Analyzing Ryanair's Organizational Structure and Culture

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ORGANIZATION BEHAVIOR

Table of Contents
INTRODUCTION............................................................................................................................. 2
LO1.................................................................................................................................................3
P1............................................................................................................................................... 3
LO2.................................................................................................................................................7
P2............................................................................................................................................... 7
LO3............................................................................................................................................... 11
P3............................................................................................................................................. 11
LO4............................................................................................................................................... 14
P4............................................................................................................................................. 14
CONCLUSION............................................................................................................................... 17
REFERENCES.................................................................................................................................18

INTRODUCTION
Organization behavior is one of the most important elements of the business which is helpful in
managing the business structure, culture and performance (Al-Hussami et al., 2018). The
organization behavior is made with the behavior and performance of the employees and
management of the business. This assignment will be discussing the different elements of
organizational behavior and it impacts on the performance of the overall business. The different
theories and concepts will be discussing in the assignment which will be helpful in managing the
organizational behavior of a company.
For understanding the concept and benefits of organization behavior the report is choosing
Ryanair. Ryanair was set up in 1984 and initially was not very successful (Blowers, 2017). A
major shift in strategy in the 1990s saw it establish itself as the first European airline to adopt a
low fares, low cost approach. As per the data of 201 the estimated revenue and operating
income of the company is €7.151 billion and €1.667 billion respectively. There are around
13,000 employees are working with Ryanair. The different concepts and models of organization
behavior will be discussed in the assignment (Campbell, 2015).

LO1
P1
The performance of employees, team and organization got impacted by many elements. It has
been observed that the power, politics, roles and responsibilities are the most affecting
elements which highly impact the performance of the whole organization and individual as well
(Chadwick and Raver, 2015). The power and politics highly impact the sustainability of the
organization that can control the growth of the business. These are the most powerful
elements which impacts the growth of the organization.
The Smith Review is one of the most effective source by which the power, politics and other
essential factors which impact the organization can be analyzed. The Handy’s cultural model is
an effective tool which is helpful in analyzing the factors which impact the culture of the
organization (Cooper, 2015). Ryanair is using this model to know the impact of politics, power,
role, and tasks on the business activities of the organization
Handy's Cultural Typology
Figure- Handy's Cultural Typology

(Source- A Level, 2013)
Power Culture
Power culture is a type of culture in which power is assigned to a person for taking essential
decisions of the business (Duradoni and Di Fabio, 2019). The employees need to assure that
they will not use the power as advantage otherwise the power will be resolved. The power
culture is really hard to manage. It has been observed that the conflicts and chances of
problems between the employees are high in the power culture. The leader knows how to
manage the task and team so that the power culture can be really beneficial for the
organization’s growth.
Task Culture
Task culture is a type of culture in which the tasks are assigned to the peoples according to their
abilities and skills (Fiedler, 2015). This is the culture which is followed by much organization
where all the employees manage the work according to their capacity. The targets and tasks are
assigned by the manager. This has been observed that the task culture is really helpful in
managing coordination and communication between the employees.
Person Culture
In the person culture the responsibilities are assigned to an individual. A specific task is assigned
to a specific individual who is capable to do that work accurately (Forsyth, 2018). The person
culture only concentrates on one person which can bring conflicts in the organization. In this
culture all the employees need to follow the rules and policies which are made by that person
who is assigned the task to manage the whole team.
Role Culture
The role culture is easy and effective culture which is followed by Ryanair. It is helpful in
enhancing the communication and coordination between the employees by which the
organization can attain their goals successfully. In the role culture the management assigns the
roles to the peoples according to their capacity (Gilmore et al., 2015). It has been observed that

the role culture positively influence the success and growth of the organization. Ryanair is
following the role culture in the organization to manage the business activities.
Impact of Power & Politic in Ryanair
It has been observed that the power and politics highly impacts the organizational functions
and business activities of Ryanair (Harding, 2017). The employees are assigned with the
different responsibilities according to their capacity and skills. This has been evaluated that the
Ryanair is following the role culture where every employees is completing their responsibilities
for attaining the overall goals of the organization.
French and Raven’s Theory of Power
According to this theory the behavior of employees got affected by the power and policies in
the workplace. The impact on the performance of employees impacts the performance of
whole organization which is really risky for the organization. Ryanair wants to enhance their
area of working for which they need to manage the politics and power (Gilmore et al., 2015). As
per this model there are different types of power which are described as under:
Coercive Power
This is the power in which an individual say the things very clearly. The people who belong to
straight forward nature mainly adopt this power. This power is helpful in giving right treatment
to the employees (Hermann and Pagé, 2016). The leader punish the employee who don not
complete the responsibility and provide rewards to the employees for their performance and
hard work.
Reward Power
The reward power is really helpful in providing motivation to the employee for their hard work
and efforts. The main aim of adopting this power is to encourage the employees for work. The
rewards can be provided in the form of monitory or non-monitory benefits. Ryanair use the
reward power of for encouraging the employees who put extra efforts for attaining the overall
goals of the company (Hillson and Murray-Webster, 2017).

Legitimate Power
This is the power which is helpful in giving punishment to the employees for this misbehavior.
The leader has the right to fire the employees who are not doing their work properly (Harding,
2017). This power demotivates the employees from their work so that this should be use very
carefully as per the situation.
Referent Power
This power is really helpful in managing healthy working environment in the organization. The
main aim of using this power is to develop interaction and strong relationship between the
employees by which they can work with coordination.
Expert Power
The expert power is given to very few people who have extra skills and abilities. This power is
given to an expert who can take right decisions at the right time (Hillson and Murray-Webster,
2017). The leader or expert analyze the behavior of the employees and give them treatment
accordingly.
Thus, these are the different powers which can be helpful in managing the business activities
and team performance in the organization.

LO2
P2
Employee relations within Ryanair has been a major concern in recent years and resulted in
strike action on a number of occasions. In addition to this, customer satisfaction levels remain
poor (Kanfer and Chen, 2016). The company is facing a lot of problems and issues because of
the poor employee relations and performance. The airline is facing lot of issues in providing
satisfactory services to the customers by which the rating and feedbacks of the customers are
coming really negative which can impact the overall performance and growth of the
organization.
It has been observed that there are different types of employees are working in the company
and they all have different abilities and skills. This situation of the organization can be
controlled and managed by improving the performance of the employees (Kim and Park, 2017).
This has been observed that the motivation and encouragement is really helpful for improving
the performance of the employees. Ryanair can use different motivational theories in order to
improve the current situation of the business and it will also helpful in solving the current
issues.
 The main aim of Ryanair is to solve the internal conflicts between the employees who
are working in the organization.
 The company wants to expand their business by using effective strategies and
approaches (Kitchin, 2017).
Importance of Process and Content Theories
The process and content both the theories are really helpful in enhancing the motivation level
of the employees. There are different benefits of both motivation theories. Maslow's
hierarchies of needs, Adam’s Equity Theory, Herzberg’s two-factor theory, Vroom’s Expectancy
Theory are some effective motivational theories which are used by the organization to motivate
their employees (Li and Ahlstrom, 2016).

Maslow’s Hierarchy of Needs
This is an effective motivational theory which will be helpful for enhancing the confidence and
motivation level. Ryanair is facing the problems of employee relation (Ljungholm, 2016). There
is no coordination between the employees because they are not motivated towards their work.
Maslow's Hierarchy of Needs theory will be helpful in fulfilling the needs of the employees by
which they can perform accurately.
Motivation theory is helpful for the organization by which they can improve the performance of
their employees. The company wants to gain the top level position in the industry for which
they need support from their employees (Mannix and Neale, 2014). This theory will be helpful
in giving satisfactory facilities to the employees by which they can enhance their efforts to
maintain their performance.
Figure: Maslow’s Hierarchy of Needs
Source: Cooper, 2015

Herzberg’s Two Factor Theory
The main aim of this theory is to focus on the hygiene factors for managing healthy working
environment in the workplace so that the employees can work comfortably (Meslec and
Curşeu, 2015). Ryanair is facing the work based problem where the employees are not satisfied
with their work so that in this situation the organization can adopt the Two Factor Theory of
Herzberg. As per this theory the management needs to treat all the employees equally. The bias
behavior creates problems between the employees which impact the whole working
environment. Clean food, water, workplace, and atmosphere are the basic needs of the
employees which must be fulfilled to resolve the problems.
Figure: Herzberg’s Two Factor Theory
Source: Kim and Park, 2017
Vroom’s Expectancy Theory
Vroom’s Expectancy Theory is helpful in managing the behavior of a team and enhances the
capacity of team members so that they can attain the organizational goals successfully (Meslec
and Curşeu, 2015). Ryanair is facing the issues at the workplace because of the conflicts
between the employees. It would be helpful in improving the situation at the workplace by

resolving conflicts between the employees. Vroom’s Expectancy theory mainly concentrates on
three elements which are: Expectancy, Instrumentality and Valence.
Figure: Vroom’s Expectancy Theory
(Source: Hermann and Pagé, 2016)
Thus, these motivational theirs can be helpful in enhancing motivation level and confidence of
the employees the management of the company can use these theories according to the
situations of the business (Müller and Labaronne, 2018).

LO3
P3
There are different teams are working in Ryanair with their different targets and perspectives.
Teamwork is one of the most effective element by which the organization can attain success
and growth in the organization (Platt et al., 2017). Effective team can be really beneficial in
gaining competitive advantages and opportunities by which the profitability of the organization
can be enhanced.
There are some features of an effective team which are presented below:
 The team members need to be honest, hardworking, capable and enough skills to attain
the overall goals of the team.
 An effective team has proper communication and coordination to attain the desired
objectives.
 Team members should share their views and opinions to take accurate decisions for the
organization.
 The team should maintain discipline in the workplace in order to manage effective
relations with the other team members and employees.
 The team members should follow all the rules and policies for managing healthy
working environment in the organization (Raes et al., 2015).
 They need to take part in the process of decision making and must give innovative and
different suggestions so that the company can achieve success in the business.
 The effective team can be really helpful for Ryanair to attain their objectives and
maintain their string brand image in the industry.
This is the responsibility of management of Ryanair to develop and manage effective team in
the organization. The manager should analyze the performance and actions of employees and
give them work and tasks according to their skills.
An ineffective group can be recognized by these elements such as: