Ryanair Company’s Staff Issues

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Describe the key events and issues apparent at the first reading of the case study.

Michael O’Leary, the CEO of Ryanair, aimed at the cost-leadership strategy while focusing on the reduction of expenses in all spheres (Macneil, 2007). Meanwhile, the overall inexpensive traveling welfares were beneficial for the low-budget customers, who did not want to pay any additional extras for the airfare (Macneil, 2007).

Despite the initial positive intentions, O’Leary decided to minimize the comfort of the working conditions to support the cost reduction strategy while not providing extras during the probability period and making the payment for the training a requirement (Macneil, 2007).

These events were the primary causes for the rise of aggression among workers and establishment of the union, which would focus on the protection of their rights (Macneil, 2007). Based on the factors provided above, it could be said that the primary issue is the underestimation of the importance of workers while not focusing on their rights due to the presence of the cost-reduction strategy as a key emphasis.

Systematically define the problem. Check for additional data, if available (via websites) etc.

As it was mentioned earlier, the problem is related to the inability to depict that the workers are the key assets of the company to reach success. For instance, the management of Ryanair considered that the prohibition of charging phones at work to reduce the costs for electricity (Clark 2005). Furthermore, a potential future member of Ryanair team has to pay Ryanair’s preparation courses to be qualified pilots and air attendance staff (Doward, 2013). It could be said that a combination of these factors underlines the existence of the described problems and underlines that actions have to be taken to resolve it.

Try and analyse the issues and problems in the case with relevant theory (ies)/concept(s) covered till date in the course of studying this program. Think carefully about your choices and make sure you are able to justify the chosen model(s)/approach (es).

The primary issues are related to the lack of the competences in HRM and the inability to develop relevant strategies to maintain the motivation of the employees at the sufficient level. In this case, the organizational mission and performance comply neither with best-fit nor best-practice principles of the school of HRM. Best practice implies the focus on the employees as significant contributors to the company’s success while prioritizing the vitality of security and favourable conditions for the workforce’ development (Chopra, 2010).

Meanwhile, best-fit practice suggests emphasizing the essentiality of the similar principles with their basis on the current economic cycle and company’s efficiency in the market (Chopra, 2010). In the context of Ryanair, the company does not comply with none of these concepts, as its growth and development underline the possibility for the advancement of the conditions for the workforce leading to the improvement of the overall service and increase in the revenues.

Based on the above, search for supporting evidence from the case (quantitative and/or qualitative) to support your arguments. Use quotes or quantitative data (if available)

Ryanair utilized the model of Southwest Airlines to promote the low-cost fares in Europe, but Southwest air carrier cares about its employees and provides favourable conditions to maintain their motivation at the sufficient level (“Employees come first” 2007). In this case, the minimization of costs of employees could not be considered as a primary motivation tool and one of the instruments to enhance the company’s condition and development.

In this case, the profitability of the organization can be maximized by paying vehement attention to the motivation of the workforce, as the correlation between the commitments of the employees and organizational performance cannot be underestimated (Dobre, 2013). In this case, the engagement of the employees in the decision-making increases their motivation and rises success rate to 79% (McKinsey&Company, 2010). This finding highlights an advantageous influence of the best practice on the firm’s functioning.

Develop your analysis and complete your allocated case task(s)

It could be said that the outcomes and findings depicted above highlight that the current issue is related to the underestimation of the employees’ contribution to the overall organizational performance. Meanwhile, the studies reveal that the connection tends to exist, and this correlation is one of the key drivers for the company’s success. In this case, the solutions have to be associated with the enhancement of the working conditions in the organizations while changing the overall strategy to the best-fit or best practices of HRM to build trusting relationships with the employees and highlight their paramount vitality in the firm.

List any alternatives in solving the problem / allocated task(s).

Based on the factors and analyses mentioned above, one of the primary solutions is the improvement of the working conditions, as it is one of the instruments to enhance employees’ commitment and desire to continue working for Ryanair. Another alternative is paying vehement attention to the employees’ motivation due to the existence of the interdependence of this factor and the overall organizational performance. Development of the particular skills and competences will have a beneficial influence on the revenue due to the potential increase in the quality of the provided services. Lastly, cultivation of friendly atmosphere could be regarded as another option since it will contribute to the advancement of the functioning of the company while proposing innovative solutions.

Recommend your preferred solution in relation to the case study and/or the allocated case analysis tasks.

Despite a plethora of solutions to optimize company’s efficiency related to the employees’ motivation, Ryanair has to prioritize the improvement of the working conditions due to the absence of the basis to reduce the rising aggression within the firm. In this case, the enhancement of this feature will have a beneficial influence on the company’s success while changing the overall principles of HRM policies. This approach will cultivate trusting relationships with the employees and has a beneficial impact on the company’s overall performance. Other solutions can be considered as subsequent steps for improvement.

(Notes: Please cite references to academic models and any additional data collected for your analysis. Note your analysis and recommendations should logically follow from a short description of “what’s happening” in the case study).

References

Chopra, J. (2010). Human resource management: A contemporary approach. New Delhi, India: DPS Publishing House.

Clark, A. (2005). Ryanair latest cut on costs: Staff banned from charging phones. The Guardian. Web.

Dobre, O. (2013). Employee motivation and organizational performance. Review of Applied Socio-Economic Research, 5(1), 53-61.

Doward, J. (2013). Trainees are charged hefty fees to work for Ryanair. The Guardian. Web.

Employees come first at high-flying Southwest airlines: Model contrasts with the Ryanair approach to low-cost aviation. (2007). Human Resource Management International Digest, 15(4), 5-7.

McKinsey&Company: What successful transformations share: McKinsey global survey results. (2010). Web.

Macneil, J. (2007). Ryanair in 2007: Ryanair successful for the shareholders but what about the staff? Case study.

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