Organizational Theory and Management Style in BAT

This report discusses the organizational theory and management style in British American Tobacco (BAT) and provides recommendations for improving performance. It covers topics such as management function, organizational culture, leadership style, power and influence, conflicts, and motivation used in BAT.

Individual project

Contents
INTRODUCTION...........................................................................................................................3
Management function..................................................................................................................4
Section B..........................................................................................................................................5
Organizational culture.................................................................................................................5
Section C..........................................................................................................................................6
Leadership style...........................................................................................................................6
Impact on organization function..................................................................................................6
Section D.........................................................................................................................................7
Power...........................................................................................................................................7
Influence......................................................................................................................................7
Conflicts.......................................................................................................................................7
Impact on BAT............................................................................................................................8
Section E..........................................................................................................................................8
Various type of motivation used in BAT.....................................................................................8
Section F..........................................................................................................................................9
Organization example..................................................................................................................9
Motivation model.......................................................................................................................10
Section G.......................................................................................................................................11
Recommendation.......................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Organizational theory is the study of organization design, relationship and structures. It has
the major focus on the different dimension and level or organizational formalizations,
specializations, standardisation, hierarchy of authority, complexity, size, goals and strategy.
Application of organizational theory have several benefits in boosting potentiality and generating
development of organization to thrive in modern society. British American Tobacco company
(BAT) is British multinational company manufacturing and selling cigarettes, tobacco and other
nicotine products operating around 180 countries. The firm has inclusion of famous brands such
as Dunhill, Kent, Lucky Strike leading fir to be largest cigarette maker in the world on net sales
basis.
Currently the firm is facing several issues in employee engagement and retention which
is creating an adverse impact on firm profitability and productivity. Motivation revolves around
initiation, enthusiasm, intensity, dedication, perseverance and productivity through which the
organization motivates its employees to work with whole heartedness and commitment
optimizing significant performance and revenues (Im, Cho and Kim, 2019). In this report, there
will be overall discussion for identifying the issues through analysing the different aspect of
BAT such as management style, organization structure, culture and leadership style. There will
be discussion with relevant theory and model followed up by appropriate recommendation to
improve performance of organization.
Section A
Management style in BAT
Management style is the critical aspect of evaluating leadership used by manager in aspect
of making proper decision making related to various aspect of business. This have clear
dependence planning, organizing, delegating different powered and managing respective staff
members. This can vary from level of manga event, industry, culture or manager itself. The
principle of BAT is to run business in term of responsibility Developed with the help of
stakeholders in dialogue. The business consists of three business principle Mutual Benefit,
Responsible Product Stewardship and Good Corporate Conduct, and eighteen Core Beliefs. The
firm have implementation of autocratic management styles which follows as top down approach
with one-way communication from bosses to employee. Employee are treated as drone to be
monitored closely to perform in defined perimeters. Due to the adoption of autocratic
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management style, the workplace is no ideal place to foster creative ideas from employees, nor
encourage them to take ownership over their role (Rispens, Jehn and Steinel, 2020). The firm is
collectively responsible performance, strategic direction, values and governance. This provided
leadership necessary meeting performance objectives within robust framework of internal
controls. In such situation, employee is not encouraged to ask any question, submitting ideas or
any level of thought sharing process for improvement in process. In addition, increase in
dissatisfaction of employees leading to higher turnover and lack of professional development
between employee and management.
Management function
BAT is offering a choice of opportunities in the different areas from marketing and
supply, IT to supply chain managing all aspect of business development in significant manner.
On the other hand, firm is facing severe level of challenges in driving excellences encompassing
the function for firm development.
Planning
Planning basic stage for business in systematic manner and carry out best ways to carry
out the business activities. (Bryk. and Kocharovskyi, 2018). BAT is operating with responsibility
product business which is pose to health risk. The firm is planning to work with proper strategy
in different functional areas and level of department.
Organizing
Organising can be broken down into organization structure, line relationship, staff
relationship, span control, and can realization and decentralization. The firm try to maintain
direct relationship between superior and subordinate. Leader and manager present in different
functional areas and level of management helping out the implementation of strategies decided at
planning stage.
Leading
Leader will have appropriate strategies implication to employee as creating the level of
bridge between top level management and employee. Leader have transformational style
implementation due global changing business environment. So, it is important for leader to be
catalyst of change. On the other hand, manager needs to overcome issues by tacking individual
for al inning goals and strategies.
Controlling
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Controlling helps to find out error and take corrective actions for proper deviation from the
standard. A better controlling system have need to look major level of flexibility as needed to
accurate information in timely manner (Felipe, Roldán and Leal-Rodríguez, 2017). BAT have
establishing standard goals and target against performance has to be evaluated.
Section B
Organizational culture
A corporate culture model has look over organization principle behind value, belief and
attitude which characterize accompany with guiding appropriate practices. As per known as
Hofstede's Cultural Dimensions for the organizational cultures into further categories with
dimension such as Power Distance Index (high versus low), Individualism Versus Collectivism,
Masculinity Versus Femininity and Uncertainty Avoidance Index (high versus low). the firm
have implementation of Power Distance Index (high versus low). The firm is highly centralized
organization with more complex hierarchies. as the result it have the large gaps in
compensation, authority and respect . Currently company is more focussed to develop market
culture in business primarily paying attention on competition and growth (Warrick, 2017). In this
culture major priority is given profitability aligning company larger goals and several degree
separations between employee nd leadership goals. hence the fir is majorly concerned with
proper structuring of quality, culture and value, commitment matching resources to future needs.
Organizational structure
An organizational structure is a system that outlines how certain activities are directed in
order to achieve the goals of an organization. There are four type of structure followed in the
company such as functionals, divisional and matrix. The firm is following the functional
structure classified into 5 functional groups. This BOD has consistency on the 4 Executive
Directors and 3 Non-Executive Directors that come from different professional background. The
firm have clear looking to international standard expectations across boards in term of moving
with operational excellences, quality and social responsibility. BAT have high production
standard with constant focus in improving efficiencies in process and operation. The firm have
internal benchmark across the regions as well as operation to run globally.
Impact
Organization
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The functional structure is based on an organization being divided up into smaller groups
with specific tasks or roles. BAT tends to face the challenges in inter-departmental
communication, with most issues and discussions taking place at the managerial level among
individual departments The functional organization structure, team is properly managed it
experienced person having high ability and skill who have adequate understanding and reviewing
of work. but function group were not able to communicate decrease flexibility and innovation.
On the other an as impact of the culture of companies, employee do not have two way
communication as organization is externally focussed with its key objective keeping behind
employee
Employee
The firm current culture is concern regarding decision making of profitable business
externally focussed keeping employee behind and work towards. Despite of having survey of
employee issue into BAT, the company is not able to meet expectation of employees on
functional and cross function areas. On other hand it is turning out difficult for employee to
meaningfully engages with their work and live out professional purpose.
Section C
Leadership style
The firm executive has clear arrangement for implementation the transformation style of
leadership. This leadership will help in ensuring proper governance on decision and judgement
made by all employees is legal and comply with proper regulation. This leadership have their
intellectual simulations taking the changes to maintain status quo along with increasing major
level of creativity of followers (Èrešnar, 2019). The leader encourages for exploring of new
ways of doing the things and new opportunities to learn. But the autocratic management style is
failed managing employee at different level of management. Transformational leadership have
involved supporting their proper encourage to individual followers along with foster proper
relationship and keeping lines of communication open. there is sharing ideas offering direct
recognition with unique contribution looking to follow pattern.
In BAT, transformational leadership is not successful for the clear vision of followers.
The leader has need to help followers looking experience with same passion a motivation to fill
goals. But due to organizational culture and lack of work stress management in employee, there
have been lack of motivation among employee to work in successful manner.
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Effectiveness of leadership on organization function
The functional organizational structure helps in achieving the benefits of specialization of work.
the combination of functional structure and transformational leadership have positive and
negative impact on the company performance.
While the stage of planning the good transformational leaders leads to awareness
reflecting timely goal setting. (Arfandi and Lopa, 2018, July). BAT leader has to re-create
believes in employee as well as different management aspects to make continuous improvements
and learning. BAT top manager has autocratic management style taking one-way communication
which can result in major level of communication gaps and work stress at workplace. As
positive aspect, leader will make proper undertaking in hanging business dynamics finding out
innovative way to stay motivated and altered traditional approach working towards future and
strategic direction.
At the stage of organizing, recruitment and selection done in multiple level identifying skill
requirement for particular position. The recruitment and selection policy of BAT is strict.
Training and induction will be better conduct to create equality and diversity at workplace with
reduction in workplace discrimination. Controlling is importance in BAT to analysis of deviation
occurred in respect to planning process. leader will tray to look at their regular feedbacks and
ideas from range of sources before making any level of strategic direction and stay ahead of the
curve.
Section D
Power
Power comes with greater responsibility. The French and raven five bases of power –
reward, coercion, legitimate, expert, and referent. Driving cultural change and organizational
transformation is turning out priority for business (Locke and Schattke 2018). The top level of
management of British American tobacco have followed coercive power which is having high
level of expect action with employees along with establishing innovation as part of employee
responsibilities. According to French and Raven there are also other forms of power that can be
used in a coercive manner such as withholding rewards or expertise or using referent power to
threaten social exclusion. Due to coercive power employee have been demotivates and always a
fear of getting poor performance review and taking away of prime project. In addition, power
leaders seek control often abuse their influences often yearning for attentions a d respect power
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to wild attention. This is led by intimidation and fear rather than garnering respect. as the result
of such influence, employee have need to motivate and lead themselves to produce effective
results as leader is not going to influence them to do so (Bisenovna, 2016).
Influence
Influence have countless benefits looking out to have important assets in business.
Influence is another aspect of power achieving to look for professional goals achieving more
influence workplace as critical aspect of success. Currently the firm is working under neutral
influence which tends to neither add take differing with situation. They do not lead, help or take
charges or maximize their way in advance for the team and organization. It is important for fir to
avoid such kind of influence in work place environment as this will have reduction in reduction
of employee engagement and employee retention.
Conflicts
Conflict in the workplace have its positive and negative impact . On other hand, healthy
conflict leads to question and discussions opening up new ways of thinking and innovation.
Currently the firm is facing major level of issues in intrapersonal conflicts use to difference in
goals, value and stye in between two or more people who have the need for regular interaction.
As this type of conflict between the individuals is considered d to very personal creating negative
effect on the workplace environment. The leader has to take responsibility for decision which
should not affect wellbeing of employee. So, the impact on BAT is turning out to be stressful
period on ground for business related conflict to rise. This is usually temporary but have the need
to be address promptly and appropriately in belter manner.
Section E
Various type of motivation used in BAT
BAT has 5000 employees to look about their remunerations and benefits. BAT have to
ensure it have finger on the pulse of employee’s opinion through regular external surveying the
firm have aggressive pay strategy along with creating the benefit to be more competitive and
varied.
The Maslow motivation theory is one of the best known and most influential theories on
workplace motivation. Psychologist Abraham Maslow first developed his famous theory of
individual development and motivation.
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Maslow have suggested the human beings as per the hierarchy of needs in which all there
addressing of basic needs before moving on to satisfy other, so-called higher level needs.
Maslow have represented theory as hierarchal triangle in which completing the basic needs will
make a climb the hierarchy to address the complex needs. This process has inclusion of
communication, reward, maintaining a peaceful environment, and recognition. motivation
techniques help in maintaining healthy work environment to be productive. These techniques
boost morale among the worker and build team work.
 Physiological needs – such as hunger, thirst and sleep. in this BAT is providing the good
level of infrastructure and health work environment to succeed in business place in
proper manner.
 Safety needs – such as security, protection from danger and freedom from pain.
Employee have the need to connect with each other looking around the aspect of safety
and security motivation seeking into enhancing continuous action by contributing into the
social group perfect manner. The company always try to seek new connection
establishment in employee to manifest continuous growth and productivity through team
work.
 Social needs – sometimes also referred to as love needs such as friendship, giving and
receiving love, engaging in social activities and group membership. the firm is paying
focus on Firm have employee wants’ choices, and people are often motivated to increase
their overall life-options and control the environment around them. For this way, there
have been manifestations in desire to affect the relation lives those who re around. But
this prevailed less in BAT company due to high-level of stress at workplace. Employee
have the need to be motivated by intensions and action for manifesting things theory want
in life.
 Esteem needs – these include both self-respect and the esteem of others. For example,
the desire for self-confidence and achievement, and recognition and appreciation. People
are motivated by reward than by achievement of goals by pursuit of task. here is need
motivation incentives driven task actions because of expected rewards (Barraclough and
Gleeson, 2017). This have created high level of competition in BAT employees create
complex and fulfilling work situation.
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 Self-actualization – This is about the desire to develop and realize your full potential. To
become everything, On this company have to pay proper focus.
Section F
Organization example
Marks and spencer is having best following motivation techniques. Employee tends to get
learning incentive.in this situation the employee are getting incentive for continuous learning and
increase in knowledge. . This will be with renewed sense of perspective a focus on their projects.
The firm is also providing the perks such as PTO, child care and services. employee benefit and
perks are almost looking all compensation packages.
Deloitte have believed in making the work environment comfortable for the employees
can help them stay motivated for the work. This will make them analyse existing wok pressure to
have timely conversations.
Google is always know for keeping its employee happy in move out with better
motivation options . there are various strategies such as reimbursement for legal expenses,
maternity benefits, free services such as hair stylist, bike repair, gym, healthcare, and many
more.
Hence, in BAT there have been may emphasis on extrinsic motivation which is not
considered enough for overall development of employee. The firm want to have taken with
maximum possibilities of google motivation in company as to satisfies the employees and all
who actually involved in the task.
Business motivation model
Business motivation model provides organizations with possibility to organization
business plan taking care of its employees all ace unt of business strategy. This have clear
incorporation of firm vision, objectives, mission, strategies, tactics, and internal and external
influences to subsequently determine the potential impact of the organisation.
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These zooms deepen scope of decision making looking out employee current level
engagement and serving end results with influence the strategy. BMM offers clear supports for
the four important element of business strategy followed up by their Means / scope, ends (vision,
goals, objectives), influencer and assessor. The last parts if about reflections about laying basis
for the development of sound a d clear business plan
Herzberg motivation theory
This is also called as Two factor theory as organization have need to adjust for
influencing the motivation at workplace. There motivator will help out organizations in
encouraging employees to work harder. The first factor is the hygiene factor which have
inclusion of several subfactor such as pay, company policy and go variance, fringe benefits,
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physical working condition, status, interpersonal relationships and job security. On the other
hand, motivational factor such as recognition, sense achievement, growth and promotional
opportunities and responsibility.
Section G
Recommendation
As per the analysis it is important for the firm for proper attention on leadership and the
management approaches. The consistency of the autocratic management style and
transformational leadership is creating various issue and creating negative impact of employee
motivation. On the other hand, the firm currently having the market culture in business primarily
paying attention on competition and growth (Rushforth, Sommarstrom. and Wormald, 2017).
This have made employee to bottom line employee position describing reasonable benchmarks
for production.
There is need to change influence and power along with proper conflict management and
maintain proper interpersonal relationship. There is need to change organization incentive
structure as intrinsic measure into it. This will motivate employee to greater extent and increase
productivity of organization at immense level.
suggestion
Proper feedback is need to taken
 There is need for the company to have development of proper feedback systems.
 Rewarding employees to have proper learning and development in several aspect of
business development activities to higher level.
 Make employee to trust organization process
 There is need to increase the trust in between the relationship of employee and
organization process which make the best possible point to way in the confidence in daily
working procedure
Set up of smaller weekly goals
This will encourage employee at sort term resulting to have greater enthusiasm to work
for longer run and turn out something to believe in billion. There is need for employee to believe
or feels that thy are included in big decision making and committed towards direction goals of
British American tobacco. As result, it will be helping out in retaining maximum level of skilled
employee moving towards suitable motivations and increase company loyalty and pride.
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The firm have need to implements and prioritize work life balance as part of motivation.
it is important for organization to encourage employee to take vacations with motivating culture.
this will be helping out to have prioritize work life balances, increase in yield productivity and
overall happiness at workplace.
In addition, there is clear suggestion to have open door policy where employee can have
discussion over different matters to top level management by increasing to way communication
an feel confinity in the of position .
CONCLUSION
From the above file, it can be concluded as Motivation revolves around initiation,
enthusiasm, intensity, dedication, perseverance and productivity Employee have continuous
discouragement in employee for performing several tasks in business environment. There is need
maintain direct relationship between superior and subordinate with proper delegation to.
Function organization structure, is properly managed with experienced person having high
ability and skill adequate understanding and reviewing of work. BAT top manager has autocratic
management style taking one-way communication motivation techniques help in maintaining
healthy work environment to be productive.
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REFERENCES
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Bryk, O. and Kocharovskyi, M., 2018. Authority, Power, and Responsibility as Prerequisites of
Decision-Making and Manifestation of the Management Style
Elsbach, K.D. and Stigliani, I., 2018. Design thinking and organizational culture: A review and
framework for future research. Journal of Management, 44(6). pp.2274-2306.
Èrešnar, A., 2019. Internal Vs External Motivation. In Thriving on Future Education, Industry,
Business and Society; Proceedings of the MakeLearn and TIIM International Conference 2019
(pp. 723-725). ToKnowPress.
Felipe, C.M., Roldán, J.L. and Leal-Rodríguez, A.L., 2017. Impact of organizational culture
values on organizational agility. Sustainability, 9(12). p.2354.
Im, Y., Cho, Y. and Kim, D., 2019. Family management style as a mediator between parenting
stress and quality of life of children with epilepsy. Journal of pediatric nursing, 45, pp.e73-e78.
Locke, E.A. and Schattke, K., 2018. Intrinsic and extrinsic motivation: Time for expansion and
clarification. Motivation Science.
Rispens, S., Jehn, K.A. and Steinel, W., 2020. Conflict Management Style Asymmetry in Short-
Term Project Groups. Small Group Research, p.1046496419894637.
Rushforth, D., Sommarstrom, E. and Wormald, P., British American Tobacco Investments Ltd,
2017. Tobacco pouches. U.S. Patent Application 29/522,020.
Warrick, D.D., 2017. What leaders need to know about organizational culture. Business
Horizons, 60(3), pp.395-404.
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Online
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