Ryanair: Comprehensive Report on People and Organizational Management

This report provides a comprehensive analysis of people and organizational management within Ryanair, examining key issues such as performance management and employee relations. It delves into the existing literature on performance evaluation, employee motivation, and the importance of a positive work environment. The report highlights specific challenges faced by Ryanair, including conflicts with pilots, ineffective communication, and inadequate compensation and work-life balance policies. Drawing on these observations, the report recommends the implementation of a 360-degree performance appraisal system, the development of an effective communication system, and the establishment of improved work-life balance and compensation policies. The recommendations aim to address the identified issues, enhance employee satisfaction, and ultimately improve the overall organizational performance of Ryanair.

Student Name
INSTITUTIONAL AFFILIATION(S)
PEOPLE AND ORGANIZATIONAL
MANAGEMENT

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Table of Contents
Introduction................................................................................................................................2
Literature review........................................................................................................................3
Performance management......................................................................................................3
Employee relationship............................................................................................................4
Case analysis..............................................................................................................................5
Performance management issues............................................................................................5
Employee relationship............................................................................................................6
Recommendations......................................................................................................................7
360-degree performance appraisal system.............................................................................8
Effective Communication system development.....................................................................8
Work-life balance and compensation policies........................................................................9
Conclusion..................................................................................................................................9
References................................................................................................................................10

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People and organizational management in Ryanair
Introduction
Several pieces of evidence show that it takes critical time and strategic management
to achieve organizational objectives and manage important constituents of organization i.e.
human capital to drive competitive advantage. This sheds light upon the significance behind
managing and leading people especially at an operational level and junior managers to ensure
good relationships are established along with improving developmental skills in them. Such
organizational strategies ensure fair pay, healthy work environment as well as flexibility in
the work environment to embrace change for the betterment of the employees and for the
organizational management (Jalagat, 2017). Although leaders and management may face
troubles to adapt to organizational demands, understanding and managing a fine balance
between employee relationship, innovation and short-term profits are critical to ensure
organizations face a viable future within their industry (Osborne and Hammoud, 2017).
Comprehending the link between managing people and organizational management
serves as a significant highlight of this report besides analysing how effective leading and
managing serves as an essential ingredient in organizational success. Since the given case
study shows several issues in Ryanair management and leadership, it will focus majorly upon
issues such as performance management and employee relationship. The report finds that
well-informed organizational communication, economic decisions and employment
relationship should be ensued in Ryanair’s management along with considering people as an
important organizational resource.

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Literature review
Performance management
Performance management is one of the most acceptable practices in organizational
management studies which help human resources to measure individual performances. In
contemporary organizations, performance management refers to a more integrated set of
processes designed to evaluate and direct employees' performance. Accordingly, performance
metrics may include performance appraisal, objective setting, career planning and intensive
and reward strategies to observe desired organizational outcomes. The proponents of
performance management argue that when it is done appropriately, the performances of
individuals develop and they tend to show a committed and engaged attitude (Tweedie, et al.,
2019). Organizational literature, on the other hand, emphasises more upon wider theories that
explain human work and motivation behind it. Reinforcement theory states that an
employee’s behaviour or attitude can get encouraged with the help of praise and rewards and
when they experience encouragement from the management, their behaviour gets modified
subsequently (Bajorek and Bevan, 2015).
Developed by Vroom, expectancy theory believes that people will exert efforts and
performance required to complete a task but in return, they expect that they will accomplish
desired values. According to expectancy approach, when organizations introduce
performance management systems within the people management techniques, employees will
perform superiorly since they will get values in the form of monetary benefits, rewards and
recognition. Organizational literature also supports the equity theory introduced by Adams in
1963. According to the equity theory, social relations are as important as other monetary
benefits to enhance staff morale. Equity theory claims that employees seek a fine balance
between their performance outcomes and input provided by them in the form of efforts

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(Prasad, 2015). In this sense, any lack of fairness seen in management can have considerable
detrimental impacts on employee performance.
Employee relationship
One of the most valuable assets which ensure organizational success is human capital.
If employees share a good relationship and work together, they tend to complete the desired
work within deadlines. This makes people management process very critical due to which
human resources of the firms employs strategies such as motivation, effective reward and
benefits along with training and development programs. Conflicts may arise between
employers and employees on an everyday basis and hence employee relationship practices in
organizations must consider fair pay, facilitate employee engagement as well as increase job
autonomy and trust to minimise conflicts arising situations. Since managers and supervisors
act as a key link between the organization and its employees, they must maintain an effective
relationship and ensure that every employee need is taken care of and individuals at every
level remain satisfied with their job. Considering employee relationship and job satisfaction
creates a unique employee value, it contributes to retaining and attracting a talented
workforce besides reducing labour turnover (Al-Khozondar, 2015).
Human relations theory of Elton Mayo posits that employees are important resources
of the firm as compared to other resources such as machine and money. The principal task of
organization's management is to establish workplace practices in a way so that thinking and
creation are exhibited otherwise which, employee tend to subvert control and leadership and
enforce alternative conditions such as unions and decreased performance (Ngari and
Agusioma, 2013). Chaubey, Mishra and Dimri (2017) believes that a good relationship
between employer and employees enhances positive workplace communication along with

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fostering people attitude, thereby promoting overall well-being and healthy relationship
between organizational members. Employee relationship entails capabilities to fulfil work
needs and maintain a work-life balance where employees feel an openness to express their
views. This, in turn, ensures effective relationship with stakeholders including suppliers,
customers, trade unions and employees. In summary, management practices must consider
initiation of employee's suggestions, employee involvement and empowerment, facilitate
collective negotiations and bargaining, transparency in communication, fair pay and rewards
and lastly, redressing grievances and conflicts management measure (Duah and Danso,
2017).
Case analysis
Performance management issues
After looking at the Ryanair case, it can be observed that the major issues within the
firm are taking place because of ineffective employee management and reduced performance
due to everyday conflicts and demotivation among employees. Ryanair might seem to be a
no-frill airline company but relations with its pilots seems to be tenser as they claim that they
are not being employed directly by the company rather hired through temporary agents.
Although few of the pilots tried to negotiate with the management, Ryanair ignored such
ultimatums and allowed the negotiation dates without giving a response it. Research and
practice related to performance management reveal how industrialization has entailed mass
relocation of labour within the time-bound surveillance and institutionalised organizations
(Tweedie, et al., 2019).
The ongoing trend in Ryanair is similar to the strategies laid by Taylor’s scientific
management which states controlling and documenting labour process. Although Taylorism

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approach has diminished with time, an aspiration regarding more structured and directed
measures is demanded by contemporary employees (Tweedie, et al., 2019). Ryanair case,
however, seems to follow old and traditional style of management since the company show
no effort in enhancing employee's performance and have refused to recognise poor working
conditions or unions who demand fair pay. This has made a company pay a hefty amount as it
cancelled around 20,000 flights due to staff rostering programs and conflicts in several
countries. The management though accepted that have clearly made mistakes and first need to
improve their performance before managing employees.
Employee relationship issues
From the given case, it can be identified that Ryanair bullied pilots and forced them to
agree to contracts made by the company which can reduce job satisfaction from them. With
other court cases filed against Ryanair, pilot victimization is one of the issues which is not
only impacting the firm’s reputation but also making workforce unsatisfied. This might
further lead to increased labour turnover or reduction of talented skill from the company.
Furthermore, professional negotiators hired by the firm demanded new employee contract to
be negotiated along with enabling common work conditions for every carrier's network.
According to Duah and Danso (2017), employee relations not only provides over sightedness
and direction to the firms but also considers critical matters such as non-union staff
employment-related issues, disciplinary matters and investigations of harassment and
employee grievances like formal, compensations and work-life balance complaints. As such,
employee relations must provide proactive assistance to both managers as well as employees
to implement and communicate workplace policies, contracts and procedures. However,
Ryanair labours and pilots did not receive desired wages for their hard work.

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Incompetent pay made staff and pilots form trade unions and collective agreements to
enhance work conditions and better pay systems. One of the factors which support
employee's job satisfaction is realising good work-life balance and job satisfaction from the
work performed in a company. While good compensations make employees satisfied
monetarily, work-life balance helps them in fulfilling physical as well as personal needs
(Alianto and Anindita, 2018). Indeed, many airline companies do agree on common
opportunities for employees and see that their employees receive effective compensation
plans, healthy work conditions and are free from workplace bully or harassment. For
example, Qantas Group provides all its employees with attractive performance-based rewards
and healthy work environment so that work-life balance is ensured (Qantas Group, 2019).
The given case shows that although Ryanair’s new employment contract may reduce its flight
tickets prices or cancellation charges, it might make the company unsuccessful in the long
run as the company faces high labour turnover than any other airline companies. Overall,
Ryanair needs good performance management schemes to motivate its employees, effective
employment relationships and communication between management and employees.
Recommendations
The provided case study shows that Ryanair faces several issues in its management
and employee's satisfaction due to unreasonable laws and rules imposed by the company. The
new employment contract has further made employees demotivated and unsatisfied, making
them choose to form trade unions which require to be considered by the firm's management
critically. The below recommendations can be made in the Ryanair management which can
potentially eliminate issues identified.

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360-degree performance appraisal system
360-degree performance management and feedback system can be introduced in
Ryanair people management systems so that employees are equipped with significant
information regarding organizational objectives. This will ensure a quick response from their
end and leverage employee talent to meet consumers demands. Other than focussing upon
organizational objectives, this system will allow management to delve deep into other
performance-related dimensions like strategic thinking, leadership, teamwork and
innovativeness. Therefore, 360-degree performance a feedback system can prove to be the
only tool which can help Ryanair perform multiple assessments and appraise employees’ job.
Since this system is a holistic multi-input process, it will incorporate employees’ opinions
and evaluate possible solutions from a diversified angle that may reduce conflicts between
management and employees (Botha, 2014).
Effective Communication system development
From the case study, it is evident that management is neither responding to employees
and pilots demands or making arrangements for fair negotiations. Communication processes
are very important in resolving conflicts and gain negotiation goals. However, in Ryanair
case, establishing effective communication between employees and management is very
necessary and must be made in a specific and detailed manner so that negative impacts of
negotiations are reduced (Čulo and Skendrović, 2012). To minimise barriers to
communication or conflicts between employees and management, Ryanair must discourage
information overload. This means critical messages like employment contracts and
negotiations must be transmitted from employers to the employees in a way that they are
easily comprehended. Every identified issue must be communicated instantly to avoid the
generation of internal conflicts. Communication process must comprise feedback systems to
ensure that the purpose behind making the communication is fulfilled (Kelvin-Iloafu, 2016).

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Work-life balance and compensation policies
Before implementing a good work-life balance system and compensation schemes, it
is necessary to identify the core organizational requirements for instance, some airline
services may require staff presence between certain hours. This would require management to
consult with employees to get their views about it. For pilots, Ryanair can implement
attractive compensation plans so that they get motivated to remain in the company. From
both the points, existing policies related to compensation and work-life balance must be build
in a way that can motivate employees to perform effectively. Conflict resolution strategies
must also be included in the employment contract to ensure fair judgments during problem
arising situations (Meenakshi, V, and Ravichandran, 2013).
Conclusion
From the provided case study, it is clear that Ryanair faces several issues related to
people and organizational management. The above report identified two major issues
including performance management and employment relations in Ryanair. From the literature
review and additional research, it can be said that Ryanair lacks effective people management
skills which have made the company face increased turnover, demotivated staff, trade unions
and cancellation of flights. Therefore, 360-degree performance appraisal, development of
effective communication strategies and implementation of work-life balance and
compensation plans are recommended. Employment relationship practices like conflict
management, communication, trade union, employee engagement and empowerment ensure
success in the firm and hence Ryanair management must focus upon managing employment
relationship practices.

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