CONTENT PAGE
Section Page
No.
Introduction 3
1: Analysing
the business factors that underpin human resource planning with regards to RyanAir
4
2:
Assessing the human resource requirements with regards to Ryan-Air 9
3:
Developing a human resource plan for Ryan-Air 10
4: Critically
evaluate how HR plan can contribute to meeting the organization’s objective 15
5.
Explain the purpose of HRM polices in regards to Ryan-Air 16
6:
Analysing the impact of regulatory requirements on human resource policies 18
7:
Analysing the impact of an organizational structure on the management of human resources
for the business operation 19
8:
Analysing the impact of an organizational culture on the management of human
resources for Ryan-Air business operation 20
9: Examine
how the effectiveness of human resources management is monitor in Ryan-Air 22
10: Make
justified recommendations to improve the effectiveness of human resources
management for Ryan-Air 24
Conclusion 25
Bibliography
26
Introduction
Ryan-air was founded in1985 with
one 15-seater
Bandeirante aircraft, operating daily from Waterford in the southeast of
Ireland to London Gatwick. Today Ryan-air is Europe’s largest low fares
carrier with an annual profit of €503
million that is a 25% increase in profit from the previous year. Ryan-air fleet has grown to 294 Boeing 737-800s with an extra 25 air new 737-800s craft expected later this year
according to Ryan-Air (n.d). Ryan-Air is now carry over 76 million passengers
on 346 low fare routes across 24 countries. These impressive figures are a result
of the Human Resource Management and implementation of a cost-oriented business
approach and efficient operations. Strategic Human Resource Management (SHRM),
a branch of Human Resource Management, was proven to be a long-term strategic
approach to keep sustainable competitive advantage. As Snell, Youndt and Wright
(1996) comment that Strategic Human Resource Management can be established by
the organization to achieve competitive advantage according to people.
Strategic Human Resource
Management (SHRM) is identified as an effective macro-organizational tool to
support the role and function of Human Resource Management according to focus
on the organization’s business strategy compared with the traditional human
resource management, as well as addressing the problems impacting on
people-centred management solutions in the long-term in the organisation
(Randall, Susan, 1999).
The purpose of this report is to
analyse the business factors and evaluate strategic human resource management (SHRM)
using (Ryan-air) as the case study and make recommendation on how Ryan-air can
improve their human resource activities and function.
1:
Analysing the business factors that underpin human resource planning with
regards to Ryan Air
Human
resource planning
According
to (Investopedia, 2012) , human resource
planning is the ongoing process of systematic
planning to achieve optimum use of an organization's most valuable asset - its
human resources. The objective of human resource (HR) planning is to ensure the
best fit between employees and jobs, while avoiding manpower shortages or
surpluses. The three key elements of the HR planning process are forecasting
labour demand, analyzing present labour supply, and balancing projected labour
demand and supply.
Human resource planning (HRP) has always played an important role
by contributing to the success of the company either directly or indirectly. HRM
is involves in setting policies, formulating plans and trying to make decisions
for the benefit of both the company and the staffs.
Planning should consider information
from staff at all levels and HR, but is most often decided on finally by senior
managers in consultation with human resources management - (not the HR dept.
which deals with the day to day issues. Human Resource (HR) Manager and other
senior manager should have a very strong relationship. Manager from other
department may require certain personal information such as personnel records,
staff satisfaction, position details and HR expertise they could not have
gotten this without the human resources department and would not have the
knowledge or expertise to deal with the financial and business side of the decision making.
In regards to Ryan
Air the
three key elements of HR planning process are Forecasting labour demand, Analyzing
present labour supply and Labour demand and supply. We will only discuss
forecasting labour demand.
Forecasting labour demand
Forecasting is all about knowing and
matching the right candidates with future job postings. The human resources
must use the right forecasting method to determine how many future workers with
what skills and ability the company will likely need over a given period of time. There are several
techniques a company could use to forecast and fill then available job opening,
some of these techniques are,
1.
Managerial Judgment
2.
Trend Analysis
3.
Ratio Analysis
4.
Scatter Plot
5.
Computerized forecast
6.
Works study technique
7.
Delphi technique
For the purpose of this report only one technique will be looked at. The
technique to be look discuss is the Delphi technique with regards to Ryan Air.
Managerial judgment
technique
Managers of the
various departments come together and after considering the future volumes of
work decide how many and what type of persons will be needed by the
organization. There are two different ways in which this technique is being
used by Ryan Air. In the top-down approach, the top managers prepare the
forecast for the number of employees needed for unit as a whole and then
discuss these estimates with the departmental heads and their subordinates to
see whether any modification is necessary in the estimate prepared by them. In
the second approach, which is known as bottom-up approach, the estimates about
employees is demanded from the supervisors of the sections and departments and
their heads consider the estimates, make necessary changes and forward them to
the top managers for their consideration.
This technique is very simple and fast and the implementation can
be carried out by the HR manager in a short time.
Business
factors
Creating
a sustainable Human Resource for Ryan-Air means to organize and focus on the
company long-term strategy. To be successful in the future Ryan-Air has to know
the present situation the company is in they has to look at the broader
perspective.
According
to (Hoftmann, 2004) The macro-environment describes all
factors which influence the company as a whole but are out of their direct
control including wider social, political and economic factors (Hooley,
Saunders, Piercy, 2004). The analysis of those factors is therefore often known
as Pest analysis (Johnson, Scholes, 1999).
The
airline industry is affected by any environmental changes over the past decade
the airline industry has seen dramatic changes.
Political
The
airline industry is affected by changes whether political, economic, social
technological taking place in the environment and has seen
dramatic changes since 9/11. After 9/11, the tighten security measure has
affected the business, Ryan-Air lost a lot of revenue due to the fact that
people was too scared to fly.
Economics
The
rising fuel price will affect the airline industry. Most of the airline company
will do some hedge for the fuel in order to stable the cost as fuel is a major
cost for every airline. However, the fluctuation of fuel price can have a
negative effect on the airline financial report.
The fluctuation in the US dollars will affect Ryan-Air
because the customer from US will reduce their travelling as US dollars are
depreciating.
Social
According
to (Hoftmann, 2004) The increasing travelling lifestyles
are factor that will affect the business of Ryan-Air. Nowadays people are more
enjoy a travelling lifestyle. They love to travel all around the world. And
more and more people will have graduation trips, backpack trips etc. These
people become major customers for the company. Also, the merging of different
companies from different countries also becomes a big factor to generate
revenues. It is because people from these companies need to travel a lot. Thus
they need the service provide by Ryan-Air.
Technological
Technology is advancing. And it really affected
Ryan-Air in almost all areas.
ü
Internet
sales are getting more and more popular but the competition are also
increasing.
ü
High
speed trains travelling to some destination and low fuel consumption cars are
some of the other means people are now using instead of travelling by plane.
Environmental
ü IATA has some measure and
restriction on the noise level and the carbon emission level. And they request
the airline industry to be an environmentally-responsible industry. And not
only
ü IATA is now asking the airline
companies to invest in technology to minimize the pollution, to improving
operational efficiency, to building and using efficient infrastructure.
Legal
According
to Oxbridge Writers (2005) the legislation with the most impact on Ryanair -
and other low-cost carriers - is an EU ruling on providing compensation, food
and accommodation for passengers whose flights are cancelled or heavily delayed.
This was introduced in February 2005, and has been unsuccessfully challenged by
bodies representing low-cost carriers (Milner et al 2006). Ambiguous wording in
the law has been exploited by airlines: the rules do not apply if a
cancellation is for reasons of safety.
2:
Assessing the human resource requirements with regards to Ryan-Air
The airline industry is one of the most competitive,
safety-sensitive and high technology organization. Employees have to be on high
alert. The safety of the customers is top priority in all case. The (HR) team
at Ryan-air has to ensure the right staffs are placed in the right position.
The (HR) have to be able to change with the current changes taken place in the
current climate.
Human Resource requirements
According
to (Deborah, 2003) One of the
main roles of an HR department is managing current employees. Unlike managers
who directly oversee the employees' day-to-day work, the HR department deals
with concerns such as benefits, pay, company
policies and training. Among the benefits that might be handled by the HR
department are insurance plans, paid vacations, paid leave for illnesses and
other health matters, pension plans and employee investments. The HR department
also might settle conflicts between employees or between employees and their
managers as well as grievances filed against the company
by employees.
Recruitment
According to Sims (2002) is the process
by which organizations discover, develop, seek, and attract individuals to fill
actual or anticipated job vacancies. Employee recruitment
includes interview, screening, and selection of most qualified candidates,
filling of positions through transfer or promotion, and coordinating temporary
employment.
Ryan-Air aim to identify and recruit
suitable applicants in a cost effective and legal manner, the recruitment
process involved planning, screening and selecting. The HR team at Ryan-Air
most ensure recruitment program is directly related to the company strategic
planning.
Effective
recruitment
According to Sims (2002) effective recruitment
must be consistent with the strategy, the vision, and the values of the
organization. Strategic discussions focus on the general needs of the
organization. Once those needs are understood, the focus turns to defining the
needs of specific units or departments and the requirements for specific
positions. The objectives of the company’s recruitment process are:
ü
Ensure that the supply of talents and skills are adequate
ü
Help management determine future human resources requirements
ü
Attract an adequate pool of job applicants where employees can be
selected
ü
Attract and encourage applicants to apply in the organization
ü
Help the organization to communicate with job seekers regarding
job vacancies
In order for Ryan-Air to reach these
objectives, the HR department make use of both internal and external
recruitment. Internal recruitment involves vetting and selecting current
employee to file the available vacancies. This process is a lot more cost
effective for Ryan-Air as they would have saved a lot if they decide to recruit
internally. External recruitment can be very costly, every company including
Ryan-Air prefer to recruit internally but this is not always possible in all
case. Filling job vacancy outside of the organization involves. Interview,
screening, and selection of most qualified candidates, the aim of recruitment
is to identify a suitable pool of applicants quickly, cost efficiently, and
legally.
Performance Appraisal
According to Sims (2002) through the
performance appraisal process, organizations measure the adequacy of their
employees’ job performance and communicate these evaluations to them. Performance appraisals are a critical link in the HRM
process, as they assess how well employees are performing and determine
appropriate rewards.
Training and
Development
Training and development such as
orientation, performance management skills training, and productivity
enhancement are planned learning experiences that teach employees how to
perform their current and future jobs. Training focuses on present jobs,
whereas development prepares employees for possible future jobs.
3: Developing a human
resource plan for Ryan-Air
The
Human resource department is one of the most important departments in any
successful organization. The human resource managers (HRM) need to adapt to the
environmental changes and develop new plans and activities to enable the
company to stay in line with the current changes while looking out for the
staff welfare. The HRM planning process involves
forecasting HRM needs and developing programs to ensure that the right numbers
and types of individuals are available at the right time and place (sims, 2002) .
Ryan-Air has successfully implemented three HR planning methods. These are:
Ryan-Air has successfully implemented three HR planning methods. These are:
Managerial Judgment
Very
simple and straight forward, the HR managers can carry out their functions
without interference.
Delphi Technique
According
to (Sandford, 2007) The Delphi
technique, mainly developed by Dalkey and Helmer (1963) at the Rand Corporation
in the 1950s, is a widely used and accepted method for achieving convergence of
opinion concerning real-world knowledge solicited from experts within certain
topic areas. This technique has being used by Ryan-Air HR team successfully;
the technique requires a facilitator to collect expert opinion on the labour
force. When the HR receive the estimates from the experts who act as an
intermediaries, summarized the various Reponses received from the experts and
report the findings. The experts will make the necessary modification, if
needed, the Delphi technique is a very time consuming approach but Ryan-Air has
being using it very well to date.
HR Audit
HR audit is carried out periodically to find out how well the
present work force is utilized. The audit will bring the HR department up to
date with the performance of the employees and whether their skills and
abilities are fully utilized. It also enables the planners to identify the
employees who can be developed for undertaking more responsible jobs in the
future. Information about each staff from senior to junior will become
available through HR Auditing.
The graph below will show a basic view of HR planning regards to
Ryan-Air.
4:
Critically evaluate how HR plan can contribute to meeting the organization’s
objective
Human resource planning involves gathering of
information both internally and externally in a systematic way, the information
gathered will be used to make better decision for the company. HR needs to
ensure the availability of the correct number of employees with the necessary
skills at the right time. When companies plan for the future they create
business plans in order to help them achieve their short and long-term goals, the
employees is the company major asset, without the right employees the company
will not be able to function productively therefore the understanding of what
changes or improvements are required to succeed is a major part of any business
development. This may also include the
decision to reduce staff numbers in areas that are not critical to the end
goal, or redeployment to add value where it is needed most.
The approach to developing a Human Resources plan
will vary from one organisation to another. Organization plans can be broken
down into the following:
- Setting
the strategic direction
- Designing
the Human Resource Management System
- Planning
the total workforce
- Generating
the required human resources
- Investing
in human resource development and performance
- Assessing
and sustaining organisational competence and performance
The
airline industry plays a big part in the economy; it generates 31.9 million
jobs globally. The airline industry has generally seen success in the many
aspects involved with it – service, tourism and innovations .The airline
industry is vulnerable to threats posed to the environment based on Porter’s
Five Forces Model (The Industry Handbook: The Airline Industry 2011) comprising
of competitors, suppliers, buyers, substitutes and new entrants. HR planning
links people management to the organization's mission, vision, goals and
objectives, as well as its strategic plan and budgetary resources.
Setting the strategic direction
Ryan-air
focuses on aligning human resource policies to support the accomplishment of
the airline mission, vision, goals and strategies. In order to align business
and HR Ryan-air apply the following components.
·
Conduct an external environmental scan and evaluate
its impact on the organisation
·
Identify the organisation's vision, mission and
guiding principles and consult all relevant stakeholders.
·
Evaluate the impact of legislation on the
organisation
Designing the Human Resource
Management System
HRM
policies and practices range from outsourcing certain non-core functions,
adopting flexible work practices (telework, work from home) and the increased
use of information technology. In addition, it is essential that a cost-benefit
analysis of implementing new HRM policies and practices be undertaken
Planning the total workforce
Ryan-Air development of a workforce plan is a
critical component of the human resource strategy. The workforce planning is
a systematic process required to meet the company's strategic goals. According
to Guardian (Jan 17, 2012), Ryan-Air planned to hire 1,000 people by the end of
2012, thereby creating an increase in its workforce by 10%, as it boosts its
fleet to 305 aircraft from 270.
Last year Ryan-Air carried more international
scheduled passengers than any other airline, according to the International Air
Transport Association. 2011 Financial Statement of Ryan-Air indicates that it
expects to make a profit of €440m (£365m) for its 2011 financial year, up from
its previous forecast of €400m. The airline currently employ 8,063 staff, they
were only able to achieve this through good HR planning and the following
- Determine
the appropriate organisational structure to support the strategic
objectives
- Structure
jobs (competencies, tasks and activities) around key activities
- Develop a workforce plan designed to support the organisations strategic objectives.
5.
Explain the purpose of HRM polices in regards to Ryan-Air
Human
resource policies are the formal rules and guidelines that Ryan-Air put in
place to recruit, train, assess, and reward their workforce. These policies
provide the company with the tool to manage risk by staying up to date with
current trends in employment standards and legislation. The policies will help
to prevent misunderstanding between the employees and the organization; the
policies must be in line with the company long-term objectives and vision.
Purpose
HR policies allow Ryan-Air to clearly
establish worker’s employment is at-free will and to establish that each
employee understands his or her employment.
The HR polices should be clear on the
following:
·
The
nature of the company
·
Equal
Employment Opportunity policies
·
The
company expectation of the employees
·
The
employees expectation of the company
·
How
the policies and procedures works and the likely impact if these are not
followed
·
The
code of conduct
·
Disciplinary
procedures
·
Remuneration,
Payroll deductions, Vacation
policies, Holidays, Sick days and personal leave, Overtime compensation
·
Performance
evaluations and salary increases, Performance improvement, Termination policies
Each
company set their own polices depending on the nature of business they are in,
when setting these polices the HRM has to acknowledge the government
legislation to ensure they are not in breach. Ryan-Air policies will help the
organization demonstrate, both internally and externally, that it meets
requirements for diversity, ethics and training as well as its commitments in
relation to regulation and corporate governance. HR policies can also be very
effective at supporting and building the desired organizational culture.
6:
Analysing the impact of regulatory requirements on human resource policies
The
regulatory requirements are mandatory and it differs from country to country
and business to business. These policies are generally thought to be best
applied when good behaviour can be easily defined and bad behaviour can be
easily regulated and punished through fines or sanctions. The Human resource
department has to be up-to-date with the changes.
Human
resources was created to make sure the organization reaches its goals, which is
to maximize returns on investment for the organization’s human capital and
minimize financial risk, providing the organization with well trained and
motivated employees, to ensure all reconciliation of individual goals with
those of the organization, developing overall personality of each employee in all aspect, and ensuring effective utilization
and maximum development of human resources.
Ryan-air
human resource team has regulations responsibilities to follow such as the
Equal Opportunity Commission (EEOC). This commission established on July 2,
1965, and is listed under the Title VII of the Civil Rights Act of
1964, the Age Discrimination in Employment Act of 1967 (ADEA),[7] the
Rehabilitation Act of 1973, the Americans with Disabilities Act (ADA) of 1990,
and the ADA Amendments Act of 2008. The guidelines for employees have been made
into regulations enforced by the Equal Employment Opportunity instead of the
perception “common sense and compassion in the workplace” has been replaced by
litigation to make discrimination incidents legally enforced.
According to (ryanair/doc/investor/EmployeeShareOption, n.d) the airline industry
across Europe has being rigorously scrutinised by both domestic and the
European Union government. Heavy restriction was imposed on the airline
industry before the 1980s; these restrictions were imposed by the individual
countries trying to protect their national airline. In the 1980s a liberalised
bilateral agreement was reached between Ireland and UK, this was a big change
towards the deregulation of the airline industry, this new agreement allowed
the airline to set their own price and it also allow room for more competition.
Ryan-Air is subject to extensive regulatory and legal compliance requirements
that result in significant costs. For instance, the FAA from time to time
issues directives and other regulations relating to the maintenance and
operation of aircraft that necessitate significant expenditures. Ryan-Air is
expected to continue incurring expenses to comply with the FAA’s regulations.
Other laws, regulations, taxes and airport rates
and charges have also been imposed from time to time that significantly
increase the cost of airline operations or reduce revenues.
Aviation and
Transportation Security Act
Aviation and
Transportation Security Act take effect in November 2001, mandates the
federalization of certain airport security procedures and imposes additional
security requirements on airports and airline.
Data protection Act
There are strict regulatory rules regarding the
treatment of peoples data, carriers are subject to domestic and foreign laws
regarding privacy of passenger and employee data. In addition of the
highlighted level of concern regarding passenger data, Ryan-air HR has to
ensure they are recruiting the right staff to deal with such sensitive matters,
any breach can result in a Hugh fine for the airline. The following below shows
how Ryan-air treats people’s data
·
personal
data shall be processed fairly and lawfully and, in particular
·
Personal
data shall be obtained only for one or more specified and lawful purposes, and
shall not be further processed in any manner incompatible with that purpose or
those purposes.
·
Personal
data shall be adequate, relevant and not excessive in relation to the purpose
or purposes for which they are processed.
·
Personal
data processed for any purpose or purposes shall not be kept for longer than is
necessary for that purpose or those purposes..
·
Personal
data shall not be transferred to a country or territory outside the European
Economic Area unless that country or territory ensures an adequate level of
protection for the rights and freedoms of data subjects in relation to the
processing of personal data.
It
is the responsibility of the HR manager to comply with the law and observe
confidentiality regarding matters of which they become aware of and which are
subject to confidentiality. This confidentiality remains in force throughout
and after the service or termination of an employee. The employee must maintain
the highest standard of integrity and fairness to the employee and the
customers of the airline.
7:
Analysing the impact of an organizational structure on the management of human
resources for the business operation.
Organizational
structure
Organizational
structure is nothing more than the follow of authority of an organization. According
to (business dictionary, n.d) the organizational
structures arranges its lines
of authority
and communications,
and allocates
rights
and duties.
Organizational
structure
determines the manner and extent to which roles,
power,
and responsibilities
are delegated, controlled, and coordinated, and how information
flows between levels
of management.
Ryan-Air HR Organizational
Structure has to
follow the needs of the organization, but it has to allow the employees inside
Human Resources to operate smoothly and to deliver consistent results over the
longer period of time.
Human resource management (HRM)
Human resource management (HRM) is the organizational
function that deals with issues related to people such as compensation, such as, organization development, safety,
wellness, benefits, employee motivation, communication, administration, and
training. HRM is a
major contributing factor to the success of the organization because it is in a
position to affect the customers.
According to about (n.d), Human Resource Management (HRM)
is the function within an organization that focuses on recruitment of,
management and providing direction for the people who work in the organization.
The structure also determines how human
resources will be allocated by considering where people will perform their best
work. A business may choose its structure based on various different criteria,
and the structures that it uses will have different effects on the business and
the employees.
Functional Departmentalization
The organizational structure
splits business into departmental units based on the functions that each
department must complete. The structure may have a positive effect on the
organization by encouraging employees to enhance their skills, thereby
providing them with a clear career path. Each of the department has skill or
multi skill employees, this is an advantage to the organization, and departments can
collaborate and increase efficiency and productivity within the organization.
Geographic Departmentalization
Businesses
may organize according to geographic areas, particularly if the business is
spread out with global operations. These geographic departments may be given
additional autonomy to increase efficiency in management and address the
different business needs of different areas.
Factors Affecting Organizational Choices
The size of a company clearly affects the organizational
structure that the company uses; large companies like Ryan-air use a more
formal structure the airline is operating in a very unstable environment, where
customer
needs are expected to change. The Stable environments favour traditional
structures -- with top-down management -- more than dynamic environments, which
require flexible structures that can change at a moment's notice.
8: Analysing the impact
of an organizational culture on the management of human resources for Ryan-Air
business operation
Organizational culture is the behaviour of the workforce in an
organization. Culture is comprised of
the organization, values, norms, working language, systems, including habits
and beliefs of the organization. There is no clear way to define culture in an
organization but culture exists in every organization, in the case of Ryan-air
their culture is to offer low-cost flights to European destination. The concept
of culture is particularly important when attempting to manage organization-wide
change. Organizations are coming to realize that, despite the best-laid plans,
organizational change must include not only change in structures and processes,
but also change in the corporate culture as well.
Impact of
organizational culture
·
Competitive edge derived from innovation and
customer service
·
Consistent, efficient employee performance
·
Team cohesiveness
·
High employee morale
·
Strong company alignment towards goal achievement
An organization culture is very important to the organization if the company
has good culture this could lead to an increase in the performance of the
organization. Organizational culture can be a major factor in the survival of
the organization, although this is hard to prove statistically.
According to (Journal-archieves, 2012) Culture
idea must be learned and shared in the organizations (Titiev, 1959) . (Pettigrew, 1979) , argue that cultures of organization
based on cognitive systems which help to explain how employees think and make
decision.
Human Resource
Management
The
human resource management is responsible for the recruitment of staff in their
various disciplines. Ryan-Air has been committed to Low-cost air fare since the
company was incorporated in 1985. Ryan air has grown from a small airline flying
short journey from Waterford
to London into one of Europe's largest carriers. Ryan air now employs over 8500
members of staff and as seen rapid growth over the years, since Ryan-Air went
public 1997, the money raised was used to expand the airline into a
pan-European carrier. With the major growth and continue expansion and success
of Ryan-Air the HR department have to keep up-to-date with the continuous
changes of the internal and the external environment. They have to position the
right staff at the right place to maintain the company competitive advantage
over their competitors; it is believed that the company human resources are the
source of competitive advantage over its rivals. The world today is not what it
used to be, companies are getting more innovative and technology has been
revolutionize, company strategy has changed. The HR department have to be able
to deal with the changes and keep developing their staff in order to main their
competitive edge.
Business operation
Ryan-air,
an Irish low cost carrier (LCC) and also becomes the Europe's largest LCC,
which operate over 200 low-fare routes that serve more than 90 destinations
across 17 European countries.
To keep the airfare low Ryan-Air launch their
website in 2000, the aim of this is to give customers the convenience to book
ticket online. This will cut out the travel agency who in the pass has imposed
large cost on the customers. The website is now handling ¾ of their booking,
with this number increasing. Ryan-Air is now carrying over 76 million
passengers per year that’s an increase prior to the 74 million in 2011. According to (Theguardian, 2012) on 19 June 2012
Ryan-air Chief Executive, Michael O'Leary announced his intentions to make an
all cash offer to buy Aer Lingus. On Tuesday 19 June Ryan-air offered €1.30 per
share in Aer Lingus despite shares closing at €0.94 on the Irish Stock Exchange
(ISE). Ryan-air said the cash offer represents a premium of 38.3% over the Aer
Lingus closing price. This would put the company value at approximately €694
million. This offer was rejected by Aer Lingus for the 3rd time.
9: Examine how the
effectiveness of human resources management is monitor in Ryan-Air
The
effectiveness of HR in an organization depends on the method that is use to
measure the performance of an employee. Having the right people in the right
position is very curial to the success of an organization, the corporate
culture, value, personal style and the long-term objective of the organization
plays an important factor for the HR to be effective.
Human resource
management (HRM), as defined by(J. Bratton & J. Gold, 2007) "A strategic approach
to managing employment relations which emphasizes that leveraging people's
capabilities is critical to achieving sustainable competitive advantage, this
being achieved through a distinctive set of integrated employment policies,
programs and practices."
Base on
the definition, HR is more than recruitment and discharging of employees, in
fact, good HR is one of the major contributing factors to the success of an organization.
In-order to measure and effectively monitor HR the following components should
be formulated and implemented:
·
Clear Vision & Mission Statement, Core Values (behavioural
aspect/culture)
·
Clear Corporate Objectives using SMART (Specific,
measurable, realistic and time bounded).
·
Clear Table of Organization and Effective Orientation
Program should be in place and this should be observed across all levels in the
organization
·
Manpower Succession Plan, Merits, Awards,
Incentives and Disciplinary Measures should be created and made known to
everyone.
·
Clear Man's
Specifications and Position Job Profile (Skills, Competencies, Expertise, and
Responsibilities) should be in placed
·
Rationalize
skills/competencies required for the position/role and will be able to allocate
the right resources for the job
·
The system
shall also be use by HR when conducting external recruitment if identified
skills can't be found within the organization.
·
Inventory of knowledge and skills, including
standards or proficiencies, required in all positions / functions of the
organization
·
Introduce a system that would assess employees and
determine their strengths and potentials, as well as areas for improvement and
development - skill/competency gap then can be identified wherein areas for
training can be identified to fill in the variance.
According to report by the (BBC, 2012) and information from
the Ryan-Air website (Ryair-Air, n.d) Ryan-Air now flies
to 175 destinations across Europe and the UK with a record Net profit for the
year to March was 503m Euros ($643m; £406m), up 25% on a year earlier. Revenue
rose by 19% to 4.3bn Euros.
Ryan-air success was attainable
due to good HRM implementation of HR strategies, by implementing the components
listed above and setting-up a workable metric system to support corporate line
managers\Department and individuals.
10:
Make justified recommendations to improve the effectiveness of human resources
management for Ryan-Air
According
to (perspectivebd, 2010) Effective HRM
practices assume that appropriate HRM practice taps the motivation of employees
and generates employee’s commitment. The way to do this is through management
philosophy which assumes that eliciting worker discretionary effort of
enhancing motivation and generating employee commitment will lead to improved
organizational performance.
Effective
management of human resource is valued not only for its role implementing a
given competitive scenario but also for its higher productivity of
organization. In this circumstance effective HRM practice has the potential to
create organizations that are more intelligent and flexible than their
competitors through the use of policies and practices that focus on the
development of staffs
Ryan-air HRM, based on the above analysis,
Ryan-air has its own competitive advantage including the unique,
organization-specific resource and its business strategy. However, the human
resourcing at Ryan-air is facing a lot of negative review base on increasing
issues and complaint by the staff members. For example, there is a high staff
turnover and the negative reputation of the staff being rude to customers and
the lack of customer service. That shows Ryan-air’ business strategy must be
related to other human resources policies and practices to become more
effective with organisation’s different development stage and competitive
advantage. Therefore, it is strongly recommended that Ryan-air should adopt a
model which is best for the company development.
Recommendations
In
addition, for employees, Ryan-air should be more co-operative with the union,
which will ensure that employees have union’s help if they may demand it and
also increase the employee's salaries, Ryan-air should develop staff trainings
in various areas to continuously contribute to the improve of the staffs development skills and
reduce the high staff turnover.
Ryan-air
should motivate their staff s by making the working condition more workers
friendly and encourage their staff s, hence building their staffs moral by
making them feel as if they are a part of the Ryan-air company and not just an
employee of Ryan-air. Example, giving
staff incentives including rewards, bonuses and so on. The customer service of
Ryan-air should improves by making the customers feel better while travelling
with the airline, hence, achieving more business opportunities and improving Ryan-air’s reputation and image.
Airline companies are subjected to extensive security checks and scrutinized both
internally and externally, therefore regular training should be in place to better
equip staffs to deal with any possible issues that might threaten the safety of
the passengers.
Conclusion
Ryan-air
has been playing a pioneering role in low budget segment of Europe’s aviation
industry. The company succeeded in establishing the leading position due to
long standing experience, a large fleet size and an extensive route network as
well as valuable strategic capabilities facilitating business operations at
lowest costs with maximum efficiency (high load factor, fast turnaround, etc.).
This track record has resulted from the implementation of an innovative cost
oriented business model focusing on fleet commonality, contracting out of
services, airport charges, staff costs and productivity and marketing costs.
As a consequence of the cost oriented strategy, Ryan-air
has the highest profit margin in the aviation industry enabling them to take
over cost leadership and offering the lowest ticket prices compared to all
competitors. The low fares as strategic key element account for Ryan-air’s
immense popularity and annually rising passenger amounts even though complains about missing service have been
recorded on a continuous basis.
Bibliography
Hooley,
Saunders, Piercy. (2004). Marketing strategy. peason.
(2012, 01 17). Retrieved 08 26, 2012, from guardian:
http://www.guardian.co.uk/business/2012/jan/17/ryanair-boosts-workforce-1000-european-jobs
BBC. (2012, 05 21). Budget airline Ryanair reports
record profits. Retrieved 08 24, 2012, from BBC: http://www.bbc.co.uk/news/uk-18142533
business dictionary. (n.d). Retrieved 08 20, 2012,
from organizational-structure:
http://www.businessdictionary.com/definition/organizational-structure.html
Deborah. (2003). human resource. london: wisegeek.
Hoftmann, J. (2004). Ryanair environmental discussion.
london.
Hrmreport. (2008). The-Evolution-of-HR-Audits.
Retrieved 08 18, 2012, from www.hrmreport.com:
http://www.hrmreport.com/article/The-Evolution-of-HR-Audits/
Investopedia. (2012, 07 18). Retrieved 07 18, 2012, from investopedia:
http://www.investopedia.com/terms/h/human-resource-planning.asp#axzz20yYzWj3C
ivythesis.typepad.com. (2012, 07 18). Retrieved 07 18,
2012, from ivythesis.typepad.com:
http://ivythesis.typepad.com/term_paper_topics/2011/03/human-resources-planning-and-development-the-case-of-ryanair.html
J. Bratton & J. Gold. (2007). Human Resource
Management: Theory and Practice. Palgrave, Basingstoke: Palgrave,
Basingstoke.
Johnson, Scholes. (1999).
Journal-archieves. (2012, 01). Retrieved 08 23, 2012, from
http://www.journal-archieves14.webs.com/975-985.pdf
Melear, T. (2006). Seven dimension of corporate identy. European
journal of Marketing , 40(7/8), 846-69.
Oppaper.com. (2012, 07 21). Retrieved 07 21, 2012, from ecomerce and
business: http://www.oppapers.com/essays/Ryan-Air-Pestel/216117
perspectivebd. (2010, 05 17). Retrieved 08 31, 2012, from effective hrm :
http://www.perspectivebd.com/effective-hrm-practice-can-make-heights-productivity-in-an-organization/
Pettigrew, A. (1979). Studying. Administrative Science
Quarterly , 570-581.
Ryair-Air. (n.d). Route Map. Retrieved 08 24, 2012,
from Ryan-air: http://www.ryanair.com/en/cheap-flight-destinations
Ryan-Air financial Staetment. (2011).
Retrieved 08 26, 2012, from Ryan_Air:
http://www.ryanair.com/doc/investor/2011/Annual_Report_2011_Final.pdf
ryan-air. (n.d). Retrieved 08 29, 2012, from
http://www.ryanair.com/en/about: http://www.ryanair.com/en/about
ryanair/doc/investor/EmployeeShareOption. (n.d).
Retrieved 08 19, 2012, from
http://www.ryanair.com/doc/investor/EmployeeShareOption.pdf:
http://www.ryanair.com/doc/investor/EmployeeShareOption.pdf
Sandford, B. A. (2007, 11 10). Pratical assessment.
Retrieved 08 18, 2012, from pareonline.net: http://pareonline.net/pdf/v12n10.pdf
sims, R. (2002). organizational success through
Effective Human Resource Management. westport CT: quortum books.
Theguardian. (2012, 07 12). Retrieved 08 23, 2012, from Aer Lingus
rejects latest Ryanair takeover bid: http://www.guardian.co.uk/business/2012/jul/18/aer-lingus-rejects-ryanair-takeover
Titiev, M. (1959). Introduction to Cultural
Anthropology. New York: Henry Holt & Company.
