Ryanair Business Environment

An Internal and External Business Environment Analysis of Ryanair

The objective of this research paper is to conduct an analysis of internal and external business environment of a service company. For this purpose airline global industry has been chosen as a case study because of its importance in the current economic and political scenario. International investment, world trade and economic growth are some important factors deriving this industry (Porter, 1986). The present paper will undergo strategic analysis of internal and external environment of Ryanair in relation to its performance in the global Airline industry. It will allow identification of factors that affect the profitability and popularity of a company. In the end recommendations will be suggested accordingly. Lets look at the Ryanair business environment.

Company Background – Ryanair Business Environment

Ryaniar has a long standing reputation amongst low cost airlines in Europe. Ryaniar Ltd was founded by the Ryan family in 1985 and within ten years of its establishment the company gained immense popularity because of its image as a low rent airlines. The company provides scheduled services between the UK and Ireland through its 297 Boeing aircrafts. The company still manages to maintain its image as popular airline of the world. The Ryaniar Company focuses on budget conscious leisure and business travelers for its services. People who choose other transport services to reduce the expanses of their travelling remain to but the primary target of the company. The company also aims to expand and improve its services in low fare market. The mission of Ryaniar Ltd is to become the most profitable and attractive low fare airline in Europe low cost carriage sector by brining continuous improvements in its services.

Market Description

Currently the growth and development of low cost airline is being favored in the European Airline industry and it remains the main determining factor for the evolution of an airline company. Almost 18 percent of the transport supply is being done by low cost airlines and the seats are mostly limited to medium and short haul flights. These low cost carriages are also deemed important for the passengers who want to find seat for point to point moves.

Belobaba et al. (2009) writes that global airline industry has grown by 12 percent in 2010 and the major player in this context remains to be the United States of America. The market growth is further expected to increase in years to come. It is believed that by 2015 the growth will reach to $714 billion and the number of passengers will also grow to 3 billion. Domestic market shows the leading market segment in the global airline industry and America holds about 45% value of the industry. A number of challenges are also being faced by the global airline industry after global financial crisis. By 2010 many consumers started to cut back their leisure spending and relapsed air travel by train or other cheaper means of transport. This fall in revenue is mainly fueled by increased unemployment rate and economic uncertainty (Belobaba et al., 2009).

Some negative events have also declined the business of airline industry and amongst them rising fuel prices increasing the cost of operations are most common in the history. Several times they have put a dent on the industry’s operations. Along with that, other negative players are also there amongst them increased security threat, political unrest, uncertain and exchange rates are at the top of the list.

According to a report Published in the Telegraph UK the low cost sector has increased its growth by 12 pc in the last decade. However, even the low cost airlines are not free of the negative market affects that undermines overall activity of the industry but still they are making more business that the high cost European airlines (The telegraph, 2014).

Competition

After its establishment Ryaniar faced a great deal of competition. European Union deregulation in 1990 resulted in some substantial changes on the British industry. The most important of which is the focus of people on budget airlines offering comparatively shorter routes. These airlines provided a great deal of competition and grew on expense of traditional British airlines. Later increase in fuel prices after 2008 economic crisis also resulted in further decline of luxury airlines. Competition is also not very strong as the industry is not in a healthier state to support the business of expensive airlines and a number of airlines are under the threat of disappearance because of bankruptcy. European Union promotes low wage, low cost and low income flag carriers.

Ryanir Business Environment
Ryanir Business Environment

Challenges Faced By Ryaniar

Operating environment of the airline industry is being affected by a number of challenges that range from safety issues to consumer preferences, spending patterns, political instability, weather, security and natural disasters. All these factors affect the operating environment of Ryaniar Ltd also and most of them are beyond the control of the management of any airline. The expenses of flight cannot be controlled regardless of the number of passengers travelling in the plane. In addition to this, when shrinkage in airline industry happens, the remaining cost of operations remains the same that presents immense challenges to the management. Dobruszkes (2006) adds that operating environment of some low cost airlines has become favorable because they have adopted some cost reduction strategies that mainly include the management of the marketing cost, fleet reducing services, airport maintenance, route alteration and recharge policies. Appropriate techniques for maintenance of Engines, maintenance cost of hangers, management of staff cost and marketing cost to increase productivity are also adopted. In this scenario, companies that focus on small operating basis and start internet ticketing generate more revenues (Dobruszkes, 2006).

In the European market variation related to differences in the geography and scope of the airline persist. Most of the short and middle haul airlines focus on Western Europe and the distance for flight is 1.4 hours during this time an area of 634 kilo meters is covered. The total area covered by Ryaniar and most of the other low cost airlines is less than 1000 kilometers and in most of the cases international connections are not present. In addition to this, most of the low cost airlines influencing Easy Jet and Ryaniar are poorly penetrated in central and Eastern Europe markets. Some networks are also designed for tourists to take them to their desired destinations. These airlines do not focus on the capital city but they also maintain their attention to small cities and towns where low cost flights are easier to be managed (Mason, 2001).

Services Provided By Airline Industry

The services delivered by the airline can be divided into three main categories mainly including freight services, logistics and rail passenger’s airbus. Superior services are usually delivered to the clients that are willing to pay more. Product scope of Ryaniar Ltd is large as it promotes many services. It offers a range of destination around in Europe. In addition to this, hospitality, carriage, aircraft control system and assistance in booking rest houses is also provided. Like all other airports, services at the Ryanair airports are also available that include flat beds lounges and fast track security system.

Intangibility of Services

Ryanair business environment services are intangible and cannot be smelled, touched and tasted. It cannot be processed physically possessed.

Inseparability of Production and Consumption

Inseparability of production and consumption means the production of a service cannot be separated from its consumption by customers happen simultaneously. Customers buy specific type of product and take it home but services cannot be taken home, instead they are provided in a specific manner.

Perishability

Perishability is another characteristic of the service that means once services are produced they cannot be stored because of which supply demand gap arises.

Heterogeneity

Heterogeneity means that variation in the quality of services because of which standardization cannot be maintained. This makes the maintained of quality of service delivery a difficult task for service providers.

Challenges

Customer safety and quality issues are at the heart of any service sector and same is true for the airline industry. Here the quality of services acquires central place for the organizations. Quality of services is assured by the notion of truth that primarily reflects the importance company gives to handle each and every customer. Therefore, for service industries it becomes extremely important to design and manage activities in a way that can assure good quality services to the passengers (Janawade, 2013).

According to Janawade (2013) service quality management is still the subject of debate for the management of airline companies. The diversity of the airline services makes it harder for the administration to maintain good standard of services at each front. The quality of flight meals clean and airy airports, luxurious waiting areas, hygienic environment of washrooms, customer care and maintenance of airplanes are some areas of quality that remain the focus attention of the administration. Sometimes it becomes harder for the company to maintain superior quality services when budget is low and economic uncertainty prevails in the market. This is the reason for which some airlines fail to maintain good quality in-flight environment. The issue of measuring service quality has always been raised by the customers who pay a huge amount to travel across the world. Business class customers are often more cautious about the way they are treated at the airport and also in the airplane. Some other areas are also there that create major issues for the management and they include mishandling of baggage, late flights and misinformation (Janawade, 2013).

Along with the quality of services the rate of accidents and incidence also becomes the prime concerns for passengers who opt to travel in an airline. Total rate of incidents, rate of accidents, mid air collision and pilot’s deviations are some of the events that affect the safety of airline operations. The overall safety ratio of the global airline industry has declined in the past decade. Many technological issues arise because of poor maintenance of the aircraft. Moreover, the entire industry is under the threat of customer safety issues mainly generated by political unrest and legal bindings of the company. Airline industry remains the center of attention of the government and public as far as the passenger’s safety issues are concerned and many times these issues have resulted in serious debates that presented the industry with a number of challenges (Janawade, 2013).

There are a number of regulatory issues as well that affect the service delivery in the airline industry. Airline industry remains the center of attention of the government of a country and hence is mostly subjected to extensive regulations of the government. Many legal compliance and regulatory requirements are there for the industry. In the US airline industry FAA (Federal Aviation Administration) regulations matter greatly, which change from time to time and put airline industry under scrutiny. Same is true for other areas including Europe, Australia and Asia. Other acts such as transport security act result in federalization of some security procedures. Government of the UK keeps proposing increase in taxes that directly affect the revenue generation of the industry. In addition to all this, other regulatory changes are also expected that may range from security concerns to fuel emission and environment safety issues. All these factors may further affect the business deleteriously.

Success of Organization in the Management of Challenges

As stated above a number of challenges are being faced by the airline industry and they are regulated by the key players in the industry. Key players in the airline industry are those that have direct or indirect affect over the business and amongst them airline manufacturers, air navigation service providers and air-port construction teams are important, along with them, political atmosphere of a country and fuel price are also some intangible factors that affect the business of the airline industry. Policies and procedures of the ‘department of the trade and industry’ can positively or negatively affect then business (Mason, 2001). Along with this, employee’s turnover rate has become a major problem for the companies that tend to develop and make progress. A good human resource management system can aid companies to reduce turnover rate by keeping employees satisfied with the job. Companies with a high rate of employee’s turnover often face a great deal of pressure in terms of the management and training of their employees (Richard et al. 2001). The global airline industry has managed its growth by maintaining its operations in suitable limits of economy. Dobruszkes (2006) explains that European airline industry is the one that prefers evolution of low cost airline networks. Because of the demands and competition trend in the market this concept became famous after 1995. The European low cost airline scope has actually met by Ryaniar and Easy Jet that have felicitated customers who previously chose other transport system because of high rent of the airlines. Ryaniar airline alone has carried 70 million passengers in the year 2012 and is expected to increase its size.

Bamber et al. (2013) writes that though turnover rate of employees in an industry vary greatly with time and many factors play their part in this context. Sometimes nature of the job and low wage becomes the cause of a high turnover rate in case of some industry such as fast food and call centers. When compared to the other sectors the rate of employee’s turnover in airline industry is comparatively low (Bamber et al., 2013).

Richard et al. (2001) also say that airline industry show low turnover rate compared to any other industry of the world. Overall turnover rate of the industry is 9 percent that shows employees are not replaced very quickly over a particular time period. However, increased fuel prices and deregulation act in the late 1980s have made the industry less attractive. Operating cost has increased to a considerable extent and worker’s pay has reduced. Many other airline companies in the world including that of American and Asia have also decided a wage cut off to reduce the cost of operation within the system. In addition to this, 100,000 employees of only American airline industry were laid off after deregulation act. This has given rise to an uncertain working culture and some of the employees opt to find jobs in another industry that is less uncertain than the airline sector (Richard et al. 2001). Bamber et al. (2013) conclude in their research paper that airline industry needs to maintain its attractiveness in order to keep employees happy and contented with their jobs.

Forces Deriving the Airline Industry

A number of forces derive the airlines industry that range from customer satisfaction issues, strategic planning, point to point roots, terminal and aircraft facility, online booking services, reduced lines at the ticket corner and economy of scale. Along with customer safety other factors are also there that create management challenges for the airline companies. Staff safety at the airport is also one of the major concerns of the administration that results in poor working morale of the staff members.

References

Bamber, G. J., Gittell, J. H., Kochan, T. A., & Von Nordenflycht, A. (2013). Up in the air: How airlines can improve performance by engaging their employees. Cornell University Press.

Belobaba, P., Odoni, A., & Barnhart, C. (Eds.). (2009). The global airline industry (Vol. 23). John Wiley & Sons.

Dobruszkes, F. (2006). An analysis of European low-cost airlines and their networks. Journal of Transport Geography14(4), 249-264.

Hanlon, J. P. (2007). Global airlines: competition in a transnational industry. Routledge.

Janawade Z., 2013, customer perception quality of complex services, France, Paul Cezanne University, p. 2-14.

Mason, K. J. (2001). Marketing low-cost airline services to business travellers.Journal of Air Transport Management7(2), 103-109.

Porter, M. E. (Ed.). (1986). Competition in global industries. Harvard Business Press.

Richard, O. C., & Johnson, N. B. (2001). Strategic human resource management effectiveness and firm performance. International Journal of Human Resource Management, 12(2), 299-310.

Click Here To View Marketing Dissertation Topics

International Accounting Standard 2

International Accounting Standard 2

The criteria to record and recognize the inventory is also explained as instructed under International Accounting Standard 2. Inventory is separated from the Non-Current Assets like plant and equipment which are held for sale at maturity and a further categorization of inventory is given in two forms like By-Products and Main products. The item which is normally sold out by the companies through ordinary course of its activities are termed as Inventory. Generally three forms of inventory are founded in any manufacturing companies which are Finished Products, Raw Material and Work-In-Process. All three inventories have different cost classifications and nature and should be measure on separate basis. There are four cost formulas to measure the inventory and are generally practiced in the US. Four formulas are LIFO, FIFO, Weighted Average Method and Specific Identification. This also explains the concept at which the reporting cost of the inventory is provided and Inventory should be reported at lower of Cost or Net Realizable Value (NRV). Cost is the value at which the inventory is purchased including purchase cost, carriage inwards and other taxes paid on the purchase whereas the Net Realizable Value id the amount at which the inventory can be sold out in the market less any expected expenses to complete the sale process.

International Accounting Standard 2 is one of the Accounting Standards issued by the Accounting Standard Committee to record and measure the financial items pertaining financial features. International Accounting Standard 2 encompasses the recording and measurement of Inventory. Inventory is defined in the International Accounting Standard 2 as “Assets which are held for sale in the ordinary course of activity by the company and it comprises Finished Products, Raw Materials and Work-in-Process. Inventories are the goods manufactured by the company in order to obtain the economic benefits from the sale to the customers. The main objective of the issuance of this standard is to separate the Non-Current Assets of the company from the inventory which is a Current Asset. Prior to the interpretation of International Accounting Standard 2, most of the companies have faced problems in the identification and recognition of the inventory and commonly the estimation and recording of the cost of inventory was a key concern for them. International Accounting Standard 2 has led the management to maintain and report the inventory at the reasonable and appropriate value. International Accounting Standard 2 defines the items of Inventory along with the methods to record the inventory. The methods which are being interpreted under International Accounting Standard 2 are FIFO, AVCO and LIFO. First in First Out (FIFO) is the method which explains that the oldest inventory should be sold out first and then the next one whereas the Weighted Average Cost Method (AVCO) means the inventory should be recorded by calculating the average cost of available inventory and then multiply this with the number of units in stock. Last in First Out (LIFO) is a method which is not being used currently because of some drawbacks attached to it as it promotes the system to sale the most recent purchases to be sold out prior to sale the old inventory. This Standard provides detail of each and every feature associated to the inventory and how to deal with that.

Methodology

Due to the misappropriation of inventory there was a need to guide the companies as to record the inventories properly. This is why the International Accounting Standard 2 was issued and interpreted in a detailed way. If the company is involved in the sale and purchase of something then it is likely to hold inventory which can be in the form of Raw Materials, Finished goods and Work-in-process. Theoretically everything which is held for sale is termed as inventory but the question rises that either the plant and machinery held for sale are also termed as inventory then the answer would be ‘No’. Everything which is sold out through ordinary course of business is termed as sales and purchases eventually known as inventory. So the Non-Current Assets are not classified as Inventory under IAS 2. There are further 3 techniques are issued under this standard to record the inventory and inventory handling. First in First out (FIFO) is a method which tends to sale the oldest unit of inventory first and it makes sense as it would reduce the threat of inventory obsolescence. Weighted Average Cost Method (AVCO) is method which uses an average cost for all the units of inventory and records the inventory on this basis so there is no separation of recent and old purchases. Last in First out (LIFO) method promotes the sale of most recent purchases and there are more chances of obsolescence of inventory. Apart from these techniques the cost recognition criteria is also listed in this standard. As per International Accounting Standard 2, inventory should be recognized at lower of Cost or Net Realizable Value (NRV). Net Realizable Value is the value at which the inventory can be sold in the market or simple the market value. Theoretically this is the fair value concept and more appropriate to record the assets as it would lead to a fair appropriation of the assets of the company and no chance of being misled.

Literature Review

International Accounting Standard 2 defines the criteria to record inventory “Inventory should be recorded at lower of Cost or Net Realizable value (NRV). Cost is the amount at which the Inventory is being purchased initially and whereas the NRV is the amount at which inventory can be sold out. Net Realizable Value is the amount of cost less any expenses required to make inventory into a saleable state. Though there are some problems in the recognition of inventory because there are three types of inventories in a company which are subject to value at the most appropriate amount before recognition. Finished goods are required to be valued so that it can be recorded at lower of NRV or Cost as they do not require any further assessment criteria but Work-in-Process requires some extra work to make an appropriate valuation of inventory. There is a need to consider that how much material has been incurred to the product till that date and how many labor hours has been spent on the product. There is also a further calculation of overheads cost as to how much overheads should be allocated to the Work-in-process units as they are not yet completed so there is a need to calculate the amount of overheads. Generally the overheads are absorbed by the companies by using labor hours but mostly companies also use the machine hours as the absorption base. So this can ease the calculation of overheads allocation just simply cost of labor per hour multiply by the number of labor hours or machine hours incurred to the product. Generally the wastage costs, idle labor hours, storage costs and other costs like these are also included in the product cost. In most of the production processed two type of products are produced in a single process and are named as Main product and By-Product. By-products are the products which are produced unintentionally as these are not the ordinary items of the company for sale purposes but these should also be recorded as inventory because the economic benefits are expected to flow to entity from the sale of these products and the cost of such products can be measured at the joint process phase of production.

International Accounting Standard 2
International Accounting Standard 2

After the recognition of per unit cost, there are some formulas for the inventory valuation generally practiced in the US. LIFO, FIFO, Weighted Average Method and Specific Identification. Under IFRS and US GAAP all these formulas are same but the practice of some formulas are limited across the world due to the drawbacks attached to them and these methods are LIFO and Specific Identification. Main drawbacks to LIFO are much more in general as it promotes the threat of Inventory obsolescence and more risk in the incorrect valuation of the inventory. Due to this reason LIFO is discouraged across the world and now Weighted Average Method and FIFO are used extensively. In the past most of companies used the LIFO as their tax shields to reduce the profits and other manipulations but after the consideration of such issues the application of LIFO is now restricted and now limited to some states only.

There are some costs which cannot be the part of inventory in any case and they should be reported as an expense to the income statement. Most common examples of these costs are:

  • Abnormal Wastage of material
  • Abnormal Idle hours of Labor
  • Abnormal overheads due to the Abnormal Idle Hours
  • Reduction in the Net Realizable value of the inventory
  • There are some handling costs which are not important for the product but incurred and these should not be measured in the inventory cost as well
  • Admin expenses and other costs associated to admin department

Conclusion

This research provided a complete detail of the International Accounting Standard 2. The complete criteria and detail of the inventory recognition and measurement criteria is explained in this assignment. The measurement of the inventory is based on the management’s perception but with the introduction of this standard, all the criteria and relevant aspects have cleared. Management is guided thoroughly on the measurement of inventory and the recognition of the inventory instruments as to remove the ambiguity between the inventory and other assets of the company. Management has four different formulas to record the cost of the inventory and the most practical and generally accepted formulas are the FIFO and weighted average method. Management should use the cost formula among both of these as these are the recommended and practically accepted under IFRS and US GAAP. There would not be any problem in the inventory measurement if these rules are followed. Management is required to differentiate the By-products and Main products as both of these have different characteristics and benefits and need to be separately identified. The relevant cost should be ascertained to the inventory whilst the other should be charged to the expenses like abnormal wastage and labor cost etc.

Click Here To View Finance Dissertation Topics

Human Resource Management Workplace

The Role of Human Resource Management in the Workplace

Human Resource Management is a term used to describe how organizations acquire, manage and motivate employees. It also involves the processes and activities put in place to help establish good relations and avoid conflict between coworkers, as well as employee and management staff. A multi-faceted discipline, it is consists of several elements that need to be coordinated in order to create a productive workplace.

Statement of the Problem

This paper aims to examine two important aspects of human resource management in the workplace, namely Employee Motivation, and Employee Development and Training. These aspects will be analyzed within the context of JCB UK, a construction equipment manufacturer. Employee motivation and staff development and training have been selected as the two under performing areas in this company. Using Maslow’s Hierarchy of Needs theory, John Stacy Adams’ Equity Theory and other need-based theories, the paper will discuss how the under performing elements influence motivation, conflict and overall job performance. Recommendations of possible solutions will also be provided.

Definitions

Motivation: According to Moorhead and Griffin, motivation refers to the factors that lead people to engage in a certain behavior rather than the alternative. In an organizational setting, it describes forces that encourage employees to work harder, set goals to increase profit, etc.

Conflict: The business dictionary defines conflict as “friction or opposition resulting from actual or perceived differences and incompatibilities”.

Conflict Resolution: Processes established within an organization that help to resolve conflict between employee and employee, and employee and management staff.

Needs: Something needed for individuals to survive and to be comfortable in life.

Equity: The Oxford dictionary refers to equity as “the quality of being fair and impartial”.

The Purpose of Human Resource Management in the Workplace

Human resource management focuses on the methods, processes and techniques that can be used by an organization to make the best of its workforce. HRM sees people as the company’s most valuable resource and aims to develop employee skills in order to achieve business goals. Human resource management requires management staff to coordinate several elements, some of which include communication, employee motivation, employee training and development, employee relations, remunerations and incentives, change management and other functional areas.

Human resource management is not a standalone activity, but an ongoing process that is part and parcel of the general management of an organization. In other words, it is a small part of what managers need to do to run a successful enterprise. Improper or ineffective management of human resources ultimately leads to unmotivated staff members, lower job performance, misuse of physical resources and a decrease in profit.

Maslow’s Hierarchy of Needs Theory

Abraham Maslow’s theory has been one of the most popular human resource management theories since the 1940s. Maslow claims that individuals are motivated by the pursuit and/or fulfillment of certain needs. Needs follow a hierarchical structure, and when one level of needs is met, the individual then progresses to the next. According to the hypothesis, there are 5 levels or types of needs. These ranges from what human beings need for survival to achieving one’s full potential. For an organization to keep staff motivated, it has to fulfill these needs to a certain extent.

Types of Needs

Please note that “needs” refer to individual or personal needs and not organizational goals. These two, however, are closely related. In other words, the fulfillment of an individual’s need will ultimately result in the person being motivated to meet organizational goals.

Physiological Needs

Physiological needs are the basic necessities of human life. These include the need for food, shelter, air and other survival requirements. The lack of these necessities makes it impossible to live.

Safety Needs

The need for security and protection against threats are a bit more complex than physiological needs. To fulfill these needs, employees require remuneration, access to health care and other life benefits.

Need to Belong

The next level of needs is centered on a person’s need to belong. Generally, this need manifests as a desire to be part of a family, group, organization or community. It is social in its orientation and a crucial motivating factor in the work place.

Esteem Needs

Individuals strive to be recognized, respected and valued in their place of work. Employees that are perceived to be important to the function of the organization tend to be more motivated and driven to achieve company goals.

Self-Actualization Needs

Self-actualization refers to the process where one realizes his or her potential and capabilities. To Maslow, it is the highest need and one that can cause employees to be increasingly productive when fulfilled.

The Equity Theory

In the early 1960s, John Stacy Adams pioneered a theory that focuses on the fair treatment of staff members. Dubbed The Equity Theory, it is a justice-oriented hypothesis and one that has been adopted in the legal framework of Human Resource Management systems and unions around the world. The basic premise of this theory is that management needs to be consistent in the reward or punishment of employee input and behavior.

Employees are likely to perform better in an organization that aims to treat same-level staff members equally and reward input appropriately. Same-level employees, for instance, are expected to earn the same salary. However, if one invests in working overtime, he or she should be entitled to more pay for performing additional work. Fairness should also be applied in conflict resolution. Employees want to be assured that conflict will be resolved fairly without the arbitrator extending favor to one party.

Human Resource Management Workplace
Human Resource Management Workplace

Employee Motivation: JCB UK Case Study

At the most basic level, motivation is the willingness of employees to do what is required and to invest extra effort into achieving organizational goals. In an article titled ‘Need-based Perspectives on Motivation’, Moorhead and Griffin maintain that there are three major factors that influence overall job performance: motivation, skills and having access to resources needed to get the job done.

As mentioned earlier, motivation is affected by the fulfillment or non-fulfillment of needs. In the case study of JCB UK, although employees’ physiological needs are met, the need for safety and security still persists. Because of the high rate of immediate dismissals and a company structure that does not support union laws, staff members cannot secure an ongoing, contractual income that guarantees financial safety. Without this proverbial safety net, most employees are not motivated to invest time and effort into work as employment might end abruptly and lay all their efforts to waste.

Because dismissals are mainly based on the employees’ inability to execute tasks related to the job positions, this indicates a vital flaw in the planning, recruitment and selection processes used to acquire staff. Hiring employees who are not adequately skilled to fulfill job requirements is cost effective to the company because specialized skills generally demand higher pay. As a result, JCB UK has resorted to a business model and strategy that involves hiring fewer specialists and more staff members with general skills in order to cut labor costs and increase the bottom line.

Untimely dismissals and minimal union acceptance also calls the fairness of the organization’s system into question. The rejection of union laws and support by the company further de-motivates employees because the terms of employment include forfeiting certain legal rights. By not being given the opportunity to contest unfair dismissals, staff members perceive a lack of protection from national laws and a higher threat to job security.

Uncontested dismissals also foster feelings of being disposable instead of valued. As seen earlier, individuals have a need to be valued members of the organization. When this need is encroached, it can cause a negative impact on motivation. Inequity in the workplace has many undesirable effects, some of which include unmotivated workers, conflict and a decline in job performance.

Employee Development and Training

The second underperforming area of the analysis is the company’s willingness and ability to train and develop employees. Training and development refers to the opportunities provided by an organization that staff members can take advantage of, with the aim of acquiring new or improving existing skills. It also involves giving staff members resources and opportunities for career advancement.

The absence of advancement opportunities, resources and infrastructure is closely tied to the low level of employee motivation experienced by JCB staff. One of the purposes of Human Resource Management systems is develop employee potential and improve educational levels. As a result, employees learn to use non-human resources more efficiently to achieve the organization’s goals. Without the necessary infrastructure, employees are not only limited in the skills needed to perform tasks well, but they are also unable to progress in their careers to the stage of self-actualization.

Maslow’s theory can be applied effectively here. If a company’s structure does not permit employee needs of esteem and self-actualization to be fulfilled, much less pursued, it can have significant impact on staff motivation and consequently performance. Victor H. Vroom proposed The Expectancy Theory, which argues that employees are less likely to be motivated when they cannot perceive the rewards they can obtain through excellent performance. In other words, if staff members are required to improve their performance without much possibility of promotion, incentives and rewards, the desire to excel diminishes.

Recommendations to Director

Job security is a high-level priority for employees. If staff members feel they can lose their jobs at any point, motivation to accomplish organizational goals decreases. To remedy this situation, the director should consider rendering immediate dismissals illegal and opt to adopt union laws that can provide better safety and security for employees.

The director should also consider amending screening and recruiting methods to avoid hiring employees that do not possess the appropriate skills for the job. Although cheaper labor might be appealing to the company’s bottom line, it will hurt the profit margin in the long run. Human resources can take up most of the organization’s budget and hiring unskilled employees can result in a waste of valuable resources that can be invested in candidates with specialized skills instead.

It is the responsibility of the employer to device fair processes and methods of dismissal. The danger of uncontested dismissals is that they can induce fear and uncertainty in not just the employees dismissed, but the remaining staff. Fearful and uncertain employees tend to perform poorer than those who know that errors can be corrected without resulting in job loss.

There is much truth in Maslow and Adams’ theories about the type of needs and expectations that employees have about the company they work for. When employees fulfill basic needs, such as earning an income, they progress to the more complex needs of esteem and self-actualization. It is recommended, therefore, that the company invest in infrastructure, resources and opportunities that offer career advancement. Rewarding hard workers with incentives and decision-making positions is an effective way to motivate those who have strong needs for power, influence and affiliation.

The director should strive to increase employee educational levels and invest in skill training. Developing human resources is important because they are responsible for allocating and using non-human resources as efficiently as possible. Also, advancements in technology require modern employees to be tech-savvy in order to keep up with a constantly changing world. Without appropriate education and training, employees will be unable to adapt to new ways of doing business and lack the creativity to give the organization an innovative edge.

Conclusion

Human resource management in the workplace highlights the value of motivated employees to organizations. There are several factors that keep staff motivated and driven to accomplish organizational goals, such as skill training, job security and opportunities for career advancement. Without these factors, employees’ extrinsic and intrinsic needs cannot be met. When needs are not met, it results in lack of motivation and poor job performance. This vicious cycle is best broken by an effective human resource management system. Organizations need to come to a realization that, by developing, educating and striving to fulfill employee needs, employers can create a productive, efficient and willing workforce in return.

References

Kreitner R. (1986), ‘Motivating Job Performance’. In Kreitner R. , ‘Management’, (3rd edn), Houghton Mifflin Company: USA

Moorhead G. & Griffin R. (1998), ‘Need-Based Perspectives on Motivation’. Houghton Mifflin

Company, USA.

Oxford English Dictionary. (2005), ‘Equity’, 7th Edition.

Vroom V.H, 1964, Work and Motivation, Wiley

 Mabey C, Salaman G, 1995, Strategic Human Resource Management, Blackwell

Buchanan, D, Huczynski, A, 1997, Organizational behaviour, Third Edition.

Click Here To View HRM Dissertation Topics

HR Performance Issues

HR Performance Issues and Motivation

“Do not discipline employees who are unable to perform a task. Discipline those who are able to perform a task, but are unwilling or unmotivated to succeed” – SANS Leadership and Management Competencies course book (Bong, 2014)

Understanding the motivations of employees in order to identify and correct performance issues is fundamental to effective Human Resource management.

Because of this, there is a wealth of research related to understanding the underlying causes and effects of good and bad employee performance.  The goal is to figure out where the problem originates and to develop ways to correct those problems.

Motivation theories are abundant but all originate from the experts considered to be fathers of motivation theory; Maslow and Herzberg.  Early motivation theorists like Abraham Maslow and Frederick Hertzberg, laid the foundation upon which modern motivation theory is built.  Their work has guided research in this area of study since the late 1950’s and early 60’s (Hendriks, 1999).

Yet as the workplace has evolved and diversified over the last several decades, so have the perspectives on motivation theory.  The foundation has remained the same, but the perspectives are changing and elaborating what was original hypothesized by Maslow and Herzberg.

Take for instance Maslow’s need hierarchy theory.  Maslow theorized that human motivation is driven by five needs: the need for shelter or safety, food and water, love and respect, recognition and fulfillment. These needs are organized in a hierarchy based on basic needs and “higher-order” needs; food and shelter are basic needs, recognition, love, fulfillment and respect are higher-order needs (Hendriks, 1999).

Hertzberg, on the other hand, proposes just two categories in his motivational theory.  Herzberg concludes that people are motivated by either extrinsic or intrinsic motives (Gagne & Deci, 2005).  Mainly, this theory says that either a person is motivated because they like what they are doing, or, they are motivated based on the expectation that they will be rewarded in some way for the work they are doing.

Both theories suggest that employee satisfaction is important to motivation and that in order to keep employees motivated, their needs must continue to be satisfied. Maslow’s theory falls short of prescriptive answers to questions of employee motivation, whereas Hertzberg suggests that employers can maintain employee satisfaction by considering the intrinsic and extrinsic motives of their employees when adopting rewards incentives (Davoren, 2013).

While Maslow and Herzberg’s theories in their broader applications have become less applicable as the workforce and workplace has changed, the fundamental basis of these theories is still sound and relevant to current motivational theory.

Among some of the more recent expansions on motivation theory include the Commitment and Necessary Effort (CANE) motivation Model, Self-Determination Theory (SDT) and the Cognitive Evaluation Theory (CET).  Motivation theory has been applied to understanding motivation in many different areas, including in sports, academic achievement and business.  These theories applied in business can help solve HR performance issues and improve employee motivation.

The CANE motivation model tries to incorporate the many different aspects of motivation theory.  It takes the best approaches of modern research, and combines them into one all-encompassing theory that can be used to understand the motivations of professionals with knowledge based jobs (Clark, 1998).  These types of jobs, white collar jobs that require some expertise and professional knowledge, usually involve incentives for attracting highly educated professionals.  Understanding the interaction of rewards systems and motivators that guide those professionals is very important for HR recruitment.

Clark argues that some strategies in the area of organizational development overestimate the effect that employee incentives like contests and performance recognition have on employee motivation (Clark, 1998).  These strategies are widely used as a means to increase worker productivity.  However, some research studies have suggested that studies that show that these strategies work to improve motivation are “fatally flawed” and that these strategies may not have as much power to influence employee behavior as previously thought (Clark, 1998).

The CANE Model says that motivation is two-pronged and intertwined.  First, motivation is based on commitment to a goal.  The second is the amount of effort that goes into achieving that goal (Clark, 1998).  If an employee is motivated by a commitment to achieving their goal, he or she will remain focused on that goal even if they are tempted to focus on other less important goals. Once that level of commitment is achieved, the effort needed to achieve the goal, or the “Necessary Effort”, will sustain the motivation to complete the task.  If the task is perceived as important, then the necessary effort to complete the task is tied to its importance.

HR Performance Issues
HR Performance Issues

Though Maslow and Herzberg’s theories are becoming outdated, the CANE Model falls short of unifying motivation theory into one model because of its limitations in broad application.  It is too broad to explain the nuance effects that culture and diversity have on individual definitions of commitment, effectiveness and control (Clark, 1998).  Not to mention that broad solutions to problems of motivation in the workplace can only be identified by this model; applying those solutions to specific job performances is more difficult and requires more specialized solutions.

 Self-Determination Theory has evolved not only through theoretical analysis but has also held up in empirical studies.  SDT relies heavily on needs based theory, but the needs are more psychological in nature.  Satisfying these psychological needs, according to Self-Determination Theory, motivates behavior and also elucidates the processes that direct action (Gagne’ & Deci, 2005).

In this theory, by determining underlying psychological needs, employers can appeal to the intrinsic motivations of employees to correct performance issues and to increase motivation.  Intrinsic motivation is driven by internal satisfaction.  This involves the motivation that comes from being engaged in an activity that brings personal satisfaction.  It is unrelated to any material reward.  An employee is motivated by a psychological need to be challenged or to feel a sense of accomplishment (Ryan & Deci, 2000).

Since all behaviors are at their core driven psychologically, research in the area of Self-Determination Theory has tried to discern which of these psychological needs are being fulfilled by intrinsic motivation.   What has been concluded is that intrinsic motivation can be encouraged and facilitated by environment since intrinsic motivation is not caused but rather “catalyzed” into action when the conditions are right (Ryan & Deci, 2000).”

Lastly, Cognitive Evaluation Theory (CET) which is one aspect of Self-Determination Theory finds that intrinsic motivation can be produced by offering encouragement and feedback that satisfies a sense of accomplishment and competence in employees (Ryan & Deci, 2000).  This can be done using rewards for achievement; a bonus for timely turnaround or for reaching a sales goal.  But employees can also be intrinsically motivated by words of encouragement that satisfy the same psychological need for feeling competent; a pat on the back or a ‘good job’ goes a long way.

Work performance is directly affected by job satisfaction and motivation.  The work performance is the outcome.  When working from the intrinsic motivation model, appealing to the internal psychological needs of employees can increase job satisfaction, which in turn sparks motivation and finally produces an improved work performance.  Understanding the means to increase job satisfaction is the crux of resolving performance issues and positively motivating employees.

Solutions to performance issues should be evaluated at all levels.  Just because an employee is not performing satisfactorily doesn’t mean that the problem lies with the employee.  Sometimes, the problem is in management style or a lack of resources to do the job right.  These things can exacerbate poor performances when the employee feels that they are not being given the proper tools to complete their job or receiving the necessary feedback to do the job correctly (Lister, 2012).  By simply rewarding exceptional behavior or providing constructive feedback for poor performance, an employer can improve job satisfaction and thereby resolve performance issues.

Therefore, assessing the needs of the group can allow employers to predict how those assessments will effect “job satisfaction and work outcome” (Gagne & Deci, 2005).  Also, evaluating the types of needs that are being satisfied can affect job satisfaction and outcome.  Herzberg presents two different factors in employee motivation.  There are hygiene factors, the more superficial needs, and the motivation factors, which include more intrinsic motives.

Among hygiene factors that Herzberg identified are things like salary and work conditions.  Motivation factors on the other hand, include things like personal achievement, opportunities for promotion, and a sense of responsibility (Hendriks, 1999).  These factors have a direct and indirect effect on job satisfaction and performance.  Hygiene factors according to Herzberg’s theory mostly affect motivation in a negative way; by the very absence of things like good working conditions and status, job satisfaction is decreased (Hendriks, 1999).

Consider a garbage man whose job performance has gone down.  His work has slowed and he seems clearly dissatisfied with his job.  Upon evaluation, HR has discovered that the employee is dissatisfied with his salary.  He has been on the job for several years without promotion and without pay increases.  According to both Maslow and Herzberg’s theories of motivation, his job dissatisfaction is rooted in one of his intrinsic and basic needs not being met; salary, food and shelter.

But further analysis supports Herzberg’s theory that there is a second prong to this employee’s dissatisfaction.  He has not received a promotion, which is more than mere dissatisfaction with his salary; it implies that he is dissatisfied because he is not receiving the recognition that he feels that he deserves for the time and commitment he has given to his employer.  By not relating to the psychological need for recognition, which has its own intrinsic reward for the employee, the employer is partly to blame for the performance issue and lack of motivation.

To resolve the problem, the employer must first identify the causes of the problem and then seek to improve job satisfaction through proper motivation.  In this scenario, showing that management cares about his input and recognizes his many years of contribution by giving him a raise or a new promotion or job title, can help to resolve those performance issues by appealing to the intrinsic and extrinsic motivations of the employee.

Work Cited

Bong, K. (2014 ) Management Laboratory. Retrieved from Sans Technology Institute:

Clark, R. E. (1998). Motivating Performance: Part 1 – Diagnosing and Solving Motivation Problems. Performance Improvement. Los Angeles: University of Southern California.

Davoren, J. (2013) What Types of Rewards Would Motivate Workers in an Organization?

Gagne’, M., & Deci, E. L. (2005). Self-determination theory and work. Journal of Organizational Behavior, 331-362.

Hendriks, P. (1999). Why Share Knowledge? The Influence of ICT on the Motivation for Knowledge Sharing. Knowledge and Process Management , 91-100.

Lister, J. (2012). Examples of a Motivational Issue in an Organization.

Pintrich, P. R. (2000). An Achievement Goal Theory Perspective on Issues in Motivation Terminology, Theory, and Research. Contemporary Educational Psychology, 92-104.

Ryan, R. M., & Deci, E. L. (2000). Intrinsic and Extrinsic Motivations: Classic Definitions and New Directions. Contemporary Educational Psychology, 54-67.

Click Here To View HRM Dissertation Topics

How to Write a Film Studies Essay

How to Write a Film Studies Essay

Films are designed to be heard and seen, to appeal to our aural and visual senses. Just like any art form, films are also designed to be understood and felt, to appeal to our minds and emotions. The best measure of a film’s credibility is determined through assessing the elements that comprise the whole process. This is achieved through a film study, this post discusses how to write a film studies essay.

Film study essays require more work than movie reviews. This is because they entail that you engage on a level further than storytelling. The essays offer a critical analysis of a complete film. Analyzing a film gives rise to a variety of topics, including the role of propaganda with respect to political and social issues, the influence of cinema on your culture, as well as the emergence of auteur paradigm. The topics are fascinating and they enhance the insight and inspiration of film students. This is a crucial ingredient in the course of writing film studies essays.

The initial step when writing a film studies essay involves narrowing the scope of interest to a specific area. This stage calls for extensive investigation from a wide variety of sources to enhance insight into the area of study. An individual should provide key details and thematic issues under the scope of the study. This enables you to maintain the focus of the film analysis of a scene or sequence that may have escaped the audience’s attention during past viewings. This section also focuses on presenting crucial details on the formalism, genre, historical implications, national background, auteur, and the ideology behind the film. In the course of writing the film analysis, you should pay attention to length, source, and style requirements.

When writing about a specific film, it is always assumed that the targeted audience is familiar with the film under analysis. Such an analysis is always introduced by presenting the major topics of interest while avoiding getting into lengthy details. Special focus should feature while investigating the style and structure of a particular film. This section focuses on the screen events and ignores other outside factors like the historical context, the life history of the director and others. A good film essay should provide the most fascinating and crucial features of the style and structure of the film. Details like sound, lighting, and cinematography contributing to the meaning of the film should also feature.

A good film study essay should also consider the common sequences of form and content. This includes editing, lighting, cinematography, narrative, characterization, thematic concerns and others. This enables the target audience to ascertain how a film diverges or conforms from a genre category. A film study essay writer should consider a film’s historical moment as genre varies with time. At this point, it is important to emphasize the common structures, techniques, and themes associated with the genre of the film. If the genre conforms to expectations, it is necessary to make that acknowledgement.

Analyzing the historical features of a film is an important requirement in writing a film study essay. This approach investigates and positions the unique historical flash of the film’s content, as well as its production or release. You should inquire whether the historical moments /events are depicted in a particular film. Having a historical background enhances the understanding of the narrative or techniques employed in the film. An objective argument should be provided as it will help clarify the film’s place in history. The argument should show how the film relates to the evolutions resulted by technological advancements in the film industry. A film study essay writer should compare the subject matter of specific films to their unique historical moments. A documentation of the reception of a film by a certain audience will come in handy.

Some film studies have theoretical content in their analysis. This form in general requires the writer to have a good comprehension of film history, film technicalities, or film theory. Generally, the essay presents some of the complex and larger structures of the cinema, as well as how the audience understands them. The analysis should center on the national arena,auteur, and the ideology of the film.

Film Studies Essay
Film Studies Essay

An analysis of the national cinema assesses a film through considering each country’s unique mode of studying the cultural implications resulted by these effects. This also helps the audience create the distinction between local and foreign films. It is crucial to determine whether the meaning of the film is changed when a film is observed outside of its culture. After identifying the dominating culture in the film, a cultural research should be carried out to enable a deeper understanding of the themes.

A film’s auteur reflects a director’s individual creative vision and it makes him appear as the film’s author. This is always achieved by a filmmaker who exercises creative management  over his works and possesses a strong personal style. Auteur theory is one of the most persistent  theoretical forms. This analysis focuses on how directors and other dominant figures like actors and producers employ pervasive themes and styles in their volume of work. Though a director rarely has total control over a film, it is important to establish the degree of influence. This will help to ascertain how the historical circumstances of a film’s production promote or discourage the unity of the director’s work. This section should also show the most distinguishing indicators of the director’s control over the film.

The political and social implications of a film are captured in its ideological analysis. Every film has an objective to pass a particular message to the society. An ample film study essay should have a clear underlying message that the film is trying to pass to the society. An analysis of culture, gender, characterization and other tenets help reveal the main message(s) in the film. Ideology can also be broken down into Hollywood Hegemony (observes how classical film designs distort and dominate people’s perception), class analysis( investigates how economic and social arrangements are represented in and surrounding a film influence and reflect the distribution of social command), feminist analysis ( investigates the level of women representation in front and behind the camera both positively and negatively), race studies( determines how various races have been positively or negatively embodied behind and in front of the camera, post colonial analysis ( from an international perception, how the subjugation and subsequent reemergence of native culture is revealed and represented in a particular film.

Before writing a film studies essay, one should offer a brief overview of the narration. However, care should be taken to avoid coming up with a synopsis of the film’s story as it is more of an analysis. The author should reveal plot complications or the film’s ending only if they relay directly to the analysis. If possible, a writer should write the film analysis with the movie at hand. A sufficient understanding of the films sould be reflected by the writer before embarking on writing the analysis. If the analysis is about a part of the movie shot from the point of view of one of the actors, one should write about the subjective camera task. A proper utilization of a film making terms will strengthen the command of the film studies essay.

How To Write A Good Dissertation