output in case they are
satisfied of the work environment (Ali, 2018). The management of Ryanair as well can focus on
individual satisfaction to create team improvement in the performance as well.
Another such theory that can be implemented is Maslow’s Need Hierarchy Theory and
there are 5 stages of an individual’s satisfaction that Maslow has carved, each targeting different
levels of the motivating factors beginning from fulfilment of basic needs and ending at the self
actualisation scale. As each level of the their needs gets satisfied, an individual gets motivated to
achieve the next higher level and thus their performance increase. At Ryanair as well, the strikes
of employees has increased and this depicts that they are not satisfied. In order to resolve this,
the company should identify what are the unmet needs to individual employees and address these
so that their satisfaction level increases and hence their individual performance in the company
gets improved. When their individual performance will improve, they will be able to work in a
more productive manner and collectively the performance of the team on an overall basis will
also improve for the company. When the satisfaction level of employees will be high, the work
culture will be a positive and motivating one, thus improving the overall performance of
Ryanair.
Process Theories: Process Theories on the other hand address the how or why factor and identify
the impact that motivational factors have on an individual’s behaviour. The process theories, as
the name suggest tend to analyse the entire process which creates a motivated tendency in an
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individual and is observed under process theories. There are many motivational theories under
process theories namely Adam’s Equity Theory, Vroom’s Expectancy theory, Porters and Lawler
Model etc. And all these aim to analyse the entire process which leads to motivation in an
individual. Some of these theories that can be used to induce the motivation amongst employees
in Ryanair can be categorised in following manner:
Adam’s Equity Theory of work motivation which purports the basic theory that the amount of
input employees give in their job is related to the satisfaction level derived by them from the
outputs that they receive. This theory states that it is essential to maintain balance and further
specifies a clear process of how motivation can occur. When the employee perceives that the
amount of inputs out by him in the job are less than the probable outputs that he is receiving
from the company, imbalance or inequity occurs causing dissatisfaction in employee (Ayila,
2015). When the input is less than output received from the organisation, the employee tends to
become negligent of the work that is being designated and compromises with the quality of work
as well. On the other hand when the input is in exact balance with the output, both, organisation
as well the employee benefits at this level and performance is at highest level. In Ryanair as well,
the individual needs of the employees must be kept satisfied and they should be fairly and
equitably rewarded on the basis of their performance and contribution towards the duty that are
being assigned to them. When this will be done, there will be a balance between the inputs and
outputs and therefore a satisfied individual will lead to formation of a satisfied team since they
will be integrated in a better manner and work harder to increases their rewards by improving
their performance.
Another such process theory that can be implemented is Vroom’s Expectancy theory of
motivation. This theory states that there is a checklist of certain factors that management should
keep in mind in order to ensure that equilibrium is maintained and further states that the
motivation amongst employees is directly linked with the outcome that they are expecting should
happen. When the outcome is as per their desires, motivation level is higher and when it is not as
per their desire, the motivation tends to be minimised.
Motivation (M) = Valence (V) x Expectancy (E) is the equation which Vroom gave supporting
his motivational theory. The valence i.e. preference leads to positive motivation when the
outcome is as per their want and perception and leads to negative motivation when it is not as per
their desire (Arbabi and Mehdinezhad, 2015). Ryanair can implement this theory by identifying
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the individual needs and desires of each employee and then addressing them so that employee as
an individual can be kept motivate. Further in order to increase the motivation level of the entire
team as well, the management of the company can identify what are the performance standards
that they intend to achieve and hence rewards employees accordingly based on what they desire
which will improve both team as well as individual performance.
ACTIVITY 3
The company has the specific change over the corporate structure over the next 12
months which with moving the age into small area management team having the overring the for
major airlines subsidiaries. The next for subsidiaries Ryanair DAC, Laudamotion; Ryanair sun
and Ryanair UK. This will have the made which have different functions and the roles of team
within as whole as per via effective communication (Kozlowski. and et.al., 2015). The company
leadership styles along with the involvement staff via effective communication. These makes the
team management effective which makes the increase the trouble in development of
organisation. There is the importance of effective team in company which hep in providing the
better motivation n to employees and enhancing the better team for longer productivity. The
effective teams make the product of synergy to create higher level of productivity. The working
of team performance includes development of both individual and collective product growth
along with coordinate efforts. There is the characteristic of effective team which is more than the
ordinary team which have inclusion of higher level of commitment along with higher degree of
interdependence and interaction . The ineffective team is been identified to be developed in
effective team so that the company should be able to achieve the goal and objective r the
organisation in orient term and avoid more of conflict among team members. For the effective
team formation company should have the establishment of proper Tuckman theory of team
formation od that effective development can take place. As per the tuck man theory the team has
to follow these stages as to to develop an effective team that is the followed by the stage of
forming, storming, norming, performing and adjourning. These are the stage of development of
effective team which will the work done with chairing the organisational goal and objectives.
forming
The first stage is about wen the member meets for the first time that is having the management
as teams member have positive attitude along with being polite and anxious. As the team
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member have the independent thoughts as they are having no bonds with each other and have
clears responsibilities (Hu. and Liden., 2015). The leader has to paly to have positive relationship
among the managers within frequent meetings.
Storming
As the above mention effectiveness in any is drastically to have dropped inn storming stage. As
it is been identified a stage most of the team fails to have proper succession. At this stag in group
decision were not made easily as each member of team want to have their own proper
establishment which might turn out to be difficult for leader or manager to handle. On the other
hand thee is persistent increase in clarity among members along with that cliques and factions
are formed
Norming
. At this level members are required to have compromises to enable a certain process. Are largely
formed which turn to be sign of relief to leaders as roles and responsibilities are been accepted.
Commitment and unity became strong which leads to beg decision along with delegation of
smaller responsibility to individual one. The formation of agreements and consensus develops a
processing style which makes leaders to have style of situational leadership or participative one.
The company Ryanair because of it subdivision of business have to face the issue of norming
stage and attain a maximum balance in organisation.
Performing
The last stage is one where every manger wants his team to be performed. The team urns to be
more strategically aware about the share vison and mission with no interference or participation
of leader. The company turn out to be more focus in achieving goals. On the other had
disagreements take place at the positive spirit in team helps in proper resolving of work. the team
have the process of delegation of task among the team members along with assistance of leaders
regarding some particular task which leads to personal and interpersonal development.
In the above stage there was the major scission regarding the development of the team that the
company Ryanair should have face in the formation of effective yea. On the other hand, when it
comes to the perspective of leadership, the member or the leader should have the proper
implementation of path goal theory in company to have the effective implementation of
leadership. According to this theory leaders is responsible for development of team as per
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satisfaction level, motivation and the performance of followers. There are specifically four types
of the leadership behaviour is there that’s is associated with development of model and
effectiveness of team.
Directive leadership in which the leaders have involvement of of giving instruction to make the
certain rules and regulation which is diversified overlap between behaviours in directive path
goal theory as leaders been classify between transactional and autocratic leadership. This type of
leadership is been followed for dogmatic follower who jus has the acceptance of having
supervisor. on the other the theory contradicts as this theory makes clearance over supervision as
per the respective goals and objectives.
The next is about achievement oriented leadership where the leader is one who have the ste
standard of excellence by the follower who rea demanding for the improvement at continues
level along with exploration of room for the futuristic growth and development this theory turn
out to little complex are applicable to task which is being considered as the ambiguous, complex
and challenging and demanding the team proper attention for success.
Participative leadership which have the involvement of follower allowed for taking participation
in proper decision making along with having the consults with their followers for the further
updates before having any particular decision (Rego and et.al., 2019). As per the path goal
theory there the need for the ideals situation that is required a heavy and contagious positive
work of teams to be highly autonomous and the requirement of quality and clarity of framework
as well as the ambiguous and unstructured task development. In the case pf Ryanair, the
company is having the development of various sub vision, so the leader should have proper
participative leadership for the further development of the organisation.
The last is about being supportive where the leaders have the maximum efforts to provide the
maximum satisfaction and preference of followers who have the need to be promoted and as well
being individual. This is considered as the of being the supportive one in having proper
management a pleasant environment characterized by positive and friendly working
relationships. The leader treats his or her people as equals and acknowledges their status in the
team or organization. The theory is having the applicability over repetitive, unchallenging, and
mundane tasks, as for the workers to have low team spirit, need affiliation, and value human
relationships. Essentially, this behaviour is required among in situations in which tasks or
relationships are psychologically or physically distressing. On the other hand the there can be
12

applicability of the contingency theory which will have the effect of the communication and
other aspects of the applicability and over the challenges that is being faced by the company in
the development of the organisation in major removing aspects. The contingency theory is being
claimed in the company where the organisation is fining no best ways to have the leads in there
respective organising or ro make any particular decision (Cooke. and Hilton, 2015). This is also
based on the internal and external situation which have the application of leadership in their
respective own style. as the organisation has been facing a lot of issues touch a sad customer
dissatisfaction and many more, the company y has taken the decision of having change in
structure as gaining from hieratical to vertical structure. So the company should have the
applicability of the different varsity of culture as to gain the maximum advantage over the
organisation in different aspects.
CONCLUSION
Form the above repost it can be concluded that Ryanair Holdings is Europe’s largest Airline
Company and recently it has been in news due to its deteriorating employer employee
relationship and inefficient work structure. In the current report, the influence of culture, politics
as well as power in the organisational context has been analysed and identified and their
contribution in individual as well as team performance will be analysed.Political behavior has
also played a very vital role in influencing the behavior of the employee in the organization in
both negative and positive way which has impacted the Ryan air in past also.
In order to motivate the employees, there are two major theories of motivation that can be
applied that will improve bother team behaviour as well as individual performance.Therefore,
organisations like Ryanair etc. can apply this theory for increasing individual and team
performance in following manner:
When the employee perceives that the amount of inputs out by him in the job are less than the
probable outputs that he is receiving from the company, imbalance or inequity occurs causing
dissatisfaction in employee. For the effective team formation company should have the
establishment of proper Tuckman theory of team formation od that effective development can
take place. As per the tuck man theory the team has to follow these stages as to to develop an
effective team that is the followed by the stage of forming, storming, norming, performing and
adjourning. The perspective of leadership, the member or the leader should have the proper
13

implementation of path goal theory in company to have the effective implementation of
leadership.
. The theory is having the applicability over repetitive, unchallenging, and mundane tasks, as for
the workers to have low team spirit, need affiliation, and value human relationships.
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