Organisational Theory And Practice

This assignment explores the functions and principles of management, organizational structure, leadership styles, conflict, power and influence at British American Tobacco. It also discusses the impact of company culture on staff and forms of motivation utilized at the company.

Organisational Theory And
Practice
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
A) Functions and principles of management as well as management style utilized by chief
executive officer of British American Tobacco.....................................................................3
B) Steps taken in order to develop organizational structure and impact of company culture on
staff.........................................................................................................................................6
C) Leadership styles used by Jack Marie Henry David Bowles as CEO of British American
Tobacco organization.............................................................................................................8
D) Impacts of conflict, power and influence at firm..............................................................8
E) Forms of motivations utilized at chosen company..........................................................10
F) Corporate examples in form of literature.........................................................................11
G) Suggestions to increase performance of organization.....................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14
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INTRODUCTION
Organizational theory means study of functioning, structure and performance of a
company as well as behaviour of groups & workers within it. This concept views companies as a
continuous procedure of articulating into place a stable set of meaning structures and relations
and more as it related to varied interactions of individuals, business structures and team.
Organization concept is concerned with involvement of professional and personal aims within
companies. While organizational practices are defined as actions and activities of management in
a firm. It helps to convert innovative ideas and values in an organization’s environment into
actual thing and actions that keep firms managing actively and more effectively. The current
assignment will be based on British American Tobacco and CEO of this company. It will
examine management style, functions and principles used by Jack Marie Henry David Bowles.
This study will explore stages taken in context of chosen firm structure and organizational
culture impact on staff.
Furthermore, this report will describe leadership style of chief executive officer of
organization and will also justify affects of power, conflict and influence at firm. It will clarify
different sorts of motivation will be used in company and explain right corporate examples to
justify stand. In this study appropriate suggestions would to make to enhance performance of
chosen brand.
TASK
A) Functions and principles of management as well as management style utilized by chief
executive officer of British American Tobacco
CEO is one of the highest ranking executives in an organization, whose primary
accountabilities include taking important business decisions, managing entire resource and
operations of a firm, acting as main source of communication between board and venture
operations of firms (Ahmadi, Nakaa and Bouri, 2018). As CEO of British American Tobacco,
Mr Jack Marie Henry David Bowles fulfils all its responsibilities like all above in effective
manner. He also used common principles and functions of administration that other CEOs are
using, in order to solve business issues. Lack of training and employee turnover are two different
types of issues can be considered in chosen company for which Jack Marie and other members
are taking decision to overcome.
Management style-
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A management style is specific way a manager goes with to accomplish business
objectives (Dat, Huan and Hang, 2020). Jack Marie has used directive management style
among many because he expects compliance from their workers. He has utilized this form in
order to solve above two problems, for instance, in context of lack of training he had made a plan
to analyse needs for skills development and then create a plan through which he build a strong
team. With this action, all applicants take their responsibilities like CEO takes in his professional
career. (Lomas and et.al., 2017).
Principles-
Henri Fayol’s principles management model is the best concept used to define the norms
of management that use by CEO of British American Tobacco (Bacud, 2020). For example,
division of work is the best principle has used to divide day to day duties into small tasks,
without making any differences. It has helped to motivate staff and reduce employee turnover
within company.
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Figure 1: Henri Fayol's 14 Principles
(Source: How to Apply Henri Fayol’s Principles of Management, 2019)
Management functions-
Planning is the main functions of management that Jack Marie Henry David Bowles as
CEO of British American Tobacco has used in regard to lack of training and employee turnover
problems. For instance, he has developed plans and tactics to motivate staff that can help to
reduce turnover and increase motivational level of workers in ethical manner. Furthermore, it can
be said that, chief executive officer of chosen organization has utilized organizing as function of
administration to manage staff performance and enhance skills via training instead of self
learning.
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B) Steps taken in order to develop organizational structure and impact of company culture on
staff
Organizational structure is developed by seniors and top authority of companies in order
to achieve aims. It is recognized as a system that outlines how some actions and practices are
directed to get competitive advantages and achieved aims of companies. Here, CEO of company
has taken major actions or steps to set effective structure in firm. He chooses hierarchal
organizational structure to make day to day work easier (Baidya and et.al., 2018). According to
this structure, work has been divided equally and fairly that helps to reduce staff turnover.
Among list of varied options, chief executive officer of British American Tobacco Company
selected the best and appropriate structure for its organization.
British American Tobacco culture impact on workers-
Organizational culture can be defined as ideologies, assumptions, attitudes, philosophies,
beliefs and principles that help a firm. It affects employee’s performance and productivity in
company either in positive or negative manner. Here, Handy’s model of organizational culture
can be used to describe types of culture and their effects on staffs who are working within chosen
brand.
Power distance-
Accordant to this culture, when the use of power by senior is fair, it can put positive
impact of workers performance, which turns into decreasing employee turnover and increasing
motivational level of each staff in effective manner.
Role culture-
When management in chosen company control everyone in workplace equally according
to roles and accountabilities, without any differences based on gender, race and other factors,
will effectively enhance performance of staff and help to motivate them.
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Figure 2Forms of Organizational Culture
(Source: Handy's Model of Organizational Culture, 2018)
Task culture-
When management use this type of organizational culture, where employee work to
achieve common aim of British American Tobacco. It can affect in positive manner, because
CEO allocate task based on skills and abilities of team members or individuals.
Person culture-
When organization creates this type of culture at workplace, it will put negative effect on
worker’s productivity as well as business. According to this organizational culture, individual
recognize themselves superior and better than the other people who are working at same platform
in order to achieve similar objectives and aims.
Person culture put negative impact on workers performance and abilities as it decrease
motivational level of staff. British American Tobacco, power culture that is quite beneficial for
its business and workers, in term of increasing productivity and productivity level of company.
Management creates positive culture in firm by using this form, for instance he can take decision
without making differences that help to enhance motivational level of applicant. When
employees work in this type of culture they perform even better than last few months.
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C) Leadership styles used by Jack Marie Henry David Bowles as CEO of British American
Tobacco organization
Leadership style can be defined as behavioural pattern employed by a person known as
leader to integrate personal and professional as well as organizational interests in pursuit of some
aim or objective. The form of leadership style accessible in a company has to great deal with
implementation of appropriate tactics. The chief executive officer of organization uses
transformational leadership style, which is quite beneficial for him and his business (Geier,
2016).
With the help of this style, he can motivate staff and even inspire them to work hard and
feel comfortable at workplace. He can solve any issues such as lack of training and other, with
this form that aid to create positive working environment at workplace. It can be said that,
transformational leadership style can leads to positive modification that is beneficial and useful
for workers and company. Jack Marie as chief executive officer of British American Tobacco
firm can use this style which provides several benefits to him. As it help to encourage workers to
perform better after obtaining appropriate training, which make all of them able to learn
something new along with self learning approach. It can be analysed that leader with
transformational leader ship style can reduce high employee turnover, it tend to retain skilled
applicant more often than other styles of leadership. It allows CEO to retain more consumers as
well. He wants to satisfy needs of his company as they work to satisfy his personal needs, which
means everyone on group is likely to feel like they have specific duty within firm which keeps
them engaged for long (Gyanchandani, 2017).
Moreover, chief executive officer works hard to run and manage each activity within
company effectively. With above chosen style of leadership he can be able to achieve higher
level of sales and productivity from his applicants because he seeks to meet demand of personal
motives. He has recognize training needs and then provide to all people who work from him and
company since for so long. Transformational leadership excels at considering existing needs of
staff, and other stakeholders. When this form used decisive manners, workers become fully
encouraged to work towards what he or she feel is righteous cause. It can help CEO to develop
and manage change at work area which is beneficial for business and employees growth.
D) Impacts of conflict, power and influence at firm
Conflict impact on British American Tobacco company-
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Work place conflict can put negative impact on performance and productivity of
organization as well as workers (Xu and Zhao, 2017). It can decrease work interest of employees
and increase high employee turnover & absenteeism. For example, conflict between staff and
management will leads to turnover that is not suitable for further success of brand. But with
appropriate tactics and plans, manager and CEO can reduce negative impact of conflict in
workplace and increase productivity level. He can use varied approach of staff motivation, which
provides benefits in term of increasing degree of organizational performance.
Impact of power on firm-
Use of power in company can show its impact on business and applicants (Al-Quraan and
Khasawneh, 2017). When power is used without differentiate, it can put positive impact on
British American Tobacco while if it is utilized with differentiate it can affect negatively. French
and Raven’s five types of power model can be utilized here to define forms of power and its
impact on venture.
Legitimate power-
Organizational structure and cultural norms cater basis for this type of power. It comes
from trust and belief. When manager lose his or her position, their power can instantly disappear,
because workers were influenced by role of CEO. When he used his decision making authority in
context of benefitting all workers, he can put positive impact on brand.
Reward power-
CEO has power to appraise and reward any workers based on their performance and work
efforts. When he can use it without making differences based on race, colour and other traits, it
can affect positively on company as it help to create inclusive work environment.
Coercive power-
Most people in workplace does not want any kind of punishment for his or her mistakes,
he just need a realization which make them able to handle further situations. When manager
punish employees because of their mistakes it can affect in negative manner on people and
performance of organization as well.
Expert power-
When CEO have abilities, understanding and knowledge that allow him to understand
any situation, recommend suggestions and generally outperform others, workers can listen to
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him, respect and trust what he said. As it help chief executive officer to motivate individual and
enhance performance level.
Referent power-
This power is the capability to motivate workers because they admire respects and like
person who understand needs. In workplace, CEO with referent power makes everyone feel
better, so he tends to have much of influence; it put positive impact on company.
Influence impact on organization-
CEO of British American Tobacco can influence his workers in positive manner by
determining their needs and making plans to provide training as it helps to solve issues. This type
of influence always caters desire outcomes in term of increasing profitability and performance of
business within market place.
E) Forms of motivations utilized at chosen company
Motivation is an inner feeling which energizes a worker to work even better, it can be
said that emotions of an applicant prompt him or her for doing a specific tasks successfully. It is
really important for CEO to use appropriate motivational models at firm that help to enhance
performance of employees (Oved, 2017).
Maslow’s Hierarchy of needs-
Physiological needs-
Sleep, shelter, air and food are included in list of physiological needs that help a person to
survive in this world (Rizqiyah and et.al., 2020). When CEO considers all these needs of his
workers and plans to cater facilities accordingly, it leads to reduce turnover and increase
applicant motivational level than before.
Safety and security needs-
These needs are about keeping workers safe from harm and incidents that can cause
major injury. It includes shelter, health, job security and safe environments. When workers do
not feel safe and protective in British American Tobacco, they can seek to find safety before she
or he efforts to meet any better level needs. It does not motivate applicant because everyone
wants to work in safe atmosphere.
Social needs-
With this needs manager can motivate workers in effective manner. For instance, every
person desires to work in those companies where leaders and employees work together and
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collaboratively. It can motivate candidate and retain for longer period of time with brand. When
CEO build good relationship with his workers and solve their issues he can encourage people to
work with them. It is an essential part of psychological development because relations with
others aid reduce emotional concerns such as anxiety and depression.
Esteem needs-
It refers to needs of self esteem, respect and self confidence. By respecting and
appreciating efforts of workers, CEO can motivate them and make capable to work with them for
long.
Self actualization needs-
CEO can moves to last phase of this model where workers have high motivation and self
esteem level. This kind of individual are self aware, less concerned with suggestions of others,
concerned with personal growth and interested in fulfilling their potential.
British American Tobacco, CEO and managers can Apply above theory. He can provide
all facilities to people according to their needs and desire such as growth and appraisal which can
turn into increased productivity and creating productive culture at workplace, it will also help to
encourage workers. Management after applying this theory obtains several benefits in term of
increasing motivational level of workers and enhancing their performance. Motivated people
always ready to take part in any situation, which helps manager to get desire outcomes and allow
to get competitive advantages as well.
F) Corporate examples in form of literature
According to Potter and et. al., (2018) transformational leadership style is one of the best
leadership forms that a leader can used to enhance motivational and progress level of workers at
workplace. Bill gates as CEO of Microsoft uses this style to change through intellectual
stimulation that goals is to self reflective modification of beliefs and values. With this form he
created an environment of logical stimulation and nurtured it within his company. There are
many CEOs who are using same leadership style in context of business benefits.
Scheuerlein, Chládková and Bauer, (2018) discussed that Elon Musk as chief executive
officer and co-founder of Tesla, Inc motivates his workers with promise of new horizons. He
used transformational leadership style along with more approaches to enhance performance of
his company and workers. This style is useful and beneficial for management.
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G) Suggestions to increase performance of organization
 Range of approaches, methods and technique are available in business world that British
American Tobacco Company, CEO should use to enhance performance of business
which turns into increasing sales and revenue. He must apply the principles or stages of
Herzberg’s motivation hygiene concept, which allow him to motivate people who are
able to increase company performance by working effectively and achieving set aims of
venture. This model concentrates on significance of internal role factors as motivating
forces for workers.
 Furthermore, chief executive officer of brand should appreciate employee for good work
and hard attempts as it enhance his or her performance as well as company. It can be said
that gratitude and appreciation enhances capability. It directly influence workers
interaction and work outcomes. Applicant or work appreciation do not only boosts
performance and engagement, but also improved worker’s well being and health.
 In recent time, there are many organizations using work flexibility as an effective
approach that will help to increase business performance as well as workers. CEO of
British American Tobacco should also make plan to provide flexible working hours once
in a week. It helps to motivate people and permit them to perform at any situation without
raising questions.
 Applicant who obtains necessary training is more capable to perform in his or her roles.
A training and development program permits employees to strengthen their abilities and
skills that each of them needs to improve or develop. CEO should plan this system for all
staff member that can help to increase productivity and performance of his company. It is
one of the best approaches, he must use and implement for longer period of time.
CONCLUSION
From above analysis, it has been summarized that use of appropriate leadership style such
as transformational provides many advantages to CEO of British American Tobacco in current
competitive business environment. As it helping him to reduce employee turnover and provides
facilities accordant to the needs of staff. He works really hard to build innovative and positive
work culture in company, which directly influencing sale, profit margin and productivity of
brand and help to increase it more than other firms who are managing their operations in same
sector with skilled applicants. To enhance performance level of firm and motivation of workers,
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as CEO of above chosen brand he is doing lot of efforts and using several motivational
approaches or models that are quite beneficial for him. Furthermore, from above analysis it has
been concluded that, chief executive officer of British American Tobacco implementing the
suitable suggestion in his venture to manage operations and increase operational efficiency even
better.
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REFERENCES
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Handy's Model of Organizational Culture. 2018. [Online]. Available Through:
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