Ryanair's Organisational Culture and its Impact on Performance

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ORGANISATIONAL BEHAVIOUR
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Executive summary
The concept of organisational behaviour has been termed to be the human behavioural studies
within organisational setting thus creating an interface between the organisations in particular
and the individuals. Regarding Organisational culture, there has been used Handy’s cultural
model, Hofstede's cultural dimension and Deal and Kennedy’s theoretical viewpoint. There has
been used French and raven’s organizational powers with reference to Chantal's characteristics.
Negative behaviours towards stakeholders, such as employees and customers through bad
customer services and rash behaviour has been likely to deplete their organisational culture. The
theoretical viewpoint of Maslow’s depicted security, safety and basic needs of an individual
catering to which can lead to motivation. In theoretical viewpoint of Herzberg's, for Ryanair, the
hygiene factors has been termed as working conditions, remunerations and job securities which
is already negative. Functional team has been referred to having adherence to a single type of
management mainly with the authority of dealing with every ongoing decision making along
with working aspects. The project team in contrary has been adhered to autonomy along with
choice of own task within the team in order to management better companion of targets set. The
Belbin’s team building theory has been implicated by Ryanair regarding any sort of conflicts
management, recruitment, change management, leadership development and coaching. The path
goal theory has been primarily based over the concept of specifying a particular leadership
behaviour or style, being best fitted among their employees and their working environments for
achieving a particular goal.
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Table of Contents
Introduction......................................................................................................................................4
LO1: Analysis of culture, influence and politics on organisational context....................................4
P1: Influence of organisational culture, power and politics on team performance and behaviour
......................................................................................................................................................4
M1: Critical analysis of influence of organisational culture, power and politics on team
performance and behaviour..........................................................................................................6
LO2: Individual and team motivation for achievement of goals set...............................................6
P2: Evaluation of content and process theory for effective goals achievement...........................6
M2: Critical evaluation of behavioural influence through theoretical approaches......................9
D1: Critical evaluation of cultural, political and power relationship affecting team motivation
and performance..............................................................................................................................9
LO3: Cooperation with others.......................................................................................................10
P3: Effective team vs. ineffective team.....................................................................................10
M3: Analysis of team building theories for supporting dynamic cooperation..........................11
LO4: Application of philosophical concepts of organisational behaviour....................................13
P4: Application of organisational philosophical concepts.........................................................13
M4: Exploration and evaluation of organisational behaviour philosophical concepts
influencing in both positive and negative ways.........................................................................14
D2: Critical analysis of team development theories highlighting organisational behaviour
philosophical concepts...................................................................................................................14
Conclusion.....................................................................................................................................15
Reference list.................................................................................................................................16
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Introduction
The concept of organisational behaviour is termed to be the human behavioural studies within
organisational setting thus creating an interface between the organisation in particular and the
individuals. The primary goal stays evident for revitalising the theory of organisation and thus
develops a better conceptualization. In light of this context, the following content would be
highlighting the organisational behaviour within Ryanair, an UK based airline, facing issues of
customer and employee retention with down falling of revenue. The content will be using
theoretical examples to judge over their organisational behaviour with context of motivations and
philosophical approaches. Recommendations would also be given to eliminate any persisting
issue.
LO1: Analysis of culture, influence and politics on organisational context
P1: Influence of organisational culture, power and politics on team performance
and behaviour
Organisational culture
The organisational culture can be accepted through terms of Handy’s cultural model. There are
power, role, tasks and person culture. In terms of such, person culture can be seen evident from
Ryanair, on account of which the organisation stays with just collection of working individuals
with sustaining non adherence to proper mitigation of their solutions. In terms of Hofstede's
cultural dimension, Ryanair is seen on negative cultural scale. Higher power distance along with
low individualisms highlighting poor stakeholder management can be termed to the reason for its
cultural depletion (Burrell and Morgan, 2017).
Focusing over masculinity and poor uncertainty avoidance tends to have negative business
growth for the airline though being low cost. From Deal and Kennedy’s theoretical viewpoint,
the business environment is mainly effective over the cultural aspect (Kitchin, 2017). The
business environment of Ryanair is termed to be with negative through charging of higher fuel
taxations and growth of policies, hampering its business sustainability thus disrupting its
employee management and culture.
Organisational power
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Figure 1: Organisational power
(Source: created by researcher)
The power concept for Ryanair can be dissipated in terms of French and raven’s organizational
powers which are divided into five types namely coercive, reward, legitimate, referent and
expert. In terms of power Ryanair can be contested with coercive and reward powers aspects. In
viewpoint of coercive power, examples can be viewed in form of the airline to be not paying
their cabin crews and pilots their remunerations which staged to their strikes (Which.co.uk,
2019). The coercive nature of the organization tends to deplete their self growth level and thus
staging to reduce their opportunities. The non payment to staffs and no motivation to achieve
their goals can be termed with reward power. Poor rewarding system is followed in the company
and thus leads the organisation to be devoid of competitive advantages.
Organisational politics
The concept of organisational behaviour can be contested in form of Chantal's characteristics.
Ryanair is having management issues and coercive nature of managers where they are found
negative influences on their stakeholders. In view of Chantal’s characteristics, this sort of
behaviours are likely have depletion of organisational structural build up thus limiting Ryanair to
have negative impedance over their success rates and business revenue generation. Negative
behaviours towards stakeholders, such as employees and customers through bad customer
services and rash behaviour are likely to deplete their organisational culture (Bester et al. 2015).
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M1: Critical analysis of influence of organisational culture, power and politics on
team performance and behaviour
The cultural aspects can be dealt with highlights of power and politics which can be together
contested for degradation of Ryanair’s organisational growth and thus sustaining negative
behavioural approaches. In terms of Handy’s approach, the person's culture is seen to have
impedance over the non adherence to company's employees and stakeholders thus leading to
organizational conflicts (Khan et al. 2018). This can be contested favouring the coercive and
non-rewarding nature of managers which is triggering the employees to have sustaining their
turnover levels.
On contrary, from views of Hofstede's model, the company is found with greater masculinity and
lower uncertainty avoidance. Against the person culture, uncertainty avoidance is termed to be
reducing the company’s ability to maintain their customer need fulfilment level which in turn is
leading it to have negative business growth. On other hand, the he organizational strength
depletion also stays evident through highlights on managerial politics. With reference to coercive
nature of managers, internal politics are degrading towards achievement of goals set, not proper
guidance formulation and thus leading to disruption in organisational behavioural
conceptualisation. However, it can also be concerned regarding its macro environment
highlighting growth of fuel taxation rates along with surge of aviation policies, creating
difficulties of business sustainability (Omotayo, 2015).
LO2: Individual and team motivation for achievement of goals set
P2: Evaluation of content and process theory for effective goals achievement
Motivation is termed to be the key to drive foals achievement and in light of this, analysis of
content and process theories of motivation can lead to similar outcomes;
Content theories (Maslow’s, Herzberg’s and Mcclelland's theories);
Maslow’s theory
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Figure 2: Maslow’s theory
(Source: influenced from Osabiya, 2015)
The theoretical viewpoint of Maslow’s depicts, security, safety and basic needs of an individual
catering to which can lead to motivation. In Ryanair, un-planning of basic needs and importer
salary structures were evident to trigger strikes from cabin crews and pilots producing a loss to
40,000 customers (Independent.co.uk, 2019). Here, proper remuneration ends along with self
actualization requirement stays evident for Ryanair employees.
Herzberg’s theory
In theoretical viewpoint of Herzberg's, for Ryanair, the hygiene factors can be termed as working
conditions, remunerations and job securities which is already negative. Strikes and poor
customer satisfaction generates lower revenues thus sustaining less of organisational
development and leading to its depletion in aviation market against competitors such as Thomas
Cook and Easyjet. This can be contested in favour of motivating factors which are hid below the
dissatisfaction factors, for example the turnover of cabin crews (Independent.co.uk, 2019).
Hence turnover rates are higher from employees in Ryanair.
McClelland’s theory
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Figure 3: Mcclelland's theory
(Source: influenced from Sahito and Vaisanen, 2017)
In viewpoint of McClelland’s theory, the employees mainly are in requirement of need of
achievement along with affiliation and power to sustain their growth and to elevate their
company though it's set aims and objectives. According to Osabiya (2015), positive behaviour
from managers with proper salary structures and flexibility can lead to organisational success of
Ryanair.
Process theories (Vroom’s theory and Adams equity model)
Vroom’s expectancy theory
Theoretical viewpoint Vroom states that expectancy of an individual gets triggered when the
effort raises above performance limits. In light of this, Ryanair is in need of identifying their
efforts of their employees and to reward them with suitable assets thus raising their motivation
levels. The rewarding to employees to a particular situation on their achievement would lead to
their motivation and thus make them work in more efficient way (Sahito and Vaisanen, 2017).
Adams equity model
The theoretical viewpoint of Adam’s equity model is with adherence to equitable reward
procurement to the concerned which won't be creating any sort of conflicts among the receivers.
In light of Ryanair, there can be made rewarding on the basis of merits and thus managing
morality among the employees (Saifullah et al. 2015). This would be leading to employees’
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motivation on account of which, goals achievement can be led to higher scales and so
productivity.
M2: Critical evaluation of behavioural influence through theoretical approaches
In theoretical terms of motivational contents, while it sustains to justify the factors required for
motivation, it also creates suitable biases. In case of Ryanair, for example, the Herzberg’s theory
status evident for differentiating their behavioural needs such as positive behaviours from
managers. However, Taylor (2018) states that the changes of motivational factors stays pertinent
to business on high level. In Ryanair, a fresher employee would be viewing job security in form
of hygiene factor while an older employee would be viewing it as an motivator. Hence
motivation scales stays different for each of them thus creating difficulties.
In theoretical terms of motivational processes, though it stays advantageous for highlighting the
process for achieving motivational constraints yet it stays disadvantages though not highlighting
the system differences. With context to Ryanair, process theory stays negative though not
identifying their employees’ exact requirements which are subjective to change on frequent
levels (Urbancova and Vnukova, 2015). The interdependencies factors stay negative through
being less practical. Demands of employees and customers are also supposed to be negative such
as higher rates of remuneration and more in-flight entertainment systems, thus producing them
financial burdens.
D1: Critical evaluation of cultural, political and power relationship affecting
team motivation and performance
There has been found coercive power along with negative political behaviours from managers of
Ryanair against their employees which triggered their turnover rates and fewer adherences to job
satisfaction. This in turn can be adhered to depletion of their motivation against non-listening of
their issues and not being judged over their performance levels (Bakotić, 2016). Such behaviours
are found to trigger demotivation levels thus letting that employees either go on strikes or quit
from Ryanair. This in turn is effective to business as fewer employees led to less fulfilment of
flight operations and less customer services. Behaviour towards customers on account of
Hofstede's cultural model can be leveraged through their person culture. On account of such, the
company only found to cater their employees through their presence and not adhering to any sort
their needs. This in turn leads the crews to have negative behaviours towards their customers
during a flight which in turn depletes positive customer reviews.
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LO3: Cooperation with others
P3: Effective team vs. ineffective team
Ryanair can mainly be with adherence to that of functional teams, problem solving teams, virtual
teams and project teams.
Functional team and problem solving teams
Functional team refers to having adherence to a single type of management mainly with the
authority of dealing with every ongoing decision making along with working aspects. However,
in light of this, management is liable to have authoritarian leadership style which in turn can
motivate the entire team. In light of Ryanair, management is liable to distress their employees
though not listening to their doubts and thus depleting team growth. Here ineffectiveness is in
greatest context in Ryanair. Highlighting such prospects the company requires adherence to their
management in order to have their team follow a specific set of guidelines and to work in a
structured approach so as to have the goals set achieved (Grobler et al. 2016). Here the problem
solving team can be adhered to mitigate any sort of issues regarding goals set achievement and
thus lead the organization get their competitive advantage.
Project and virtual teams
The project team in contrary would be adhering to autonomy along with choice of own task
within the team in order to management better companion of targets set. Teams in Ryanair by
virtue of autonomy can leverage betterment in their motivation levels and thus enhance
productivity. For example, team of customer service department can lead to more efforts in
gaining insights of customers so as to produce them their desired services and procure growth.
As for example the undertaken approach of “Be Nice” campaign has been considered a better
strategy for gaining customer support (Irishtimes.com, 2019). In this regards, there can be taken
concept of virtual team. As opposed to ineffective team aesthetics, a virtual team would be
efficient though having reliance over collaboration tool for managing things correctly. Ryanair
can follow up this strategy through having impedance over the time dimension. Offering working
in shifts to the employees favouring their choice within various different hours can lead to their
satisfaction.
In light of this, a virtual and functional team stays evident for being approached by Ryanair in
order to have their organisational structure growth and thus sustaining competitive advantage
level. In addition, it would also be beneficial to entail motivation level among their employees.
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M3: Analysis of team building theories for supporting dynamic cooperation
Tuckman's theory
Figure 4: Tuckman's theory
(Source: influenced from Burrell and Morgan, 2017)
Forming and storming
Theoretical application of Tuckman’s relies over 4 different strategies namely forming, norming,
storming and performing. Within the forming session, employee teams in Ryanair can be
assembled and be allocated their tasks. This would lead them to have a drastic planning with
information collection regarding the target set (Burrell and Morgan, 2017). A convulsive
bonding is thus expected to form between the employees. The storming session would be to
encourage their suggestions and ideas. Doing such would boost up their confidence level along
with give them their desired recognition. This would be effective to sum up all the doubts and
questions of team thus managing effective planning of solutions.
Norming and performing
Both of this stags would enable the team to have adherence over practising to achieving their set
targets with reference to certain rule and valuation. For example, the Ryanair is subjected to have
negative popularity in customer services. In this regards, a drastic customer research can be
mandated in respect to which several strategies can be divided. Asking the demand of their
customers can lead to their satisfaction which is good for Ryanair (Omotayo, 2015). Thus, more
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