Management And Leadership Of Ryanairs Theoretical Models Commerce Essay


Models represent different ways of thinking about phenomena, so they broaden perspectives. Being aware of several models enables people to see more aspects of a problem, and so they are more likely to identify an acceptable way forward. In practice, people rarely approach an issue within an open mind, but usually see it from the perspective they have become used to taking whether unitary, pluralist or critical.

Rational goal models:

A rarely quoted example of early entrepreneurs developing ways to manage large num-bers of people is found in the slave plantations in the United States, where several 'modern management practices were to be found in the operation of the ante-bellum plantations' (Cooke, 2003). Cooke quotes a contemporary account of work on a cotton plantation which records how owners divided slaves into gangs according to their abili'ties. More widely, the availability of powered machinery during the Industrial Revolution enabled the transformation of manufacturing and mining processes.

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Internal Process models:

A major contribution to the search for ways of managing organizations efficiently came from Max Weber (1947). Weber (1864-1920) who drew attention to the growing significance of large organizations. As societies became more complex, responsibility for core activities became concentrated in specialized units. They could only operate with systems that institutionalized the management process by creat'ing organizations that relied on rules and regulations, hierarchy, precise division of labor and detailed procedures. While Weber's recommendations on organizing work were consistent with those of scientific management, his ideas on the employment relationship were new. He stressed the importance of a career structure clearly linked to the position a person held in the hierarchy. This would allow them to move up the hierarchy in a predictable, defined and open way, which would increase their commitment to the organization.

(Source: David, Boddy., Management an Introduction. Page: 40, 44-45)

1.2. Leadership practice

Leading is the activity of generating effort and commitment towards meeting objectives. It includes influencing and motivating other people to work in support of the plans. The more complex an organization becomes, divided into horizontal and vertical specialism's, the more the task of securing the required commitment and action from others becomes problematic.

Controlling and learning

Control is the task of monitoring progress, comparing it with the plan, and if necessary taking some corrective action. Managers set a budget for a housing department, an out-patients' clinic, or business travel. They then ensure that a system is in place to collect information regularly on expenditure or performance so that they can check that they are keeping to budget.

(Source: David, Boddy., Management an Introduction. Page 15-16)

1.3. Typical role and function of Management

It was noted earlier that the principles of marketing might be fine in theory, but they are difficult in practice. The same can be said for the process of marketing planning. The process may look fine in theory, but it needs the right people to implement the process and make it a success. A frequent problem occurs where the marketing planning function becomes cut off from other functional departments. Here we look inwardly at the marketing department and ask how it can best be organized in order to meet marketing objectives. Responsibilities given to the marketing department vary from one organization to another, reflecting the competitive nature of a company and also its traditions and organizational inertia.

(Source: Adrian, Palmer., Introduction to Marketing. 2nd edition. Page: 474-475)

1.4. Responsibility for managing and organizing activities

Management by functional responsibility

A common basis for organizing a marketing department is to divide responsibilities into identifiable marketing functions. Typically, these functions may be advertising, sales, research and development, marketing research, and customer services.

Management by geographical responsibility

Companies selling a product nationwide usually organize some of their marketing func'tions, especially the sales function, on a geographical basis. For companies operating internationally, there is usually some geographical basis to organization in the way the marketing activities are organized in individual national markets.

Management by product type

Where a company produces a variety of products, it is quite common to appoint a prod-uct manager to manage a particular product or product line. The product manager's role in'cludes a number of key tasks:

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' developing a long-range strategy and short-term annual plan for a product or group of products;

' working with internal and external functional specialists to develop and implement marketing programs;

' monitoring the performance of the product and noting changes in the marketing environment that may pose opportunities or threats.

Management by market segment

Many companies sell basically similar products to different types of customer who vary significantly in their needs. For example, an airline provides services targeted at leisure travelers, business travelers, tour operators, and freight forwarders, among others; each of these groups has differing requirements in terms of speed, reliability, price, etc., and a market segment manager can become expert in understanding these needs and developing an appropriate product offer for each group.

(Source: Adrian, Palmer., Introduction to Marketing. 2nd edition. Page: 476-477)

1.5. The management and leadership skills required to ensure effective management

Naturally, a leader can have little influence on personal environmental factors during early formative years. The major 'nurture' skills which can be developed or improved are:

' self-belief;

' communication ability;

' strategic analysis;

' team motivation;

' financial and business analysis;

' people selection;

' judgment

Communication ability

The ability to communicate is something that can be entirely acquired through training and development. If a leader is capable of formulating a valuable idea or devising a strategic vision then he can certainly be taught how to put them across to their people in the best possible manner.

Team motivation

A great leader needs to understand how to motivate a team. However, in long-term perspective, most of the programs the business ran, it always looked, at the end of the exercise period, that we had really changed the participants' understanding of how to motivate a team.

People selection

The selection of people is probably one of the least studied and worst un'derstood of all the separate areas of business science. One of the obvious reasons for this is that people are so complex that it is impossible to make dependable assertions about their future conduct of themselves.

(Source: Cyril, Levicki., Developing leadership genius. Page 37-38)

2.1. The nature of groups in the organization

The following list describes the important elements of any business organization:

' Objectives: sometimes called purposes or goals, these represent some future desired state of the organization.

' Business processes: They include processes for designing products, receiving orders, making the product, delivery, receiving payment and many more.

' Finance: the financial resources available to the organization.

' Culture: norms, beliefs and underlying values that characterize the unit.

' Power: the amount and distribution of power with which to influence others.

Models like this bring out the fact that managers work within constraints they are to some degree helped or hindered by the elements

2.2. The nature of individuals within the organization

People who take a pluralist view see the organization as a coalition of interest groups. Each has its own objectives that will sometimes coincide and at other times conflict with those of other groups. They see that members have personal goals and competing loyal'ties to colleagues, their profession, business unit, family or local community as well as to the organization. Pluralists expect that people will reflect these loyalties in debate within the organization about both ends and means.

2.3. Effective judgments

Learning to make intelligent judgments requires long years of personal development and scrupulous personal honesty and integrity. Quality mentors seek out the best people. But a person has to be in the correct frame of mind to accept advice and men-toring from the best people. The best way to really use the time would be to close the door and think deeply and carefully about where the business is, how the strategy is working out and whether they should be making any profound changes to the course they set at the beginning of the year.

2.4. Demonstrations of a range of information

Identifying and challenging assumptions about:

' the nature of management, its tasks, skills and purposes

' the nature of people

Creating contextual awareness by understanding:

' the implications of different contexts for management

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' The interrelationship between organizations and society

Identifying alternatives by:

' inventing and imagining new ways of managing

' specifying new goals and priorities.

Developing reflective skepticism by:

' recognizing the limitations of much that passes for knowledge in the management field

' knowing how to evaluate knowledge claims

(Source: David, Boddy., Management an Introduction. Page 31)

3.1. Comparison and contrast between two organizational structures

' Simple fleet: using a single aircraft type (Boeing 737) simplifies maintenance, training and crew scheduling.

' Secondary airports: using airports away from major cities keeps landing charges low.

' Fast turnarounds: staff typically turns an aircraft round between flights in 25 minutes, compared to an hour of older airlines.

' Cabin staff collects rubbish before and after landing, saving the cost of expensive.

Ryanair is still taking advantage of industry changes, economic downturn / recovery and continues to adjust its management strategies to suite these changes.

3.2. Impact of culture on the business success

Social beliefs affect what managers expect from their job, how work relates to family life and what reward they expect. Tayeb (1996) contrasts US and Japanese managers. She suggests the former typically give priority to things that are of personal importance to them. These include their long-term professional career, their individual personal devel'opment and the quality of family relationships. For the Japanese manager the company's performance and victory comes first. And if this means sacrificing private leisure time so be it. They come from a collectivist culture, where group takes precedence over self.

(Source: David, Boddy., Management an Introduction. Page: 115)

3.3. The methods of communication and its effectiveness in Ryanair

Anyone managing a business uses a theory of how change occurs in organizations. They use this to decide how to develop and implement their plans.


The determinist view is that people have no influence on the course of events, and are driven by force broad economic and environmental factors.

Management choice

An alternative view is that people have free will and can influence the course of events. People in powerful positions can shape aspects of their environment, have minds of their own.


The interaction approach expresses the idea that people are influenced by, and can them'selves influence, the context in which they and others work. It implies that people interpret the existing context and act to change it to promote personal, local or organizational objectives.

(Source: David, Boddy., Management an Introduction. Page 24-25)

3.4. A range of methods

At a strategic level, companies have used a number of methods to try to develop a pervasive marketing orientation throughout their organization:

' In-house educational programs can aim to train non-marketing employees to empathize with customers' expectations.

' The introduction of outside consultants is sometimes used as an external change agent.

' Getting top management to empathize with customers, to understand what they value in a brand.

' A commonly used method of making management think in marketing terms is to introduce a formal market-oriented planning system.

The overall result of these activities should be to develop a customer-focused marketing culture within an organization. As an organization develops, it is essential that the domi'nant culture adapts.

(Source: Adrian, Palmer., Introduction to Marketing. 2nd edition. Page: 493)

4.1. The factors involved in managing change of any business organization

Many of the most successful market-led companies attribute their success in part to the quality of leadership within their organizations. The results of poor leadership are evident in many failing service organizations. As for what makes a successful leader of people, there have been many suggestions of desirable traits, including:

' setting clear expectations of staff;

' recognizing excellence appropriately and facilitating staff in overcoming their weaknesses;

' being able to empathize with employees;

' showing adaptability to changing circumstances.

(Source: Adrian, Palmer., Introduction to Marketing. 2nd edition. Page: 485-487)

4.2 Planning and decision making process

The marketing management process

Marketing management can be seen as a continual process. This section identifies the key elements of the process, although just who should he responsible for each element is a subject to which we will return later when we explore how marketing management is organized. There are five key stages in the marketing management process.

a. Analysis of the organization's current market position.

A vital starting point for marketing planning is an analysis of a company's current marketing environment, often undertaken by means of a SWOT analysis or a mar'keting audit.

A marketing audit typically includes analysis of the organization's current market share, the size and nature of its customer base, customer perceptions of the organi'zation's output, and the internal strengths and weaknesses of the organization in terms of production, personnel, and financial resources.

b. Setting marketing objectives.

Without clearly specified objectives, marketing management can drift aimlessly. Objectives have a number of functions within an organization:

' They add to the sense of purpose within the organization, without which there would be little focus for managers' efforts.

' They help to achieve consistency between decisions made at different points within the organization; for example, it would be inconsistent if a production manager used a production objective that was unrelated to the marketing manager's sales objective.

' Objectives are used as motivational devices and can be used in a variety of formal and informal ways to stimulate increased performance by managers.

c. Developing a marketing strategy.

There are usually many ways in which marketing objectives can be achieved. Identifying the strategic alternatives open to an organization relies on interpreting data and evaluating a number of possible future scenarios.

d. Implementation of the strategy.

Having chosen a strategy, the next step is to implement it. This is usually done through a 12-month marketing plan, although the length of the plan period can depend on the amount of turbulence in a company's marketing environment. The marketing plan sets out programs for, among other things, the timing and costing of promotional programs, pricing plans, and the recruitment and payment of distributors.

e. Monitoring and controlling the marketing program.

Marketing plans are of little value if they are to be implemented only half-heartedly. An ongoing part of the marketing management process is therefore to monitor the implementation of the plan and to seek an explanation of any deviation from it.

Marketing and corporate planning

Marketing management is just one of the specialist management functions that can be identified within most commercial organizations. If an organization stands or falls primarily on its ability to satisfy customer needs, then it can be argued that marketing planning is so central to the organi'zation's activities that it becomes corporate planning.

4.3. Contexts that lead to an organizational change

Historical context

Management also takes place within a flow of historical events. What people do now reflects the influence of past events and future uncertainties. Managers naturally focus on dealing with the tangible details of current operations, the urgency of present issues. They work to bring resources together to achieve some performance target. They try to ensure that things run properly, sense trouble, make the organization work. At the same time, his'tory exerts an influence through the structure and culture of the organization.

External context

Finally there is the world outside the organization. The external context includes an immediate competitive environment and a wider general (or macro) environment. Any and all of these affect the performance of an organization, and part of the work of a manager is to be aware of emerging changes in these factors, and being able to adapt their organization to meet them.

(Source: David, Boddy., Management an Introduction. Page 24)

4.4. The Strategy of Ryanair

Strategic, tactical, and contingency planning

From the above description, marketing planning is the best viewed as a continuous process. However, it is necessary to produce periodic statements of a plan which all individuals in an organization can work towards. Three types of periodic plan can be identified.

' The strategic element of a marketing plan focuses on the overriding direction that an organization's efforts will take in order to meet its objectives.

' The tactical element is more concerned with plans for implementing the detail of the strategic plan.

' The division between the strategic and tactical elements of a marketing plan can sometimes be difficult to define. Typically, a strategic marketing plan is concerned with mapping out direction over a five-year planning period.

4.5. Demonstrations of the case study

Current Challenges:

Most considerations of the nature of management stress two particularly difficult chal-lenges that managers face. The first is the need to build the internal capability to meet increasingly demanding customers, and the second is to balance long-term and short-term requirements.

External demands and internal capabilities

Many companies are in markets where customers are becoming more demanding, expecting more individual products or services. They also work in an increasingly inter national environment in which they face both local and global competitors, many of whom are able to work from locations with low costs.

Balancing the long-term and short-term

Managers also experience endless conflict between short-term and long-term expecta-tions. Senior managers, shareholders and the financial press tend to emphasize quick, visible improvements in performance, and there is always the threat of a hostile takeover by another company if managers are unable or unwilling to deliver.

Conventional and critical perspectives

Management takes place in a social setting in which people and institutions hold and express many different values, priorities and interests. These reflect deeper divisions in wealth, power and opportunity. Managers act as agents of the owners and represent their interests.

(Source: David, Boddy., Management an Introduction. Page 28-29)


This case gives the ways to innovate and make the most of new opportunities. It tries to meet growing demand with fewer resources. To do so it leads to change in the structure of the company.