Examining Management Style and Functions at British American Tobacco

This study examines the management style and functions used by the CEO of British American Tobacco and their impact on employees. It also discusses the leadership style, motivation techniques, and suggestions for improving organizational performance.

Assessment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
A. Examining management style and functions used by CEO of British American tobacco......1
B. Analysing steps taken by CEO of BAT with regards to organizational structure as well as
culture and their impacts on employees ......................................................................................2
C. Describing the leadership style BAT’s CEO for increasing organizational effectiveness......3
D. Effects of power, influence and conflict at BAT....................................................................4
E. Various types of motivation used at British American Tobacco.............................................5
F. Appropriate corporate example...............................................................................................6
G. Suggestions to British American Tobacco for increasing organizational performance..........7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Organisational culture can be defined as collection of values and expectations that guide
actions of all team members (Mannion and Davies, 2018). It plays an important role in
accomplishing goals and improving communication. The present study is based on British
American Tobacco, British multinational company, specializes in manufacturing and selling
tobacco and other nicotine products. It is facing staff turnover problem which it needs to solve
and for that it focuses on several effective areas like organizational culture, management style,
leadership style and motivation to employees. This present study is going to show effectiveness
of Maslow's Hierarchy theory of motivation for improving their performance and retaining them
with the company. It will also discuss importance of transactional management theory for
performing all functions of management and motivating employees. Power, influence and
conflicts also have several critical impacts on organisational overall performance and for
reducing negative impacts company focus on developing internal strategies like training, team
working and others. Lastly, it has suggested some ways and models by which BAT can increase
staff retention rate and accomplish goals.
PART 1
A. Examining management style and functions used by CEO of British American tobacco
Management style plays an important role in accomplishing goals and satisfying
employees. It helps manager or CEO of BAT to perform all of their functions and motivating
employees as well. For increasing staff retention rate, CEO focuses on effective management
style such as:
Transactional management: It is the management style in which manager focuses on
motivating employees by positive rewards like bonus, incentives and others. It is believed by
manager of BAT that rewards motivate employees for increasing their performance which is
beneficial for their growth as well. Transactional manager of BAT relies on piece work pay in
order to incentivize their employees which motivates them to produce more and helping out
company in meeting their objectives (Doran and et.al., 2017). But some laws claim this piece
work pay and said that it is not fair as well as not in line with minimum wage laws. So, it is one
of the main limitation which pressurize CEO to not only rely on one management style.
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There are some managerial functions followed by CEO of BAT in order to accomplish
goals and managing operations such as:
 Planning: In this function, manager focuses on deciding about strategies which can help
them out to weaken competition and improve their performance.
 Organizing: After planning, manager of BAT focuses on recruiting & selecting skilled
workforce and train them for making them able to gain goals.
 Leading: According to this, manager emphasizes on motivating their employees for
accomplishing pre-determined goals. For better guidance and leading they make use of
effective mode of communication so that efforts can be made for the achievement of
common goals and objectives.
 Controlling: In this stage, manager measure effectiveness against set objectives for
identifying sources of deviation. After identifying this they provide a corrective course of
action or make changes in strategies and get things done in a right manner.
By following all these functions in an effective manner, manager can solve problem of
staff turnover and can motivate employees to stay with the company for the long run.
B. Analysing steps taken by CEO of BAT with regards to organizational structure as well as
culture and their impacts on employees
In the context of organizational structure and culture it is found that it makes use of open
and transparent culture (MEDA and et.al., 2019). One of the main reasons behind using this
culture is to allow its people able to meet challenges in ever-changing business environment.
This company implement Handy's cultural model. This culture includes: power culture,
role culture, task culture and people culture. Among all of these type, it mainly focuses on
people culture. In this type of culture people see themselves as unique and superior. For making
them more able it also focuses on training. This transparent culture is linked with people culture
which is mainly associated with employees needs and increasing their experience. It is also
found that this company focuses on manufacturing efficiency without compromising quality of
products. Its utilization of information technology is known as the core of its business strategy
and benchmark. Other main reason of selecting this organization culture is to improve
communication and it is found that this company focuses on internal communication so that they
can meet employees' requirements in an effective manner. In addition, it is also found that this
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company has its own intranet which makes it able to maintain communication to everyone in the
company and provide important information to them.
It is also found that this company implement hierarchical organisational structure. In this
type, employees have direct chain of command from top management. Senior manager is mainly
responsible for taking decision. It is somehow not effective because it may create problems in
flow of information and barriers in communication. It also focuses on creating diverse,
challenging and inspiring culture and quality of people are its one of the main key of its success
and reason behind its effective performance. People in this company are ambitious, courageous
and resilient and it is effectiveness of its culture. People in this organizational structure or culture
are able to learn new things quickly and responsive to opportunities. It feels proud in having a
culture of passionate owners and having people who lead and inspire each other for the journey
ahead. One of the main aim of following some steps for developing an effective organizational
structure is about developing talent from within, stretching and supporting the high performing
managers for delivering strategy.
For more improvements it is focusing on engaging itself in social media and have moved
ahead in it. So, overall It can be said that by following all stages for developing an effective
stretching and supporting culture and structure it is attracting, retaining and engaging diverse
people.
C. Describing the leadership style BAT’s CEO for increasing organizational effectiveness
It is being stated by head of talent development, Jumoke Fagbemi that the war for talent
is fierce, and we need to keep high potential. For accomplishing future needs and objectives
there is requirement of an effective leader who can guide, train and direct employees. Employees
are leaving organization to the great extent so, by implementing an effective leadership style it is
trying to solve this problem. Effectiveness of leadership style of BAT which can help it out in
solving problem are:
Transformational leadership: It is one of the best and effective leadership style in
which leader guide, encourage, motivates and inspire their followers for accomplishing goals of
the company and thereby improves performance. It is the way of motivating employees. By
making use of this leadership style, BAT is trying to improve staff retention rate. When leader
works with employees and their team members and help them out in identifying needed change,
ways of changing through inspiration then it makes employees feel motivated and valued.
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Motivated and valued employees are less likely to leave organization (Shin, Kwak and Hyun,
2019). There are 4 ways in which transformational leader motivate employees such as:
 Idealized influence: In this, leader exert influence within a group by setting examples for
them. Due to this style, leaders are being respected by team members.
 Intellectual stimulation: In this way, leader focuses on creating diverse as well as open
environment and encourage employees to bring new ideas and innovation.
 Inspirational motivation: In this way, leader inspire their employees and also
communicate their expectations and gain commitment to shared organizational team
belief.
 Individualized consideration: In this, leader create diverse and supportive environment
where, all level and different backgrounds are employees are motivated to work at one
place and their values are being respected.
Impact on organizational effectiveness: When employees feel that employers and
leaders are taking their needs into consideration and encouraging for improving their
performance then it increases trust and loyalty among them. Trusted employees are more likely
to support company in accomplishing their goals by hook or by crook. This leadership style not
only have positive impacts on employees but also help company in increasing their
effectiveness. When motivated and guided people work then it reduces their errors which boost
their confidence (Mahin Mohammad Alizadeh and et.al., 2017). Employees at this stage try to
come out from their comfortable zone and bring innovation as well as creativity. Creativity and
innovation is the main key of customers' satisfaction and increasing retention rate of customers.
D. Effects of power, influence and conflict at BAT
Power, influence and conflicts also have both positive and negative impacts on overall
performance of company and employees. In the context of power it can be said that it affects
some employees in positive manner and some people in a negative manner. Power helps
manager in bringing or maintaining discipline in an organization. With the help of French and
Raven's five forms of power model it tries to have positive impacts on overall performance of
employees. There are 5 bases on power such as:
Legitimate: According to this power it is believed that an individual and employees have
rights to make demands and to expect others to be obedient for maintaining discipline.
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Reward: It refers result from an individual's ability to compensate and praise another on
the basis of performance.
Expert: It is based on an individual's high level of skills.
Referent: It is a result of an individual's worthiness as well as right to other's respect.
Coercive: According to this an individual can punish someone for non-compliance.
So, on the basis of above it can be said that some power can have positive impacts and some can
have negative impacts (Five Forms of Power (French and Raven), 2016).
In the context of conflict and influence it can be said that it has several negative impacts
on employees performance and it becomes the reason of their turnover. Conflicts is a natural part
but it can add additional stress at workplace and can make employees frustrated. It can affect
their productivity. Conflicts mainly occur when differing interest and opinions meet and also
because of lack of communication (Sahu, Pathardikar and Kumar, 2018). So, in this context it is
found that BAT is focusing on using appropriate modes of communication. By focusing on team
working it allows their employees to interact with each other and improve performance. So, in
this regard it can be said that by more focusing on communication and organizational culture,
BAT can reduce conflicts and can make them able to retain with it and help them out in
accomplishing goals.
E. Various types of motivation used at British American Tobacco
In the context of motivation it can be said that it plays an important role as it is a cause of
action or goals for which people work. It is found that British American Tobacco is facing
problems related to employees turnover. So, it is important for CEO of this company to identify
appropriate ways of motivating them for increasing staff retention rate.
With the help of Maslow's hierarchy of needs it can satisfy different needs of employees such
as:
Physiological needs: It includes all those needs which are required for survival. For
satisfying and motivating employees, BAT requires identifying employees who have these
needs. After identifying they can provide shelter for living and basic wages by which they can
satisfy these needs. It is considered as one of the most important needs because without
satisfying these needs, it is not possible for managers to satisfy other needs.
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Safety needs: After satisfying basic or psychological needs, there is requirement of
satisfying security and safety needs. Employees prefer to work at place who are secure and
provide financial, emotional security and stability. It increases their concentration power. So, by
using or implementing security tools, appropriate policies, BAT can motivate and retain its
employees (Money, 2017).
Belongingness needs: It includes interpersonal relationship, people at this stage seek
belongingness. So, for satisfying these needs, CEO of BAT requires focusing on improving
relation with them. By implementing open door policy, manager can interact with them any time
and can make their employees feel motivated and valued. Team working is one of the best way
of improving relation among employees. It also includes: trust, friendship and acceptance.
Self-esteem needs: In this 4th stage of needs, people want achievements and
independence. They also seek respect from their managers and other people. So, by providing
promotional opportunities and appreciation to employees on the basis of their performance, BAT
can motivate and reduce staff turnover rate (Maslow's Hierarchy of Needs, 2020).
Self-actualization: In Maslow's hierarchy it is considered as the highest level of need in
which people want to realize their own potential and self-fulfilment which only comes from
personal growth. So, by providing feedbacks and career opportunities, CEO of BAT can
motivate and satisfy self-actualization needs. In this stage, people have desire to accomplish
everything and it can be possible by personal growth.
So, from the above discussed it can be said that CEO or BAT needs to make a list of
people as per different stages of needs. After that by providing financial and non financial
rewards they can motivate and solve the main problems of staff turnover.
F. Appropriate corporate example
There are several organizations who are competing British American Tobacco such as:
Imperial Brands and Altria. There are several reasons which shows that why these competitors
are putting pressure and creating threats for BAT.
In the context of Imperial Brands it is found that it focuses on more than 1 leadership
style and mainly it focuses on democratic leadership style. It provides opportunities to all its
employees to take participate in decision-making process. One of the main reasons behind
selecting this style is to motivate employees and making them feel valued. In addition, Altria
implement transactional leadership according to which it provides rewards to its employees
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and make them feel valued (Wolor, Supriyati and Purwana, 2019). It also focuses on attracting,
retaining and developing talented employees and it is the key of its success.
In addition, it is found that Altria focuses on consultative management style in which
ask for opinion and thoughts from its employees and consult from them before making any
decision. When employers take their views into considerations then it makes them feel valued
and it is the reason of its success. Whereas, Imperial Brands focuses on collaborative as well
as transformational management style according to which it motivates, guide and encourage all
of its staff members and make them able to improve performance (Ma and Jiang, 2018).
In the context of British American Tobacco it can be said that as compare to these
competitors it is also focuses on effective leadership style which makes it able to retain its
employees and improving overall performance. Whereas, management style of this company is
lacking behind because it is being criticized by some people due to legal requirements. But still it
is helping manager of BTA in solving problem of staff turnover.
G. Suggestions to British American Tobacco for increasing organizational performance
On the basis of above study it is found that BAT is facing staff turnover problem which
needs to be reduced. For that it is focusing on management, leadership and effective
organizational structure. But still there are some areas which needs to be improved so, in this
regard it is suggested to British American Tobacco company that it needs to focus on
democratic leadership style. According to this style, all employees should be given equal and
fair chance of suggesting their views and improve decision-making process (Blühdorn and
Deflorian, 2019). It is believed that when employees are given such kinds of opportunities then it
makes them feel valued and motivated. As it is known that there is a lack of motivation so, by
implementing this style, leader can motivate employees and can also take better decisions.
In addition, it can also be recommended to company that it should focus on more than 1
management style as per the current situations of company. It is found that transactional
management style is being criticized by some people so, it should focus on visionary
management style. According to this style they need to focus on communicating a purpose to
employees ad encouraging them to work harder visionary managers usually let their employees
get to work on their own terms, and they only come to see whether people are on the right tract
or not (Fiaz, Su and Saqib, 2017). This management style can motivate employees and make
them able to stay with the company for the long run.
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In addition, it can also be suggested to this company that it should focus on team first
corporate culture rather focusing on task first corporate culture. Along with transparent and
close organizational culture it can make use of this culture. When employees are being treated as
one of the most important resource of the company and before tasks they are being given priority
then it makes them feel valued. So, by implementing all these suggested models, it can reduce
staff turnover rate.
CONCLUSION
From the above study, it has been summarized that motivation plays an important role as
it allows companies in accomplishing their goals by increasing staff retention rate. Maslow's
hierarchical needs help companies in satisfying different types of needs of their employees which
can motivate them towards accomplishing goals. Further, It has also discussed effectiveness of
transformational leadership style by which leaders guide, encourage and motivate their
employees and make them able to increase their performance. In addition, transactional and
visionary management style also plays a key role in motivating employees and allow employees
to stay with the company for the long run. It has shown that transparency plays an important role
in organizational culture as it helps in maintaining a flow of information and improving
communication among staff. Power, influence and conflicts in an organization also have critical
impacts on performance of employees and by doing so, company can make changes in strategies
and solve problems which it is facing.
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REFERENCES
Books and Journals
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Fiaz, M., Su, Q. and Saqib, A., 2017. Leadership styles and employees' motivation: Perspective
from an emerging economy. The Journal of Developing Areas. 51(4). pp.143-156.
Ma, X. and Jiang, W., 2018. Transformational leadership, transactional leadership, and employee
creativity in entrepreneurial firms. The Journal of Applied Behavioral Science. 54(3).
pp.302-324.
Mahin Mohammad Alizadeh, M. and et.al., 2017. Presenting an Organizational Readiness Model
for Enterprise 2.0. Management Research in Iran. 20(4). pp.95-116.
Mannion, R. and Davies, H., 2018. Understanding organisational culture for healthcare quality
improvement. Bmj, 363.
MEDA, Z.C. And et.al., 2019. Essential managerial functions for optimal performance of health
district management teams: Experience from Burkina Faso.
Money, V., 2017. Effectiveness of Transformational Leadership Style in Secondary Schools in
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Sahu, S., Pathardikar, A. and Kumar, A., 2018. Transformational leadership and
turnover. Leadership & Organization Development Journal.
Shin, S., Kwak, H. and Hyun, J., 2019. Transparent cellulose nanofiber based open cell culture
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Wolor, C.W., Supriyati, Y. and Purwana, D., 2019. EFFECT OF ORGANIZATIONAL
JUSTICE, CONFLICT MANAGEMENT, COMPENSATION, WORK STRESS,
WORK MOTIVATION ON EMPLOYEE PERFORMANCE SALES
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ONLINE
Five Forms of Power (French and Raven). 2016. Online Available through: <
https://www.toolshero.com/leadership/five-forms-of-power-french-raven/>
Maslow's Hierarchy of Needs. 2020. Online Available through: <
https://www.simplypsychology.org/maslow.html>
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