Management Style and Principles of British American Tobacco

This report discusses the management style and principles used by the CEO of British American Tobacco, as well as the steps taken regarding organizational structure and culture, the leadership style of the CEO, the effect of power and conflict, and the types of motivation used at British American Tobacco.

Individual Essay

Table of Contents
INTRODUCTION...........................................................................................................................3
Task A..............................................................................................................................................4
Management style and principles and functions of management used by CEO of British
American Tobacco.......................................................................................................................4
Task B..............................................................................................................................................5
Steps taken with regard to organisational structure and organisational culture at British
American Tobacco and its impact on employees........................................................................5
Task C..............................................................................................................................................7
Leadership style of CEO of British American Tobacco..............................................................7
Task D..............................................................................................................................................8
Effect of power, influence and conflict at British American Tobacco........................................8
Task E............................................................................................................................................10
Types of Motivation used British American Tobacco...............................................................10
Task F............................................................................................................................................11
Corporate examples and literature.............................................................................................11
Task G............................................................................................................................................12
Suggestions/recommendations to increase organisational performance...................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Management style can be defined as approach through which managers undertake
different managerial practices in order to achieve organisational objectives. This involves
decision-making, planning and organisation of work and exercising authority that they have in
organisation. There are several functions and principles on the basis of which management is
carried out. This report will discuss about several organisational elements contextualising British
American Tobacco, British multinational company manufacturing and selling cigarettes, tobacco
or other nicotine products. Company was founded in 1902 as a joint venture of Imperial Tobacco
Company and American Tobacco Company and is headquartered at London, England, UK.
Company has its operations in around 180 countries and is largest tobacco manufacturing
company as well as company has biggest retail operations in the world on the basis of net sales.
Operating in tobacco industry British American Tobacco has several subsidiaries including
Reynolds American, Niemeyer, Imperial Tobacco Canada and some other (Kehoe and
Greenhalgh, 2018). In order to carry out different organisational operations British American
Tobacco has employed around 55000 employees. Organisational structure refers to system in
which all activities at different positions in organisation are directed towards attainment of
organisational goals and objectives. British American Tobacco is experiencing issue which is
over staffing as its gets ready for non-tobacco products. Organisational culture refers to
collection of values, beliefs and practices of an organisation that guide and direct behaviour and
actions of individuals within organisation. Leadership style, effect of power, influence and
conflict at British American Tobacco, types of motivation used at British American Tobacco will
also be discussed in this report. Leadership style refers to approach that is used by leaders to lead
the organisation and members of the organisation. This report will discuss about management
style of Mr. Jack Marie Henry David Bowels (Jack Bowels), CEO of British American Tobacco
and what are the principles and functions of management that are used by him. This report will
later discuss about steps taken regarding organisational structure, and organisational culture and
its influence on employees.

Task A
Management style and principles and functions of management used by CEO of British
American Tobacco
Management style refers to particular way in which managers work so that they can
achieve their objectives. Management style of managers is based on the organisational
requirements and on the basis of individual and personality characteristics of the manager.
Management style that is used and practices by CEO of British American Tobacco is
participative management style.
Participative Management Style
Participative management style can be defined as management style that involves
cooperation of individuals at different level of organisation for the purpose of decision making.
This means that manager provide opportunity to all employees at different organisational levels
to participate in decision making by sharing their ideas and opinion (Swearingen, 2017). This is
aimed at getting knowledge and ideas of employees and using their knowledge and creative
skills. This management style ensures that ultimate and final decision making authority remains
with managers but organisation gets benefit knowledge and expertise of its members and this is
why ideas and opinions are gathered and considered by manager before decision making. This
management style allows solving issues with help of inputs from the people experiencing the
issues. This style also contributes in building commitment of employees and develops initiatives
within teams in British American Tobacco.
Principles of Management
Division of Work- Division of work is concerned with dividing work of the British American
Tobacco on the basis of expertise. This means that every activity in British American Tobacco
should be carried out by the person who is expert in that area.
Discipline- With help of discipline British American Tobacco ensures that all members of the
organisation conform to rules and code of conduct. With help of discipline British American
Tobacco can ensure that employees are honest and transparent about their conduct in British
American Tobacco.

Authority and responsibility- This principle states that individual should be provided with a
balance of responsibility and authority in British American Tobacco.
Remuneration- This principle states that all employees in British American Tobacco should be
provided adequate remuneration to keep them motivated.
Functions of Management
Planning- This is concerned with identifying activities to be undertaken and creating a well
defined and elaborated plan including people and members responsible for carrying out activities
in British American Tobacco.
Organising- This is concerned with organising all resources and activities that reduces and
removes possibility of repetition of work and maintaining work effectiveness in British
American Tobacco (Ortikmirzaevich, 2017).
Coordinating- This involves matching and harmonising different activities that are undertaken
for the purpose of attainment of organisational activities of British American Tobacco.
Controlling- This function of management involve measuring actual performance and result
achievement with projected or standard results and performance of British American Tobacco.
Task B
Steps taken with regard to organisational structure and organisational culture at British American
Tobacco and its impact on employees
Organisational structure can be defined as a system that outlines order of the activities to
be carried out in organisation to achieve goals and objectives of the organisation. Organisational
structure is very important in order to clarify roles and responsibilities of individuals in
organisation. Organisational structure above roles and duties also help in understanding what
authority and responsibilities that individuals have in British American Tobacco. British
American Tobacco has 182 executives CEO and Chairman of the Board. 7 Directors positions in
British American Tobacco are followed by officers for marketing, digital and marketing, legal
and external affairs. Positions like finance, talent and culture and Scientific Research are also

there in organisational structure of British American Tobacco (Coppin, 2017). Steps for
organisational structure involve activities and practices for determination of positions and order
of the positions in organisational hierarchy.
Among all other types of organisational structure, structure that is followed by British American
Tobacco is Functional Organisational Structure.
Functional Organisational Structure- This is organisational structure in which employees are
grouped on the basis of their skills, expertise and related job roles. In this different departments
are involved and they are managed through hierarchy and directed by leaders of the department.
Organisational culture can be defined as collection of expectations, values, practices,
beliefs and inform and guide actions of decisions within British American Tobacco. Concerned
with organisational culture Handy’s model of organisational culture can be utilised.
Handy’s model of organisational culture
Handy’s model of organisational culture has four classes of organisational culture. These
classes are-
Power culture- This is a culture in which power in organisation is held by few individuals in
organisation. These people are capable to influence other members in organisation. People with
power make important decisions of the organisation.
Role culture- This culture is the one in which rules become basis for control in the organisation.
Every individual has knowledge of their roles and responsibility in organisation. Position of the
person determines their power.
Task culture- This culture involves creation of work teams for addressing particular problems of
the organisation (Gu, D'Ambra and Stevens, 2017). Task is important in this culture and power
in this gets affected by formation of team and status of the problem.
Person culture- This culture of the organisation involves in which people are superior to
organisation. Professional firms often have this culture.

On the basis of these types British American Tobacco has Role Culture. This means that
individuals are aware of their roles and responsibilities and power is based on their position.
Impact of this culture on employees is that they are aware of their responsibilities and it
allows employees to focus on what they are doing so that they can contribute effectively in
organisational goals.
Task C
Leadership style of CEO of British American Tobacco
Leadership style refers to approach that is used be leaders to lead organisations and their
subordinates. There are different styles of leadership that leader can utilise and among these
theories transformational leadership is practiced at British American Tobacco (Xie and et.al.,
2018). Company is focusing on innovation and transformation within organisation and this is
why it can be considered that leadership style of CEO of British American Tobacco is
transformation leadership style.
Transformational Leadership
Transformational leadership is based on the belief that changes and transformation in
organisation are important for success in future. Transformational leadership in British American
Tobacco is based on certain factors and elements that collectively create a style that is known as
transformational leadership. These elements of transformational leadership are-
Intellectual Stimulation
This is concerned with encouraging subordinates and members of the British American
Tobacco to be innovative and creative in their approach of work. Creativity and innovation are
very important element of transformational leadership. Leaders provide different opportunities to
subordinates and members to learn and develop so that they can be innovative and creative.
Inspirational Motivation
Inspirational motivation is one in which leaders motivate followers by communicating
vision that is appealing to members and employees and enables them to understand their

contribution of realising vision. Leaders in this require to articulate vision so that employees are
able to understand how they can contribute in realisation of vision of British American Tobacco.
Idealised Influence
Idealised influence is one in which leaders rather than communicate to influence
members they influence by their actions. Leader serves as role model for the members and
members follow leaders and their actions because of respect and trust for leaders they have.
Transformational leaders need to adopt creative and innovative approach to motivate members to
be creative and innovative.
Individualised Consideration
This means that leader consider and believe that all members and employees are not
equally capable and competent. And on this basis they offer support members according to their
requirement and capability (Choi, Kim and Kang, 2017). Leaders need to ensure that members in
British American Tobacco get support as per need rather than generalised support to all
members.
Task D
Effect of power, influence and conflict at British American Tobacco
Power can be defined as ability and capacity of individual to influence decisions and
actions of others. In organisation using power involves influencing actions of decisions of other
organisational members. Sources of power which enables individual to influence others are-
Legitimate power- This is power in organisation that is sources through position of the person
in organisation. This is determined by hierarchy of the British American Tobacco. This means
that CEO of British American Tobacco has power over departmental heads of the British
American Tobacco.
Reward power- This is concerned with ability that individuals have and that enable them to dole
out incentives and compensation in organisation. Reward involves increase in salary, bonuses,

praise, recognition and promotion (Kesa, Wu and Ko, 2019). This power is utilised to motivate
employees.
Coercive power- This is power with help of which individual has fear of being punished for not
performing well. People with this power can influence actions and behaviours of others by their
ability to threaten and punish others.
Referent power- This is concerned with ability of individual through which they can influence
actions and decisions because they admire, respect and like the person exerting power on others.
Expert power- This power in British American Tobacco is hold by those who are expert in
particular work areas.
Power can effect in both positive as well as negative ways. This means that when power
is held by right person having capability to motivate others positively effect British American
Tobacco and its members. Effects of power in British American Tobacco ensure conformation to
organisational rules and regulations. Expert power is important for ensuring that everyone in
organisation is using expertise from different experts in completion of their job role.
Influence can be defined as effect and impact that one has on another individual or group.
Individuals and members in organisation can be influenced positively as well as negatively. In
British American Tobacco individuals and groups get influenced in different ways this involve
influence from seniors which is very normal but because of organisational culture individuals
also get influenced from their co-workers and teammates.
Workplace Conflict and its effects
Workplace conflict can be defined as actual or perceived difference of opinion, needs,
interest between people of British American Tobacco (Paca, 2019). Conflicts mostly are
expected to negatively influence people in organisation but sometimes they also positively
influence. Conflicts are not desired in British American Tobacco as they discourage harmony
and teamwork. But there are certain reasons because of which conflicts can be positive and
desirable as well. Reasons that make conflicts desirable are unity of the group, enhance group
cooperation, changes in old norms and practices, conflicts many of the times also help in
identifying more creative ways and solutions to perform certain task or activity.

Task E
Types of Motivation used British American Tobacco
Motivation can be defined as element that contributes in initiating, guiding and
maintaining goal-oriented behaviours. There are different types of motivations that British
American Tobacco can utilise to motivate individuals and groups. Types of motivation can be
explained through Maslow’s Hierarchy of needs.
Maslow’s Hierarchy of needs
Maslow’s Hierarchy of needs is a theory of motivation that has been developed by
Abraham Maslow. This theory outlines that there are five types of needs through which
individuals in an organisation can be motivated (Donald and et.al., 2020). These needs have been
described in a hierarchy from a low to increasing order of the needs. These needs are as follows-
Physiological needs
Basic needs through which individual can fulfil their fundamental and substantial needs.
This is important for survival of human being. British American Tobacco can identify that
employees working at lowest level in organisational hierarchy might have this need. This needs
can be fulfilled by British American Tobacco by providing them minimum and fair
remuneration.
Safety needs
Satisfaction of physiological needs generate safety needs. There are different types of
safety and security that individuals seek to have, like safety of health, financial safety and
security. Individuals when have fulfilled their Physiological needs while working in British
American Tobacco, company needs to ensure their safety needs are fulfilled.
Social needs
This is need which involves need of feeling of belongingness. This also is known as need
for human relationships. Employees in British American Tobacco as per this need likes to build
relationship with their colleagues and co-workers and this requires that they are given
opportunity as well as freedom to build informal relationship at work (Fallatah and Syed, 2018).

Effective relationship with co-workers is an important element that contributes in motivation of
employee along with their job satisfaction.
Self-esteem needs
This is another type of motivation that is used by British American Tobacco. This type of
need involves different types of achievement that encourage and motivate individuals to carry
out certain task and following particular action. This means that completing certain task lead to
particular title and position that individual is seeking for motivates individuals. Rewards and
recognition of employees is one of the way through which this need of the employees can be
fulfilled.
Self-Actualisation needs
This need in the hierarchy is concerned with realisation of one’s potential and self-
fulfilment and individuals are seeking for personal growth (Donald and et.al., 2020). People
working at senior positions in organisation often have this need where they are looking for the
ways through which they can realise their utmost potential and utilise their capability in best
possible ways.
Task F
Corporate examples and literature
Above discussion concerned with British American Tobacco is based on the analysis of
different sources through which information regarding British American Tobacco was collected.
One of the most important sources of this was website of the company that allows to know
important information regarding practices and conduct of British American Tobacco. Other than
this, information regarding different theories and models was collected through online and
offline sources. As stated by Xie and et.al., 2018 innovation and transformation are key elements
of transformational leadership. Apple and Microsoft are examples of the organisation whose
leadership is known to be transformational leadership. Analysis about British American Tobacco
helped in identifying that they place strong emphasis on innovation and creativity and are
looking for different ways to attain sustainability of organisational practices. This helped in

understanding that leadership style of CEO of British American Tobacco is transformational
leadership style. Concerned with organisational structure of British American Tobacco they have
well defined role and responsibility for their members and there is also departmentalisation on
the basis of different activities and they are headed by their leaders. This helped in understanding
that organisational structure of British American Tobacco is functional organisational structure.
According to Soni, and Soni, 2016 at different stages of organisational hierarchy individuals and
employees have different needs and with help of hierarchy of needs organisations can identify
needs of employees at different level. These are types of motivation that organisations can utilise
to motivate employees in organisations to perform effectively on their respective job roles.
Task G
Suggestions/recommendations to increase organisational performance
On the basis of above discussion, it can be concluded that British American Tobacco is
being managed effectively and from leadership to influence of different elements and factors of
organisation British American Tobacco has positive impact. This is also one of the reasons that
British American Tobacco is one of the most successful organisations in its industry in world.
There are certain recommendations to increase performance of British American Tobacco. These
recommendations are-
Focusing on training and development of individuals
Training and development are one of the most important tools with help of which British
American Tobacco will be able to increase performance of the organisation. This is because
organisations are getting more competitive and changes in business environment also have
become more frequent. This is why in order to ensure that employees are ready to deal with
future challenges they should be provided effective training and development.
Empowering Employees
This is concerned with empowering employees to do their best work. This involves that
employees are provided all requires resources and training so that they can perform best. British
American Tobacco needs to consider that consider and invest on long-term career of their

employees in organisation. Empowering employees to take decisions regarding their job role is
an effective way to motivate and engage and this will improve their performance.
Fostering positive work environment
Work environment plays important role in performance of the organisation. This is
because employees when are working in positive and fun-filled environment, they will be able to
work effectively. Contrary to this stressful work environment is likely to reduce productive
capability of the employees in British American Tobacco.

REFERENCES
Books and Journals
Choi, S.B., Kim, K. and Kang, S.W., 2017. Effects of transformational and shared leadership
styles on employees' perception of team effectiveness. Social Behavior and
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Coppin, A., 2017. Organisation Structure and Design. In The Human Capital Imperative (pp. 45-
49). Palgrave Macmillan, Cham.
Donald, J.N and et.al., 2020. Mindfulness and its association with varied types of motivation: A
systematic review and meta-analysis using self-determination theory. Personality and
Social Psychology Bulletin. 46(7). pp.1121-1138.
Fallatah, R.H.M. and Syed, J., 2018. A critical review of Maslow’s hierarchy of needs.
In Employee Motivation in Saudi Arabia (pp. 19-59). Palgrave Macmillan, Cham.
Gu, H., D'Ambra, J. and Stevens, K., 2017. Organisation culture and business process
management success.
Kehoe, T.J. and Greenhalgh, E.M., 2018. ‘An indispensable luxury’: British American Tobacco
in the occupation of Germany, 1945–1948. Business History.
Kesa, D.D., Wu, M. and Ko, C.J., 2019. Organisational Power, Cohesiveness and Culture of
Taiwan’s Cosmetology Industry. AJBA. 12(2). pp.211-232.
Ortikmirzaevich, T.B., 2017. Principles and functions of management of production
capacity. Journal of process management. New technologies. 5(4). pp.61-68.
Paca, E., 2019, June. An exploration of organisational conflicts and tensions from a depth
psychology perspective: A case study. In 11th International Critical Management
Studies Conference.
Soni, B. and Soni, R., 2016, July. Enhancing Maslow's hierarchy of needs for effective
leadership. In Competition Forum (Vol. 14, No. 2, p. 259). American Society for
Competitiveness.
Swearingen, M.H., 2017. Participative management: An analysis of its effect on
productivity (Vol. 13). Routledge.
Xie, Y and et.al., 2018. Leadership style and innovation atmosphere in enterprises: An empirical
study. Technological Forecasting and Social Change. 135. pp.257-265.
Intezari, A. and McKenna, B., 2018. Creating organisational culture. Leadership: Regional and
Global Perspectives. p.160.

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What is transformational leadership? A model for motivating innovation. 2018. [Online].
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