Management And Leadership Across Cultures Business Essay

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Ryanair is the World's favourite airline and operates more than 1,400 flights per day from 44 bases and 1100+ low fare routes across 27 countries, connecting 160 destinations. Ryanair operates a fleet of 250 new Boeing 737-800 aircraft with firm orders for a further 64 new aircraft (before taking account of planned disposals), which will be delivered over the next 2 years. Ryanair currently has a team of more than 8,000 people and expects to carry approximately 73.5 million passengers in the current fiscal year

Introduction of leadership:

Leadership means having a responsibility that you choose to own for yourself. It's not responsibility someone else gave to you it's a responsibility you chose to give yourself. Once you choose to be responsible you in turn become a leader.

Leadership is about being able to create more leadership. If one guy follows you then people are going to follow him, obviously if you are a leader yourself you are also following some one so all leaders come from the same place.

Leadership the is ability to create more leaders. The better your leadership the more leaders you create and the better the world is for it, trust me.

Leadership is also the ability to see things others can't. The visions of leaders always have and always will shape the world. Christopher Columbus had a vision of another world and even though many doubted him and criticized him he was still a leader. He led all of us to a wonderful abyss of freedom we call America. The land of amazing opportunity found nowhere else in this lonely world in this lonely universe.

The problem with today's society is that leadership is actually a threat. When someone stands out and is different they are outcast because they don't blend in. Leaders don't blend it, leaders stand out.

Leaders have an opinion and they stick to it. Leaders don't compromise and leaders don't loose focus. I read a really good quote the other day that made me stop dead in my tracks and think about it, for like five minutes, it was incredible how these few short words could have such an impact on me.

The quote was "There goes the crowd, I must follow them for I am their Leader."

Leaders don't just lead from the front they lead from all angles. They push, they pull they tug from the sides. Leaders just do whatever it takes to get results. They are the problem solvers of our mother Earth.

Leaders are people who other people seek out for answers. Sometimes, though, what people seek in a leader is not necessarily an answer but a conclusion to a situation. Sometimes they're just looking for someone to make an important decision and leaders have always been trusted to do important things such as make decisions.

A leader will always have an answer even if there's no answer.

A leader's answers aren't just something they appear to him out of thin air. All of his answers he found himself and know to be true. His answers aren't just something he's heard that he's decided that he'll call the truth.

Reference: www.

Leadership in organisation

Ryanair's fight for survival in the early 1990's saw them bring in a new management team ,headed up by Michael O'Leary. The success of the carrier's restyle into a no frills has made him a very wealthy man ,having sold shares off every year since the company was floated has earned him region of €200m but still left him with a 5.4per cent stake , making im the largest shareholder, O'Higgins {2004}.

Despite te airlines huge success with Michael O'leary at the helm, he himself has come under scrutiny, resulting in both praise and criticism for both himself as a leader and his management styles. O'higgins {2004} argues that it is publicity seeking antics which have earned him a high profile but also his outspokenness which has brought him into the public eye.

She also discusses that present and former staff have praised O'leary's leadership styles, and in interview with the Financial times magnize tam jeans argues that Michael is genius is is ability to motivate and energise people and goes on to state that the airlines is "without peer",Bowely [2003] . Ryanair is inextricably identified with its dynamic chief executive. He is credited

with single-handedly transforming European air transport'. Although it should be

noted that O'Leary himself disagrees with this last part declaring 'I am not Herb

Kelleher (the legendary founder of the original budget airline, Southwest Airlines in

the US). He was a genius and I am not', Bowley (2003).

Finlay (2000) discusses the three main characteristics of leaders, outlined


_ They must have a strongly held vision

_ They must be able to communicate that vision

_ They must be able to convert the vision into reality

When O'Leary took over at Ryanair his vision was very clear, to model the

carrier on Southwest airlines and create Europe's first no frills carrier. As far as

external communication is concerned it is well recognised that Ryanair was one of, if

not the first, budget airline in Europe. Internally, Tim Jeans revealed 'there is an

incredible energy in that place. People work very hard and get a lot out of it', Bowley


Certainly the vision has turned into a reality as Ryanair has grown and the

'Public's insatiable appetite for bargain getaways has continued to deliver record

Profits at Europe's biggest no frills airline', Davey (2006).

While O'Leary possesses Finlay's (2000) characteristics for a leader, his

Leadership style does not fit rigidly into a type. The below diagram, adapted from

Cook et al (1977) shows the types of leaders Finlay (2000) believes to be the more

dominant styles.

The majority of O'Leary's leadership style sits within the enrolling section.

Ryanair is highly task orientated, concentrating on tasks such as cost cutting, aircraft

acquisition and route development. They are also highly people orientated, both with

customers and their staff.

However, because of Michael O'Leary's public status his leadership style

varies slightly from this model. If Tim Jeans is to be believed in his interview,

Bowley (2003), then he should be almost revered. On the other hand he manages to

aggravate important people who could have the ability to affect Ryanair's profits


To add to this it has been discussed whether Ryanair should replace O'Leary

as their CEO, McManus (2003). As Ryanair were recently pulled back from the brink

of a shock profits warning perhaps it would be fair to give O'Leary the benefit of the

doubt and concede that, for now, his leadership style seems to be working. However

Ryanair should be wary of the fact that he does not seem to enjoy smooth sailing.

O'Higgins (2004) states that when the shock profit warning was announced O'Leary

was 'irrepressible' and declared 'this is the most fun you can have without taking your

clothes off. It is much more fun when the world is falling apart then when things are

boring and going well', Creaton (2004).

While this may just be a glib statement to rebuff negative press, it could be a

characteristic of the man himself, in which case could well be interpreted into his

management of the company.

Cultural diversity:

Step out of your home and the first person you meet might follow a different religion and come from a part of the world that is unfamiliar to you.

In this context, cultural diversity can play a significant role, especially in the workplace.

With businesses becoming increasingly globalised, there is a greater demand for a successful work culture that keeps an eye on the cultural diversity of an organization.

So, what is the definition of cultural diversity in the workplace?...

Diversity is a broad term which emphasizes the difference in culture, race, ethnicity, gender, sexual orientation and age.

When you talk of cultural diversity, you are referring to the disparities in both physical and mental attitudes which influence your thoughts and behaviour

Importance of cultural

diversity in the workplace

A workforce usually consists of a group of people who are diverse in many ways, some of which may be noticeable... e.g. ethnic background, disability... whilst others may not be... religion, beliefs, sexual orientation etc.

So when you apply the definition of cultural diversity to the workplace, it becomes clear that there is a growing need for intercultural communication for an organization's continued growth.

The difference in culture needs to be understood and accepted for your business to prosper, making it essential for management to ensure an open and understanding atmosphere in the workplace.

Mutual respect from people across the diversity spectrum will take your business to new levels.

Is cultural diversity

advantageous to the workplace?

Studies point out to steady increase in productivity along with rise in revenues due to the expertise of the culturally diverse people in different departments.

Creative ideas, innovation and varied experiences strongly improve the output of a company.

If you are a manager you should ensure that your business is effectively utilizing staff's diversity and ensuring respect in your workplace.

Cultural diversity has proved to lower the rate of absenteeism while also decreasing the liability of your organization in discrimination lawsuits.


Initially the number of employees in ryanair was 25 only. But gradually the ryanair started growing and became the market leader in the low cost airline of Europe which ad 6000 thousand employees working in it and all of them are entrenched with cost cutting concept .The employees were very much passionate about works they do and also wanted help ryanair to retain at the position no. 1 postion.Apart from this top level management is working with Ryanair for minimum 10years .Hence they know the strategically right thing to do because the knowledge gained in the company, also know about the internal and external strength of the company

Culture & Leadership:

Ryanair now has 44 bases, 1100+ routes operating across 27 European countries. As the first airline to introduce low fares, Ryanair has revolutionised European air travel and the revolution is set to continue. We now offer choice, competition and much lower fares on all routes where we compete with some of Europe's biggest and strongest airlines and in all cases we beat the socks off them.

How we're getting there

Low Fares and friendly, efficient service - that's our way. And how do we do it? Superb cost management. Landing in airports that don't rip you off. Free seats when we're feeling generous. No frills on your flight - but we'll sell you food, drink and gifts. Punchy advertising that sometimes gets us in trouble. And we take on the High Fares guys when they try to block our routes and airport management when they want to charge us too much.

The Ryanair Deal

The deal at Ryanair is simple: We reward you well for effort. Where possible, we incentivise your work so the more you do the more you get paid. We aim to offer competitive salaries with excellent benefits that are simple and easy to understand. We offer an excellent share option scheme, which ultimately allows you to own a piece of the airline and share in its success.

Human resources:

Can be considered one of the most important functions of a business. The vast majority of organisations all employ staff and Ryanair is no exception especially due to their size. When the carrier was established over twenty years ago they only had fifty one members of staff on their payroll. Their staff total for last year was 2,288, With this amount of staff they have to ensure that, in order to have operations like call centres and cabin crews running smoothly, they keep their staff happy and motivated. They do this by offering incentives and a share option scheme which allows employees to participate in the success of the company overall. Ryanair's technical operations should mainly revolve around their aircraft as this is the core of their business. In February of last year they announced an order placed with Boeng for 70 firm aircraft as well as 70 options, This means that between now and 2012 Ryanair will have 225 firm aircraft and options for another 220, allowing them to grow to over 70 million passengers per year. Due to this excellent deal negotiated by the carrier their growing amount of aircraft will not add huge amounts to depreciation costs as they will be depreciated over 23 years. Ryanair has always owned instead of leasing its aircraft but they plan to have a third of their fleet leased in the long term. O'Higgins (2004) argues that 'owning rather than leasing allows maintenance costs to be capitalised on the balance sheet rather than be reflected in the variable costs'. Technical operations have to run smoothly for obvious reasons, if a plane scheduled to make a flight for technical problems, for example, then this will impact on all of Ryanair's operations and functions and also cause disharmony amongst their passengers, possibly costing them future ticket sales

Diversity management:


Discrimination & Harassment

The working environment created by Ryanair promotes equal employment opportunities and prohibits discriminatory practices, including harassment (sexual,physical or verbal).

Employees and candidates will be judged on the basis of their behaviour and qualifications to perform their jobs, without regard to race, gender, religion, disability, age, marital status, sexual orientation, political beliefs or any other characteristic protected by applicable laws.

Privacy of Personal Information

In compliance with data protection legislation, Ryanair will acquire and retain only personal information that is required by law and for the effective operation of the Company. Access to such information will be restricted internally to authorisedpersonnel. Employee communications transmitted by the Ryanair's systems are not considered private. By using Ryanair's equipment, employees consent to having such use monitored and restricted by authorised personnel.

Internet Usage

Ryanair provides access to the Internet for the purpose of conducting company business only. The Internet can be used for personal use outside normal office hours and during lunch hour. Disciplinary action will be taken against any employee where Internet usage is considered abusive, unacceptable or illegal.

Substance Abuse

All of the following are strictly prohibited and will be subject to disciplinary action:

• Being impaired by drugs or alcohol while performing company business.

• The sale or unauthorised use of alcohol on Ryanair premises / while performing company business.

• Any employee found using, selling or in the possession of illegal drugs on Ryanair premises / while performing company busines


Ryanair Commitment to Customers, Suppliers & Shareholders For our customers, Ryanair is committed to fulfilling their needs in an honest and fair manner. The Company is committed to generating sales through price, quality and the ability to fulfil commitments. For our suppliers, Ryanair is committed to obtaining the best value on the basis of open and truthful communication. For our shareholders, Ryanair is committed to disclosing the results of operations on a timely basis and in a fair, accurate and understandable manner. Ryanair is dedicated to providing a reasonable return on investment by pursuing sound growth and earnings objectives while exercising prudence in the use of assets and resources.

Competition Restrictions

Ryanair will conform to all competition and antitrust laws enacted to prevent interference with a competitive market system. Under these laws, no company / individual may enter into any formal or informal agreement with another company / individual, or engage in certain other activities, that unreasonably restrict competition. Employees are required to report any instance in which a competitor has suggested collaboration to their department head. It is essential that Ryanair understand its competitors and be able to collect legitimate intelligence about them. Ryanair employees must not obtain, process, use or disclose confidential information of any third parties without appropriate authorisation from the applicable third party. Employees must not use any illegal or unethical means of gathering data about competitors.

Fair Dealing

Ryanair does not seek competitive advantage through illegal or unethical business practices. All employees / directors should endeavour to deal fairly with customers, competitors and employees. No employee / director should take unfair advantage of anyone through manipulation, concealment, abuse of privileged information, misrepresentation of material facts, or any unfair dealing practice.

Gifts & Entertainment

No gift, hospitality or other benefit should be accepted or given that could impair, or appear to impair, an employee's objectivity or impartiality. Employees are permitted to accept gifts / entertainment of nominal value (approx. €100) and in a form such that it cannot be construed as a bribe. Employees are prohibited from accepting anything that is accompanied by any express or implied understanding that the recipient is in any way obligated to do something in exchange for the gift. In some cases, an employee may feel that refusal of a gift would be construed as discourteous by the host. In these cases, employees should accept the gift on behalf of Ryanair and report it to their department head who can then decide how best to treat it.Ryanair does not condone bribery in any form. Employees must not give or offer anything of material value to any customer or supplier as an inducement to obtain business or favourable treatment. Similarly, employees must not accept anything with a monetary value in return for giving favourable treatment to customers or suppliers either for themselves or others.


Accurate Accounts & Records

The law requires Ryanair to ensure that its accounts and records accurately and fairly represent transactions and the use of assets in reasonable detail. All company books and records must be true and complete. False or misleading entries are strictly prohibited, and the company will not condone any undisclosed liabilities or unrecorded bank accounts or assets established for any purpose. Employees must never knowingly create or participate in the creation of records that are misleading or artificial. Access to company assets is permitted only in accordance with managements general or specific authorisation, and transactions must be executed only in accordance with managements general or specific authorisations. Transactions involving the company must be recorded, to permit preparation of our financial statements in line with generally accepted accounting policies and related requirements, and to maintain accountability for the company's accounts.

Administrative and accounting controls have been implemented to provide reasonable assurance that financial and other reports are accurately and reliably prepared. Employees are expected to co operate fully with both our internal and our external auditors.

Complete, Accurate, & Timely Disclosures

Ryanair is a publicly owned company and its shares are listed for trading on a number of stock exchanges. As a result the company is obliged to make various disclosures to the market. The company is committed to full compliance with all requirements applicable to its public disclosures. The company has implemented procedures to assure that its public disclosures are timely, compliant and otherwise full, fair, accurate and understandable. Employees who provide information as part of this process, have a responsibility to assure that such disclosures and information are complete, accurate and in compliance with the company's disclosure procedures.


Company Assets

All employees have a duty to ensure the efficient use of Ryanair assets and to protect them from loss, damage, and misuse. Assets may not be used for personal benefit without proper authorisation. Employees may not perform non-Ryanair work on the Company's premises or while working on Company time, including any paid leave granted by the Company. Employees are not permitted to use Company assets (including equipment, telephones, materials, resources or proprietary information) for any outside work.

Confidential Information

All employees have a duty to safeguard confidential information about Ryanair. Employees are prohibited from discussing competitively sensitive information, such as pricing policies, contract terms, costs, marketing plans, and other proprietary or confidential information. The duty continues even after employees have ceased their employment with Ryanair. All outside requests for company information should be directed to authorised persons. In compliance with data protection legislation all employees have a duty to safeguard confidential information provided by Ryanair customers. Ryanair employees are prohibited from passing on any information to 3rd parties in any format other than as part of their normal duties and responsibilities. If in any doubt an employee should contact his/her manager/supervisor. Failure to comply with the above will result in disciplinary action being taken.


Ryanair respects the privacy of every employee in the conduct of his/her personal affairs. However, all employees have a duty to ensure that their personal and financial interests do not conflict with, or appear to conflict with, their duties on behalf of Ryanair. Employees must be able to perform their duties and exercise their judgements on behalf of the Ryanair without impairment by virtue of an outside or personal influence.

Outside Activities

Employees, officers and members of the Board of Directors of Ryanair may not work for or receive compensation for their services from any competitor, customer, distributor or supplier without the prior approval of the Chief Executive. Similarly, employees may not serve on the Board of Directors of another company or government agency without the advance approval of the CEO. Employees who start their own business or take on additional part time work (with organisations that are not competitors, customers, or suppliers) must notify their department head. Employees may participate in civic, charitable or professional activities provided the activities do not interfere with the employee's responsibilities to Ryanair. Employees may not use the Ryanair name to lend weight or prestige to an outside activity without prior permission.


Employees and officers (and their family members) may not have financial interests in any competitor, customer, distributor or supplier where this would influence, or appear to influence, their actions on behalf of the Company (eg. holding shares representing in excess of 1% of the publicly traded shares of a corporation).

Family Members & Close Personal Relationships

Ryanair does not discourage relatives from working for the Company. However, employees should not normally supervise or be in a position to influence the hiring, job responsibilities or performance assessment of a close relative. Employees who have family members or friends that work for businesses seeking to provide goods and services to the Company may not use their personal influence to affect negotiations. Employees who have relatives or friends that work for competitors should discuss difficulties that might arise and appropriate steps to minimize any potential conflict of interest with their department head.

Corporate Opportunities

Employees may not avail of, or give the benefit to any other person or organisation, of any business venture, opportunity or potential opportunity that they learn about in the course of their employment and that is in the Company's line of business, without first obtaining the Company's consent. It is never permissible for employees to compete against the Company, either directly or indirectly.

Insider Trading

Ryanair employees must not disclose non-public information to any other person. All countries have strict laws prohibiting the buying and selling of shares using material corporate inside information that is not yet available to the public. Severe penalties can be imposed on employees, their families and recipients of this insider information. Any employee who engages in insider trading will be subject to immediate termination of employment. This restriction also applies to trading in the securities of any other company based on inside information acquired as a result of employment with Ryanair or from some other business association with Ryanair.


Ryanair employees are required to comply with all applicable laws, rules and regulations. They are also responsible for complying with requirements of any contracts that have been entered into with other parties. Any suspected or actual violation of any applicable law / regulations or contractual undertakings should be reported immediately to the employee's department head.

Employment Laws & Regulations

Ryanair is committed to the fair and equitable treatment of all employees and abides by employment laws in the countries in which it does business. These laws prohibit loans and guarantees of obligations in the case of a Company's directors and executive officers. Therefore it is Ryanair's policy that loans will not be made to employees.

Health & Safety Laws & Regulations

Ryanair strives to provide its employees with a safe and healthy working environment. Ryanair will conform to all applicable laws and regulations relating to workplace health and safety. Every employee is responsible for complying with the law, with safe work practices and with the Ryanair Health & Safety policies in order to ensure their own health and safety. All employees must use all safety equipment as may be required in the normal course of their work.

Environmental Laws & Regulations

Ryanair is committed to doing business in an environmentally responsible manner. This includes complying with laws involving environmental quality and related health and safety issues. Accordingly, every employee is expected to conduct the company's business in an environmentally responsible manner and not to engage in any activity that violates environmental laws or regulations.


The internal auditor will investigate all allegations of potential wrongdoing and a report will be made to the Audit Committee. All employees are required to cooperate fully with any investigation. Disciplinary action will be taken against any employee / officer who violates, or encourages / requests others to violate this Code. Employees who report potential / suspected violations in good faith will not be subject to any retaliation by Ryanair. Any person who takes action in retaliation against such an employee will be subject to serious disciplinary action. Any person knowingly making false accusations of misconduct will be subject to disciplinary action.


Questions in relation to the Code

Employees who have any questions about this Code should contact their immediate supervisor (or another member of management if they do not think their immediate supervisor is appropriate).

Reporting a conflict of Interest

Employees who believe it is not possible to avoid a conflict of interest must bring this to the attention of their department head and make full written disclosure of the surrounding circumstances. The employee will be expected to take whatever action is 910determined by Ryanair to be appropriate to rectify any conflict of interest that is found to exist.

Whistle blowing Procedures

The company has an open door policy that gives employees the freedom to approach any member of management with ethical questions or concerns without fear of retaliation.

Theories of motivation:

The termmotivationis derived from the Latin wordmovere,meaning "to move." Motivation can be broadly defined as the forces acting on or within a person that cause the arousal, direction, and persistence of goal-directed, voluntary effort. Motivation theory is thus concerned with the processes that explain why and how human behavior is activated.The broad rubric of motivation and motivation theory is one of the most frequently studied and written-about topics in the organizational sciences, and is considered one of the most important areas of study in the field of organizational behavior. Despite the magnitude of the effort that has been devoted to the study of motivation, there is no single theory of motivation that is universally accepted. The lack of a unified theory of motivation reflects both the complexity of the construct and the diverse backgrounds and aims of those who study it. To delineate these crucial points, it is illuminating to consider the development of motivation and motivation theory as the objects of scientific inquiry.


Early explanations of motivation focused on instincts. Psychologists writing in the late 19th and early twentieth centuries suggested that human beings were basically programmed to behave in certain ways, depending upon the behavioral cues to which they were exposed. Sigmund Freud, for example, argued that the most powerful determinants of individual behavior were those of which the individual was not consciously aware.

According toMotivation and Leadership at Work(Steers, Porter, and Bigley, 1996), in the early twentieth century researchers began to examine other possible explanations for differences in individual motivation. Some researchers focused on internal drives as an explanation for motivated behavior. Others studied the effect of learning and how individuals base current behavior on the consequences of past behavior.


Content (or need) theories of motivation focus on factors internal to the individual that energize and direct behavior. In general, such theories regard motivation as the product of internal drives that compel an individual to act or move (hence, "motivate") toward the satisfaction of individual needs. The content theories of motivation are based in large part on early theories of motivation that traced the paths of action backward to their perceived origin in internal drives. Major content theories of motivation are Maslow's hierarchy of needs, Alderfer's ERG theory, Herzberg's motivator-hygiene theory, and McClelland's learned needs or three-needs theory.


Abraham Maslow developed the hierarchy of needs, which suggests that individual needs exist in a hierarchy consisting of physiological needs, security needs, belongingness needs, esteem needs, and self-actualization needs. Physiological needs are the most basic needs for food, water, and other factors necessary for survival. Security needs include needs for safety in one's physical environment, stability, and freedom from emotional distress. Belongingness needs relate to desires for friendship, love, and acceptance within a given community of individuals. Esteem needs are those associated with obtaining the respect of one's self and others. Finally, self-actualization needs are those corresponding to the achievement one's own potential, the exercising and testing of one's creative capacities, and, in general, to becoming the best person one can possibly be. Unsatisfied needs motivate behavior; thus, lower-level needs such as the physiological and security needs must be met before upper-level needs such as belongingness, esteem, and self-actualization can be motivational.


The ERG theory is an extension of Maslow's hierarchy of needs. Alderfer suggested that needs could be classified into three categories, rather than five. These three types of needs are existence, relatedness, and growth. Existence needs are similar to Maslow's physiological and safety need categories. Relatedness needs involve interpersonal relationships and are comparable to aspects of Maslow's belongingness and esteem needs. Growth needs are those related to the attainment of one's potential and are associated with Maslow's esteem and self-actualization needs.

ERG theory's implications for managers are similar to those for the needs hierarchy: managers should focus on meeting employees' existence, relatedness, and growth needs, though without necessarily applying the proviso that, say, job-safety concerns necessarily take precedence over challenging and fulfilling job requirements.


Frederick Herzberg developed the motivator-hygiene theory. This theory is closely related to Maslow's hierarchy of needs but relates more specifically to how individuals are motivated in the workplace. Based on his research, Herzberg argued that meeting the lower-level needs (hygiene factors) of individuals would not motivate them to exert effort, but would only prevent them from being dissatisfied. Only if higher-level needs (motivators) were met would individuals be motivated.

The implication for managers of the motivator-hygiene theory is that meeting employees lower-level needs by improving pay, benefits, safety, and other job-contextual factors will prevent employees from becoming actively dissatisfied but will not motivate them to exert additional effort toward better performance. To motivate workers, according to the theory, managers must focus on changing the intrinsic nature and content of jobs themselves by "enriching" them to increase employees' autonomy and their opportunities to take on additional responsibility, gain recognition, and develop their skills and careers.


McClelland's theory suggests that individuals learn needs from their culture. Three of the primary needs in this theory are the need for affiliation (n Aff), the need for power (n Pow), and the need for achievement (n Ach). The need for affiliation is a desire to establish social relationships with others. The need for power reflects a desire to control one's environment and influence others. The need for achievement is a desire to take responsibility, set challenging goals, and obtain performance feedback. The main point of the learned needs theory is that when one of these needs is strong in a person, it has the potential to motivate behavior that leads to its satisfaction. Thus, managers should attempt to develop an understanding of whether and to what degree their employees have one or more of these needs, and the extent to which their jobs can be structured to satisfy them.


Process (or cognitive) theories of motivation focus on conscious human decision processes as an explanation of motivation. The process theories are concerned with determining how individual behavior is energized, directed, and maintained in the specifically willed and self-directed human cognitive processes. Process theories of motivation are based on early cognitive theories, which posit that behavior is the result of conscious decision-making processes. The major process theories of motivation are expectancy theory, equity theory, goal-setting theory, and reinforcement theory.


In the early 1960s, Victor Vroom applied concepts of behavioral research conducted in the 1930s by Kurt Lewin and Edward Tolman directly to work motivation. Basically, Vroom suggested that individuals choose work behaviors that they believe lead to outcomes they value. In deciding how much effort to put into a work behavior, individuals are likely to consider:

Their expectancy, meaning the degree to which they believe that putting forth effort will lead to a given level of performance.

Their instrumentality, or the degree to which they believe that a given level of performance will result in certain outcomes or rewards.

Their valence, which is the extent to which the expected outcomes are attractive or unattractive.

All three of these factors are expected to influence motivation in a multiplicative fashion, so that for an individual to be highly motivated, all three of the components of the expectancy model must be high. And, if even one of these is zero (e.g., instrumentality and valence are high, but expectancy is completely absent), the person will have not motivation for the task. Thus, managers should attempt, to the extent possible, to ensure that their employees believe that increased effort will improve performance and that performance will lead to valued rewards.


Equity theory suggests that individuals engage in social comparison by comparing their efforts and rewards with those of relevant others. The perception of individuals about the fairness of their rewards relative to others influences their level of motivation. Equity exists when individuals perceive that the ratio of efforts to rewards is the same for them as it is for others to whom they compare themselves. Inequity exists when individuals perceive that the ratio of efforts to rewards is different (usually negatively so) for them than it is for others to whom they compare themselves. There are two types of inequity-under-reward and over-reward. Under-reward occurs when a person believes that she is either puts in more efforts than another, yet receives the same reward, or puts in the same effort as another for a lesser reward. For instance, if an employee works longer hours than her coworker, yet they receive the same salary, the employee would perceive inequity in the form of under-reward. Conversely, with over-reward, a person will feel that his efforts to rewards ratio is higher than another person's, such that he is getting more for putting in the same effort, or getting the same reward even with less effort. While research suggests that under-reward motivates individuals to resolve the inequity, research also indicates that the same is not true for over-reward. Individuals who are over-rewarded often engage in cognitive dissonance, convincing themselves that their efforts and rewards are equal to another's.


The goal-setting theory posits that goals are the most important factors affecting the motivation and behavior of employees. This motivation theory was developed primarily by Edwin Locke and Gary Latham. Goal-setting theory emphasizes the importance of specific and challenging goals in achieving motivated behavior. Specific goals often involve quantitative targets for improvement in a behavior of interest. Research indicates that specific performance goals are much more effective than those in which a person is told to "do your best." Challenging goals are difficult but not impossible to attain. Empirical research supports the proposition that goals that are both specific and challenging are more motivational than vague goals or goals that are relatively easy to achieve.


This theory can be traced to the work of the pioneering behaviorist B.F. Skinner. It is considered a motivation theory as well as a learning theory. Reinforcement theory posits that motivated behavior occurs as a result of reinforcers, which are outcomes resulting from the behavior that makes it more likely the behavior will occur again. This theory suggests that it is not necessary to study needs or cognitive processes to understand motivation, but that it is only necessary to examine the consequences of behavior. Behavior that is reinforced is likely to continue, but behavior that is not rewarded or behavior that is punished is not likely to be repeated. Reinforcement theory suggests to managers that they can improve employees' performance by a process of behavior modification in which they reinforce desired behaviors and punish undesired behaviors..

Identifying Ryanair's currently motivation problems at work and an evaluation of their effort. Ryanair's is a ''no-frills'' airline but it has a high turnover according to Shay Cody, the deputy general secretary of the Irish trade union Impact Ryanair has a very oppressive regime and they have extremely high staff turnover, particularly among junior pilots and cabin crew .Staff are expected to pay for their own uniforms, crew meals and training courses. It requires staff to pay as much as £2,700 upfront for training.

Many workers from the United Kingdom have left their jobs with Ryanair and as result the company is recruiting now contract labour from agencies as far away as the Baltic States and Poland. Pilots were recently told that in order to graduate from older planes to newer aircraft, they would have to pay for their own retraining.

A cabin crew who works for Ryanair writes her experiences on a website where she says: ''Ryanair does not care about its cabin crew and just takes the most they possibly can squeeze out of us. After a twelve hour day without a break, I do not have the energy to be nice to passengers or check that my nail polish is still on. Come on Ryanair start valuing what we do because without us you could not fly4''

The employees and especially the cabin crew of Ryanair tend to be not dealing nicely with passengers. The statement of the employee of Ryanair above explains us what the cause is, the employees themselves work hard and are undervalued and have to work many hours without a break this leaves them exhausted and stressed and makes it hard for them to deal nicely to passengers. Not only will there be a high turnover but also Ryanair might lose more customers over time because of the bad customer service of the unmotivated and tired employees.




Years on board





Air Safety

David Bonderman









Michael O'Leary

Chief Executive








Michael Horgan

Non Executive








Kyran McLaughlin

Non Executive








James R. Osborne

Senior Independent








Paolo Pietrogrande

Non Executive








Emmanuel Faber

Non Executive








Klaus Kirchberger

Non Executive








Charles McCreevy

Non Executive








Declan McKeon*

Non Executive








View: Annual Data | Quarterly Data

All numbers in thousands

Period Ending

Mar 31, 2010

Mar 31, 2009

Mar 31, 2008

Total Revenue




Cost of Revenue




Gross Profit




Operating Expenses

Research Development




Selling General and Administrative




Non Recurring








Total Operating Expenses




Operating Income or Loss




Income from Continuing Operations

Total Other Income/Expenses Net




Earnings Before Interest And Taxes




Interest Expense




Income Before Tax




Income Tax Expense




Minority Interest




Net Income From Continuing Ops




Non-recurring Events

Discontinued Operations




Extraordinary Items




Effect Of Accounting Changes




Other Items




Net Income




Preferred Stock And Other Adjustments




Net Income Applicable To Common Shares