Organisational Behaviour at Ryanair: A Comprehensive Analysis

Desklib provides solved assignments and past papers to help students succeed.

Organisational Behaviour
Ryanair

Table of Contents
INTRODUCTION.........................................................................................................2
TASK – 1.....................................................................................................................3
TASK – 2.....................................................................................................................8
TASK – 3...................................................................................................................12
CONCLUSION.......................................................................................................... 18
REFERENCE LIST................................................................................................... 19
1

INTRODUCTION
Organisational behaviour encompasses the behaviour of the teams and individuals
operating within an organisation (Wood et al., 2013). The organisational behaviour of
an organisation is strongly influenced by the behaviour of individuals and teams
within the organisation and their interrelationship. The understanding of
organisational behaviour facilitates effective management of organisational human
resources and thereby enhance the performance and productivity of teams and
individuals that results in the enhancement of organisational performance and
effectiveness (Wood et al., 2013).
The assignment considers aspects of organisational behaviour in the context of
Ryanair, a UK based low-cost Airline. The first task analyses the impact of Ryanair’s
organisational culture, politics, and power on the staff behaviour and thereby the
organisational performance. The second task evaluates the use of process and
content motivational theories to improve the team and individual performance and
thereby the organisational performance. The third task focuses on the team types at
Ryanair and their importance as well as on the effectiveness of the teams and ways
of making them effective. It also considers the best leadership behaviour suitable for
the effectiveness of Ryanair.
2

TASK – 1
THE ORGANISATIONAL POWER, CULTURE, AND POLITICS AT RYANAIR AND
ITS INFLUENCE ON TEAM AND INDIVIDUAL PERFORMANCE AND
BEHAVIOUR
The organisational culture of an organisation like Ryanair is the amalgamation of its
ideologies, policies, practices, and beliefs. The staff behaviour is directed and
controlled by the combined influence of Organisational power and politics and the
organisational culture (Wood et al., 2013).
Figure 1: Aspects of Organisational Culture (American Councils, 2015)
RYANAIR - THE INFLUENCE OF THE ORGANISATIONAL CULTURE
The external and internal factors are a major source of influence on the
organisational culture of Ryanair. The Theory of Cultural Dimension and
Organisational Culture proposed by Geert Hofstede focus on the influence of the
3

external and internal factors on the organisational culture that results in the Staff
behaviour within the organisation being influenced (Bergiel et al., 2012).
Figure 2: Hofstede’s Cultural Dimension and Organisational Culture Theory
(CorporateFinanceInstitute, 2016)
According to the Hofstede’s Cultural Dimension and Organisational Culture Theory,
there are six dimensions that influence the organisational culture that in turn is
responsible for influencing the staff behaviour of a company like Ryanair. These six
dimensions are Indulge vs. restraint, Uncertainty Avoidance Index, Power Distance
Index, Masculinity vs. Femininity, Long-Term vs. Short Term Orientation, and
Individualism vs. Collectivism (Bergiel et al., 2012).
Indulge vs. Restraint
The Indulge dimension indicates the organisational inclination towards allowing its
employees to have fun and enjoyment while working whereas restraint is the
organisational inclination towards restricting such activities and environment. The
Restraint dimension was evident in the organisational culture of Ryanair that seems
to be evolving towards the Indulge dimension with the establishment of its new
headquarter although the prevalence of the Restraint dimension is still evident
(Bergiel et al., 2012).
Uncertainty Avoidance Index
The reactive ability of a company is the parameter of this dimension. The
conservatism within an organisation makes it incapable of reacting to expected and
unexpected changes in the business environment by accepting and assimilating new
ideas indicates a high Uncertainty Index (Bergiel et al., 2012). The low Uncertainty
Index signifies high acceptance of new ideas and lack of conservatism. Ryanair
4

exhibits low Uncertainty Index since the low-cost market in which it operates doesn't
allow conservatism (Bergiel et al., 2012).
Power Distance Index
The distribution of power in a company is the purview of this dimension. The Power
Distance Index will be high in case of unequal power distribution while it’s low when
the distribution is equal (Bergiel et al., 2012). An organisation like Ryanair has a high
Power Distance Index indicating the decision making to be in the hands of the
management. In low Power Distance Index scenarios, the decision-making process
involves higher staff involvement and participation (Bergiel et al., 2012).
Masculinity vs. Femininity
The presence of attributes like achievement, assertiveness, ambition, and material
possession indicate Masculinity dimension within an organisation. On the other
hand, modesty, cooperation, and compassion are the aspects of the Femininity
dimension (Bergiel et al., 2012). The Masculinity dimension is clearly evident in the
organisational culture of Ryanair where the Masculinity aspects are prevalent within
the organisational culture through such as approach is considered to be bad since it
makes the culture Hard while ideally a mix of Masculinity and Femininity is
considered to be a better approach (Bergiel et al., 2012).
Long-Term vs. Short Term Orientation
This dimension concerns the willingness and tendency of an organisation regarding
change and its level of adaptability. The Short-Term Orientation indicates rigidity and
a traditional outlook within an organisation that makes them unwilling to changes.
The adaptable organisations that welcome changes indicate the Long Term
Orientation. Ryanair has evolved to Long term Orientation after a long haul of Short-
term Orientation that was focused on profitability above all (Bergiel et al., 2012).
Individualism vs. Collectivism
The Individualism or the Collectivism dimension indicates the organisational
approach of working and the internal culture of the organisation. Individualism
dimension is indicated by the minimal interaction between the organisational
functions and firm segregation. The absence of firmly segregated functions and
higher employee participation indicates the Collectivism approach. Ryanair exhibits
an Individualism dimension where the focus on minimising the cost has led to rigid
inter-departmental segregation and individuality within the staff (Bergiel et al., 2012).
It can be summarised that the Hofstede’s dimensions exhibited by Ryanair that affect
its organisational culture are Individualism, Long Term Orientation, Masculinity, low
Power Distance Index, low Uncertainty Index, Restraint. This results in an
organisational culture that’s demotivating to employees and affects their
5

performance and satisfaction levels (Bergiel et al., 2012). This is indicated by a string
of union issues such as the strikes in 2017-2018 and high employee turnover.
RYANAIR - THE INFLUENCE OF POWER
French and Raven proposed the Theory of Power that’s instrumental in balancing
the power distribution within an organisation (Raven, 2017). It suggests five Powers
bases that can be used as the basis of the organisational distribution of Power and
these Power bases are Reward, Coercive, Expert, Legitimate, and Referent
(Lunenburg, 2012).
Reward Power
The association of rewards and performance provides managers with the Reward
Power. The combination of growth and monetary rewards is usually employed by
organisations to exercise this Power (Raven, 2017).
Coercive Power
The Coercive Power precipitates compliance among the staff. The use of powers like
rewards being withheld and punitive actions are a way of exercising Coercive Power
(Lunenburg, 2012).
Expert Power
This Power can be exercised when the managers are more knowledgeable and
skilled than their subordinates. This power stems from the staff's expectation of their
manager being better than them in terms of knowledge and skill set (Raven, 2017).
Legitimate Power
The power investiture is role based with an authority to punish or reward the staff on
the basis of their performance. The type of power makes the staff feel legally obliged
towards the management of the organisation (Lunenburg, 2012).
Referent Power
The Referent Power can only be effectively used by leaders capable of instilling
personal acceptance. Such leaders are considered Role Models from whom the
employees seek approval and relating this approval to staff performance leads to the
enhancement of individual performance levels (Raven, 2017).
Ryanair uses Legitimate and Coercive Power within the organisation leaving the staff
at a disadvantage. Also, the absence of Expert Power due to the placement of
Managers that lack either knowledge and skills or both and it’s a blow to employee
morale. The judicious use of Expert and Reward Power with minimal use of Coercive
6

Power can be instrumental in boosting the employee retention and performance at
Ryanair (Lunenburg, 2012).
RYANAIR - THE INFLUENCE OF POLITICS
The Power bases being utilised and the organisational culture are major influencers
of the political scenario of an organisation. The organisational politics is all about the
usage of power for personal gains instead of the organisational benefit although the
organisational politics can be cultivated in a manner that benefits the organisational
performance (Lunenburg, 2012). The impact of the organisational politics on the
organisational and staff performance is negative except in case of ethical politics.
The organisational politics and political behaviour of the managers may lead to
reduced job satisfaction, high employee turnover, high employee stress, reduced
staff performance, organisational conflicts, etc. Many of the aspects mentioned
above are visible in the case of Ryanair although the management of the Ryanair is
able to keep the company profitable by focusing on the low-cost model (Lunenburg,
2012).
7

TASK – 2
HOW CAN THE CONTENT AND PROCESS THEORIES OF MOTIVATION HELP
RYANAIR SUCCEED BY ENABLING THE TEAM AND INDIVIDUAL
PERFORMANCES?
The principle intent of every organisation is the attainment of its organisational goals
and objectives while retaining and enhancing profitability. This intent is dependent
upon the employee performance that’s influenced strongly by employee motivation
levels (Dinibutun, 2012). The lower level of employee motivation leads to reduced
employee performance and in the long run, failure to achieve the organisational
goals and objectives. Even an organisation like Ryanair is known to be unfriendly to
its employee can only maintain its growth and profitability to an extent on the basis of
minimising the operational cost model. The company needs to focus on enhancing
employee motivation levels especially after an enhanced competition in the low-cost
airfare market (Dinibutun, 2012).
Figure 3: The Content and Process Motivation Theories (BusinessJargons, 2015)
8

The Process and Content Motivation Theories can be a huge help to an organisation
like Ryanair in enhancing the staff motivation and satisfaction level thereby their
performances and loyalty to the company (Dinibutun, 2012). The process and
content theories correspond to two different aspects of organisational motivation.
The content aspect considers the things/factors that enhance the motivation levels
while the process aspect is focused on the required process of improving staff
motivation. So, the content theories addresses ‘what' aspect of motivation and the
Process Motivation Theories addresses the ‘Why and How' aspects of the staff
motivation (Dinibutun, 2012).
CONTENT THEORIES
One of the content Motivational Theories that can facilitate the improvement of staff
motivation at Ryanair is Herzberg's Motivation-Hygiene Theory (Herzberg, 2017).
Herzberg's Motivation-Hygiene Theory
9

Figure 4: Herzberg's Motivation-Hygiene or Two Factor Theory (Iedunote, 2017)
This theory was proposed by Frederick Herzberg and its focus is on the factors
within the work environment that causes dissatisfaction or satisfaction in employees
(Ali, 2013). The Theory suggests that the factors that influence the motivation levels
in a positive manner are known as Motivators while the factors the absence or poor
condition of which causes dissatisfaction and employee discontent leading to
reduced motivation levels of the staff are categorised as Hygiene factors (Herzberg,
2017).
A company like Ryanair can improve by focusing on the Hygiene factors and
maintaining them in a manner that leads to an efficient and motivated staff through
the creation of a happy workplace (Ali, 2013). The Motivation factors can be used as
a tool or basis of recognising, rewarding and promoting employee performance
levels. These steps can facilitate enhanced employee satisfaction and motivation
leading to the efficient performance of the employees and teams (Herzberg, 2017).
PROCESS THEORIES
One of the process Motivational Theories that can facilitate the improvement of staff
motivation at Ryanair is Vroom’s Expectancy Theory (Renko et al., 2012).
Vroom’s Expectancy Theory
The process motivation theory proposed by Victor Vroom Known as the Vroom's
Expectancy Theory focuses on reward-based decision-making. It suggests that an
individual’s decision of making efforts is based upon the potential outcome of these
10

efforts (Renko et al., 2012).
Figure 5: Vroom’s Expectancy Theory (F. Redmond, 2016)
In the case of Ryanair, the rewards need to be at par with the employee expectations
of the outcome of effort put in by them. When the required efforts and the potential
rewards are in proportion it leads to enhanced motivation in the employee towards
putting in efforts to acquire the resulting reward. The theory suggests the variables
Effort (Expectancy), Performance (Instrumentality), and Rewards (Valence) (Renko
et al., 2012).
Figure 6: The Benefits of Higher Staff Motivation (Talexes, 2019)
11