Organisational Theory and Practice

This document explores the study of organizational theory, focusing on the structure, relationship, and design of organizations. It examines the management style, principles, and functions of the CEO of British American Tobacco. It also analyzes the steps taken to achieve high performance through organizational structure and discusses the organization culture at British American Tobacco. Additionally, it describes the leadership style of the CEO and analyzes the effects of power, influence, and conflict at the company. Finally, it discusses the various types of motivation used at British American Tobacco.

Organisational
Theory and Practice

Abstract:
Organisation theory is regarded as study of organisations structure, relationship and
design. It is focussing on dimensions such as specialisation, hierarchy of authority, size, goals,
strategy, standardisation. It is having emphasis on development of structure and relationship that
helps in measuring and analysing organisation. It is used for responding to global and emergent
local agendas. According to requirement of every organisation a particular leadership & a
management style is adopted in a organisation.

Table of Contents
INTRODUCTION..........................................................................................................................4
Examine the management style and state the principle and functions of management CEO of
BRITISH AMERICAN TOBACCO......................................................................................4
Analyse the steps taken with regard to organisation structure in order to achieve high
performance and state the organisation culture at BRITISH AMERICAN TOBACCO.......6
Describe the leadership style of the CEO of BRITISH AMERICAN TOBACCO...............7
Analyse the effects of power, influence and conflict at the chosen firm...............................8
Discuss the various types of motivation used at BRITISH AMERICAN TOBACCO..........9
Use appropriate corporate examples and literature to justify your stand.............................10
Based on the discussion and debate what suggestions / recommendations (strategies) ......11
CONCLUSION............................................................................................................................13
REFERENCE...............................................................................................................................14

INTRODUCTION
Managing style of individual varies in every organisation that is differing according to
functions and principles of organisation. Present report is based on examination of functions and
principle of management that are performed by CEO in BAT. There is analysis of steps
according to organisation structure (Young and Ghoshal, 2016). There is discussion of
leadership style and analysis of power, conflict on the organisation. Further there is analysis of
different motivation types that is used in British American tobacco. According to detailed
analysis there are further recommendations that are drawn related to functioning of organisation
according to suitable leadership style and overall structure.
Examine the management style and state the principle and functions of management CEO of
BRITISH AMERICAN TOBACCO
JACK Marie henry Bowles is CEO of British American tobacco Plc (Liu, 2019). He was
earlier chairman of British American tobacco franc & managing director at British American
tobacco.
Management style is way that is carried out by a manager in order to achieve predefined
goals and objectives of an organization(Dutot, 2017). Different way to handle managerial
situations by the CEO of British American Tobacco are outline below:
 Autocratic or directive management style: In this, decision are taken by the top
management without giving consideration to the opinion of employees(Ahmady,
Mehrpour and Nikooravesh, 2016). In British American Tobacco, CEO is apply the
stated management style as they provide proper direction and keep control over
numerous activities of human resources.
 Transactional management style: It refers to provide various rewards to employees to
motivate them( Driskill, 2018). In context of selected company, this management style is
being applied as they are offering bonuses, incentives, awards, and many more to
enhance the productivity of work force.

There are numerous management principals and functions that are essential to undertake
to complete a specific task in an efficient manner. In British American Tobacco, certain
functions as well as principals are being applied by the CEO, they are stated as follows:
 Planning: Management of selected company is proactive. They formulate plans as well
as strategies to reduce down the impact of future uncertainties and achieve the specific
goals in an efficient way (Talla and et. al., 2018). They prepare policies, tactics to face
competition and other contingencies that may occur in future.
 Organizing: In British American Tobacco all the activities, functions are carried out in
an organized way. They use effective tools and techniques to reduce down the defects
and enhance productivity. They have contracted with various distributors that helps to
offer products to potential consumers at right time.
 Staffing: To perform business activities, it is essential to recruit right human resources.
In the respective organization, there recruitment and selection process is very efficient.
They undertake multiple interview rounds to select an appropriate candidate. This assist
the managers to hire potential and right candidate for a specific profile (Elsbach and
Stigliani, 2018).
 Directing: Mangers of British American Tobacco give required direction to staffs to
perform different business functions in an efficient way. They lead, guide as well as
motivate employees as per requirement. Along with this they also organize training
programs to improve work efficiency, skills and knowledge of human resource.
 Controlling: It is the most crucial function of management as it helps in increasing
overall efficiency ( Guilfoos, Khanna, and Peterson, 2016). Mangers of selected
organization set standards and them identify deviations by comparing them with actual
deliverables. They also taker necessary cations for the further improvements.
Analyse the steps taken with regard to organisation structure in order to achieve high
performance and state the organisation culture at BRITISH AMERICAN TOBACCO
Organizational structure refers the hierarchy according to which roles, responsibilities, tasks are
allocated to different personnels working in a company (Naranjo-Valencia, Jiménez-Jiménez
and Sanz-Valle, 2016). It is framework that shows allocation of various business activities in

order to achieve the goals and objectives of company. In context of British American Tobacco,
the CEO is following a standard structure for internal communication, that is outline below:
 Functional organizational structure: Mangers of selected company apply the
functional organizational structure. They divide the overall business in small groups as
per specific functions such as finance, marketing, digital and operations. There are
various departmental heads for different functions who are efficient enough to handle the
whole activities related to their respective departments (Olson and et .al., 2018).
(Source: 8 Common Types of Organizational Structures in Project Management, 2019)
 Divisional organizational structure: A lot of big companies who has been expanded
their business across the globe carry out this structure. British American Tobacco is also
applying divisional structure where they divide the work in different divisions such as
digital, legal & compliance and many more (Way, Jimmieson and Bordia, 2016). The
receptive divisions work as a separate company and provide necessary information to
head office on timely basis.
Culture of an organization consist values, shared beliefs, working environment and
many other aspects. Ii is essential to create a healthy and friendly atmosphere at work place in
order to enhance efficiency as well as productivity of employees (Joseph, Klingebiel and
Wilson, 2016). In British American Tobacco managers of organization has created a positive,
healthy environment at work space. That is outline below:
Illustration 1: Functional structure

 Encouraging and rewarding culture: The management team of company emphasise to
formulate such a culture where employees get motivated and work for the success of
organization (KraAhmady, Mehrpour and Nikooravesh, 2016). They provide rewards,
recognition, appraisal in order to encourage them. They respects thoughts, opinions of
staff and inspire them to come up with more valuable, creative, as well as unique ideas
for the success of business.
 Supportive and friendly work culture: Mangers of company believe to give
supportive work environment to employees where they can learn and enhance their
skills as well capabilities. They provide necessary opportunities to human resources of
acknowledgement and rewarded them for better and efficient work (Liu, Shang and et.
al., 2018). That helps them to retain employees for a longer period of time and to get
competitive advantage. Apart from this they majorly recruit through internal sources
from their present work force.
Describe the leadership style of the CEO of BRITISH AMERICAN TOBACCO
CEO of Jack Bowles is focussed on creation of a leadership position that is he;ping on
achievement of higher productivity in the organisation by focussing on building of strong
management teams. The main objective as a CEO of Jack Bowles is to engage in a continuous
transformation process so that there can be development of a stronger multi category tobacco
and nicotine products (Hoogervorst, 2018). There is adoption of a particular style in order to
manage the employees and ensure there can be timely completion of the decision making
process. For this CEO is focussing on use of a transformational leadership style of change. It
is a theory of leadership that is focussing on lead working with teams for identification of need
of change and then creation of vision to further guide the change process by inspiration &
execution of change according to committed members of group. Who are integral part of a full
range leadership model.
The main goal of Chief executive officer Jack bowles is to oversee a change step in the
new category of growth so that there can be a significant simplification in present working ways
& business process of BAT. This change proses lead to a complete change in the vision for all
the employees in BAT where they have to focus on main objective of delivering a long term
sustainable returns to their shareholders that is a vital aspects of their first move.

The announcement was made by Bowles just after President Donald trump's administration said
that there has to be ban on e-cigarette products. This lead to a complete change in the existing
product strategy of British American tobacco (Egeberg, Gornitzka. and Trondal, 2016) (Hatch,
2018). It lead to a cut of 2300 jobs across globe. There was a increase focus on simplification of
management layers that is excepted to be part of 20 percent senior roles in organisation that are
going to be affected by such cut in jobs.
According to statement made by Bowles this change is focussed on removal of
management layers and simplification of organisation structure. But the change is focussed on a
target of generating 5 billion pounds as revenue by the year 2023 and 2024.
Analyse the effects of power, influence and conflict at the chosen firm
There is effect of power and conflict in BAT for the purpose of utilisation of the
available opportunities. With increase amount of talent, range of potentially risk products and
iconic brands it has become a main objective of Jack to transform the experience across
different geographies so that there can be building of a Nicandro's achievements.
Influence of power: jack joined BAT in the year 2004 as CEO of BAT France and then he was
appointed as managing director of BAT listed subsidiary in Malaysia. Further in the year 2009
he was at the position of regional director in western Europe and then serving as regional
director in Asia pacific region and Americas region for their present role as a chief operation
officer in the year 2017 (Waldman and Jensen, 2016). Jack as a CEO and leader of BAT is now
focussing on using the power from its position for the purpose of influencing the functioning of
overall workforce in the organisation.
Conflict: It is a situation that arises in a organisation because of differences between
values, needs & interest of groups and individuals. It is a struggle between opposing needs,
ideas, interest and incompatibility among people (Borz and Janda, 2020). There can be
possibility of three types of conflict that can take place in British American tobacco. First is
relationship conflict that is conflict arsing out of interpersonal tension amongst employees that
is because of intrinsic relationship. Next is task conflict that arise in British American tobacco
in situations of member's not agreeing to a particular task and it leads to high amount of
conflicts (TAKASE, 2018J). Last is process conflict that is related to clash between team
members because of opinion differences. Conflict in BAT can be a personal conflict when two

people are not agreeing on a mutual dislike. Intra-group conflict that is arsing out of liberty, lack
of resources and last is intergroup conflict that is existing between two groups.
CEO of BAT is focussing on continuous innovation and creativity that can help in
dealing with risks of internal and external conflicts. Such as Bowles is focussing on adoption of
EU better regulation principles in a attempt to determine the tobacco legislation in European
union (ohnson Jr, 2018). The principles are aimed at improvement of public policy making and
then reduction of regulatory burden according to changing and new EU policies. Bowles has
challenge the legitimacy of IA and include BAT funded expert opinion that is prepared by
Professor Jonathan klick. This has been one of major change that has been brought up by
Bowles to challenge the legitimacy of Initial undertaken and it could have lead to serious
concern in next step of regulatory process (Christis, 2019). But way it was handled in such a
way that it did not lade to any negative impact on the existing bard image of British American
tobacco.
Discuss the various types of motivation used at BRITISH AMERICAN TOBACCO
There are different motivation styles that are used in BAT by leaders in order to
understand the way employees have to be motivated at workplace to maximize their
contribution. There are different levels of needs that is tarting from lower level needs to higher
level needs. It consist of five stages of needs (Lili, 2018).
The lower level of needs consist of most basic needs such as water, food, warmth and
sleep. These are most crucial to every individual without which survival is not possible. Once
these needs are met then people move towards next level needs that is safety and security needs.
It consist of health, wellness, financial security and safety against injury & accidents. Next level
needs are social needs that includes family, community groups. Social groups. Esteem needs
are used for appreciation & respect (Hooghe, Lenz, and Marks, 2019). People have to
accomplish these feelings of prestige and personal growth. Most higher level needs are self
actualisation needs that is for exploitation of talents, potential and capabilities. In BAT CEO
Jack Bowles is focussing on adoption of a motivation technique that can assist them in
identification of the stage at which employees are present (Sarriot, Sacks and Larson, 2017). It
is going to assist in formation of right strategies that can help in motivating employees.
Hertz berg two factor theory of motivation is divide in two basic factors that are hygiene
factors & motivating factors. Hygiene factors are those that if they are not present then it might

lead to dissatisfaction of employees (Rumens, De Souza and Brewis, 2019). It includes
interpersonal relations, status, security, working conditions in British American tobacco. It is the
duty of chief executive officer to ensure that all such factors are present so that employees are
satisfied enough and contributing towards achievement of laid organisational objectives.
Another set of factors consist of motivators that are actually contributing towards motivating
employees in terms of increasing their present satisfaction level (Revsbæk, 2016). It consist of
recognition, achievement, growth, advancement towards higher job contentment. All such
factors assist in proper management of overall functioning of British American tobacco. As
presence of motivators can generate a competitive spirit amongst the whole workforce that
results in contributing according to specific organisation vision (Brown, Schweickart and Svob,
2016).
Use appropriate corporate examples and literature to justify your stand
According to views of Charlotte Edwards, 2018 British American tobacco plc has
announced Jack bowels as present chief operating officer for BAT international business and is
going to success Nicandro Durante as Chief executive officer of BAT. Chairman of BAT has
always focussed on appointment of jack with effective strategic leadership skills, driving
improvements in product and building of strong management teams (Ashkanasy, 2016).
The main reason for appointment of jack has been because of the innovation records and
experience across different business areas has positioned them to focus on Nicandro's
achievements.
According to views of Mastifa ahmed, 2020 British American tobacco is planning to
ensure simplification of business process. It helps in delivering of sustainable returns to their
shareholders. This is the vital aspect that involves decision making process where leader is
playing a significant role in transforming the whole organisation structure according to
requirements of simplification of the present business process (British American Tobacco to axe
2,300 jobs globally, 2020). BAT has been able to successfully adopt the competitive culture in
the organisation by use of motivational theories (Abell, 2020). It is helping in successfully
enhancing the present contribution level of employees.
Based on the discussion and debate what suggestions / recommendations (strategies)
According to the above mentioned aspects there are some recommendations for leaders
in organisations:

 In British American tobacco there has to be focus on adoption of a particular
leadership style that can help a leader to apply the influence on getting work down from
their subordinates in order to focus on achievement of organisations overall objectives. It
is going to assist in development of main belief or attitude that can posses a influence on
the present leadership style that is perceived role of manager and role of subordinates.
 CEO of BAT has to focus on overseeing the development & management of talent
across group functions and regions so that overall progress can be managed chains the
performance indicators and key objectives.
 Culture of BAT has always been about development of talent, supporting high
performance managers and then delivering of the formed strategy. This vision has to be
further incorporated in the structure, culture and management style of top management
in the organisation.
 Two new management board roles are helping in end to end accountability process. It I
going to further lead towards innovation, driving of growth, brand building and
focussing on consumer insights. Director of digital transformation has to lay their
emphasis towards enhancing the present digital consumer capabilities as a long term
sustainability strategy for generation of a competitive advantage.
 From the above report, it has been analysed, that there is some improvements should be
executed in managerial policies of company. In British American Tobacco, managers
should also adopt democratic management style. Management needs to minimize their
control over business activities They should give freedom to employees to work and take
part in the decision making process of company. Along with this managers should
consider thoughts, opinions, recommendations of work force while taking necessary
decisions. It will motivate human resources and rescue down the turnover as well as
retention rate of human resources.
 Along with this, management team of organization must modify their existing
organizational structure. And they should minimize the level of hierarchy between
superiors and subordinates. So that, employees can interact with top management, it will
help to create a positive and friendly work environment. They should emphasis on
formulation of informal groups where all the personnels working together for the
organizational objectives can communicate with each other.. this will enhance team

spirit in human resources. This will enhance team building, leadership skills of staff at
the same time motivate them to work efficiently for the sustainability and growth of
company.

CONCLUSION
It can be concluded from above mentioned aspects that leaders are playing most
significant role managing different organisational levels. At top level it helps in formation of
overall vision and policies. At middle level there has to be focus on proper execution of plans
according to guidelines provided by top management. Leadership can be exercised by
counselling and guidance to subordinates that helps in reconciliation of personal objectives with
overall goals of organisation. Leaders are playing a very crucial part in shaping and formation of
structure and culture of every organisation.

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Online
British American Tobacco to axe 2,300 jobs globally, 2020[online], Available
through<https://www.peoplemattersglobal.com/news/talent-management/british-american-
tobacco-to-axe-2300-jobs-globally-23072>

8 Common Types of Organizational Structures in Project Management, 2019 [online], Available
through<https://www.greycampus.com/blog/project-management/common-types-of-
organizational-structures-in-project-management>