Organisational Theory and Practice

ORGANISATIONAL
THEORY AND PRACTICE

TABLE OF CONTENTS
ORGANISATIONAL THEORY AND PRACTICE.......................................................................1
INTRODUCTION...........................................................................................................................3
A) Management Style adapted by the CEO of BAT – Principles and Functions........................4
B) Organizational Structure and Culture of BAT........................................................................5
C) Leadership Style of the CEO..................................................................................................7
D) The effect of power, influencer and conflicts at the BAT plc................................................8
E) Types of Motivation at BAT plc.............................................................................................9
F) Literature Review..................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Organization is basically a system in which groups of individuals work together in order
to achieve certain objectives. It is mainly concerned with the employees individually, the teams
having more than 2 employees and the organization itself. Organizational Theories are used in
order to identify the common solutions to solve the issues and problems which can increase the
efficiency and the productivity and also fulfils the needs of the customers and the stakeholders
(Milov, 2016). The employees must know about the processes of the organization and how they
are performed.
There are many theories used in order to enhance the overall efficiency and progress.
When focusing on the individuals, the company mainly lays emphasis on the theories like
motivation, personality and role. When the discussion is about groups or teams, then leadership,
power and influence theories are used and when the organization comes in play then its structure
and culture are highlighted.
The British American Tobacco plc (BAT) is a multinational company that deals in
manufacturing and selling of cigarettes, tobacco and other nicotine products. Its headquarters are
in London, England, UK. The company is facing a rapid success since many years which made it
the largest maker of cigarettes in the world in terms of net sales. The company is performing its
operations in almost 180 countries. Its major brands of cigarette are Dunhill, Lucky Strike, Pall
Mall, Kent along with Vype and Vuse and Glo. BAT is a public limited company in the industry
of Tobacco serving the people worldwide. Its employees which are almost 55000 contributed
majorly in gaining the revenue of £25.877 billion and the net income of £5.849 billion as noted
in 2019 (British American Tobacco, 2019).
The report will evaluate the management style used by the CEO of the BAT along with
mentioning its principle and functions. It will be followed by analysing the Organizational
Structure and Culture of the British American Tobacco along with its impact on the employees.
The report will also discuss the leadership style of the CEO in order to enhance the effectiveness
of the organization. Various types of motivation will also be highlighted with respect to the
company. Various corporate examples will be used for justification. All the topics will use one or
the other model or theory. At the end, the report will also give some recommendations in order to
enhance the performance of the organization.
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A) Management Style adapted by the CEO of BAT – Principles and Functions
In terms of Market share, the company became the world’s largest tobacco group. It
focuses on producing cigarettes demanded by majority of the adult smokers instead of
motivating more people to smoke which helped it to hold robust market position in its regions
(King and et.al.,2018). To achieve this position, the major role is played by the managers of the
company.
Management style is the method in which the manager of the company exercises all the
functions including the planning, organizing, making decisions and managing the staff in order
to achieve certain goals. There are many management styles such as authoritarian, democratic,
Visionary, Pacesetting, transactional and many more. The company must choose the appropriate
management style in order to enhance the performance.
The CEO of the BAT, Mr. Jack Marie Henry David Bowles, adapted the Democratic
management style which is sometimes referred to as consensus, participative or collaborative
style among all. The theory of Democratic Management Style believes that two heads are
better than one (Ollong, 2017). the company followed this and starts believing that irrespective
of the position and designation, everyone deserves to have a say.
Managers of the BAT adopted this style by encouraging the employees to share their
ideas which enhances their participation in every task. This enabled the company to have a pool
of new ideas and opinions which made the company easy to bring in any type of innovation in
order to enhance the performance and growth.
Principles and Functions
The managers following this style in managing the employees gives equal opportunities
to all the employees in expressing their views and opinions. All have the equal right to share
their idea and opinion (Sakib, 2018). Although the last decision is in the hands of the manager,
but it does this by collecting the views and recommendations of all the employees in order to
motivate and satisfy them and ensure that they are the major players who contribute in the
progress of the company. Sometimes, the employees come up with better solution to certain
problems than the manager think.
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