Organisational Theory and Practice

This report provides an in-depth analysis of organisational theory and practice, focusing on the management style, organisational structure, leadership style, and the impact of power and conflict. It also explores the application of motivational theory in the context of British American Tobacco (BAT).

Organisational theory and
practice

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................3
Management style and function of management used by Jack Marie Henry David Bowles.3
Organizational structure and culture of BAT.........................................................................4
Leadership style implemented by CEO of BAT....................................................................5
Impact of power, influence and conflict on the organization.................................................6
Application of motivational theory........................................................................................7
Literature................................................................................................................................8
Recommendations..................................................................................................................9
CONCLUSION........................................................................................................................10
REFERENCES.........................................................................................................................11

INTRODUCTION
Organizational theory and practices are the various methods and strategies which the
company has to follow in order to make the business run and operate in proper and effective
manner. This includes all the aspect of the business whether be it culture and structure of
company, motivation, working pattern, style of leadership or style of management, power
within the company and many other related things. All these decisions are to be taken by the
company in order to effectively manage the run the business in successful manner. This is
due to the reason that if business will not take care of all these decisions then business will
not be able to manage its operations and working. The organizational theories are created
taking into account the various aspect of the organization which is required to be taken care
of in order to attain the desired goals in an effective and timely manner. The importance of
each theory has it own relevance in the organization which cannot eb ignored and this
resulted into making the companies a achieving the desired outcomes more efficiently with
less probability of the getting the failure.
The benefits of it can be seen in the long term which is considered very advantageous
for the organization. This report provides an in-depth analysis of the organizational theories
and practices which is being implemented by the Mr. Jack Marie Henry David Bowles, the
CEO of British American Tobacco (BAT). This report states about the management style
technique and principles of the same being utilized by the CEO and the different steps being
taken in respect to the organizational structure which resulted into higher success and
improved performance level of the organization. Along with that it also covers the
organizational culture, leadership style of the CEO, effect of influence, power and conflict on
the performance and efficiency of the organization and the ways through which the company
is managing to enhance the motivational level of the employees.
Management style and function of management used by Jack Marie Henry David Bowles
For the business to be successful it is very crucial that business try to manage all the
activities being conducted within the company. The major reason underlying this fact is that
if the management will not be proper then this will have a great impact over the working and
productivity of the company (Johansen and Cadmus, 2016). Thus, for the proper management
and running of British American Tobacco, Jack Marie Henry David Bowles uses the
management style of consultative management style. This is a technique wherein before
taking any of the decision or choosing any of the method of work Bowles first consul all the

people working within the company and then finalises any decision. This is a very good
technique of taking all the decision and managing the business in good and effective manner.
The major reason underlying this is that in this style of management Bowles takes into
consideration the views of all the people working within the company and this increases the
morale of the employees. This is pertaining to the fact that when the company will include all
the people in the decision making process and take their suggestion then this will motivate
the employees and they will work with more efficiency and up to their fullest potential.
In addition to this there are many different types of management function which are
performed by Bowles in order to manage the British American Tobacco company. The major
function being performed by Bowles is planning and this is done by them as if the planning
will not be good then the company will not be able to manage the working in proper and
effective manner. Thus, the planning function is performed by Bowles. In addition to this the
other major function being performed by Bowles is the direction and controlling. This is
majorly because of the reason that the plan is made by Bowles and he knows how to
effectively control the working so that the plan is successfully accomplished (Ramos, Mota
and Corrêa, 2016). Thus, this is another major function being performed by the Bowles in the
proper management of the company and this function is very important. This is due to the
reason that if he will not be able to direct the employees and control their working then it
might be possible that they will not be able to work in proper manner.
Organizational structure and culture of BAT
The BAT has been using divisional organizational structure. In this, each function has
been assigned a separate division which is either belongs to the products or the geographies.
The company has provided each division with the required resources and functions which is
needed for supporting the product line. In this, company has used geographic
departmentalization. It has been segmented into 4 regions, that is America, Asia pacific,
Eastern and Western Europe, Middle East and Africa. Then the separate functional units for
every region separately. It has divided the work among the departments and every employee
in the department is well aware of his or her roles and responsibilities (Flanigan, 2016). This
helps it in taking advantage of the division of work. It is mainly focussed towards the
individual divisions and its performance which helps in determining the performance and
efficiency level of each of these departments which will help it in taking effective steps for
further improving the same (Davis and Dolson, 2018). Thus, division wise based on the

location the overall efficiency level of the organization is well evaluated resulting into higher
performance.
In determining the organizational culture of BAT, Charles Handy’s model is being
used which is stated below.
Power Culture: In this culture, the power is mainly held by the very few individuals
who are having influence in the organization. There are less rules and regulations and
individuals with power decides what will happen. It helps in taking fast decisions.
Role Culture: In this, the organization is based on the rules which are controlled and
the everyone is well aware of their roles and duties (Nasaireh, Abdullah and Obeidat, 2019).
It is determined by the position of the person in the org. structure. There is less scope for the
expert power.
Task Culture: Such culture is formed when the task is required to be performed in the
teams for the purpose of addressing some specific problems. The power in the team derives
from the expertise and there is no single source of power.
Person Culture: In this, the individuals find themselves higher and greater than the
organization. It seems like the organization with just the collection of people working for the
organization.
Based on the above stated model, it can be said that the BAT has implemented role
model in its organization as in this the wok is delegated to the staff in a defined structure.
Leadership style implemented by CEO of BAT
The transformational leadership style is being used by the CEO of BRITISH
AMERICAN TOBACCO which is characterized as far as how the leader influences his
followers, who are planned to trust, appreciate and respect the transformational leader. Mr.
Jack has recognized three different ways which are expanding their attention to task
significance and worth, getting them to concentrate on group or organizational objectives,
instead of their own advantage and initiating their higher request needs in which leaders
change or transform their followers. Other than that, transformational leadership initiative
hypothesis makes a positive change in the followers when they deal with one another's
inclinations and act in light of a legitimate concern for the gathering all in all (Choi, Kim and
Kang, 2017). In this initiative style, the leaders increase the level of inspiration, motivation
and performance of his followers. Transformational leadership initiative is about qualities and

meaning, and a reason that rises above short term objectives and concentrates on higher
request needs. This leadership style is further divided into 4 components which is charisma,
inspirational influence, intellectual stimulation and the individual attention. The first
component refers to the degree in which the leader behaves in the admirable way which
makes the followers identify the leader with the set of values and considered them as the role
model.
The second component states the degree in which the leader works on inspiring and
motivating the followers along with the admirable goals and providing them with meaning of
their current ask and duties. The third component refers to the degree in which the leader of
the group challenges assumptions and also encourages the creativity and innovation of its
followers. This is mainly done by providing opportunities to the employees and encouraging
creative minds to solve the problem in an effective manner for achieving the organizational
goals and mission. The last component is individual attention in which the leaders provides
individual attention over the each of the followers in regard to their needs and acts as a coach.
Under this leadership style, the leader (the CEO) also provides appreciation to the followers
and along with that admires the contribution made by the individual in the team. This helps in
inspiring and motivating the followers which results int effective achievement of the goals
and growth. Therefore, in this way, Mr. Jack was able to effectively manage and enhance its
organizational effectiveness.
Impact of power, influence and conflict on the organization
The power, influence and conflict in the organization has a great impact or the
business and the organization as a whole. Influence is completely based upon the power
which ahs many forms. This has been discussion below.
Rational power: This power is generally being accepted by the employees which is
laid down as rules which are considered as legitimate. There is no or very little question
about its source or its usage is proper or not. Once it is accepted in the organization it would
be accounted as legal and that influence will be classified as the rational power.
Reward power: It comes with the ability of the person to control and provide benefits
to the others. The controller has the advantage to reshape the behaviour of others in the
organization just with the help of the benefits (Santos and et.al, 2020). The main strength of
this power runs on two things which is the size of the reward and the belief that it will be
provided.

Coercive Power: Under this, the person in power has the ability to take the things
away from other or just punish someone for improper working or something else. It mainly
works through fear and forces people to do things which are not done if ordinary choice is
being made.
Referent Power: This form of power exists when the one person has an influence over
the another as the other identifies him or her. For instance, the B will have influence over A
this is because B identifies A.
Charismatic Power: This power comes from the personal qualities of the individual,
for example, how much we like, regard, and need to resemble them. Referent force is
regularly called charisma—the capacity to pull in others, win their esteem, and hold them
enchanted.
Expert Power: This power exists where one applies impact over others due to one's
possession of the information, skills and knowledge or extraordinary aptitude. This ability
draws respect for the experts. For instance, Nobel Scientists are regarded for their abilities
and because of these skills; they are said to have expert power.
Based on the different forms of power it can be inferred that BAT has implemented
reward power which results into effectively managing eth employees with the hep of the key
benefits that can be availed by them. This will be completely based on the performance which
assist the organization in managing the flow of power and influence in the organization in an
effective manner which resulted into reduction in conflict.
Application of motivational theory
Abraham Maslow has stated that the human is mainly motivated by the 5 essential
needs. This has been demonstrated with the help of the pyramid known as the hierarchy of
needs. As one level of need is satisfied it moves to the another, it keeps on persuading the
individual to achieve the higher levels as one level completes. The Maslow model has been
applied on the British American Tobacco which is described below.
The Physiological needs
This needs in BAT includes the place of work for the employees. The company is
effective in providing the good working environment with timely payment of salary. The
company has also worked on providing the good facilities to its employees such as

restaurants, providing meals along with that it also provides private locker to each of its
employees for putting their personal stuffs.
The safety Needs:
The organization provides the formal employment contract along with the various
schemes like sickness, health insurance and so forth (Healy, 2016). This creates a sense of
security among the employees. It has also provided an option to join the union so that
employees have the feeling of belongingness in the organization along with ensuring good
health and safety standards.
The social needs:
The BAT has enabled various promotion for the groups and teams at the different
working levels of the organization. the company provides attractive offers and incentives to
its employees which helps them in earning higher which results into satisfying their social
needs.
Self Esteem needs:
BAT provides and put emphasis on the self-respect along with respecting others for their hard
work, achievement (Rakic and Zivkovic, 2017). The company ahs implemented the self
assessment system and the 360-degree feedback which helps in determining and recognising
the individual performance of the employees and celebrating their achievement.
Self-actualization Needs:
BAT offers different types of personality development and skill development plans,
recognition of the talent and skills of the employees. Providing them with the opportunity to
grow through promotion and the other career progression plans.
Therefore, this model of motivation clearly defines the various steps that has been
taken by the company in regard to motivating its employees towards work which has resulted
into improved and better performance of the employees. The employees feel positive about
the work and the work place which persuades them to work in a more focussed and integrated
manner.
Literature
Every business organization requires to implement one or two forms of the
management style which helps in in effectively managing and implementing the management

functions. This might not be possible in small firms but in the top multinational companies it
becomes very crucial to have implemented an effective management style. As defined by
Weiner (2020), it is also very imperative implement the well-designed organization structure
which tends to meet with the various organizational and employees needs leading smooth
flow of business information making it easy for running the business in a better and improved
manner. An organizational structure will work on enhancing the working efficiency of the
business and handling the crucial aspects of its in effective manner. This will result into
reduction in the mistakes and unwanted delays in the implementation of the plan. There are
different forms of leadership style which is being involved or utilized by the team leaders in
handling and motivating the team members in the right direction. Identifying and
implementing the right leadership style is very important for the purpose of enhancing the
efficiency level of the organization. For every organization it will be different as it is
completely based on the need of the organization. Apart from the above, all the business
firms are involved in motivating and influencing the employees so that they work with full
dedication and hard work so that the organization an achieve its objectives in the desired way.
Motivated employees tend to be very advantageous to the organizations in regard to the lower
absenteeism, lower employee turnover ratio and reduction in the recruitment cost. The power
and influence also play a significant impact over the functioning of the organization there, it
is important to manage it in the best possible manner. It is applicable to all the small and
large organizations because conflict and power is involved in all types of business.
Recommendations
Based on the discussion, it can be inferred that the current performance of the British
American Tobacco is good but it can be further enhanced and improved across various
aspects which will result into more benefits to the organization. Some of the useful strategies
are stated below.
 The organization should communicate clearly its expectations from the employees or
the assignments and should ensure that employees are clear about eth objectives of the
work as it increases the chance of completing it in an effective way.
 Regular and convenient evaluations guarantee workers know where they remain
consistently. Carrying out the evaluations routinely likewise keeps objectives in the
forefront of day by day undertakings.
 Workers perform better when they are happy with their activity. Survey things, for
example, workplace surrounding, benefits, compensatory levels, representative

comprehension of the strategic vision, Workers who see how their job enables the
organization to succeed are regularly all the more ready to do their absolute best.
 Implementing the latest and more effective technology in the workplace also has the
tendency to drive the performance. This is very essential because nowadays,
everything is technology driven especially when the organization is having the
decentralized staff. The organization achieves success only when it thrives with the
right set of rules and system which will result into improved and better performance
of the employees.
 Engaging workers can take on numerous structures as they gain the position to settle
on choices that largely affect their prosperity. Regardless of whether it is giving them
contribution on objectives and goals, or permitting them to get to their information
without going to HR, minor barriers won't hinder their advancement. They have the
assets they need, yet realize they are considered responsible without being
micromanaged.
 The company has mostly focussed on the overall performance of its divisions thus, it
is important for it move their focus towards the individual performance of the
employees. This will result in determining the areas of expertise of the employees so
that next tie task can be allocated based on the area of specialization resulting into
sharpening the existing skills of the employees.
CONCLUSION
Thus, it can be concluded that the CEO Bat has affectively managed the organization by
implementing the right systems and style in the right place which leads to the achieving the
desired objectives. There are certain recommendations is being provided which will help in
further enhancing the performance.

REFERENCES
Books and Journals
Choi, S. B., Kim, K. and Kang, S. W., 2017. Effects of transformational and shared
leadership styles on employees' perception of team effectiveness. Social Behavior
and Personality: an international journal. 45(3). pp.377-386.
Davis, M. W. and Dolson, M., 2018. Managing organizational culture and design during
succession. Journal of Practical Consulting. 6(1). pp.45-54.
Flanigan, M. S., 2016. Diagnosing and changing organizational culture in strategic
enrollment management. Strategic Enrollment Management Quarterly. 4(3). pp.117-
129.
Healy, K., 2016. A Theory of Human Motivation by Abraham H. Maslow (1942). The British
Journal of Psychiatry. 208(4) pp.313-313.
Johansen, M.L. and Cadmus, E., 2016. Conflict management style, supportive work
environments and the experience of work stress in emergency nurses. Journal of
Nursing Management. 24(2). pp.211-218.
Nasaireh, M. A., Abdullah, A. H. and Obeidat, K. A., 2019. The Relationship Between
Cultural Types According to Handy’s Model and Organizational Structure in
Jordanian Public Universities. INTERNATIONAL JOURNAL OF ACADEMIC
RESEARCH IN BUSINESS AND SOCIAL SCIENCES. 9(1). pp.973-985.
Rakic, T. and Zivkovic, S., 2017. Hierarchy of Needs and Correlation Connections as an
Important Element of Successful Employees' Motivation. Ekonomika, Journal for
Economic Theory and Practice and Social Issues. 63(1350-2019-2907). pp.62-73.
Ramos, P., Mota, C. and Corrêa, L., 2016. Exploring the management style of Brazilians
project managers. International Journal of Project Management. 34(6). pp.902-913.
Santos, K. E. S. and et.al, 2020. Power Influence and Conflict Management of Ready-to-
Wear (RTW) Store Supervisors. Open Access Library Journal. 7(03). p.1.
Weiner, B. J., 2020. A theory of organizational readiness for change. In Handbook on
Implementation Science. Edward Elgar Publishing.