Organisational Theory and Practice

Organisational Theory and
Practice

Table of Contents
INTRODUCTION...........................................................................................................................3
Task A..............................................................................................................................................4
Managementstyleand functions of management used by the CEO of British American Tobacco
.....................................................................................................................................................4
Task B..............................................................................................................................................5
Steps taken regarding organisational structure in order to achieve high performance and
organisational culture atBritish American Tobacco and its impact on employees......................5
Task C..............................................................................................................................................6
Leadership style of the CEO of British American Tobacco to enhance the organisational
effectiveness................................................................................................................................6
Task D..............................................................................................................................................8
Effects of power, influence and conflict at British American Tobacco......................................8
Task E..............................................................................................................................................9
Various types of motivation used at British American Tobacco.................................................9
Task F............................................................................................................................................11
Corporate examples and literature to justify your stand............................................................11
Task G............................................................................................................................................12
Suggestions / recommendations (strategies) to increase organisational performance...............12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Organisational theory can be defined as set of different concepts, definition that explains
behaviour of individuals or groups who interact with each other to perform activities for
accomplishing their common objectives and goals. On the basis of theory different practices are
undertaken by the organisations, these practices are based on management of individuals and
groups within organisation. Management undertakes planning, coordinating, directing and
controlling of different activities within organisation. Concerned withBritish American
Tobaccoit is a business organisation. British American Tobacco is a British multinational
company, founded in 1902 and is headquartered at London, UK. Working in Tobacco industry
main products of the company are Cigarettes, Cigars and Nicotine products. British American
Tobacco is world’s largest tobacco manufacturing company along with being biggest retail
operations in world based on net sales (Dewhirst, 2019). British American Tobacco has its
operation in around 180 countries and also has several subsidiaries. The company was formed by
a joint venture of British imperial Tobacco company and American tobacco company. In order to
complete all the operations of the company, British American Tobacco employs around 55000
employees. This report is based on British American Tobacco and will discuss about
management style and principles and functions of management that are used by CEO of British
American Tobacco. Management style refers to approach and way in which organisation is
managed by the CEO. Further report will discuss organisational structure (organisation structure
is concerned with way in which responsibilities and roles are defined and carried out within
organisation) and organisational culture (organisational culture is set of beliefs, values and
practices that guide and inform actions of organisation) of British American Tobacco and how it
affects employees. This report will also discuss about leadership style (approach with which
organisation are headed) of CEO of British American Tobacco, it is an important element to
influence organisational effectiveness. This report will later analyse power, influence and
conflict and different types of motivation in context of British American Tobacco. Company is
facing issues in terms of lower margins and in order to deal with this issue company is planning
to cut jobs. Right understanding of organisational theories can help in reducing negative impact
on those existing employees.

Task A
Management style and functions of management used by the CEO of British American Tobacco
Management style is a particular way or approach in which management activities are
carried out by managers. This involves activities like planning, organising, coordinating and
controlling. Decision making and role of individuals at different levels of organisation in
decision-making is also part of management and management style. Concerned with
management style of British American Tobacco, CEO at the organisation has employed and
adopted participative management style.
Participative Management Style
Participative management style is one in which all individuals at different levels of
organisation participate in the process of decision-making in organisation (Kopia, 2016).
Employees and members of British American Tobacco are free to express their ideas and
opinions about particular situation and problem in organisation. There are several benefits of this
style of management in this style members are motivated to share their ideas and this lead to
getting creative suggestions. Members in this style of management gets a feeling of
belongingness with the organisation they are working for, this contribute in effective
performance of the organisation. Employees are more involved in their job role as they are
aware, they will be participating in decision-making. Other than this, when decisions are based
on their opinion in such situation, they get highly motivated and encouraged and actions are also
based on their decisions. Organisational performance gets improved because decisions become
more effective by input from different members of the organisation.
Principles of Management used by CEO of British American Tobacco
Division of Work- This involves that individuals should be given task according to their
expertise. This also requires focusing in development of employees so that they can effectively
work.
Authority and Responsibility- This means that individuals when are given responsibility they
should be provided with adequate authority.