Analysis of Organisational Behaviour and Profitability at Ryanair

This report provides an executive summary and detailed analysis of Ryanair's organisational behaviour, examining its impact on profitability and customer satisfaction. It explores organisational culture, the nature of power and political behaviour within the company, and evaluates the company's culture using Handy's typology. The report delves into content and process theories of motivation, including Maslow's hierarchy and Skinner's reinforcement theory, to address employee motivation and turnover issues. It also examines different types of teams within Ryanair, such as functional, problem-solving, project, and virtual teams, along with the Belbin team role and Tuckman model of team working. Finally, the report assesses the Path-Goal theory and provides recommendations for improving the company's structure, employee satisfaction, and overall performance, including changes in the corporate structure with an emphasis on teamwork.

ORGANISATIONAL
BEHAVIOUR

EXECUTIVE SUMMARY
This present report was based on organisational behaviour of Rynair company and how it
impacts the organisational profitability and customer base. Organisational behaviour is the study
of human behaviour in the organisation setting. It is the way people act and behave in the
organisation. Ryanair company was facing the issues in culture and lack of customer satisfaction
is only because of high pressure on employees from superior authorities. Power system is used
by the managers n wrong way at Ryanair that might influencing the moral of employees and that
result in less customer satisfaction. Ryanair company raise the level of satisfaction of employees
and overcome the issues of staffing and customer satisfaction by applying motivational theories.
Ryanair company is going to bring changes in the corporate structure where they are
emphasizing on team work by constructing following team such as Functional, problem solving,
project and virtual.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
a) Organisational culture and the nature of power and political behaviour of its management..1
b) Evaluation of company culture...............................................................................................4
TASK 2............................................................................................................................................4
a) Content and Process theories of motivation............................................................................4
TASK 3............................................................................................................................................6
a) Types of team in Ryanair organisation...................................................................................6
b) Belbin team role, Tuckman model of team working..............................................................7
c) Path goal theory......................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Organisational behaviour is the study of human behaviour in the organisation setting. It is
the way people act and behave in the organisation. The main goals of organisational behaviour is
to revitalise the theory of organisation as well as develop a better conceptualisation of
organisational life (Warnock-Smith, Cameron and O'Connell, 2018). For smooth functioning of
the organisation it is very important for managers to study the organisational behaviour so that
needs and expectations of all employees could be fulfilled effectively and efficiently. In this
present report, Ryanair company is being chosen for assessment. Ryanair is an Irish cost airline
company which was founded in 1984. Its headquarter is in Dublin, Ireland. Ryanair Holdings
PLC is the parent company of and Ryanair hold largest part of parent company. This present
report will discuss major factors affecting the organisational behaviour by including theories and
models in both positive and negative way.
TASK 1
a) Organisational culture and the nature of power and political behaviour of its management.
ORGANISATIONAL CULTURE: It is defined as the underlying belief, assumptions, values
and ways of interacting which contribute to the unique psychological and social environment of
the company. In order to analyse the culture of Ryanair, Handy typology is one of the best
model which describes the culture of organisation. According to the model, there are mainly four
types of culture that organisations use to follows which are as follows-
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Power: This is one of the element of model which states that in organisation the power
remains in the hand of some people as they are only authorised to take all the decision. These
people enjoys the privilege at workplace. All the roles and responsibilities are delegated by them.
The power culture is good at some extent as sometime it also raise the labour turnover rate in the
organisation because it is very important to involves employees so that they feel motivated and
work in more productive way (Source: Handy Culture Model, 2018). Ryanair company is facing
the issues in culture and lack of customer satisfaction is only because of high pressure on
employees from superior authorities.
Task: This is the culture where team working is emphasised in order to reach the desire
goals and objectives. This is also a best culture of the company as people with common
specialisation and same interest come together and form a team. All team members are allowed
to contribute equally in order to achieve the objectives. Ryanair company is facing issues of lack
of customer satisfaction, it is because task culture is missing or team working is not encourages
by the managers (Huang, Rundle-Thiele and Chen, 2019).
Person: This is one of the worst culture if any organisation followed because it directly
affects the quality of the work. It is a type of culture where employees feel that they are more
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Illustration 1: Handy Culture Model
(Source: Handy Culture Model, 2018)

important than organisation. Employees do not think for organisation as they only work for
earning. Ryanair organisation is facing the lack of customer satisfaction, as it might be happen
that employees are following person culture.
Role: This is one of the best culture which many organisations followed. It is the type of
culture where roles and responsibilities are delegated as per the skills, interest and knowledge of
employees. Along with responsibilities, accountability is also shifted to the person whom the role
is performed. It might be happen that Ryanair is facing the issues of staffing issues and the
reason might be missing of role culture.
POWER CULTURE: It is the culture where power remains in the hand of some people as they
are only authorised to take all the decision. In order to analyse the power culture at Ryanair,
French and Raven concept is best. These people enjoys the privilege at workplace. French &
Raven is one of the best concept to explain the power culture. According to this concept, there
are five forms of power which are as follows-
Coercive Power: This is a type of power which is based on idea of cohesion. Cohesion
means forcing someone to do work. Compliance is the main gaol of this power. As per the
concept of F&R, for compliance, there is another form which could be used in the organisation
called as coercive. This power is related positively with the punitive behaviour as well as
negative related with conditional reward behaviour (Hodges and Mo, 2018). This power system
is used by the managers n wrong way at Ryanair that might influencing the moral of employees
and that result in less customer satisfaction.
Reward Power: This is opposite of role and task culture as use of power, managers
delegate those duties and responsibilities which employees do not wish to do. As per the opinion
of managers, it is positive to reward the employees. This power is also good at some extent but
after some time effectiveness will be lose.
Legitimate Power: Punishment and Rewarding is included in this power. Ryanair
organisation could also follow this by setting the degree of rewarding and punishment to
employees. It is also based on role.
Referent Power: This is one of the best element as leader with this form of power is seen
as the role model. A leader who has referent power often has a good appreciation of there
environment and thus tens to have lot of influence.
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Expert power: This is the power which is based on intelligence, knowledge and
expertise. Leaders are highly concern on fulfilling there responsibilities. This form of power
could solve the issues of Ryanair company like staffing and customer satisfaction issues.
b) Evaluation of company culture.
The culture of Ryanair company is not up to the mark and these are the reason why
company is facing the issues of staffing and poor customer satisfaction. The culture that Ryanair
company is following is not up to the mark as they are following power culture which is
affecting the moral of employees as they are feeling like prisoners in the company. Roles and
responsibilities are not properly assigned which is also one of the issues that is negatively
affecting the performance of organisation as customer satisfaction is declining (Limpanitgul,
Boonchoo and Photiyarach, 2017).
TASK 2
a) Content and Process theories of motivation.
Motivation is driving force that stimulates an individual to initiate and sustain a
behaviour. Motivation of employees is key to success, as it is very important for every
organisation to keep there employees satisfied and motivated. In recent years, Ryanair company
has been major concern and resulted in strike action on a number of occasions. Customer
satisfaction is also poor. So, in order to overcome these issues in Ryanair, there are two
motivational theories which are as follows-
CONTENT THEORY: This is the types of motivational theory that deals states what are the
things which motivate people and it is concerned with the needs and goals of people. Ryanair
company needs to considered what are the things that motivate employees.
Marlow's Hierarchical theory: This is one of the content theory given by Abraham
Maslow in 1940. There are five elements included in this theory that motivates employees as
well as reduced the employee turnover.
Psychological Needs: In included the basic needs of an individual like shelter, food,
clothes and education. It is very important that the salary company is paying should able to
satisfy these basic needs. These are the primary needs as if these needs are not fulfilled it is
impossible to retain employees.
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Safety Needs: Once the basic needs are fulfilled, it is important to fulfils the safety needs
of employees. Employees should feel safe and secure as well as roof over head's working in the
organisation (Guzman and Hæhre, 2018). For example Ryanair could provide, pension, medical
claim, financial security, well-being etc.
Social Needs: This is another need which employees have working with the company.
Employees feels that they have group of friends, love, caring, acceptance, love and
belongingness. If Ryanair have social culture, issues like strikes, lock-outs would be overcome.
Esteem Needs: This is very important need as each employees needs respects, dignity,
achievements, independence, status, prestige and mastery. If employees are boycott and
discriminate it will surely leads to affects the moral of employees. Thus, Ryanair should have
culture that provides respects and dignity to employees.
Self-Actualisation Needs: This is the top needs in the arch of this model as it means
every employees have desire to become the most that one can. There should be growth
opportunities for employees if company wants to retain there employees. To overcome the issues
of staffing and strikes, Ryanair could provide growth opportunities to employee's.
Advantages and Disadvantage of Maslow Theory
Advantages Disadvantage
The application of this theory is very easy and
simple.
It could satisfy all types of expectations of
employees working within organisation.
Maslow based his theory on clinical
observation, not on scientific research using
large population samples.
Maslow's claim that people will not be
motivated by higher-order goal such as self-
actualization until their lower-order needs such
as food and shelter have been met, is evidently
not valid. People have been known to put
abstract religious or altruistic values before
their own survival.
PROCESS THEORY: This is a type of theory that deals with how to motivate employees
within organisation. What are the ways that leads to motivation is the main concern in process
theory. Skinner Reinforcement theory is one of the best process theory and it is suitable for the
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overcome the issues of employees turnover. This theory is developed by B.F Skinner. According
to this theory the motivation of employees are influenced by some factors. There are four
methods proposed by Skinners in this theory to control the behaviour of employee's which are as
follows-
Positive Reinforcement: This element articulates that organisation should provide
positive response when employee behaviours is positive. Rewards should be provided to
employees for positive behaviours of workers (Rubinstein, 2018). Ryanair could also provided
monetary and non-monetary rewards in order to overcome the issues which they are suffering
and thus raise the level of satisfaction of employees.
Negative Reinforcement: This element articulated that rewarding employees by
removing undesired or negative behaviour. Both negative and positive reinforcement could be
used by Ryanair company for increasing the required and desirables behaviour of employees
within organisation.
Punishment: This element articulates that the reinforcement which is positive means
removing positive consequences as to lower the chances of repeating the unwanted behaviours in
coming time. For example, Ryanair company could suspend employees for beaching of law of
the company.
Extinction: This is the element which implies the deficiency of reinforcement. In other
words, extinction implies controlling the undesired and unwanted behaviour by removing
rewards and incentives for that type of behaviour. For example, if any worker is not receiving
appraisal and admiration for there good work, it might happen that they cold feel that his/her
behaviour is generating no fruitful consequences (Alharbi, Armstrong and Hoyland, 2016).
Thus, by applying these theories in the operations, Ryanair company could raise the level
of satisfaction of employees and overcome the issues of staffing and customer satisfaction. With
the application of above these theories Ryanair company can retain their employees as well as
raise productivity by keeping employees motivated.
Advantages Disadvantage
It helps in building motivation at workplace.
It also helps in controlling undesired and
unwanted behaviour.
It is difficult to apply in practical situation.
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Rewards should be provided to employees for
positive behaviours of workers
TASK 3
a) Types of team in Ryanair organisation
Team working is the essence of the organisation as the development of team as well as
team work has growth drastically in all types of company in order to achieve the desire goals and
objectives. Ryanair company is going to bring changes in the corporate structure where they are
emphasizing on team work by constructing following team which are as follows-
Functional Team: This is a type of team which is permanent and it included all the
members of the similar department with different duties and responsibilities. There are manager
who are responsible for everything.
Problem Solving Team: This is the type of team which is formulate for solving the
problems in the company (Bennett, 2018). They are the technical support staff which is
constructed to investigative as well as diagnose a repetitive issues on the floor.
Project Team: This is type of team where number of employees work collaborative and
collectivity and have shared strategies and goals. This type of team allows to structure there work
in a measurable, specific and timely manner.
Virtual Team: This is type of team which included employees who perform in different
location or areas as well as they are connected with the power of communication. In this type of
team collaboration is very important in order to reach the desire goals and objectives. Ryanair
company is also very beneficial by formulating virtual team as it provides better life work
balance as well as allow business owners to hire the high-grade specialists.
Importance of team working in Ryanair Company are as follows-
Team working is very important for the success of Ryanair company as well as
overcoming the issues of staffing and fever customer satisfaction. Without team working it is
unable to boost the satisfaction of employee's.
Team working also boost the environment of belongingness, loyalty and friendliness at
work place which is very important in boosting the productivity of the company. By initiating the
team culture, team members become supportive and collaborative which is the current need of
Ryanair Company (Bradbury and Scott, 2018).
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Team working improves the efficient and productivity of the goods and services company
is providing to the customers because of close monitoring of team member by team leaders.
Customer satisfaction will be raised by the bringing productivity in the services provided at
Ryanair company.
b) Belbin team role, Tuckman model of team working.
In order to bring success to the company, it is very important to formulate teams and
focus on team working. To make the team effective there are two models which could be used
by the company in order to enhance the productivity in the working. There are two models )
(Tuckman and Belbin)which could be use by Ryanair company in implementation of effective
team as well as to solve the issues of staffing and others.
In Tuckman model, there are four stages which is followed by Ryanair for effective team
working which are as follows-
Forming: This is the first stage where team members have high dependencies on team
leader for direction and guidance (Smeltink, Stroeve and Kirwan, 2019). Roles and
responsibilities are not clear as leaders have to answer lots of question like team objectives,
intention and external relationship. In this stage leader use situational leadership theory.
Storming: This is the next stage where team is coming close to team members and are
gaining truest of each others. At this stage it might be happens that team members feel some
complexity, thus, it is the duty of leader to guide them when they face difficulties. Support is
very important at this stage. For instance, In Ryanair case, if there was team structure, that the
issues which has arises in terms of staffing.
Norming: One the problems are solve, another stage is group development where
members begin there work. The relationship between team leaders and team members is also
develop to the greatest extend. At this stage, team becomes stable as now no need of close
monitoring and guidance.
Performing: This is the last stage where team perform as a single unit as well as the
energy of the team will beneficial the work. All employees in a team understand the desire goals
an objectives of company and they put there efforts to attain the same (Williams, 2017).
Cooperation and environment of team is good at this stage.
In Belbin model there are nine team roles which team members should have to reach the desirer
goals and objectives of the company.
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Here are the nine team roles which is performed by team members at Ryanair company
are as follows-
Resource Investigator
One who uses their curious
nature in order to discover
ideas to bring back to the team.
 Outgoing person
 Enthusiastic person
 Explores opportunities
 Develop contracts
Team Worker
One who helps the team to
complete the work on time in a
right manner.
 Cooperative Person
 Diplomatic Person
 Listen every members
Co-coordinator
One who focus on the main
objectives as well as delegate
roles and responsibilities.
 Very mature person.
 Have high degree of
confidentiality.
 Talented
Plant
One who is extremely creative
as well as very efficient at
solving the issues on floor.
 Very creative person
 Imaginative
 Innovative
 could solve complex
issues
Monitor Evaluation
On who control and monitor
all the activities in the team so
that gap will be analysed
(Turan, Kurt and Papadakis,
2016).
 Accurate judgement
 Free from bias
Specialist
One who have depth
knowledge and understanding
of core areas of team.
 Dedicated person
 Self-minded person
Sharper
One who provide important
drivers in order to make sure
that team keeps on moving
without losing the momentum
(Mbo, 2017).
 Challenging person
 Dynamic thinker
 could overcome the
obstacles.
Implementer
One who put the plans on
practical form or in work.
 Practical person
 Turn ideas into action.
 Efficient person.
Complete Finisher
One who who check the work
before delivery like polishing,
eliminating errors etc.
 Close monitor
 Accountability
 Confidentiality
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