Table of contentsBackground of the history of human resourcesHuman resource practices at RyanairImportance of human resource management in strategyThe paper assessed the role of resource management human resources (HRM) within the company and its evolving role from administrative and operational to strategic. He traced the transformation of HRM from personnel management to the current position where it plays a central role in the overall business strategy. The company in question is one of Europe's largest carriers, with Ryanair considered the continent's largest low-cost carrier (LCC). This highlighted the impact of HRM errors on company strategy. There were pilot strikes related to financial costs in FY 2017 and they are still ongoing, implying that in FY 2018 profits will be significantly affected. The airline did not treat its employees, especially critical staff, pilots and cabin crew, as rivals. They are offered comparatively lower pay and fewer benefits. The strikes that began in late 2017 were the culmination of employees' efforts to gain greater recognition, but their efforts were rebuffed by the airline. As a result, the strikes impacted strategy, including rescheduling, reduced flight numbers, flight unpredictability, and profitability. HRM must be aligned with the target strategy in order to achieve the company's objectives. The disconnect between these aspects leads to failure or poor performance in strategy execution. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an original essayThe article evaluates the strategic importance of human resource management. It traces the historical evolution and context of human resources management as well as the specificities of the selected organization (Ryanair). The importance of transforming human resource management from an administrative/operational role to a strategic role is emphasized.Context of the history of human resourcesAccording to Armstrong & Taylor (2017), human resource management (HRM) is the coherent and strategic approach to a company's most valuable assets, its employees. These are people working individually but contributing collectively to achieving a company's goals (Tubey, Rotich, & Kurgat, 2015). Employee management is essential to the strategic objectives of the company. Prior to the 1990s, HRM was considered an ancillary function providing business activities such as planning vacations, planning retirements, enrolling employees for health coverage, and planning picnics. business (DeCenzo, Robbins, and Verhulst, 2016). It is the product of changes that occurred at the beginning of the 20th century (Tubey, Rotich, & Kurgat, 2015). Changes in human relations aimed to create business value through strategic employee and workforce management (Tubey, Rotich, & Kurgat, 2015). Initially, human resources functions were primarily transactional. With the institution of laws and regulations governing industrial relations in different countries, the nature of human resources has changed. In the United States, “federal and state laws have imposed many new requirements on employers regarding hiring and employment” (DeCenzo, Robbins, & Verhulst, 2016, p. 30). As a result, jobs have changed. The evolution of job descriptions towardstechnical aspects means that greater skills are required and the boundaries are increasingly blurred. Elsewhere, countries such as the United Kingdom and Australia have begun to examine work systems as well as the nature of work and have instituted different regulations (Tubey, Rotich, & Kurgat, 2015). Some of these laws and regulations covered areas such as: minimum wage, protection of employees from unsafe working conditions, regulation of working hours, and discrimination. The precursor to current HRM practices was in fact personnel management. There are marked differences between the two approaches. Personnel management was short-term focused and undertaken on an ad hoc basis while HRM is strategic, proactive and with a long-term perspective (Tubey, Rotich, & Kurgat, 2015). The temporal orientation has changed significantly. The psychological contract has also moved from compliance to real commitment. The roles have also been integrated into hierarchical HRM management, being highly specialized in personnel management (Tubey, Rotich, & Kurgat, 2015). Furthermore, human resource management has moved from cost minimization to human resource accounting (cost maximization), an integral part of personnel management. There was centralization and bureaucracy as well as a pluralistic approach to employee relations in personnel management (Tubey, Rotich, & Kurgat, 2015). In addition to regulations specifically intended to improve the workplace, the growth of employee unions and the globalization of the workforce have led to a change in employment relations. As noted by Boxall & Purcell (2015), the approaches taken in the United States and European countries varied. In the United States, the implicit approach to HRM change has focused on benefits that could accrue primarily to shareholders (Boxall & Purcell, 2015). In Europe, the emphasis has been on context and essentially a holistic approach (Boxall & Purcell, 2015). Human Resource Practices at Ryanair The focus organization regarding human resource practices is Ryanair. It is one of the leading carriers in Europe and the leading low-cost carrier. It is highly regarded for the low-cost operating model that is adopted as a core part of its strategy. The same approach was also taken in the airline's approach to employee relations (Carberry & Cross, 2013). The airline's founder, who played a central role in its strategic success, opposed unions and resisted employee efforts to join a union (Carberry & Cross, 2013). In the airline industry, pilots play a vital role in operations. Less than 50% of its employees belong to recognized unions, most in the United Kingdom (UK); non-UK unions are not recognized (figure 1, appendix). In the past, it has discouraged employees, even in the UK, from joining unions such as BALPA (Carberry & Cross, 2013). As well as actively discouraging employees from joining a union, Ryanair has employed its cabin crew on short-term contracts, mainly through agencies rather than through the airline itself ( Carberry & Cross, 2013). industry standards regarding employee benefits such as holiday entitlements and pensions (Carberry & Cross, 2013). In some cases, the airline has asked its employees to purchase their own uniforms and charge their phones before arriving at work because it does not allow the use of mobile chargers. Theseefforts are part of a low-cost strategic approach discouraging Internet use (Carberry & Cross, 2013). Ryanair offers salaries barely above the minimum in its country of domicile. Newly hired cabin crew are offered a monthly salary of between £900 and £1,100 and pay up to £2,700 for their training (Carberry & Cross, 2013). Given the low level of unionization, employees have little room for negotiation and must work regardless of the conditions offered by the airline (Carberry & Cross, 2013). This has sparked anxiety among employees who periodically vent online. The airline even went so far as to seek a court injunction to discover their identities (Carberry & Cross, 2013). Additionally, concerns about working conditions at Ryanair have attracted the attention of the International Transport Workers Federation (ITWF), which has urged travelers to consider working conditions at the airline before purchasing tickets (Carberry & Cross, 2013). It has already been impacted by the lack of flexibility in its approach to employee relations. Resistance to pilot unionization led to the cancellation of more than 2,100 flights by the end of 2007 (Hollinger & Khan, 2017). The airline failed to properly account for pilots' flight times, and with its salaries below industry standards, it lost 140 pilots to its smaller rival, Norwegian Air, in 2017, which represents approximately 5% of its pilots (Hollinger & Khan, 2017). As well as losing mostly experienced pilots to competitors, flight cancellations meant it flew fewer planes between November and April. , 2018. During this period, he flew 25 fewer planes as well as 10 fewer planes compared to April 2018 (Samson, 2017). The few thefts are likely to impact revenue, especially in fiscal 2018. Additionally, the company suffered significant reputational damage and faced approximately $25 million in euros in costs linked to the cancellation, including 20 million euros in compensation to stranded customers and 5 million euros in lost profits. (Hollinger and Khan, 2017). It also reconsidered its offer for the ailing Italian airline, Alitalia, with a view to ending the debacle (Samson, 2017). Ryanair's human resources management errors highlight the impact of social relations on the company's overall strategy. Flight changes made after the cancellations are expected to reduce traffic for the entire 2017 fiscal year from 131 million to 129 million (Samson, 2017). Around 400,000 Ryanair customers were affected by flight cancellations (Samson, 2017). Importance of Human Resource Management in Strategy According to Boxall & Purcell (2015), HRM goes beyond the recruitment of qualified personnel, but also engages in the development of social capital and the promotion of required performance. It involves creating a network of relationships that combine employees' individual talents into the collective outcomes of the company's overall strategy (Boxall & Purcell, 2015). The main functions of HRM have been expanded to include: recruitment (recruitment, selection and socialization), assessment, remuneration, training and development, and management of union relations (Noe et al., 2018). HRM has evolved from an ancillary function to an ancillary function playing a critical role in strategy development and execution. Despite mishaps in employee relations management, Ryanair actually has a human resources manager ofhigh rank bearing the title of Chief People Person (CPP). The position ranks similar to Chief Financial Officer (CFO) and Chief Technology Officer (CTO). The role of chief executive officer (CEO) attracts considerable interest as the airline's largest individual shareholder. The CEO owns approximately 4.0% of Ryanair's capital and is the third largest shareholder behind major institutional investors HSBC and Fidelity Investments (Faurschou, 2017). ). This creates some conflict in the principal-agent relationship. Agency theory reflects the relationship between shareholders (principals) and management (agents) (Hill & Jones, 2013). In the principal-agent relationship, agents are expected to always act in the best interests of the principals (Hill & Jones, 2013). In the case of Ryanair, the concern is not about the agency's information asymmetry problem. Considering that the CEO is both a principal and an agent, it actually takes the principal-agent relationship to the extreme. Shareholders, as principals, are rewarded for aggressive profitability within the airline. However, any other strategic aspect is only considered for its cost implications, including for employees. No effort has been made to view employees from the perspective of human capital theory as productive wealth embodied in work (Nafukho, Hairston, & Brooks, 2004). Work development should be viewed from the beneficial perspective in terms of productive wealth generated by skills and stock of knowledge (Nafukho, Hairston and Brooks, 2004). In the modern business, HRM plays a more important role through policies that attract and retain talent within the company and maintain competitive advantage. According to DeCenzo, Robbins, and Verhulst (2016), strategic human resources must align with business strategy. The administrative nature of personnel management has been transformed over the years by regulatory changes and the importance of talent to achieve competitive advantage. It must be tailored to the strategic direction adopted by the specific company. Companies seeking cost differentiation emphasize streamlined processes, low-cost materials, maximizing efficiency, and reducing waste (DeCenzo, Robbins, & Verhulst, 2016). The implication for HRM is that jobs should be structured by sharing knowledge and maximizing cross-training (DeCenzo, Robbins, & Verhulst, 2016). Compensation programs should be designed to reward efficiency and increase cost savings. The company must therefore select the most versatile employees in terms of skills (DeCenzo, Robbins and Verhulst, 2016). Companies that seek differentiation emphasize creativity and innovation while providing multiple choices to customers. Strategically, compensation systems are designed to reward innovation and creativity (DeCenzo, Robbins, & Verhulst, 2016). Employees must be trained to create products with differentiating characteristics. Companies that thrive on strong customer relationships need employees with strong customer relationship skills (DeCenzo, Robbins, & Verhulst, 2016). Companies that target specific segments need employees with strong market research skills and a good understanding of the target market (DeCenzo, Robbins, & Verhulst, 2016). Ryanair's strategy is based on being a low-cost carrier (LCC). The focus is on the lowest cost structure in order to maximize returns and is also.