Impact of Organisational Culture on Ryanair's Performance

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Organisational Behaviour
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INTRODUCTION.....................................................................................................................3
TASK 1......................................................................................................................................4
P1, M1 Evaluating the impact of organisational power, politics and culture on team
and individual performance................................................................................................4
TASK 2......................................................................................................................................8
P2, M2 Analysing the content and process theory of motivation that enables in
achieving the organisational goals...................................................................................8
D1.........................................................................................................................................10
TASK 3....................................................................................................................................11
P3, M3 Analysing the characteristics of effective team as opposed to the
ineffective team..................................................................................................................11
TASK 4....................................................................................................................................13
P4, M4 Analysing different philosophies and concepts of organisational behaviour
..............................................................................................................................................13
D2.........................................................................................................................................14
CONCLUSION.......................................................................................................................15
REFERENCES......................................................................................................................16
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INTRODUCTION
Organisation behaviour is the field of study of thinking, attitude and working of the
employees in an organisation. Organisational behaviour is effective for Ryanair in
order to improve its organisational culture to achieve the satisfaction of customers
and employees and attaining the objectives of organisation. In this regards, present
report will aim, to assist the management in analysing different aspects of
organisational behaviour. The report will highlight the impact of organisational power,
politics and culture on team and individual performance of Ryanair. It will also
include the content and process theory of motivation that enables in achieving the
organisational goals. The report will include the characteristics of effective team as
opposed to the ineffective team in Ryanair. Further, report will highlight various
philosophies and concepts of organisation behaviour that are interconnected to each
other.
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TASK 1
P1, M1 Evaluating the impact of organisational power, politics and culture on team
and individual performance
Organisational Culture: The culture of an organisation can be termed as their
credence, standards, theories, merit worth their efficacy, behaviour, presumptions
and their work ethics and their outlook towards the worlds view school of thought that
help bind and bring together its main focus shared by the co workers. In a simple
form organisation culture can be defined as a bundle of likewise thoughts shared by
all the colleagues.
Organisational culture us basic idea in business management and it’s likewise
studies that helps to elucidate the efficacy, work behaviour and ethics of the
organisation in a more effective manner. The organisational culture is built on the
theory that it helps the co-workers or colleagues to connect with each other on a
more common platform by guiding them in a common direction (Stachová, Stacho
and Bartáková, 2015). It also mirrors the explicate policies thus bringing more
positive results and improving relationships between co-workers and finally getting
better returns for the organisation.
Related to this, Charles Handy explained the organisational culture as four types
which are presented below:
Power culture: Power culture underlines the fact that there are a selected number of
people in the business entity who have the power to have an impact on other
workers throughout the business activity. These employees are the one who decide
the rules and regulations that are to be implied upon. The workers are judged upon
by this guideline set for them and their achievements.
Role culture: In role culture the responsibilities given to an individual is according to
the role he is given or his designation in the organisation. The rules for a particular
role are pre set and a person has to excel within the bounds set for the particular
role. Though the risk factor is low for the employee and his power to make or take
decisions is limited, but they do have their authority within their given roles.
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Task culture: Task culture is more suitable for those organisations where the work
is divided between members and teams are formed so that they have multiple
sources of skills and creativity. In this form of culture the power is never on one
individual as it’s always a team project, and the power shifts according to the status
and role a person’s plays in their respective teams. The better the person, the more
power is automatically given to him on the basis of his work ethics, his creativity to
derive work from other members of this team.
Person culture: In this form of work the workers within the business entity are given
more preference according to their work status and they individually hold power
(Kokt and Ramarumo, 2015). In this culture a person mainly works for his own
benefits trying to excel his position in the organisation for more better facilities for
himself rather than for just the organisation thus in some cases it can prove drastic
for the firm as the person focuses mainly on his growth.
Culture of Ryanair
Ryanair’s organisation has power culture from the very starting of organisation’s
foundation. Ton Ryan is the head and is responsible for the operations. Then, anew
CEO has been appointed named O’Leary, who taken the central role in organisation.
For the rapid growth of the organisation, management has introduced flatter
structure in organisation. In order to avoid protocol more employees have been
recruited which includes different job roles like pilots, engineers so that the
potentiality of organisation can be increased in more efficient manner.
The success of organisation culture of Ryanair can be determined through its
influence on its stakeholders and on workplace. The culture of Ryanair is depend on
offering lower cost services to customers and has powers culture to set standard
across the Europe. It makes the organisation to make a profitable image in market
through providing lower cost services. However, low-cost service decision was not
effective much ands affects the customers as well as the employees of organisation.
The strategy leads to dissatisfaction among customers and employees as the
enterprise is enable to offer any new services (Gupta and Banerjee, 2016). This
strategy leads to increase the labour turnover ratio as employees were not happy
with the management’s decisions related to the services. Ryanair were among the
worst organisation because of its relationship with employees and customers. It
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leads them to become of the most disputable organisation and received most
criticism that leads to disrupt its image in industry. It leads the CEO to identify that in
order to lie back in marketplace an effective strategy needs to be made in order to
provide satisfaction to both workers and consumers.
Power Influence
Power in an organisation can be termed as the authority that has given to an
individual can be a manager and leader in order to manage and control the business
activity and performance of the employees. These leaders and managers in Ryanair
are authorised to take decisions and delegate the task to subordinates in order to
accomplish the task. Power culture is essential in workplace when used positively to
motivate the employees to enhance productivity and work better for attaining goals.
In contrary to that, negative power use in organisation will leads to threatening the
employees that leads to negative impact on the performance of the employees.
French and Raven’s types of power
It is the five form of power theory which is described by French and Raven. Coercive
power is forcing or threatening someone to do a task against their will. Rewards
power involves the ability of employees to perform better by rewarding them in
achieving good results (Reb and Atkins, 2015). Legitimate power is used by the
position in workplace that includes both rewards and punishment, Referent power is
related to the a leader becoming a role model for the employees and information
power relies on the person and expert power is based on the abilities and qualities of
a person in organisation.
In Ryanair, expert power is being used in order to manage the business activities
with the skills and knowledge of the leader or manager. In hierarchy organisational
structure the expert power has both positive and negative impact as it depends on
effective communication, trust between the management and employees.
Political Influence
Politics in workplace can be termed as the process and behaviours in which
employees interact with each other involving power and authority. Politics in
organisation can influence the internal environment that can have both positive and
negative impact on employees and the organisational behaviour. Using the politics in
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positive way will assist in effective network which makes management easy to pass
any command and news to the employees. However, negative politics will leads to
create negative workplace environment, managers can misuse their power and be
biased to their favourite employees. It will lead to lower down the morals of the
employees which affect their productivity.
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TASK 2
P2, M2 Analysing the content and process theory of motivation that enables in
achieving the organisational goals.
Motivation: It can be referred as a process of influencing people through stimulating
their desire to work in order to attain their goals and objectives. Management of
organisation motivate their employees in order to perform so that the goals of
organisation can be efficient manner. There are various factors which influence and
motivate employees to effectively become loyal towards the roles and responsibility
of their job role in organisation.
Employee motivation is utter essential to be considered by the management of
Ryanair. It is important to motivate the employees, staff and workers of organisation
to perform as per the standard to attain the goals and aim of customer satisfaction,
profitability and increased productivity of organisation.
Intrinsic and Extrinsic motivation
There are two techniques of motivating en employee, intrinsic and extrinsic
motivation. Intrinsic motivation insists on the behaviour that comes from within the
person. Where, extrinsic motivation refers the desire of working and performing a
task comes from the outside source.
Content theory: Content theory simply defines all those factors which lead to
motivate an individual. It is concerned with the needs and goals of the person (Jorna,
2017). As per the content theory human needs are changed with time and there are
several factors which assist in motivating them.
Process theory: This theory emphasised on the psychological forces that affects
motivation along with their basic needs. Such theories are concerned with the
perception of employees in workplace and the way they interpret and understand it.
Comparison of content and process theory: It can be said that both the theories
focuses on motivating en employee to perform their task. However, process theory
emphasised on the behaviour of an employee whereas content theory focus on the
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needs and goals of an individual. Simply, content theory defines what the factors are
and process theory defines how these factors will motivate the employees.
Maslow’s Hierarchy theory: this theory is developed by Abraham Maslow. As per
this theory the needs and desire of individuals are divided in various categories and
prioritised as a pyramid. According to Maslow, a person gets motivated with
achieving his needs such as basic needs, self esteem needs etc.
Goal setting theory: This theory is developed by Edwin Locke, as per this theory
the gaols setting needs to be linked to the task performance of the employees
(Wankhade, Radcliffe and Heath, 2015). It states that proper defining the goals and
specific task which indicates the direction to employee about what needs to be done
and what efforts has to be given.
Application of Maslow theory in Ryanair
Psychological Need: Each person born on this planet has some needs which are
very basic and important which is very important and essential for each living person
such as sleep, water, shelter, food in order to exist and to obtain this an individual
has to work for a living to satisfy the basic needs. The Ryanair should give
appropriate wages to its employees so that they are motivated to work hard and
strive for better performance in bargaining his proper basic need.
Security and safety need: It is an essential need of any human being that he lives
in an atmosphere which provides him safety and security in workplace. It is essential
for Ryanair to provide their workers with a safe and secure environment in all
aspects like health equipment so that the people working feel safe and secure.
Self-actualisation: It is the dream or desire of an employee to achieve the position a
position in organisation with their full potential (Duarte, 2015). The management of
Ryanair should delegate the task or provide opportunity to their employee so that
they perform with their skills and knowledge for their achievement. It is essential to
satisfy the needs successfully.
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Application of Goal setting theory in Ryanair
This theory is effective for the management to understand that in order to enhance
the performance and productivity of employees they should provide the challenging
task. The Ryanair should take decisions and strategies so as to define the goal for
the employees as per the desire of the organisation. It will assist the management to
direct the aim and motivate their employees to perform successfully.
However, the executives of Ryanair have determined the issues related to poor
customer rate, Job dissatisfaction of employees regardless of motivating the
employees. This leads to impact the performance and increasing the labour turnover
ratio which is serious concern for the organisation (Knights and Willmott, 2016). It
can be evaluated that almost 100 pilots are opposing die to disputes among the
administration. It leads to impact around 400 customers that have provided lower
services by organisation.
Various motivation method and techniques should be applied by Ryanair in order to
increase the productivity buy motivating the employees through engaging them,
offering opportunities and supporting feedbacks which will assist in providing quality
services by organisation.
The organisational culture, power and politics are integral part of any organisation
which can have impact on the employees, their performance and productivity of
individual and overall team in Ryanair. Related to this, there are various motivational
techniques and theories are effective for enterprises which assist in controlling the
performance and behaviour of employees and overall team (Bhamra, 2015). Such
motivational methods are very effective in enhancing the employee’s productivity and
providing high quality services to customers that leads to attain the objectives of
Ryanair of customer satisfaction and increase in profit.
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TASK 3
P3, M3 Analysing the characteristics of effective team as opposed to the ineffective
team
There are various teams in an organisation which leads to achieve the goals of
business in efficient manner.
Problem solving team: This team are formed in order to effectively provide solution
related to different issues for a project in Ryanair.
Functional team: These are a group of individual that are experts with different
areas of organisational function and shared common goals. This team are ensuring
the effective working of various units within the organisation.
Effective and ineffective team are different on the basis of some characteristics. This
includes in effective team leaders adopt the style as per the changed situation, there
are open communication and shared healthy relationship among employees (Lee,
Kesebir and Pillutla, 2016). However, an ineffective team is not dedicated towards
their objective, the communication are not effective which leads to conflicts and
disputes.
Team development theory
The team development model is developed by Bruce Tucman. As per the theory
there are five stages in group formation which are:
Figure 1 Team Development theory
Forming: It is the firm stage where employees are gathered from within the
organisation. The goals and task of the team are unaware at this stage, leaders are
required to make effective communication and interact with the team members.
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Storming: the team start forming, team members are aware of the goals but still are
unaware of other team member’s behaviour. The stage is crucial for leader as the
chances if conflicts are high in this stage.
Norming: The team members are start building relationship with each other to
understand each other’s behaviour and forming the team objectives to make
collaboratively. This stage leads to form the effective relationship between the team
members.
Performing: At this stage, the team start working as per the delegated roles and
responsibility with coordination in order to attain the goals of team as per the time
schedule.
Adjourning: It is the last stage which includes dissolving the team as the objective
team formation has been accomplishment.
This model is beneficial for Ryanair in order to implement their new project plan
aligned with objectives. It will assist to accomplish the task by forming effective team
to offer satisfaction to employees and customers through delivering quality services.
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