Examining Management Style and Functions at British American Tobacco

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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