TITLE
HOW TO ACHIEVE COMPETITIVE ADVANTAGE BY IMPROVING EMPLOYEE WELFARE
SUBTITLE
A CONSULTANCY REPORT FOR RYANAIR


1.7 Conceptual Framework
Based on systemic issues identified from the SWOT analysis, Leader-Member Exchange theory and Fielder’s Contingency model, strategies for Ryanair’s business transformation is presented as a conceptual framework below. The Consultant found that Ryanair management, supervisors and staff, including the airline’s employment agency, are the main actors in this research (Avolio et al., 2009).

Also, findings from this study show that the company may face a decline in revenue and consequentially loose its massive market share to competitors due to its management crisis and unceasing neglect of the pilot body (Bass., 1990).

The conceptual framework thus indicates that while implementing proposals from this research, Ryanair needs to improve relationships with and among all stakeholders in the system. Management should also initiate an effective staff training programme, which should be regularly evaluated for proper adjustments in line with organizational objectives (Fan., 2013). To achieve sustainable growth, the management has to restructure work processes, collaborate with reputable recruitment agency, provide conducive work environment and see that contract terms, especially for pilots, aim at increasing the number of “In-group” members and reducing that of the “Out-group” (Huettinger., 2006; Bauer & Ergoden., 2015)

Figure 9: Addressing Ryanair’s Current Situation via a Conceptual Model

Source: The Author, 2018.

The Consultant is optimistic that Ryanair’s proper implementation of this conceptual model will upgrade managerial competence, improve relationships, motivate workers, enhance productivity, and transform business operations for long-term sustainability. In addition, the proposed change and innovation strategies will instil a constructive culture, which management and staff need to make meaningful contributions in their responsibilities as essential parts of a unified-in-purpose system. Ultimately, the benefits will include reduced friction between management and staff, high-level competitiveness and incremental profits (Deluga., 1998).


1.8 Plan to be implemented by Ryanair










1.9 Benefits of Implementing the Proposals
Ryanair has several benefits to gain from implementing the strategic road maps provided in this study such as

 Increased commitment and loyalty from employees which, in turn, leads to high productivity level
 Improved relationship between staff and management
 Reduced conflicts and less chances of aggrieved pilots quitting their jobs
 More support from top executives to staff members, particularly with understanding of roles, motivation, bonus, benefits etc.
 Better protection from potential workplace risks
 Active participation, on the part of employees, in the decision-making process
 Enhanced brand image
 Job security and more opportunities for growth
 Better use of feedback channels for criticisms, suggestions and complaints that promote organizational values, culture and objectives

1.10 Risk Associated with Ryanair NOT Implementing the Proposal
Research findings identified several risks that may arise if Ryanair board fails to implement the strategies. The underlying risks include:
• Prolonged conflicts with staff, regional pilot body and stakeholders which may result in loss of confidence, resignations and reduced investments in the company.
• Mistrust and disloyalty to Ryanair management.
• Poor relationship between employees, supervisors and top executives.
• Increased dissatisfaction from customers which leads to loss of market share and a decline in earnings.
• Negative brand image and high cost of recruiting new workers.

1.11 Risk of Implementing Proposal
The benefits accruing from Ryanair’s execution of the proposals are not without costs. These are some of the identified inevitable risks linked to the proposed business growth and sustainability strategies:
• Implementing the strategic road map may consume time
• Similarly, it requires huge capital investments
• Contracts with some recruitment agencies may be terminated
• Business activities and processes may slow down due to change in the leadership structure
• Understanding of new roles and responsibilities may take productive time
• Change and innovation strategies often bring conflicts, opposition and total rejection from those who are negatively affected by the strategic road maps.

1.12 Conclusion
Findings from the study found Ryanair to be market-oriented and profit-oriented, with less attention to employees who are the foundation of growth in any business. The company’s contractor employment model was evaluated by the European Court of Justice (ECJ) in September 2017. The ruling stated that employees of Ryanair have a right to be protected under the laws of the country where they live and work. Therefore, the company was advised to grant basic rights which workers had been denied for many years. Further, the court ordered Ryanair to desist from settling employment disputes in the Irish courts. The company relented, and subsequent industrial actions as well as resignations from pilots have not solved the lingering problems (Cullen., 2017).

However, the Consultant is optimistic that a strict implementation of the proposals will boost the airline’s competitiveness, improve the frosty relationship between staff and management, and increase earnings (Zhu et al., 2012).
It is also worth noting that the effectiveness of all analytical tools (SWOT Analysis, Fielder’s Contingency model and the Leader-Member Exchange model) used in this study determines Ryanair’s sustenance of its industry reputation as the No.1 International Airline.

References