Organisational Theory and Practice

ORGANISATIONAL
THEORY AND PRACTICE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................4
A.) Type of Management Style adapted by the CEO of British American Tobacco- its
principles and functions...............................................................................................................4
B.) British American Tobacco Company’s Structure and Culture..............................................5
C.) Leadership Style adapted by Leaders of British American Tobacco....................................7
D.) Impact of power, influence and conflict at BAT...................................................................8
E.) Types of Motivation at British American Tobacco plc.........................................................9
F.) Literature by using corporate examples...............................................................................11
G. Suggestions and recommendations for increasing organisational performance...................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
In every organisation, various tasks are performed by individual employee, the teams
comprising of more than two employees and the organisation itself to reach the greater heights of
success and growth (Marume and Chikasha, 2016). Various theories help in increasing the
efficiency of all the processes performed in the organisation and the overall productivity.
The organisation is required to fulfil the needs of its maximum customers and the various
stakeholders. When the individual employees are focussed upon, then theories of motivation,
personality and role are highlighted (Gunasekaran and et.al., 2018). When it comes to teams,
then leadership, power and influence theories are implemented and when the whole organisation
is laid emphasis upon then its structure and culture are majorly highlighted.
The report will shed light on all the aspects of the British American Tobacco plc (BAT)
multinational company which manufactures and sells various varieties of cigarettes, tobacco and
the other nicotine products. It is headquartered in London, England, UK. Being a public limited
company, BAT has 55000 employees who contributed majorly in earning the revenue of £25.877
billion and the net income of £5.849 billion, noted in 2019 (British American Tobacco, 2020).
The management style and its principles & functions used by the CEO of BAT will be described
in the report. It will also analyse the structure and culture at the workplace and its effect on the
employees. the leadership style and various types of motivations will also be highlighted. The
description of all the topics will include the issues which are faced by the company in
implementing various processes and functions. It will also suggest the ways in which
organisational structure can be improved to increase the performance of the employees and the
company. The report will also give certain corporate examples along with some
recommendations which will help the company to enhance its performance and growth. Every
aspect of the company will be justified by the use of different models which helps the company
to give a deep insight about the processes it follows and the methods in which they can improve
those weaker areas in order to face substantial growth.
3

MAIN BODY
A.) Type of Management Style adapted by the CEO of British American Tobacco- its principles
and functions
To achieve this successful position, the managers of the BAT plays a major role as all the
processes of BAT are finalized and reported to the managers first then implemented. The
managers of the companies use various management styles according to which all the functions
are exercised by them such as planning, organizing, decision making and also staff management
which helps in achieving certain organisational goals. There are numerous management styles
like Visionary, Pacesetting, transactional, democratic, authoritarian, Fayol and many more
(Kristijono and et.al., 2020). The type of management used by the managers of the company and
its implementation decides the progress of the company.
The management style adopted by Mr. Jack Marie Henry David Bowles (CEO of BAT) is the
Fayol;s Management style which can be implemented by using the Henri Fayol’s management
theory which is basically a model of interaction between management and the personnel. This
model helps the companies in order to manage the staff productively. The theory consists of
fourteen principles which are Division of Work, Authority, Discipline, Unity of Command,
Unity of Direction, Subordination of Individual Interests to general Interests, Remuneration,
Centralization, Scalar chain, Order, Equity, Stability of Tenure of Personnel, Initiative and
Espirit de Corps (Parker, 2016).
But it is very difficult for the companies to follow all these principles. So Fayol concluded five
basic functions of Management which is used by British American Tobacco company
effectively. These basic 5 functions of management style are Planning which means there must
be a systematic plan and schedule for every process in the company, Organizing means the
management must also ensure that the desired resources are available at the time of production,
Commanding which states that each and every activity of the personnel must be encourage and
directed by the management, Commanding assures that the teams in the company are working
together in a cooperative fashion in order to achieve the organisational goals and last but not the
least controlling which is the addition to the normal functions of management under which the
manager ensures that the teams and the individuals follow their commands.
BAT faces lot many issues after following this management style as under this the managers
only focusses on the own experiences rather than doing an empirical research. It is also much
4