Strategic HRM and Change Management: A Case Study of Ryanair Airlines

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Strategic Human Resource
Management
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CONTENTS
Introduction......................................................................................................................................5
LO1..................................................................................................................................................6
P1 Determine key current trends and developments that influence an organisation’s HR
strategy.........................................................................................................................................6
P2 Analyse how both external and internal factors influence HR strategy and practice.............8
M1 Critically analyse the influences of the external and contextual developments and discuss
how this impacts on the HR strategy of an organisation...........................................................10
D1 Critically evaluate the influences of key external and contextual developments applying
relevant theories, models and concepts.....................................................................................11
LO2................................................................................................................................................12
P3 Apply relevant theories and concepts relating to the growth and development of strategic
HRM to specific organisational examples.................................................................................12
M2 Explain how human resources theory relates to practice in a specific organisational
example, identifying areas where this will differ in other organisational situations.................14
D2 Evaluate how human resource theory relates to practice in a specific organisational
example, comparing and contrasting this with other possible organisational contexts.............15
LO3................................................................................................................................................16
P4 Evaluate how appropriate change management models support HR strategy in application
to relevant organisational examples...........................................................................................16
M3 Provide valid justifications for the application of chosen change management strategies,
models and concepts and demonstrate how they effectively support HR strategy....................19
D3 Critique how change management strategies, models and concepts could be implemented
together with reference to consequential benefits and potential drawbacks for an organisation
...................................................................................................................................................20
LO4................................................................................................................................................21
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P5 Explain how HR outcomes can be monitored and measured and apply this to a specific
organisational situation..............................................................................................................21
P6 Discuss and evaluate how effective HR management and development can support
sustainable performance and growth to meet organisational objectives...................................23
M4 Make suggestions for HR development techniques applicable in a given organisational
situation and provide an account of how they could be applied and how they contribute to
sustainable performance and growth.........................................................................................25
D4 Critically reflect on how HR monitoring and evaluating techniques contribute to
sustainable performance and growth addressing potential consequences of their
implementation..........................................................................................................................26
Conclusion.....................................................................................................................................27
References......................................................................................................................................28
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LIST OF FIGURES
Figure 1: Lewin"s change management Model.............................................................................12
Figure 2: McKinsey change management model..........................................................................13
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Introduction
In the current globalised environment obtaining proficient workforce and managing a diverse
team is utterly difficult for the human resource management or HRM of the organization.
Strategic human resource management can be defined as the part of management and approach
through which strategies are developed as per the functions and practices of human resource
management (Noe, et. al., 2017). These strategic objectives further align with the goals and
objectives of the company as well as the roles and responsibilities of the HR department of the
firm or business enterprise. The strategic deployment of a highly committed and capable
workforce requires greater development of opportunities available for the workforce to learn and
expand in the regions. To further bargain for the same, it can be said that companies are
supposed to present the overall situation within the workplace and then implement the strategies
as there is a risk of employee resistance. Change management is a technique through which the
company of the HR department can manage to frame the strategies and to develop them within
the workplace.
The present analysis is based on the theories and frameworks that support human resource
management and its strategic approach. The report highlights the external events and factors
which impacts the overall strategic growth and development of human resource management.
The writing further presents the role of change management approaches in the strategic growth
of human resource management. Ryanair Airlines, UK has been selected as the company to carry
out this report. It is headquartered in London Stansted Airport which is a low-cost airline
operating under its parent group that is Ryanair DAC, Ireland.
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LO1
P1 Determine key current trends and developments that influence an organisation’s HR strategy
There are certain trends which have impacted the overall human resource management as well as
the strategic development and the decision-making structure within the mentioned company that
is Ryanair Airlines. Some of the key trends identified are workforce diversity, globalisation,
continuous improvement as well as the changing skills requirement of the workforce. It is
presented in a way that processes required for improving the overall productivity of the
organization is another factor that has influenced the entire strategic implementation of the
strategic human resource function.
There is a dramatic change identified in terms of globalisation which has influenced the strategic
planning of the cited airlines based in the UK as well as other firms operating in a fiercely
competitive environment. For the purpose of HRM, the department is required to look upon
various factors of globalisation such as corporate downsizing, contingent workforce and the
changing nature of business across the world (Bailey, et. al., 2018). Being an airline company,
Ryanair does not have to deal with the issues of national boundaries. However, the HR
department is required to ensure that the company have ample of employees or workforce that
have or possess the skills and knowledge to serve diverse customers travelling from different
parts of the world and acquire the cultural adaptability to fulfil the requirements of the company.
Employees who are adaptable to the working environment and can deal with the diversified
range of customers are difficult for the HR department of the company to find. The labour
market is full of opportunities as more and more firms are developing and growing their
operations which are significantly attracting a number of talented and skilled labours within the
market. This situation can majorly impact Ryanair’s strategic HR management as well as the
policies and procedures implemented by the company.
Another trend is workforce diversity where it is required to have a workforce that is not
homogenous and should rather comprise of people differing in age, sex, values, origin and most
importantly personalities (Taylor, et. al., 2018). Diversity is however associated with the
company's strategic route. This factor extensively contributes to the strategic decisions and
objectives of human resource management. It can be further justified by saying that where
diversity superfluities, the possible settlement from better ingenuity and resolution to issue as
well as better innovation can be accumulated which can assist in increasing business's
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competitiveness. Organisation's reimbursement packages are one of the many ways through
which the HRM department can simply target the objectives of the physical resources present in
the workforce. This further includes HRM contributions that fall under the course of the flexible
as well as the collaborative organisation. A flexible or adaptable institute can be further defined
as the one that has supple work procedures and provides such worker remuneration and student-
friendly environment.
Changing skills requirement is another factor that has contributed as a trend in the external
environment that has influenced the strategic direction and course of human resource
management. The changing skills requirement majorly impacts HR strategy in terms of planning
and recruitment because the selection of competitive and productive employees is necessary
within the organisation to keep pace with the changing nature of the business. However,
deficiencies in skills and attributes further result in momentous losses for the mentioned airlines
subsidiary that is Ryanair, UK in terms of below standard work and poorer yield or efficiency,
add to in worker accidents and client grievances
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P2 Analyse how both external and internal factors influence HR strategy and practice
Certain external and internal factors are prevalent in the business environment that further
impacts the HR practices and the strategic objective of the firm. Increased competition,
compensation and supply of labour, the impact of legislation and policies, as well as employee
relations are some of the internal and external factors responsible for bringing change or
impacting the overall HR strategy of the company. Moreover, workforce demographics,
economic conditions, and regulations are some of the specific external factors which impact the
HR strategies as well as business operations as a whole (Wright, 2018).
Concerning the industrial background of the mentioned airlines business that is Ryanair, UK, it
has been identified that it operates in a highly competitive market. The degree of competition in
the industry in which it operates further impacts the firm's or HR department's ability to employ
competent personnel. However, the case is completely different with other industry giants such
as Virgin Atlantic and British Airways where the talented and skilled applicants seek them out
for getting employed or selected in a reputed and big firm like the two. For instance, some of the
firms operating on the national level on an average do not have similar branding control or brand
status, although, and require to look for competent individuals for decisive positions vigorously.
In such a situation, the human resources management of the particular corporation will have to
edge on increasing staffing resources and going to the job fairs in order to sponsor the
corporation and exert a pull on the talented personnel (Cascio, 2015).
It can be said that the mentioned company or airlines is also restricted to an external factor such
as workforce demographics. Age difference, educational background, and gender are some of
the demographics on which the recruitment and selection of the employee or candidate are
restricted. This situation can further impact the strategic objective of recruiting and selecting a
candidate who matches the work requirements and the roles and responsibilities of the job
position. For instance, if the HR manager of the cited airlines that is Ryanair does not find a
suitable candidate as per the required demographics then it is likely to hamper the strategic
objectives and goals of the HR function.
Likewise, in other contextual situation of the workforce demographics, it has been identified that,
as an older age group retires and a fresh age group comes in the workforce, then it is necessary
for the human resources division to search for ways to draw the attention of this new set of
individuals. This external factor presents limitations for the human resource function of the cited
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airlines that are Ryanair as the department must present a work surrounding contusive to how
this age group carry out their work.
Also, compensation of labour and employee relation within the business is an internal factor that
significantly impacts the overall strategic development of the mentioned airlines that is Ryanair.
It has been also identified that the cited company is said to be further impacted by the rules and
legislation implemented by the legal authority in terms of fair employment practices and
employee rights are required to consider while planning for the recruitment and selection
process.
Employment supply regulates the quantity of recompense the company has got to present in
order to catch the attention of workers. Within the oversaturated marketplace, when redundancy
is rising and a lot of more capable or competent personnel are present as compared to the
availability of job opportunities, the quantity of reimbursement the organization must offer is less
than when a scarcity of applicants exists, and the firms that are Ryanair is opposing against
numerous other corporations to employ workers.
The HR department of the mentioned firm has to repeatedly evaluate the reward arrangement by
carrying out business and location precise salary examination to make sure earnings stay
cutthroat enough to catch the attention of and keep major staff members however low enough
that the company stays economically viable (Hollenbeck and Jamieson, 2015). The HR is further
required to must also make certain that the inner reward formation is reasonable. For instance,
knowledgeable personnel with particular experience as well as academic qualifications are
supposed to be paid more as compared to recent college alumnae or fresher’s performing equal
responsibilities.
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M1 Critically analyse the influences of the external and contextual developments and discuss
how this impacts on the HR strategy of an organisation
As per the view of DeCenzo, et. al. (2016), it has been identified that employee legislations such
as equality in terms of hiring irrespective gender, caste and disability factor. These factors
additionally impact the measurement and monitoring of policies and procedures within the
company which is managed as well as maintained by the HR department of the cited airlines that
is Ryanair. With the prerequisite or introduction of the new office, agreement principles the
human resources management, or function of the mentioned airlines is continually under stress to
stay contained by the commandment or legislation imposed by the government. These forms or
kinds of policy manipulate every procedure of the HR section of the Ryanair Airlines which
further includes recruitment, training, recompense, extinction, and much more. However, it has
been argued by Collings, et. al. (2018), that with no adherence to such legislation the business
can be fined comprehensively which if in extreme situation or pressure can cause the company to
consolidate or seize.
It has been illustrated in the writings of Brewster (2017), that maintaining employee relations
with the workforce as well as with other stakeholders and the internal policies are influencing
factors that can impact the human resource strategic objectives. Internal procedures, as well as
rules, can extensively impact HR activities or planned strategies. For instance, if the business
that is Ryanair Airlines, UK is dedicated to promoting from inside, the HR department has to
make sure that workers obtain suitable training and development which is further prepared for
endorsement when the right time comes. However, it has been argued by Morschett, et al. (2015)
that the HR department or function within Ryanair should monitor the amount of workers
entitled for retirement and make sure possible replacement or additional personnel are qualified
to stay away from a sudden exit of commerce acquaintance
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D1 Critically evaluate the influences of key external and contextual developments applying
relevant theories, models and concepts
It has been identified in the study conducted by Marler, and Parry (2016), that change in the
workforce attributes and the demographics can have a significant impact on the HR strategies.
The guest model can be used to provide valid justifications in terms of how external and internal
factors influence the HR strategies and objectives. The model includes dimensions of human
resource administration which comprise strategies, practice, performance, presentation and
economic results. The theory states that HRM management uses various techniques to manage
personnel with the company. The basics of human resource supervision recount in a straight line
to appreciate the penalty of the association. The Guest model evaluates that it is, in fact, easier
said than done to establish the supposition that promise leads to elevated productivity and
performance.
The internal and external factors in the guest model can be explained as the mere assumption
which the business and HR representatives have about the after-effects of the forces or factors
identified for the same.
However, it has been argued by Gannon, et. al. (2015), that the guest model or theory states that
employee activities and performance are openly connected to promise into accomplishing
calculated objectives. Moreover, of the organization that is Ryanair Airlines can effectively
manage workplace relations than they can probably manage to see the increased performance of
employees
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LO2
P3 Apply relevant theories and concepts relating to the growth and development of strategic
HRM to specific organisational examples
Certain arguments represent the growth and development of strategic human resource
management within the cited organisation that is Ryanair, to be productive and efficient.
Contingency theory
Contingency theory within the Ryanair represents the consistency in HRM practices concerning
other aspects of the organisation or external environment within the Ryanair airline company.
As per the views of Jamali, et. al. (2015), the contingency theory states that the plans and
policies of the company are not constant and continuously changing as per the size of the
company, technology, etc.
The degree of industry sector, unionisation, location, and ownership are further factors that
influence the growth and development within the cited airline company. The cited theory reflects
the definitions of aims, strategies, and policies, lists of actions and evaluates the role within the
Ryanair. The theory refers to facts and knowledge that the company adopts according to recent
trends and changes in socio-culture and political situation relate to contingency theory. This
theory suggests a situational viewpoint that enables Ryanair to face challenging and adverse
situations. Contingency theory believes that there is not any principles and practices that are
universally acceptable. The underlying philosophy of this theory is the intricate relationship that
exists between the change and the performance of the company. Therefore this theory is called
contingency, best fit theory, and situational approach.
The Universalistic theory
The main aim of the universalistic approach within the Ryanair focuses on best practices and
high-performance work practices that will enhance the growth and development of the strategic
human resource management. Below are some assumptions of universalistic theory-
 There is a parallel relationship between the performance of the organisation and the
practices of human resource.
 That organisational success is appropriately measured in terms of financial attributes and
standards, and these include the profitability, sales volume and the market share.
 The best practices are universally applicable.
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