Organisational Theory and Practice

ORGANISATIONAL
THEORY AND PRACTICE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK A...........................................................................................................................................3
Management Styles and the functions of Management in British Tobacco Company................3
TASK B...........................................................................................................................................5
Structured steps taken by organization to achieve high performance.........................................5
TASK C...........................................................................................................................................6
Leadership style...........................................................................................................................6
TASK D...........................................................................................................................................7
Effects of power, its influence and conflicts...............................................................................7
TASK E...........................................................................................................................................8
Types of motivation.....................................................................................................................8
TASK G.........................................................................................................................................10
Recommendations to British Tobacco Company for increasing its performance.....................10
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Organisation is the social units where the individuals that are arranged managed to meet a want,
and pursue mutual goals. Organisational theory includes several approaches which analyse the
organisation such as rational system perspective, contingency theory, bureaucratic theory etc.
In simple words, it is the study of organisation which provides advantage of recognising general
themes for the idea of solving issues, increasing efficiency, maximising productivity to meet the
need of stakeholders of company. Generally, three prime concepts of organisational theory are;
process of individual; motivational theory, personality theory and role theory.
British American Tobacco plc commonly trade as BAT is an American British global company
that produce and deals in various nicotine products, tobacco and cigarettes. It is one of the largest
tobacco producing company and have the largest retail and operations of consumer products
form on net sales. The company was established many years back and now is headquartered in
London, England. Company has several subsidiary companies like Reynolds American, Souza
Cruz, Imperial tobacco etc. having its operations worldwide. Company is listed its primary
listing on London Stock Exchange, secondary on Johannesburg Stock exchange and also listed as
American depository shares on NYSE.
This report analyse the principles and functions of management used by the CEO of British
American Tobacco company and management style that he uses, examine the steps in order to
attain high performance related to organisation structure of the company and its influence on
employees. Report also determines the leadership style that the CEO of the company uses to
improve effectiveness of the company and discuss the different types of motivation techniques
used in the company. Further, the report provides the apt and justified examples and provides
recommendations or suggestions related to how company can maximise its performance.
TASK A
Management Styles and the functions of Management in British Tobacco Company
Management Style is a manner in which the manager of the company works to accomplish the
objectives of company. British Tobacco Company follows the Democratic Management Style,
where the managers in the company encourage individuals and teams to provide their input while
making any crucial decisions, but the ultimate authority of finalising the decision is in hands of
the leader. The positive side of using this democratic style of management is that communication

flows in both ways top to down and bottom to top so there are less chances of disappointments
and also increase team cohesiveness (Bhatti and et.al., 2012). Company uses this style, to get lot
of creative ideas from its employees while decision-making.
Functions of Management used by CEO in BAT -
Company applies four management functions i.e. planning, organising, managing or leading and
controlling.
Planning – British Tobacco Company, does planning in order to achieve its specific goals,
company does planning for different time spans every time i.e. for immediate, short period, and
for the long run. Planning plays the crucial role in the company’s growth and helps in maintain
the business strategy. The basic principle behind planning is that to set a clear and smart goal to
makes sure that it succeed, companies who do not set a plan have high chances of failing
(Raduški, 2017). BAT plans include the plans related to finance, product management, marketing
etc. considering the competition in the industry etc. company ensures that all its plans are
realistic and measurable.
Organising – After the process of planning is done, company ensures that there is availability of
resources to carry out the set plan. Organising can be defined as the process of assembling
required resources to achieve the objectives of organisation. The company is this function
determines that how task is to be divided, how resources must be deployed and how the
departments are to be coordinated. The communication in the company flows from both ways so
that in case of any issue it can be resolved at an early stage.
Leading – This function in BAT ensures that the managers guides and inspire the employees and
make them motivated so that they can achieve the organisation’s goal with their full capabilities.
Management of the company leads in order to influence without forcing because the company
needs support from its workforce to achieve its goals. BAT uses the transformational leadership
style to affect its employees leaders defines the vision and plans to make company’s move
towards growth (Kumar, 2020).
Controlling – This is one of key managerial function in BAT, because it helps the company in
checking the error and taking the corrective actions in order to minimise the deviation from the
standard and goals are achieved in desired way. Company previously set the standards and
compare it with the outcomes and take the actions so that the actual goal can be attained.