Organizational Behaviour Analysis of Ryanair: A Comprehensive Report

This report delves into the organizational behaviour of Ryanair, a low-cost European airline. It examines the company's culture, leadership styles, and their impact on staff performance and motivation. The report analyzes the company's autocratic approach, its impact on employee satisfaction and turnover, and the application of various organizational behaviour theories, including Handy's typology, French and Raven's power types, and Alderfer's ERG theory, to understand and address the issues. It also explores the importance of effective teamwork, decision-making processes, and communication within the organization. The report provides a detailed analysis of what constitutes effective versus ineffective teams, and how motivation theories can be applied to enhance employee engagement and overall organizational performance. The report concludes with recommendations for improving Ryanair's organizational behaviour and fostering a more positive and productive work environment.

ORGANISATIONAL
BEHAVIOUR

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
a) Organization culture................................................................................................................1
b) Impact of Ryanair culture on staff and performance...............................................................3
TASK 2............................................................................................................................................3
TASK 3............................................................................................................................................5
a) What makes the team effective oppose to ineffective team....................................................5
b). Analysis different team development theory..........................................................................6
c). Concept of organisation behaviour in the organisation..........................................................7
d). Evaluation of the concept of organisational behaviour in both ways.....................................8
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

INTRODUCTION
Organizational behaviour is very much important as this very clearly defines the behaviour
and performance of any employee and member of team of company and it totally depends upon
the profitability and productivity. The company named Ryanair is known for providing services
in airline at cheap cost and founded in 1985 with the team of 25 employees. After the completion
of 29 years of the company, it is operating flights more than 1500 per day, if calculated average
in year it is nearly equal to 5,00,000 flights and have 59 bases which is connecting different
destinations nearly 180 in total of 29 countries and giving services to 80 million people in
travelling from one destination to another (Punjaisri and Wilson, 2017).
This report gives details about organizational behaviour problems in the European airline
called Ryanair which is the most profitable business because of its low cost fare. The purpose of
this study is to analyse organizational behaviour by identifying the main problems in the
organization and recommending possible actions. Evaluated by management evaluated
"autocratic approach control", lower motivation level which causes stress and affects working
environment and at last the culture of the Ryanair organization was analysed. By applying
models and theories about organizational behaviour and culture, Handy's typology, French and
Raven's power types, Chantlat's characteristics, Vroom and Alderfer's ERG theory, try to give
Ryanair these mistakes to check-out and basic recommendations improve current status of the
airline.
TASK 1
a) Organization culture
It consists of beliefs and values which helped the organization to interact with customers,
stakeholders and each other. It influences development, economic and organizational
performance. Ryanair was recognized as an exciting place for work. The organization does not
have an official mission and vision. The company valued for money by providing reasonable air
rates. The staff did not get uniforms, health checks, car parking spaces and Christmas parties.
The weak culture started from the top of the management, so there is need to make the culture
strong. The CEO O'Leary adopted Handy's typology to improve the organizational culture.
Charles Handy is a famous philosopher born in 1932 who has specialized in organization culture
(Abolfazl Vagharseyyedin, 2015). It stated that organization must follow this four types of
culture which are as follows:

Power
The source of power in this culture is single and the structure is generally hierarchical. This
culture is mainly depended upon the trust and communication. Employees are tolerated and
judged by their results and have the highest turnover.
Role culture
It is the culture which is controlled and monitored by the senior management. The culture
is useful where business environment is slow and make the organization successful because they
react slowly and change is difficult. The employees of the company are unable to react towards
their customers request and which must be their concern of specific field and the most disturbing
thing is their cheap and bad service provides towards their clients.
Task culture
The organization who follows this culture work together to accomplish the following task
with innovative and creative ideas and everyone contributes equally. With this type of culture it
helps in making the workplace environment positive and the targets can be achieved quickly and
can solve critical problems with the team work.
Person culture
This culture has significant meaning in rules and coordination and is self-oriented. In this
culture, individual care about themselves and not about the organization. This type of culture can
create negative impact on the organization as they will be selfish while doing the work and won't
be able to accomplish company's goal.
French and Raven describe five basic power:
Legitimacy - Derived from the belief that someone has a formal right to file a claim and expect
others to agree and obey.
Price - This is the result of a person's ability to compensate for the compliance of others.
Expert - This is based on the skills and knowledge of high people.
Referent - This is the result of human appeal, dignity and the right to respect others.
Restrictions - This is based on the belief that other people can be punished for failing to comply.
Ryanair has a legitimacy nature of power and since the establishment of Ryanair, the
company followed the power culture and considered as weak culture where company strictly
imposed rules by the employee. Due to absence of trust and sharing the values with each other

directly impact the internal relationship among the employees which create impact on the
behaviour of management. The company has created a strong place in the market with its low
cost services and raising its revenue every year but due to its poor services in terms of customer
service and satisfaction of job can create a bad reputation in the future and will also affect their
success in the future (Anand, 2018). The autocratic approach helps the company in managing
employee leadership, motivation level and stress, organizational culture and turnover of
employees.
According to Chanlet’s characteristics of behaviour, human resource management of the
company is highly characterized by autocratic approach, which make the use of threats and
encourage employees action. The decision-making process of the organization is mainly control
by managers and employers, establish guidelines which helps them to achieve goals, jobs and
also decide compensation. Organizations usually focus on behaviour which is examined through
division of labour and specialization in high-level task. In this way, the effective decision-
making can be made through good leadership and management and employees does not have
power to accept this type of decisions.
b) Impact of Ryanair culture on staff and performance
Ryanair's management, continuing to focus on reducing costs and aim to guide low-cost
airlines, they take strict control of their employees. The employees of the company are not
satisfied with their basic needs and forced to work to accomplish their tasks and also they are not
personally satisfied with the job. The Maslow needs of Hierarchy shows that employees must not
only influenced by rewards and compensation, the organization also maintain their self-esteem
and their basic needs which will keep them motivated and engaged in their work, which lacks in
the company and overall impact on the growth of the business and also lose the loyalty and
innovation in the organization.
Due to the lack of motivation in the company stems through a rare implementation of
motivational factors such as achievement, recognition of co-workers and supervisors, the work
itself, responsibility, career development and progress (Cao, Tian and Diao, 2016). But before
you meet and motivate employees, Ryanair's leadership needs to eliminate the source of
dissatisfaction because of inflexible working hours, autocratic leadership, poor communication
and long working hours, which directly impacts on the employee's turnover and retention and
affects the productivity and revenue of the business.

TASK 2
a)Motivation theories to enhance the performance of the organization
Content Theory
Alderfer’s ERG theory: ERG Theory from Alderfer is flexible at the same time and shows that
the need for a higher level can be fulfilled, although not lower. According to Alderfer, if an
employee cannot meet the expectations of growth and self-fulfilment, he can return to the desire
to fulfil their needs, such as communication, exchange and interaction. As analysed above, the
lack of communication and harsh working conditions at Ryanair does not allow staff to
acknowledge it and not motivate and motivate any progress to work in a more efficient manner.
Companies must understand that workers are not machines, and they must focus on the goal of a
friendly work environment, sharing information and strengthening work. If Ryanair's
management as an employee for fixed assets and motivates them, the organization will be much
stronger, reducing the number of people who leave the company in the long run and success will
be more stable.
Process theory
Vroom’s Expectancy Theory: This theory is based upon the technical framework which helps
in analysing the motivational level towards work. The situation of the management depends upon
the many factors which runs their relationship within the organization (Cherry, 2017). This
theory helps the organization to motivate their employees in such a way that they can achieve
expected results which helps to determine motivational level and behaviour in various types of
situation where organization have to choose between two or more alternatives.
The people's motivation is not directly contributed in this theory as it is valuable for
understanding organizational behaviour. It helps the organization to determine the relationship
between individuals and organizational goals which are clarified. With the help of this model,
organization can determine the motivation of employees and other variables which are affecting
the organization behaviour but it does not provide any relevant solution to the problems
occurring in motivational context. Consideration of individual differences which is based on
perception of individuals is not included in this theory neither it implies the same hierarchy needs
of most people. This is treated as a variable that needs to examine exactly what certain
employees are looking for in their work. So the theory only shows the conceptual determinants
of motivation and how they are connected.

These human working conditions will not only increase Ryanair's profits, but also the
workers' confidence, which will foster a more comfortable and productive work environment.
Also, O'Leary's CEO must inspire the behaviour of employees who are working for the
organization and can work with their full potential without suppressing stress and risk of
shooting.
TASK 3
a) What makes the team effective oppose to ineffective team
Clarity of goal: In effective team all the member has the clarity of goal which help the team to
co-ordinate the individual goal with the group goal and help the team to achieve the goal
effectively oppose to the ineffective team where the goals are not that clear so each member tries
to outperform other member in the team.
Decision making: In effective team decision-making depends upon the situation in which team
is dealing, there are regular interval meeting in which all the decision maker decides how to go
forward and what need to be changed it helps the team to regularly evaluate the situation of the
team but on the other hand in ineffective team most of the time just senior management takes the
decision (Corfield and Paton, 2016).
Responsibility: Responsibility and authority is well assigned to the team members in the team so
every member in the team is clear of the work to be done by individual on the other hand in
ineffective team senior management enjoys all the authority.
Communication: There is two-way communication in the effective team as the idea is shared by
the management and the views of the employee are also considered oppose to the ineffective
team where just idea are shared no response from the employee are entertained (Peck and Parker,
2016).
Conflict: Conflict are resolve with joint understanding in which both the party gains something
and loose something but in effective team conflict are resolve distributive negotiation in which
one party gains something and one party loose something.
Interdependence: in effective team interdependence is used in a positive manner that the team
can achieve the goal very efficiently on the other hand there is no independence as their no one
helps anyone in the group (Ðurić, 2017).

Motivation and Moral: Motivation of the employee in the effective team is always high as
leader always try to help the employee which is facing the problem in carrying out the task and
also reward the employee for outstanding performance but in the case of ineffective team no such
decision is taken by the leader as the motivation of the employee always in downward side.
Innovative Idea: Effective team always helps the organization as the idea of all the employee is
considered in the effective team dynamic but on the other hand in ineffective team the idea is not
given that value only senior management takes the decision (Guldenmund, 2018).
b). Analysis different team development theory
Tuckman’s Five Stage team development theory
This theory of Bruce Tuckman’s explains that there are 5 phases which are important for the
work in the team which are very important for the business to grow these five phrase are
Forming, Storming, Norming, performing and Adjourning. This theory helps the company in
different ways such as it provides the company to known the current stage of the work in the
team as through which leader can take the decision according to the situation which helps the
firm in growth.
Kormanski and Mozenter stage of team development
This theory explains the team development process in the different steps these steps include
awareness, conflict, cooperation, productivity and separation. These theory focusses on the
behaviour and relationship among the employee which helps the firm to provide a good working
environment to the team to work in as working environment plays a very vital role in success of
the team (Khaola and Sebotsa, 2015).
Team development theory helps the business to improve the productivity as they help the
business to manage the team in the proper way as they provide the instruction and phase to phase
guidelines to the leaders which help the leader to manage team more efficiently which eventually
result in increase of the productivity of the organization. It also helps in improves the Motivation
of the employee as it helps the leader to actually ascertain the problem faced by them and leaders
uses the skill to overcome them which eventually result in the growth of the company as these
two are the very big factor for the business to overcome for getting the better result in the
business (Kitson, O’Shea and Wilson, 2018).

c). Concept of organisation behaviour in the organisation
The concept of the organization behaviour depends on the two key element Nature of
people in the organization and the nature of the organization. As Ryanair has faced the problem
of employee satisfaction in the past it can be analysed that these fundamental concept of the
organization behaviour is being followed in the Ryanair:
Individual Difference: It is the managerial approach toward the fallow subordinate in the
organization these concept says that the manager should have a common set of feeling toward all
the employee there should not be any difference in behaviour. It can be analysed that there is
some issue in between the manager and the subordinate as employee have also went on strike in
the past and Individual difference can be one of the reason (Lozano, Ceulemans and Seatter,
2015).
Motivation behaviour: Motivation behaviour is the behaviour which is influence on the
employee by the senior manager to influence the work of the employee in both negative way and
positive way. It has been analysed that there was a negative motivation level in the employee it
has resulted in decreasing the efficiency level of the employee which has negatively affected the
company in serving their customer.
Value of the person: Employee always expect some sort of value in the organization and expect
some sort of opportunity with it to develop their skill not getting it resulted in making employee
unhappy it may be the reason of Ryanair employee becoming unhappy.
As Now Ryanair has decided to change the corporate structure in the organization it can be
analysed that these fundamental concept of the organization behaviour is being followed in the
Ryanair:
Ethics: As the Ryanair has decided to change the corporate structure of the business which has
forced them to change the culture of the business which will eventually result in change in the
moral principle of the individual and group in the business, good moral business shows a good
ethics of the business in the organizational behaviour (Morrison, 2016).
Individual Behaviour: As the Ryanair has decided to change the structure the leadership and the
team dynamic has also been changed which will affect the behaviour of the employee in the
positive way as it will increase the motivation, attitude and job satisfaction of the employee.

Inter-Individual Behaviour: Change in the policy will improve the communication in the
employees and also between the employee and leader in the organizational behaviour which will
increase the relationship between the employee.
Group Behaviour: Ryanair has decided to change the role and dynamic of the team in the
organization and decided to use different leadership style in the team will help the organization
to have a good group behaviour in the organizational behaviour (Mullins, Czischke and Van
Bortel, 2016).
Mutual interest: There will be good mutual interest in the employee and the organization in the
Ryanair as new structure looks at the need of the both employee and the organization.
d). Evaluation of the concept of organisational behaviour in both ways
Concept of organization behaviour can affect the business in both positive and negative as
concept are as good as they are understood and applied in the organization if the management is
not able to implement the concept properly it can affect the company in negative way as well.
Dual aspect of the many features in the concept can also affect the business for e.g. one of the
concept is motivation, motivation can be positive and negative. Positive motivation influences
the work in positive way and negative one influences the work in negative way. Some concepts
are dependent on the future happening of the business, wrong prediction of the future can laid to
the negative impact on the business on the same time correct prediction can help the business to
go in correct direction. Over dependency of the business over concept also laid to the negative
impact on the business as in the reality there is no such concept which is universally correct in all
the situation (Omotayo, 2015).
Conclusion
After going through above report it has been summarized that culture, Politics and power are
the crucial factor in influences the work of the individual and team in the organization as they
cover the many aspects but at the same time motivation and motivational technique also plays a
very crucial hand in achieving the goal of the organization. After that reports shows that effective
team is how crucial to the organizational growth as opposed to the ineffective team in the
organization by using two team development theory. In the end reports shows that there are
many concepts of the organizational behaviour which was not properly used by Ryanair but

Ryanair is trying to overcome that by making the changes in structured of the business which is
making the organizational behaviour good in the organization.