Problem Statement 2
Abstract
This problem statement focuses on Ryanair, a leading European airline that effectively utilizes
employment law via strategic human resource management and flexible employment contracts to
maintain its profitability and market leadership. The four research questions to answer the
problem statement investigate different aspects of Ryanair's approach to HR management and
propose a mixed-method research design to collect and analyze qualitative and quantitative data.
Key Words: Human Resource Management, Profitability, and Market Leadership
Problem Statement 3
Problem Statement
The article addresses the general problem of how Ryanair effectively utilizes
employment laws via strategic human resource management (SHRM) practice and flexible
employment contracts, resulting in Ryanair's sustained profitability and market leadership in the
fiercely competitive airline industry. Since its inception in 1984, Ryanair has consistently
maintained its position as a leader in profitability and competitiveness due to properly utilizing
European legal laws via SHRM and flexible employment.
Regarding employment laws, Dingeldey and Gerlitz (2022) imply that there are
weaknesses in European labor laws that enable companies, such as Ryanair, to take advantage of
labor market segmentation. Additionally, Arup (2022) argues that liberalization of labor laws has
increased arbitrage where employers, such as Ryanair, exploit regulatory laws to gain a
competitive advantage. Regarding SHRM, Patras (2022) states that SHRM is a proactive
approach to HR management that enhances organizational performance, employee engagement,
and retention by developing and implementing HR to support the organization's strategic
objectives. Regarding flexible employment, the research conducted by Rouvroye et al. (2021)
found that employers value using flexible contracts for covering financial risks, making better
hiring decisions, monitoring workers' performance, accepting the consequences of limited
retention, and training a younger workforce. The article's problem statement is how Ryanair
utilizes European employment law via SHRM and flexible labor, resulting in sustained
profitability and market leadership in the European airline industry.
Research Questions and How the Questions Relate to the Problem Statement
Question 1—How do Ryanair's strategic human resource management practices
contribute to the company's success in the European airline industry? This research question
Problem Statement 4
explores how Ryanair's strategic human resource management practices contribute to the
company's success in the European airline industry.
Question 2—What employment laws does Ryanair utilize to maintain its sustained
profitability and market leadership in the airline industry? This research question seeks to
identify Ryanair's specific employment laws.
Question 3 – How does Ryanair's use of flexible employment contracts impact employee
engagement, retention, and organizational performance? This research question investigates how
Ryanair's use of flexible employment contracts impacts employee engagement, retention, and
organizational performance.
Question 4 – How does Ryanair's approach to HR management differ from other airlines
in Europe, and how does this contribute to the company's competitiveness? This research
question aims to compare Ryanair's approach to HR management with that of other European
airlines and how it contributes to the company's competitiveness.
Best Research Design
The best research design for this problem statement is a mixed-method design. This
design is best because the research questions require both quantitative and qualitative data to be
collected and analyzed.
Question 1 – Qualitative approach to understanding Ryanair's SHRM practices.
Question 2 – Qualitative approach to identify specific employment laws in Europe.
Question 3—Both qualitative and quantitative data are required to investigate the impact
of flexible employment contracts on employee engagement, retention, and organizational
performance.
Problem Statement 5
The null hypothesis is that flexible employment contracts have no significant
relationship with employee engagement, retention, and organizational
performance.
The alternative hypothesis is that there is a significant relationship between
flexible employment contracts and employee engagement, retention, and
organizational performance.
Question 4 – Qualitative comparison of Ryanair's HR management approach with other
European airlines.
Conclusion
In conclusion, Ryanair's strategic understanding of European employment law plays a
significant role in maintaining its profitability and market leadership in the European airline
industry. As such, the four research questions will look to understand Ryanair's methodology for
execution to maintain its top position. The findings of this research will inform the industry on
how to enhance its performance and competitiveness.
Problem Statement 6
References
Arup, C. (2020). Labour law liberalisation and regulatory arbitrage. Australian Journal of Labour Law,
33(2), 183–208.
Dingeldy, I., & Gerlitz, J. (2022). Not just black and white, but different shades of grey: Legal
segmentation and its effect on labor market segmentation in Europe. International Labour
Review, 161(4), 593–613. https://doi.org/10.1111/ilr.12336
Patras, R. A. (2022). Strategic human resource management through knowledge-based technology in
the Indian banking sector.Academy of Strategic Management Journal,21(3), 1-10.
https://go.openathens.net/redirector/liberty.edu?url=https://www.proquest.com/scholarly-
journals/strategic-human-resource-management-through/docview/2726061233/se-2
Rouvroye, L., van Dalen, H. P., Henkens, K., & Schippers, J. J. (2021). Employers’ views on flexible
employment contracts for younger workers: Benefits, downsides, and societal outlook. Economic
and Industrial Democracy, 43(4), 1934–1957. https://doi.org/10.1177/0143831x211053378
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