Module Code: BTM5HUR
Module Title: Human Resource Management
Case Study: Ryanair Holdings plc
4000 words case study report on your understanding of Human Resource Management (HRM).
Overview:
This assignment involves preparing 4,000 words case study report on your understanding of Human Resource Management (HRM). You are required to use theories, concepts and contemporary practices to support your argument. You are required to use examples from the case study (Ryanair Holdings plc.), further research and the tourism industry where necessary to demonstrate clear understanding of the theories, concepts and contemporary practices of HRM and why they are important for organisational performance. The report must be submitted in Microsoft word format. You must include appropriate in-text citations and references according to CCCU Harvard referencing.
WHAT YOU ARE BEING ASKED TO DO?
You are required to study the case and then write a report of 4,000 words (this can be over or under by 10%, i.e., 4000 words).
Case Study: Ryanair Holdings plc
Ryanair Holdings plc is Europe’s largest airline group, comprising Ryanair DAC, Ryanair UK, Buzz, Lauda and Malta Air. Founded in 1984, it currently employs approximately 25,000 people. It is a low-cost European airline. Ryanair earnings come from add-ons such as seat selection fees, expedited boarding, additional baggage, snacks and beverages. It is currently the world’s second most valuable airline in terms of stock market capitalisation, trailing only United States carrier Delta Air Lines. Its CEO, Michael O’Leary, known for his direct communication style, has courted controversy in the past by proposing charges for using the restroom on the plane. Though it never occurred, the press and media coverage ensured that he was rarely out of the spotlight.
An internal staff scheduling issue resulted in an excessive number of pilots and cabin crews being granted leave for the same period. Ryanair responded by abruptly cancelling up to 50 flights each day during a six-week period. This ultimately affects 315,000 customers. The CEO then publicly stated that the staff leave plan had been badly handled. However, Ryanair’s crisis was just getting started, and the main issue was how it dealt with the aftermaths. Not surprisingly, the initial public reaction was shock; newspapers were soon filled with stories of wasted family vacations. Customers felt misled, even though the communication approach was initially straightforward. The UK consumer organisation for air travel (Civil Aviation Authority) chastised Ryanair for failing to effectively arrange staff leave and poorly communicating the cancellations to customers.
As if Ryanair’s external communication troubles were not bad enough, the next several days brought news of internal mayhem. Some employees were initially promised tax-free bonuses in exchange for cancelling their annual leave. Then there were suggestions for pay increases. This appears to have exacerbated another problem. Therefore, Ryanair staff started planning a revolt and want to renegotiate contracts across the board. This demonstrates an example of long-term employee unhappiness with terms and conditions. The airline has previously lost over 140 pilots to one of its rival airlines company, Norwegian Air and some employees saw this as an opportunity to demand better terms and conditions.
The cost of cancelling flights for a few weeks is usually anticipated to be around €22 million, the aftermath might take much longer and cost the company considerably more. Ryanair has consistently maintained a loyal client base in a competitive market by offering competitive rates and edgy marketing strategies. Consumers will only take so much risk and if Ryanair experiences any other problems in the foreseeable future, their devoted consumers may look elsewhere. Similarly, the approach of stacking them high and selling them low requires a ready and willing supply of pilots, cabin personnels and other operations staff on grounds. The company has occasionally been chastised for its terrible working conditions, poor
customer service, and proclivity to incite controversy to acquire notoriety.
Ryanair’s inability to respond effectively to a major racist incident on one of their flights exposed the serious ramifications of the firm’s treating diversity and inclusion rules as a ‘tick-box’ exercise. When the incident occurred, the budget airline received widespread criticism after crew members refused to remove a man who verbally abused a female passenger on a plane departing from Barcelona for the United Kingdom. A video shot by a fellow passenger, which has been viewed over three million times, shows the man aggressively attacking an elderly disabled woman in the seat next to him, saying “don’t talk to me in a foreign language, you stupid ugly cow.” Witnesses report that there was no initial response from cabin crew to the outburst, with another passenger being the first to interfere. When staff arrived, they moved the victim of the abuse to another seat rather than removing the offending passenger from the flight. Dealing with racism, diversity or respect should be one of the key trainings for cabin crew and other airline staff rather than taken as a tick-box exercise to meet regulation and compliance requirements.
In terms of employee relations and employment conditions, Ryanair has faced several criticisms in recent times. Ranging from lack of recognition of trade unions, lack of collective bargaining, changes in staff reward packages, heavy use of agency staff, breaches of employment law, poor employment and/or working conditions, etc. which has led to strike actions, boycott of Ryanair, employment tribunal cases, cancelation of flights, legal action against Ryanair, and so on. For instance, it recently fired its Chief Pilot following an inquiry that revealed a pattern of repeated inappropriate and unprofessional behaviour against multiple female junior pilots. As Chief Pilot, he oversaw flight crew training and safety, flight coordination and people management. Because of his position, he was able to modify or change flight rosters. An investigation into the allegations revealed that he had harassed and groomed nine younger pilots aged 21 to 32.
Ryanair must handle its internal concerns promptly and in a way that prevents further public reporting on any internal conflict and people management issues. Especially when they intend to create over 6,000 jobs for professional staff in Europe by 2026. Whatever the reason for an internal labour crisis, how it is handled in the early stage is critical for organisational performance and future success. Ryanair has acknowledged issues with its external and internal communications, as well as its human resource management (HRM). It appears that previously committed customers and personnel are no longer feeling the love. As a result, its HR and Operations functions need to work professionally and tirelessly to manage the HRM issues currently confronting the business.
WHAT YOU ARE BEING ASKED TO DO?
You are basically required to read the case study (Ryanair Holdings plc), consider the points and questions below and then write a report of 4000 words (this can be over or under by 10%, i.e., 400 words) in relation to your analysis of the case organisation:
1. Explore the HRM functions in the case study organisation (Ryanair Holdings plc) and the different approaches to understanding HRM.
2. Examine how the Human Resources (HR) department can effectively manage employee resourcing (employee recruitment, selection processes and induction as well as the practical application of these practices).
3. Review employee development strategies that could be used to enhance HR and overall business performance.
4. Include examples of industry practices from different organisations that could enable Ryanair to manage the current HR issues confronting its operations.
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