Ryanair Case Study: Impact of Individual & Team Performance Against Organizational Objects
Question
Task: Prepare a Ryanair case study evaluating the impact of both individual and team performance against organization objectives. You should provide relevant industry examples to support your evaluation, alongside a clear understanding towards managing and developing individuals and teams.
Answer
Introduction
The measuring of performance is an integral part of the business function to manage the individual and team inputs better to attain business objectives. An established performance management system can contribute to better business returns in both operational and financial terms. The core aim of the report is to use the Ryanair case studyto depict the ways ineffective performance management can affect business outcomes. Based on the findings, effective strategies will be suggested for effectively managing functions, roles, and skills of both individuals and teams in business spheres.
Impact of individual and team performance against organizational objectives
The means through which both teams and individuals are managed tend to impact the organization's objectives negatively and positively. It is determined that the proficient management of employees can lead to the easy achievement of the business objectives by strategic performance management of its key people. Hence managers seeking to attain higher results through people are pivotal to consider the power of an effective performance management system. Management of team and individual performance within the broader complexities need a holistic approach in setting performance bars . Additionally, this approach will allow concentrated efforts to highlight the underlying links between the team and individual team performance and develop an organizational culture that inspires employees to give their inputs, achieve peak performance and learn.
For instance, the British airways have facilitated an effective performance management initiative that follows principles of integration focused on enhancing the performance management systems to achieve the organizational objectives . A comprehensive way of directing the employees is fostered to create shared mutual respect and culture within British airways. The entity uses performance management systems and appraisal strategies for taking proactive measures to achieve the organizational objectives.
Figure 1: Flight crew satisfaction at British airways
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British Airways incorporates equilibrium arrangements of both non-fiscal and fiscal symbols of performance to improve performance management. The entity utilizes the key performance indicators such as operations and economic and operating margin to leverage required employees inputs. The above figure depicts that most employees are satisfied with the British airways employee management style and initiatives.
Ryan air poor individual and team management affecting business outputs
Ryanair was ranked as the second-worst company by "The Empathy Index" for coming in the news for its poor performance . According to The Guardian news article, it was highlighted that the pilots called out Ryan air as a disgrace due to ineffective employment terms . The immediate result was a labor dispute and raging anger in the cabin crew against Ryan air (Refer to Appendix 1). The chief executive Michale O'Leary, avoiding staff threatening demands, cancelled around 50 flights a day, affecting 315,000 passengers. The situation worsened to such an extent that pilots demanded new employment contracts negotiated by 1 January 2018 with common working conditions. However, the company ignored the pilots' requests and led to pilots accusing the chief executive of poor handling of issues. The ex-Ryan air pilots were offered unimpressed a tax-free bonus of around £12,000 to fly during the time off to minimize the rate of flight cancellations. The cabin crews and pilots demanded local level, full employment contracts.
Additionally, the elimination of sales target pressure imposed on selling perfume and scratch cards was also sought to achieve. Ryan air also charges 2,000 as a training cost fee during the probation period, depicting employee exploitations. Lastly, the changes of fees for training courses. The above findings depict the lack of knowledge among the chief executive Michael O'Leary in the performance and employee management that resulted in brand image disgrace and hampered brand equity. It even hampered the customers' mindset due to constant strikes, flights cancellation and brand names in the news for all wrong reasons. Michal O'Leary's ineffective team management by avoiding the pilots and cabin crew concerns reflects the unprofessionalism in handling employees' issues.
The Mirror new article revealed that Ryan Air faced constant disputes over employees poor conditions and wages (Refer to Appendix 2). Brian Strutton, BALPA General security states that Ryan management needs to consider proper policies and procedures for loss of license insurance, pensions, maternity allowances and benefits, consistent pay structure and a fair, transparent business system . Other issues reported in the Ryan air management of employees were cabin crew were forced to take three months unpaid leaves in a year and even had to pay around 360 for their uniforms. The cabin crews were expected to work several standbys every month. Hence from the above analysis, the five biggest issues reported in the performance management of Ryan air are Poor reputation, poor HR practices and issues handling techniques, low pay and unsociable hours or employee treatments.
Control theory of Performance management
The control theory can be adopted by the companies facing issues with effective performance management. The control theory can effectively leverage the true power of performance management by effectively analyzing the systems' output for securing consistency with predefined sets of goals and parameters . Through control theory, effective control systems can be initiated in the business, such as Behavior control, output control and input control. If the business is suffering, the deviation can be corrected by the system controller.
Figure 1: Cybernetic model of Control theory for effective performance management
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This model is helpful for managers to control the performance of a team. It is an effective model that allows generating better and faster outputs by timely monitoring and focusing on employee feedback. The cybernetic model suggests that organizations can effectively execute the desired strategy by leveraging appropriate control and performance to respond to the external business environment changes.
Goal theory of Performance management
The Goal theory states that the underlying business challenging goals can be mitigated by appropriate feedback contributing to improved performance. The goal increases the clarity of the employees which direction to pursue to achieve the desired output . The goals direct the appropriate performance required to meet the job responsibilities, and it further fosters the employees in better comprehending the efforts required to achieve the target. The setting of goals by the managers can boost the sense of motivation and performance by effectively leading employees . These Measures will allow the managers to guide and redefine the performances required. The goal-setting applicability will facilitate increment in the employee sorts at both individual and team levels to develop new strategies to face complex issues. The business leaders can build the goals commitments by leveraging the power of communication plan and inspiring vision or superordinate goals for employees' guidelines.
Analysis of strategies to improve employee performances
According to the Forbes report findings, performance management can be enhanced to manage individual and team performance for effective business returns . The findings depict that the six strategies that can be used by the business suffering from ineffective performance management are the use of performance management models to gain a clearer picture, leveraging power of communication plan/processes, evaluation of feedbacks, motivation of low performing employees, use of KPIs for effective performance management and OKR methodology use. However, considering the Ryan air highly poor performance, the 360-degree feedback processes through which the company can take notes of employee dissatisfaction. Based on the findings, relevant business goals, credible training, accountable actions that drive tangible change and encouragement of people will be possible.
Conclusion
The overall findings depict that Ryan air struggled with ineffective employee management practices and strategies to overcome these. The issues resulted in hampering the brand image in the customers' perceptions. The entity depicted unprofessionalism and greedy business models that exploited employees greatly. However, considering the suggested strategy of 360-degree feedback can be an effective practice to give voice to employees and take a holistic approach.
References Stich, J.F., Tarafdar, M., Stacey, P. and Cooper, C.L., 2018. E-mail load, workload stress and desired e-mail load: a cybernetic approach. Information Technology & People. Zhou, K., 2021. The influence of creative personality and goal orientation on innovation performance. Frontiers in Psychology, 12 Appendices (Source: Davies, 2017) Appendix 2 (Source: Burke, 2019)
Burke, D., 2019. Ryanair pilots vote to strike in a pay and conditions dispute. [online] mirror. Available at:
Davies, R., 2017. Ryanair staff brand the company a 'disgrace' over handling of issues. [online] the Guardian. Available at:
Harvey, G. and Turnbull, P., 2017. Employment Relations, Management Style and Flight Crew Attitudes at Low-Cost Airline Subsidiaries:: The Cases of British Airways/Go and BMI/bmibaby. Ryanair case studyEuropean Management Journal, 24(5), pp.330-337.
Ranjan, R., 2021. Council Post: Performance Management: Six Best Practices In The New Normal. [online] Forbes. Available at:
Schutte, S., 2018. The five best and worst companies to work for. [online] Real Business. Available at:
Appendix 1
Ryan air poor management of employee issues 
Ryan air Pilots voting for industrial actions 
