A second MBA — 0B Motivation at Ryanair Ricardo Lopes problem is long working hours; some cabin crews had reported that they are regularly scheduled for long shifts i. Third, although Ryanair is one of most profitable airlines, they request that new recruits pay 1, Euros for training, and if they are not chosen to Join the company, that cost will be lost Boru, Of course, this leads to a plunge in the number of Irish recruits.
Pilots also have to pay for their own training about E60,OOO and do not Ryanair are pressured in their Jobs and receive low wages comparing with other companies.
They are treated poorly by the company and have low morale, which leads to low Job satisfaction, high turnover and high absenteeism of the employees. Motivation in organisations Motivation can be defined as a persistent effort in a direction to a goal.
From an organisation point of view, motivation is important because there is a strong link between motivation and performance. However, there are other factors that also contribute to performance, and even a highly motivated employee could have a poor performance if they do not understand their Jobs or have low general cognitive ability Oohns and Saks, Udechukwu suggets that Job satisfaction or dissatisfaction can influence the behavior of the employees, and that some of these behaviours could originate disruption in the organisation.
Several studies have descrive that there are intrinsic and extrinsic factors that afect satisfaction possivitly or negatively Udechukwu, It has been suggested that there are process and content theories.
MasloWs and Herzbergs are considered content theories, which escribe the level and type of needs and how are associate with behaviors that determine satisfaction Udechukwu, Process theories like equity theory, expectancy theory, reinforcement theory 2 and goal setting, are associate to the indivdual, about there inputs and outcomes and how individual behavior can be influenced to achevie satisfaction.
MasloWs Theory of Motivation There are early theories and contemporary theories of motivation; one of earliest is the theory of Human Motivation from A. Maslow Maslow argues that there is a hierarchy of five needs in each person: hysiological needs, love needs, social needs, esteem needs and self-actualization needs.
The needs are grouped by lowerorder and higher-order: the lower-order of needs are physiological and safety, these needs are satisfied externally; the higher- order are love, esteem and selfactualization, are satisfied internally.
After one need is substantially satisfied, the next need will emerge, until the last one, so the need satisfied not longer motivates the person Robbins and Judge, To put this theory into practice, organization must know what is the need of the employee that must be motivated.
The weakness of the MasloWs theory is that there are few studies on it and it had not been validated in the field, mainly because the theory is very complex, has a psychodynamic base Schwartz, , and states that most persons have the same hierarchy of needs Oohns and Saks, This theory is a core of other motivations theories, and still used for academic studies; however, it is not used by managers in their organisations Robbins and Judge, At Ryanair, see other needs, for example safety needs, being satisfied by the organization.
Even the high-order needs of employees are not motivated. For instance, applying MasloWs theory safety needs, it would be necessary to improve the stability, by decreasing the number of hours per work period and stopping to pressure the employees with excessive commercial goals. In what concerns the satisfaction or improvement of esteem needs, Ryanair could implement measures that would appreciate and recognise employees not only for achievement of commercial goals but also for customer support and have a fare promotion rules.
Before the saga, Ryanair had been benefiting from a customer service overhaul as part of its new Customer Loyalty Strategy. Employee engagement is a critical aspect of customer experience. Happy employees make happy customers. Without your employees on board, the customer experience you have in mind will stay right there, in your mind, ignored by the people that are supposed to actually do it.
A correlation between employee engagement and customer service levels have been mooted for many years. In every case, employees report better business outcomes when they are engaged. In Canada, the percentage of employees working to their potential is higher — nearly one-half. Only three percent of Canadian employees report that they invest only half of their effort or less at work. At most, one in three Canadians are intensely performing in or committed to their organization.
These four theories are equity theory, expectancy theory, reinforcement theory, and goal setting theory. These four theories are all different views on motivation each theory will be discussed in details below. Equity theory will be discussed first.
The equity theory of motivation is based on the fact that people are motivated first to achieve and then to maintain a sense of equity. Equity refers to the distribution of rewards in direct equality to the contribution of each employee to the organization.
Everyone needs not to receive the same rewards, but the rewards should be in accordance with individual contributions. According to the theory, the idea of equity is as follows:. Inputs are the things that are contributed to the organization.
Outcomes are the things we get from the organization, e. If our ratio is the lower of the two, you will feel under rewarded and are motivated to change things you may decrease your own inputs by not working so hard, leave the work situation or try to increase our total outcomes by asking for a raise in pay.
This shows that the equity theory is most relevant to pay as an outcome. It is important for an organization to know how much work each employee produces and if they are well paid, it is certainly not fair if an employee who does not work hard gets paid a reasonable amount of money and an other employee who does work hard is underpaid, not only will this employee get unmotivated but it might lead to resignation from the company.
Expectancy theory, developed by Victor Vroom is a very complex model of motivation that is based on a simple assumption. According to expectancy theory, motivation depends on how much we want something and on how likely we are to get it. A short scenario is given below to understand this model of motivation. Bill has had a very good sales year and always gets good performance evaluations. But he is not sure he wants the job because it requires a great deal of travel, long working hours, and much stress and pressure.
Susan wants the job as much as Bill, and she thinks she has a good chance of getting it. Her sales have improved this past year, and her evaluations are the best in the company. Expectancy theory would predict that Bill is not very motivated to seek the promotion. But Susan is very motivated to seek the promotion, because she wants it and thinks she can get it.
Expectancy theory is complex because each action that is taken is likely to lead to several different outcomes, some that we may want and others that we may not want. For example, if people work hard and put in a lot of extra hours, several things may happen. They may get a pay raise, they may be promoted, they may gain valuable new job skills or it might have bad outcomes such as having less time to spend with their families and cut back on social life.
Expectancy theory has several useful guidelines for managers. It suggests that managers must recognize the following: 1 Employees work for a variety of reasons. Basically the expectancy theory shows that getting promoted or getting a better job position could lead to outcomes the employees would not want.
The organisation we will be reviewing is Ryanair. The bureaucratic organisation becomes typical. Travel concessions and participation in the share option program is granted to all employees.
Leadership a. Do you see similarities, differences? Introduction This article is focusing on the Ryanair case study in addition to understand the main model and values in the strategic management field. Resources The resources of an organisation are those assets that deliver value added in the organisation Lynch, According to the resource-based view, firm performance is achieved through competitive.
Introduction During the last decades the civil aviation industry has been affected by a dualism: full service network airlines e.
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