MANAGEMENT AND LEADERSHIP ACROSS CULTURE

RYANAIR
CONFERDATION OF TOURISM AND HOSPITALITY

POSTGARDUATE DIPLOMA ASSIGNMENT

25 July 2011

ADNAN UL HAQ

Executive Summary Ryanair has come back from a tough situation and it is now making a major share in the airlines of the European market, and it is now competing with the traditional airlines in various ways, this is due to the leadership at Ryanair. The policies and plans of the organisation are aggressive which represent the leader and they are very dynamic to the environment, this research is carried out in out in order to evaluate the leadership of Ryanair and Staff motivation in relation to various theories.

Management and leadership across culture:

Introduction: The main focus on this report is to examine the organisations diversified culture along with the leadership and management. Most of the organisations are a huge success in recent times due to its management tactics and leaders influences. It has been observed that in recent time, all most of every sector needs an efficient leader and effective management to be a huge success. According to (Adair, 2005) it is very important for every type of organisation to have a great leader. So this reveals the significant point that leaders are a driving force behind the employees productivity level. The staff and management are brought in close contact by the assistance of leaders. According to Parker (2003), the organisational goals and objectives are essential and leaders play a vital role in attaining these goals. Leaders are needed to make organisation as a brand or icon in the market and furthermore, at times of recessions or global crises, leaders play their significant role in making organisation survive all the obstacles, hurdles and fluctuations. Today, in all most every field, from social to advanced technological industries, the leaders are in a high demand because leaders influences the behaviour of team members and pushes them to perform the required task in a quality manner. It would not be unfair to say that the missions of organisations are achieved and the short term and long term objectives of firm is attained by employees through the motivation of leaders. Most of organisations are linked with leaders, for instance, Virgin Group is today regarded as one of the market leaders and it is always associated with Richard Branson for his efforts in making Virgin Group a mega success not only in United Kingdom, but across the globe.

Company Profile: Ryanair has evolved as a major low cost airline in European union with its low cost policy and no frills strategy, it all started in 1985 with the Ryan family, it started with a share capital of 1 pound, now it is flying all over Europe with 44 bases, 1300 routes carrying 73 million customers in a year has made a great goodwill for itself, there was a period where Ryanair was in deep trouble but after Ryanair coming under the leadership of Michael OLeary has changed a lot and strategies have changed everything went well for the company some people even know Ryanair because of him as he is a very controversial person and keeps coming on the headlines, this organisation is very apt for a research regarding leadership because of the

leadership strategies of Michael OLeary, being in such heavy competition with many affecting factors like the fuel prices and environmental concerns Ryanair is still pulling off very well in the market keeping the prices at the lowest in comparison to the market. Introduction to Leadership Leadership is very important and crucial in running a successful business, a Leader is a person who is responsible for leading the teams in achieving set targets, there are different approaches towards the way a leader leads his team, a strong leader will address all the issues of the business and his team in an efficient way keeping in mind benefits of both employees and the business goals, there are a lot of difficulties in a business within the organisation and in the external environment is well, it depends on the calibre of the leader to tackle them and overcome in the most acceptable and beneficial way, if this is not done then the survival of the organisation is very hard. According to Bass (1990); Howell and Costley (2001) leadership is a quality of an individual, to reach the desired goal or set objective people are attracted and pushed forward b individuals who possess the quality of leadership. Maxwell has described leadership not as a quality but one step further as a process of leading, influencing and commanding people by a leader. So it will not be unjust to say that leader is a guide who drives employees to perform certain tasks by motivating them and inspiring them. There were many efficient leaders in the past and there are some leaders in the current age who are and were Role models for many others in getting succeed in the business line, the complexity of leadership is to understand situations and do what is more accepted rather then doing things that they are willing to do, leaders are actually influential personalities who inspire people in doing things at their best, without the impact of the leader no team can give their best, he is actually responsible for everything about the team performance , he

responsible for building morale ,and confidence in the team. (managementstudyguide.com). Motivation: An internal urge that urges and drives individuals to achieve certain objectives or to demonstrate certain behaviour is known as Motivation. Motivation is of two type one is intrinsic and one is extrinsic. Extrinsic motivation is one which is caused by components lying in external environment and the one which urges the person to behave in a certain manner through internal will is regarded as intrinsic motivation. People, rewards, incentives, guidance, working conditions are external influencers or motivators whereas creativity, work itself, and needs of basic types are all internal that causes person to behave in certain way.

Herzberg has regarded responsibility, achievements, growth and recognition as factors that influences and motivates individuals. People are regarded as one of the most vital source of every organisation to achieve its long term and short term objectives. According to the research findings of Orloff (2008) presently the fastest growing organisations and multinational companies are have employees influenced by a great leader who continuously motivates them. For example, considering one of the fastest growing companies is Microsoft, it is always associated with its leader Bill Gates who has always influenced his workers in a very positive manner in order to achieve the organisational goals and has played a vital role in the building up a strong corporate image of Microsoft. With a positive intent, consistence behaviour and strong determination he has inspired and influenced his team to make company grow with a consistent rate. 1.4 Cultural diversity: According to Mindtools (1996-2011) employees have a strong impact on the workforce. It is vital advantage for a company to have a workforce which is diversified in cultural aspects. Since employees are working in organisation as one unit and they are from various different backgrounds so when they work, they bring their culture with them in to the organisation. Organisation is not built from bricks, it is made by people so when these culturally diversified employees work together, they mix their culture and form a new organisational culture. Furthermore, it increases the companys profit as it attracts different customers by understanding their needs due to the internal diversified culture existing within organisation. The diversified employees also make a team which has different characteristics such as religion, cast, country, different age and many more. This shows the importance of having a team that is diversified due to different characteristics. Due to the impact of globalisation world has become a global village, as the travel and transfer of all types of resources has given birth to a concept of diversified workforce operating inside organisation. Since the culture of employees mingle into each other so quickly therefore it is vital for leaders as well employees to grasp to culture quickly. It is always important that leaders and employees fully understand the need and adopt quickly the culture demonstrated by organisation. Chokkar.J.S (2008) has stressed on the cultural diversity by explaining it as builder of a strong connection between people across the globe and therefore has regarded that in the success of an organisation leaders have a crucial role to play. The significance of leaders role is also identified by Mindtools (1996-2011).

This report will focus on the above mentioned factors such as leadership, motivation within a culturally diverse organisation. Primary and Secondary research: I have interviewed employees as to gather the primary data for this report. These interviews were arranged by a friend who is working as a sales associate with Ryanair and he helped in circulating the questionnaire among employees to attain the information. Primary research has helped in answering the research question about the role of leader and the impact of culture. For secondary research the questionnaires were distributed among the passengers. Questionnaire: For this study, the questionnaire will be drafted by so that the research remains exploratory in nature. The sub set of the population is targeted in the way that it remains free from biasness and contradictions. The questionnaire was made after a good consideration of techniques and reasons. This has been kept in mind that the questions remain in the matrix order showing the degree of the respondents expressions. The questionnaire is degree based as well close ended so that it is easy to conclude and generate the final findings. It has been kept in consideration that the questions must not be double barrelled nor the negative questions that can confuse the respondents. The sample set is approached through the social circle and special recommendations along with the help of twitter group to commence and circulate the questionnaire.

Leadership grid:

According to Blake and Moutons (1985) leadership grid there are following styles of leaders on two respective axes.

1.) Concern for People- plotted using the vertical axis

2.) Concern for Task or Results- plotted using the horizontal axis

Both types of leaders are ranged from 0 to 9, with the concept that leadership performance can be simplified using two magnitudes. Usually the people falls in the mid of the grid (Middle of the Road), while some lies on the extreme knot of the grid.

Four types of Leadership behaviours in this scenario are thus categorized:

Authoritarian Country Club Impoverished Team Leader

Ultimately, for leaders, the goal is to score a least in the Middle of the Road. However, in an ideal world, most leaders would prefer to be classified under Team Leader.

Authoritarian Leader People who get this score are very much task oriented and are not very soft on their workers. There is very little or no allowance for collaboration (Blake and Mouton, 1985). From this statement, it can be understood that leaders who score under this categorization are very tough on timetable, expecting their workforce to follow directions without making a fuss, while having zero tolerance for any defiant behaviour. Even if tasks will be fulfilled, the demerits of being an authoritarian leader involve less chance of employee development because the creative thinking is avoided due to current procedures in organisations.

Furthermore, such leaders tend to focus on sabtagoting other when things go wrong rather than finding the ways to avoid errors and the causes of those errors.

Team Leader Team leader is a leader who encourage the team to reach team goals as effectively as possible while also working tirelessly to strengthen the bonds amongst the various team members (Blake and Mouton, 1985). Team Leaders will therefore be able to lead a productive team, since each member is working in participation whilst promoting creativity and advance in order to grow each team member.

Country Club Leader Country club leaders are almost incapable of employing the more punitive coercive and legitimate powers. This inability results from fear that using such powers could jeopardise relationships with the other team members (Blake and Mouton, 1985). Their concern for people far outweighs their concerns for the completion of tasks. Therefore, prioritising interpersonal relationships can sometimes undermine team goals and its achievement.

Impoverished Leader Blake and Mouton (1985) defined this classification as a leader who uses a delegate and disappear approach to leadership. This can be stated that such leaders are not fit for the team situations but can be effective in the situation where self reliance is felt highly to develop the team but takes task autonomously.

Leadership and Management Leadership and Management are terms that are mostly considered as words with same meaning but to manage people or the business one needs to have leadership qualities, effective management is done by leaders, leadership qualities are motivating the team, getting them to a similar platform to get maximum productivity and leading them in the right direction to attain the goals in the quickest time possible without any issues from the employer and the employees.

What differentiates Leadership from Management Management involves in delegating and utilizing the available resources available but leadership develops strategies and vision for the management of resources, leadership is more interactive to the employees then the management as leadership involves leading the team where as management manages the team. Leadership constantly focuses on reaching the goals with coordination, motivation, maintaining positive relations and caring the team of followers, where as management focuses on the organising , managing and developing the organisations at any cost.

Leadership is not a position, it is an achievement and authority from the people who are with the leader, where as a manger is a person who is appointed by the company for performing certain tasks of management. Management is done on set standards and rules with in which the manager has to perform, leaders can make their own decisions and lead their team. Management is a science of managing resources but leadership is the art of dealing with resources and people. Leadership deals everything in the way it comes but whereas management has some guidelines to follow this is the bottom line difference between leadership and management. Motivational Theories at Ryanair Motivation is the internal feeling or behaviour of any human being towards anything, it directs the behaviour of the people when they are doing things, unmotivated people do not things with ease and are not productive, motivation depends on various reasons at the workplace, if employees are motivated companies excel in their business. There are various motivation theorires proposed, which will help in analysing the workplace and knowing the motivation of the employees, these theories are proposed Based on the factors that contribute for the employees better workplace. There are various theories suggested each theory takes in different contributing factors of motivation at workplace, these theories are applied to understand the current position of the organisation and the factors that are ot be revised for the betterment of the motivation of employees which will ultimately result in the higher productivity of the company, motivation should come to the employees from the organisation by the work they are doing and the organisations to approach towards them about the care taken for them and the programmes that are in place to encourage them. Equity Theory Equity theory explains the motivation of employees in getting motivated in achieving and then maintain. The equity in getting rewards to each employee, all the employees have to be equally rewarded to keep them in balance, but the rewarding should be in accordance with the performance of the employees. Equity theory follows the these points,

It believes in the input to outcome ratio where the inputs are things that ar given to the organisation and the outcomes are the rewards and recognitions of the organisation given to employees, these may be certificates of appreciations are some form of gifts to the employees. Then the ratio is calculated in the perspective of the employee, who is a co worker of the employee, who was rewarded, this is to analyse the thinking of the critical employee, where the motivation of the employees is seen in their perspective. If both ratios are similar and clearly stating the employee believes that he will also get a reward when he does exceptionally well, will indicate that the company is taking good care of employees and treating them equally. If anyone ratio is not up to the mark then the employees are not motivated and their inputs towards the company will go down and expect more outcomes from the company, like the increase in wages and special allowances. Equity Theory at Ryanair There were a lot of complaints from the employees of Ryanair about the rigid policies of the company and the uncaring attitude of the company towards the employees, it does not have rewarding programmes for the employees, it has employees who do multiple things from cleaning the cabins to welcoming the guests, they are also paid less for the amount of work they do, at ryanair employees have to pay for their uniforms, meals and the training they undergo for promoting to the other flights. If we apply the equity theory to the Ryanair, the inputs of the employees are very high in consideration with outcomes from the company, so the employees will be obviously not satisfied, the promotion of the employees at Ryanair include a training programme for which the employee has to pay, which will demotivate the employee even though he is promoted as there is no considerable out come from the organisation instead of his best inputs.

Expectancy Theory Expectancy theory is a theory which is very practical and can be related to day to day situations, it was proposed by Victor Vroom. It says that motivation only depends on the possibility of expectation becoming true, in simple words it is analysing the expectations of

an individual and evaluating the chances of expectations coming true, this is what motivates people, if for instance, an employee knows that if he is going to work hard he will definitely be promoted and he is motivated in getting promoted he will work hard, if an employee wants to be promoted but do not have expectations of getting promoted then he will never work hard. The expectancy theory when applied to Ryanair will show that employees are not expecting recognitions from the company, their motivation level is very low, which will not allow Ryanair to keep up its employees for long, the recruitment process of Ryanair is very different from the traditional airlines as they depend on recruiting agencies for the employees and do not involve in active recruitment processes. Expectations cannot only be promotions are rewards it may be anything that the employee is expecting for his hard work. Reinforcement Theory Reinforcement theory states that the positivity of the achievements make the employee repeat his good work again and again where as punishment will reduce the risk of mistakes. At Ryanair the theory of reinforcement do not have a great implication in the organisation as there is no positivity in the employees, they are only there for the sake of working or for the sake of passion for their job. Data Analysis Leaders are more effective than the managers: Out of 178 respondents, 144 respondents have strongly agreed to the first question was, 16 has agreed, 9 has slightly agreed, 3 has been neutral, 2 respondents were slightly disagree, 2 disagree and 2 responded strongly disagree.

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Leaders help in shaping the culture of Ryanair: Out of 178 respondents, 150 respondents have strongly agreed to second question, 21 has agreed, 2 has slightly agreed, 2 has been neutral, none employee were slightly disagree, none was disagree and 3 responded strongly disagree.

90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Strongly Agree Agree Slightly Agree Neutral Slightly Disagree Disagree Strongly Disagree Series1

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Leaders influence the subordinate to behave in certain manner: Out of 178 respondents, 150 respondents have strongly agreed to third question, 21 has agreed, 2 has slightly agreed, 2 has been neutral, none employee were slightly disagree, none was disagree and 3 responded strongly disagree.

90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Strongly Agree Agree Slightly Agree Neutral Slightly Disagree Disagree Strongly Disagree Series1

Management relation and the expansion of Ryanair are due to the leaders strong role: Out of 178 respondents, 140 respondents have strongly agreed to the 4th question, 25 has agreed, 3 has slightly agreed, 2 has been neutral, 3 respondents were slightly disagree, 1 was disagree and 4 responded strongly disagree.

80% 70% 60% 50% 40% 30% 20% 10% 0% Strongly Agree Agree Slightly Agree Neutral Slightly Disagree Disagree Strongly Disagree Series1

Cooperation in departments is less from the sub ordinates as compare to leaders: Out of 178 respondents, 147 respondents have strongly agreed to the 5th question, 23 has agreed, 4 has slightly agreed, none has been neutral, 1 employee were slightly disagree, 1 was disagree and 2 responded strongly disagree.

90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Strongly Agree Agree Slightly Agree Neutral Slightly Disagree Disagree Strongly Disagree Series1

Decision making in ryanair is more by leader than the managers: Out of 178 respondents, 142 respondents have strongly agreed to the 6th question, 3 has slightly agreed, 1 respondent has been neutral, 4 employee were slightly disagree, 3 was disagree and 2 responded strongly disagree.

90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Strongly Agree Agree Slightly Agree Neutral Slightly Disagree Disagree Strongly Disagree Series1

Do you think that Michel Oleary is aggressive type of leader? Out of 178 respondents, 150 respondents have strongly agreed to the 7th question, 20 has agreed, 4 has slightly agreed, none has been neutral, 1 employee were slightly disagree, 1 was disagree and 2 responded strongly disagree.

90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Strongly Agree Agree Slightly Agree Neutral Slightly Disagree Disagree Strongly Disagree Series1

Conclusion: From the above analysis, the results are attained that ryanair is an organisation that has expanded in the European market due to the high and most effective role of its leader, it has multicultural and much diversified employees and this has created in past problems for the management as there has been strict control from the management. Michel Oleary has played an imminent role in shaping the progress culture in the organisation but the respondents have the exact idea about the aggressiveness of the leader. More than the participative management, he believes in the giving orders and expecting those orders to be followed by the sub ordinates. The culture of the ryanair is mostly dominated by the authoritarian type leaders which has been its significant feature in the progress and growth in the last decade or odd. Recommendations: After the careful analysis of ryanair, there are number of recommendations that I would like to suggest. These recommendations will help the organisation in improving its goodwill in the air industry. 1. Ryanair needs to make its employees feel more secure by not just following the fulfilment of safety needs that are identified by Maslow, but also provide the job security and other compensation plans that will motivate the workforce to work enthusiastically in the highly competitive environment. 2. Ryanair should introduce the workshops by making its employee more participative, it should give them chance to generate new ideas for the betterment of the organisation. This step will also ensure that employees commitment will increase more towards the company. 3. Ryanair needs to introduce some packages for the employees so that these employees have more feeling of loyalty for the organisation. Since there are policies in the company that are very hard on the employees such as paying for everything in the organisation. This needs to be reconsidered that policies should be flexible to increase the employees commitment for the firm. 4. Ryanair must work hard on developing strategies that help the firm in long run such as increasing and improving its public relation and media coordinations so that the controversies are separated from the leader.

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