Leadership Styles and Management Principles at British American Tobacco

This report discusses the leadership styles, management principles, and functions used by the CEO of British American Tobacco (BAT) to manage and inspire employees. It explores the relationship between organizational structure, culture, and employee performance. The report also analyzes the influence of power, influence, and conflicts within BAT. Additionally, it examines the different types of motivation used within the organization and provides recommendations for improving leadership, management, and organizational culture at BAT.

Individual Case Study
Analysis

ABSTRACT
There are limited resources in environment so they need to be effectively managed in
order to reduce cost and delivered maximum values to customers. It is difficult for employees to
accept change so leaders is an individual that providing guidance and support that motivates
them to work hard. The report is about Jack Bowles that is one of the successful CEO and French
businessmen that have used effective management styles to manage and inspired different
individual. There are several key principle that are followed by CEO while managing people so
that better outcome can be gained. It has also explained about different functions that are
performed by management of British American Tobacco for optimum utilisation of resources
and achievements of objectives. The report has also discussed about role that played by
organisation structure and culture on overall performance and productivity of employees. It have
also discussed about different motivational theories or factors that inspired individual to take
active part or accepts changes so that customers needs can be fulfilled and objectives can be
achieved. At last it have suggest some of the recommendation about the way leadership and
management or organisation culture of British American Tobacco can be improved for more
profitability and strong brand image.

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................4
A) Management style, principle and function of management that are used by CEO of BAT. .4
B) Relationship between organisational structure, culture and their overall impact on
employees....................................................................................................................................6
C) Analysis of leadership styles of CEO of BAT........................................................................7
D) Evaluation of influence of power, influence and conflicts at BAT........................................8
E) Types of motivation used within organisation........................................................................9
F) Literature review...................................................................................................................11
G) Recommendation..................................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Various activities need to be undertaken for smooth operation of business and delivery of
services to end customers. Top management or senior executives are mostly responsible for
arranging various resources, activities and taking appropriate decision so that firm can grow and
expand its business operation. Leaders are individual that guide and inspired employees of firm
to give their best so that company can achieves its overall objectives. There are various factors
that can motivate an individual to make optimum utilisation of its capabilities and or maximum
efforts for benefit of firm. Organisation culture, structures have a direct impact on employee’s
productivity and performance so manager needs to ensure that proper working condition is
provided to individual.
This report is about British American Tobacco that manufactures and sells Tobacco,
cigarettes and other nicotine products to consumers for earning maximum profit margin. It can
be stated that on basis of net sales it is largest cigarette maker in 2019 which was established in
1902. The report has discussed about key principle, function and styles of management used by
Jack to manage large number of employees within firm. It has also discussed about leadership
styles, motivation theories and impact of organisation structure and culture on employees
performance.
A) Management style, principle and function of management that are used by CEO of BAT
Management is important process of firms as it includes various activities or function
such as planning, organising, controlling and coordinating so that particular objectives of firm
can be attained (Снігур, 2016). Styles of management used by Jack Bowles to manage diverse
individual within enterprise and achieve objectives of firm that is:
Visionary management styles: Jack Bowles has communicated or explained employees about
mission and mission of company that helps in convince employees to work on their skills and
capabilities. Manager check performance of employees on continuous basis thus able to find
better strategies which can induce them to performed well for growth of enterprise (Tang, 2019).
It continuous share employees about various necessary information so that they can able to
transform themselves as per requirements of customers.
Function that are performed by manager of British American Tobacco

Main function of management is to organise various resource that is physical and human
so that qualitative services and products can be manufactured and delivered to end customers for
effective achievement of goals . Various function performed by Jack Bowles can be illustrated as
follows:
Planning: First function that is performed by CEO of BAT is that planning of various strategies
that can be used to make optimum utilisation of available opportunities (Witzel, 2016). It decides
in advance policies, rules and regulation or procedure that need to be considered by employees
while delivering qualitative services to customers.
Organising: Another function performed by manager is organisation or collection of various
physical and human resources that are required for completion of task and attainment of
objectives.
Staffing: Management of BAT recruits, select and hires right individual for right job so that
products or services can be produce and deliver to customers in most effective manner.
Directing: It can be stated that manager of firm also direct or guide employees by clearly stating
them about respective roles, responsibilities that needs to be performed by individual within
organisation (Bowers, Hall and Srinivasan, 2017).
Motivating: Manager needs to motivate each individual to enhance their performance and
productivity so that customer’s requirements are fulfilled beyond their expectancy.
Controlling and Coordinating: It is last and most important function that is performed by Jack
Bowles that is it controls various activities of business by continuous monitoring and supervision
(Baig and et.al., 2019). Managers also coordinate efforts of various individual that are working in
organisation for attainment of common objectives.
There are various principle that are followed by manager of BAT to ensure smooth
operation of enterprise in competitive market condition. All 14 principle of Fayol have been
followed by manager of BAT while performing its task such as:
1. It has divided work that needs to be completed by each individuals.
2. Provide authority to people.
3. Maintained discipline within firm (Rahim, Civelek and Liang, 2018).

4. It has clearly state roles that need to be performed by employees.
5. Efforts of various individual are effective coordinated.
6. Management has explained employees that interest of organisation is more important
than individual goals.
7. Equal remuneration has been paid to each employee.
8. CEO that is Jack Bowles has power to take all important decision.
9. Clear chains of communication exist between superior and employees.
10. Resources are arranged in specific order so that task can be completed within limited time
frame.
11. Company have low employees turnover (Wakabi, 2016).
12. Managers treat each individual on equal basis.
13. Employees are encouraged to take initiative or active part in functioning of firm.
14. Manager continuously motivates employees to perform their best.
B) Relationship between organisational structure, culture and their overall impact on employees
It can be stated that both organisation structure and culture have adverse impact on
performance of employees and company. As definite organisation structure contributed in
effective coordination and cooperation of various individual thus completion of task within
minimum time frame and cost. BAT has Hierarchical organisational structure as grouped of
employees have singled clear supervisor that provide instruction the way work needs to be
completed (Schermerhorn Jr and Bachrach, 2017). Company have categorised group of people
on basic of few factors such as function performed by each department that is HR, technical,
finance and production. It have also classified on basis of geographical location as company have
operation in different countries. At last on basis of several products and services delivered by
company the organisational structure have classified that contributed in effective coordination of
employees performance and achievements of objectives.
Handy culture model

Handy culture model can be used to illustrate the way BAT culture and structures have
impacted employee’s performance and productivity. The model stated that there are four types of
culture that are present in enterprise that contribute in retention of employees within firm. Such
as:
Roles: It is type of organisational culture in which individual are defined roles and
responsibilities that they need to perform. Manager of BAT have ensured and clearly defined
respective roles that have to be undertaken by each individual in order to reduce conflict and
confusion in future circumstances (Galli, Kaviani and Margulis, 2017). All crucial decisions
related to firm operation are taken by manager of company so that customers needs can be
satisfied in effective manner. On basis of roles performed by member or employees power is
delegated to take initiatives so that company goals can be attained.
Task: There are several teams are formed in British American Tobacco for completion of
specific task that included member which have different skills and capabilities that contributed in
effective delivery of services or products to customers. Management in order to build strong
relationship among employees or team member have promoted open and transparent
communication (Shayya, 2018). Therefore organisational culture of BAT is able to meet social
needs and enforced them to work as a team rather that individual for common objectives. They
are less number of conflict and confusion that motivates employees to give more attention to
improve their work so that maximum value can be delivered to end customers for company
growth.
People: Jack Bolwes has ensured that no individual or team member seems themselves superior
to others or organisation as it simply exist so that people can perform their respective work and
company an earn profitability (Dobusch and Kremser, 2019). It have diverse individual with
different skills and capabilities that work together as a team for accomplishment of task.
Power: CEO that is Jack Bolwes and other senior executive or top management are few
individual that have power to take several decision of firm for its smooth operation in
competitive market. Employees are promoted to higher position on the basis of result or outcome
that they have get while making utilisation of their capabilities and skills (Kayas and Wright,
2018). This types of organisation is not promoted in order to retained employees satisfaction and
better services to customers.

C) Analysis of leadership styles of CEO of BAT
Leaders are individual that have special qualities to motivate and inspired different
individual to perform their task in particular manner so that overall objectives can be achieved.
They guide, direct and support employees about the way task needs to be completed thus build
confidence and minimise number of errors and mistakes (Hinteregger, 2017). Therefore, two
common leadership styles that are used by Jack Bowles to inspired various individual within
team to make optimum utilisation of their capabilities and skills are as follows:
Democratic or participative Leadership styles: Jack Bowles have involved employees or staff
of company in decision making that contributed toward bringing new ideas and innovation for
satisfying needs of customers. Leaders by use of this style have created a feeling of sense of
belongingness among employees and inspired them to put additional efforts so that it can make
better utilisation of available opportunities (Davis and Boulet, 2016). There is strong relationship
among employees and they are ready to take risk, or adapt several changes of external
environment which have contributed towards expansion and growth of organisation.
Coaching leadership styles: It is another leadership styles that is used by leaders of BAT to
motivate diverse individual to enhance their skills and performance so that company can gain
competitive advantages. Leaders have provided proper training, direction and guidelines to
employees so that they can perform task without wastages of various resources and efforts and
time (Goode Hegarty and Levy, 2018). Leaders of BAT tries to understand various problem or
grievance of employees in order to find best possible alternative that can be used to resolved
problem and satisfied their wants. Thus, it contributed in improving skills of employees as they
are provided with new task or force to adapt changes so that company can gain competitive
advantage.
Therefore leaders by using both leadership styles are able to increase performance,
productivity and overall profitability of firm.
D) Evaluation of influence of power, influence and conflicts at BAT
Powers have great influence on operation of enterprise and employees performance as
individual that have more power can order other people in organisation to perform specific task
in particular manner. The way power have influenced or lead conflict within BAT organisation

can be understood by model of French and Raven (Urwin, 2018). There are five sources or basis
of power that is legitimate, reward, expert, referent, coercive and informational within
organisation. Like:
Legitimate: It types of power in which individual get right to take most crucial decision on the
basis of its legal position, status within firms. Such as Jack Bowles is CEO of company it have
full control over operation of business and employees agrees to follow each order or rules made
by him due to superior in term of positioning (Tam and Gray, 2016). Therefore there are various
individual within BAT that are given power, right and responsibilities to take decision due to
their higher positioning and experienced in the firm.
Reward: There are few people that have capabilities to influence other person to complete task
in specific manner in order to get particular reward (Taylor, 2019). So, Leaders of BTP have
power to provide reward, recognition to employees that have work effective in previous years so
that company can expand its business operation.
Expert: There are employees in British America Tobacco that have many year experienced or
high knowledge, skills and capabilities as compared to other individual that are working in
enterprise. So, such people due to their expert knowledge have get power to guide or direct other
to perform task in specific manner so that best outcome can be gathered (Jia and et.al., 2017).
Referent: There are some leaders in British America Tobacco which have get power to take
decision because of their attractive personality and characteristics that contributed in influencing
other people.
Coercive: Manager of company have used coercive tool such as threat of fired out or denied of
privileges to employees that are lazy or inactive (Patyal and Koilakuntla, 2016). Thus it
contributed in motivating and influencing lazy individual to work hard for effective growth and
success of enterprise.
Informational: Jack Bowles is well known about various information of company such as actual
position of firm, performance of employees and operating expense of firm. Therefore knowing
all such information gives it right to take correct and accurate decision for benefits of
organisation (Van den Broeck, Carpini and Diefendorff, 2019).

E) Types of motivation used within organisation
Motivation is necessary as each employee feel tired and less energetic after some time
working in enterprise so it is responsibility of manager to ensure that individual are highly
motivated and dedicated to give their best (Oban, 2018). There are several motivation theories
that are used by manager of British American Tobacco to inspired employees so that they can
enhance their performance and work together as team for completion of objectives. Therefore,
motivation theories that are used by management of company are both process and content
theory. Such as:
Maslow needs hierarchy
Psychological needs: Management of British American Tobacco have fulfilled basic or
psychological needs of people by providing them attractive and appropriate wages as per their
skills and capabilities (Ziber and Avdiaj, 2019). Employees of company have enough salary that
they can fulfil all their essential requirements that is better food, clothes and home to live. Thus,
it has motivated large number of individual to be part of organisation to have better salary and
living standard.
Safety and security needs: It can be stated that manager have takes various steps to ensure
safety and security of employees so that no harm or injuries can be caused to them while
working (Wang and et.al., 2019). Manager of BAT also provided provident fund benefits,
insurance policies and medical facilities to ensure better health and well-being of individual that
works in enterprise.
Social needs: Most of the employees of BAT are highly satisfied and happy with organisational
culture as manager while taking decision encourages them to share their ideas and view. Top
management have clearly stated policies and procedure that needs to be followed by people
while working in enterprise thus it reduces chances of conflict and contributed in effective
coordination between people to work together as a team rather than individuals (Wirawan, Tamar
and Bellani, 2019).
Self esteem needs: Another factor that has motivated employees of BAT is recognition and
reward given to them for their hard work. Manager respect and show gratitude to each individual

for its wonderful performance at the same time promote employees to higher level so that they
feel important and valuable part of organisation.
Self actualisation needs: It last stages which inspired people to improve their performance such
as BAT managers have provided equal opportunities to all employees to make utilisation of their
efforts and skills (Badri-Harun and et.al., 2016). Managers have delegated authority and
responsibilities to individual (which have more skills and experienced) to take crucial decision of
firms so that they are motivated to take right decision for growth and sustainability of
organisation.
Process theory of motivation used by BAT
Equality process theory: Management have induced diverse individual to work hard or
enhance their performance by use of equality theory of motivation. It has treat each individual
equal in term of selecting, recruiting and promoting employees to higher level or increment in
their salaries (Pretorius, Steyn and Bond-Barnard, 2018). Manager by promoting equality is able
to retained employees satisfaction level and loyalty thus able to delivered qualitative services to
customers.
F) Literature review
As noted by Anderson, (2017) Management of company plays crucial roles in
arrangement of several resources and technologies within firm so that task can be completed and
qualitative services can be render to end customers. Manager or leaders in order to induce
individual use different motivational theories so that they are encourages to make efforts to
improve their overall performance for growth and success of enterprise. Manager by satisfying
most basic needs that is money for which they are performing several task and activities is able
to inspired several individual to take active part so that firm can make optimum utilisation of
available opportunities. Most of the leaders use autocratic or democratic leadership styles to
guide and direct employees for better performance and effective achievements of goals. Manager
in order to deliver products or services on time have to clearly define organisational structure or
task that needs to be completed by person. As per author friendly and safe working environment
helps in retention and satisfaction level of diverse individuals. Strong relationship and better
coordination among employees has contributed in adaptation of changes and promoted them to
work in a team rather than separate individual. Chance of conflict and confusion among

employees reduces due to better coordination and understanding between people. Therefore as
per author leadership and management are two important process and activities that contributed
in effective management of people and attainment of goals.
G) Recommendation
There are few recommendation that can be used by BAT CEO that is Jack Bowles to
expand business operation and effective manage different employees in the organisation. Such
as:
 Leaders need to clearly state or communicate about vision and mission of company so
that employees are ready to accepts changes. It also needs to take continuous feedback
from employees to know and understand their respective problem in order to find best
possible alternative for better solution (Al-Daibat, 2017). Respect, reward of employees
in terms of promotion or increment in salaries can contribute in motivating diverse
individual to use their high knowledge and skills for growth and development of
organisation.
 Manager should make use of innovative technologies that is social media while
communicating or exchanging information to large number of employees that are
working across different stores of company. Email is best medium to inform individual
about recent changes, policies and procedure of firm so that they can easily adapt to
changes and give best outcomes (Barba-Sánchez and Atienza-Sahuquillo, 2017).
Information system can also used to collect data related to performance of employees so
that several strategies can be formulated by manager to enhance their performance for
retaining company market share and profitability. Social media is used by each individual
in today world so BAT by recognising employees through such medium can attracted
new and young people to be part of an organisation.
 Contingency and situational leadership styles can also used by Jack Bowles to adapt to
several external changes of business environment so that company can get competitive
advantages and build strong brand image in industry for long term growth and survival
(Pretorius, Steyn and Bond-Barnard, 2017).

CONCLUSION
It can be concluded from above report that there are several changes needs to be make in
management and leadership styles so that company can adapt to changing customers preferences
and technologies. Employees are most important resources of firm so they needs to be properly
managed and motivated in order to delivered services as per customers expectancy. At last it can
be concluded from above analysis that organisational culture have contributed in increasing
performance of employees and profitability of firm.

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