Organizational Theory and Practice

This report explores various aspects of organizational theory and practice, focusing on the style of management, organization structure, leadership style, power and conflict in organizations. It also discusses the various types of motivation used at BRITISH AMERICAN TOBACCO. The report provides recommendations for improvement based on the assessment of the company's performance.

ORGANIZATIONAL THEORY
AND PRACTICE

Contents
INTRODUCTION...........................................................................................................................3
A) Examine the style of management with its functions and principle of management.............3
B) Analyze the steps taken with regard to organization structure in order to achieve high
performance and state the organization culture and its impact on employees.............................4
C) Leadership Style of CEO to enhance the effectiveness of the company...............................5
D) Analyze the effects of power, influence and conflict on the organization.............................5
E) Discuss the various types of motivation used at BRITISH AMERICAN TOBACCO..........6
F) Use appropriate corporate examples and literature to justify your stand................................7
G) Recommendations..................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Organizational theory is the study of organizations for the benefit of identifying common themes
for the purpose of solving problems, maximizing efficiency and productivity, and meeting he
needs of stakeholders. British American Tobacco plc is a British multinational company that
manufactures and sells cigarettes, tobacco and other nicotine products. The company, established
in 1902, is headquartered in London, England. As of 2019, it is the largest cigarette maker in the
world based on net sales. This report contains issues such as the style of management with its
functions and principle of management. The steps taken with regard to organization structure in
order to achieve high performance and state the organization culture and its impact on
employees. Leadership Style of CEO to enhance the effectiveness of the company. The effects of
power, influence and conflict on the organization. The various types of motivation used at
BRITISH AMERICAN TOBACCO and the recommendations on the basis of assessment of the
report that what changes will help the company to make improvement in their performance. This
assessment covers every detail about the CEO of the company that is Jack Bowles and the
strategies undertaken by him. This report clearly states that changes has been made in the
working of the company since the last year after the CEO took his position as the way of
working is different from other previous CEOs. This report also mentions the importance of
activities of CSR and why it is necessary to keep the employees motivated as the main objective
of the company is to improve their performance and take the no one position in the market and in
order to do that it is necessary to comply with these changes (Macnamara, 2016).
A) Examine the style of management with its functions and principle of management.
The CEO of the company uses Authoritative style of management which states that they
want things as per their decision because they believe that they are right by their experience. If
by any chance employees of the company do not respect to the order given by CEO and do the
task on their own then they will be punished. Generally there are five functions of management
and they are planning, organizing, staffing, controlling and directing. These functions help the
company to work with a futuristic approach that is why before coming up with something new
CEO of the company makes it sure to comply it with all these factors. This way they will be able
to design the strategy in a perfect manner and the chances of failure will be reduced as all of the

measures will be taken after planning which will work as a blueprint for the company (Waldman
and Jensen, 2016).
The CEO of the company is Jack Bowles and its been a year since the company has been
under his direction. As per the data analyzed it is assured that the leadership and management
style brought by him to the company has changed their way of working. The reason behind this
earlier the company did not used to respect the culture of the market, its needs and enable
practices on their own because of which company has to go through many lawsuits which
affected their name and reputation. But its been a year since the CEO of the company changed
and there has been no controversy after that in fact they have increased the no. of brands be it
local or international in their portfolio. It is because of the style of management used by him and
implemented in the culture which has kept even the employees of the company under control and
helped the company to achieve their goals and objectives. Although as per the discussion on the
basis of my opinion it would be helpful for employees if autonomy is given to them by the
leaders of the company so that they take their decisions on own (Lowe and Wilson, 2017).
B) Analyze the steps taken with regard to organization structure in order to achieve high
performance and state the organization culture and its impact on employees
In order to achieve high level of performance company has complied with structure that
is functional. This structure is suitable for the company as British American Tobacco has many
international and local brands under it and to maintain their services it is necessary that they
divide their employees into different departments and teams in it so that they can focus on each
area as per their expertise and increase the level of performance. Company will divide the
employees in different fields such as field of marketing, information technology, human
resources, financial etc. this will be beneficial for the business as on the basis of this the
management of the company will be able to get the insight about the performance of each
department. This way they will be able to make the required changes so that they can reach the
expected level of performance. Other than this when employees work as a team they will be
given a budget in which they need to carry out their activities which is very cost effective
method. Many of the employees train together for the job which reduces the chances of getting
engaged in conflict and that maintains the continuous flow of work. Although there are impact
on employees for implementing this structure which is affecting the rate of their development

such as they are not adaptive to change when it is required as per the trend which sometimes
affect the sales of the business. Other than this structure of organization is time consuming as it
does not respond to change which makes the process slow and which is why the task they are
assigned to do are not able to finish it in time. This structure makes the line of product slow
because of the narrow channels.
C) Leadership Style of CEO to enhance the effectiveness of the company
The leadership style of CEO of British American Tobacco company is Coach Style
leadership as the focus of the leaders is on performance of the members of the team as this way
they assess their strength and weakness. After this analysis company distributes them in team as
per their strength and weakness and requirement of the team. By working together in a team they
are able to improve their performance because members of the team support individuals who are
new. This style of leadership is similar to the form of leadership that is strategic and democratic
but the main focus is on the growth and success of individual employees (Heding, Knudtzen, and
Bjerre, 2020).
The style of CEO is different from earlier ones because they do not pressure on their
employees it is in the management of the company to complete the task as per the orders given
but the focus of the leader is on improving their performance by allowing them to make a team
where each employee has skills in different areas and work as per their expertise. The CEO of
the company believes that with the help of this approach they will be able to make teams which
are stronger and can communicate in better manner by increasing the skills of them so that they
can efficiently complete the work (Dalkir, 2017).
CEO of the business helps them so that they can increase their strength and to test them
they give them tasks as per their suitability and provide them with guidance. After the task is
completed the management gives them a feedback which helps them to shape their own work so
that there are no errors in it. This way they boost the morale of other members of team so that
they can expand and work more on this area this way member of the team will be able to learn
more with the help of other members who are experienced (Hatch, 2018).

D) Analyze the effects of power, influence and conflict on the organization
Power is that aspect which is derived from either knowledge or experience of an
individual. When the individual has support of company over his power then that will be termed
as authority. The influential point of power is determined by the position on which members of
the team are working in the company. This is why power is also applicable in the case of
interpersonal aspects. The influence of power is that it can be used negative sometimes which
affects the whole working of the company. It is necessary that the management of business
assesses these forces so that there is no case in which this scenario is born which happens when
they want to work for their own benefit instead of the company. positive side of power is it keeps
discipline in the company and maintains the culture and code with ethics without the power in
the hands of British American Tobacco company employees won’t be able to complete the work
in time by following all the protocols (Manning, 2017).
The effect of conflict in the business is drastic as it can make the whole progress slow
such as the process of decision making get disrupts. It can begin on any issue and delay the
whole program the company was working on. It takes time to get out of conflict as it creates
frustrations in minds of members of team and that leads to confrontations that will limit the
growth of the business. Although there is no escape from it because not only it happens in British
American Tobacco Company but in every organization it takes place. There are both positive as
well as negative effects of conflicts in British American Tobacco Company. Negative effect it
does on business is that because of it the productivity of business gets affected. It is because they
do not share the information with each other which takes time and by any chance if it extends for
long period of time then it will create more stress between them. On the other hand positive
effect of conflict is that after the dispute company has the chance to evaluate the forces of the
environment again so that they can be sure before making a final decision (Garvey and et.al.,
2017).
E) Discuss the various types of motivation used at BRITISH AMERICAN TOBACCO.
By keeping the employees of the company motivated they keep them away from the
issues of stress and focus on attaining goals of the company by improving the efficiency of work.
In order to keep them motivated British American Tobacco Company uses the model of
Maslow’s hierarchical theory and it derives the stages of need in five levels.

Physiological Needs-
This aspect of need is considered as the basic level of need because it includes needs of
humans such as home, clothing, food etc. if these are not fulfilled then humans won’t have
expectations of any other things. This is why British American Tobacco Company take care of
these needs of the labor who are a part of the company so that they are satisfied.
Safety Needs-
This is the second stage of needs, this need states that employee is concerned with their
own safety which is in terms of their health, security of their family, security of their finances
and cases of accident. That is why British American Tobacco Company offers employees
services of medical insurance and decent packages so that they remain motivated and focused in
work (Crawford, James and Oplatka, 2017).
Social Belonging-
This is the third stage of need model, this states that employees need to have their needs
fulfilled which are concerned with having a sense of relationship with friends and acceptance
where they live from the members of the society. In order to deal with this need British
American Tobacco Company has assigned new members in teams where they can make friends
at work and discuss their work life with them so that load of work can be shared and reduced.
Self Esteem-
When this stage of need is reached human of developed ego or meeting the needs that
match their status or improve their standard of living but for those employees who are not able to
achieve success they get depressed that is why CEO of the company has made a rule and that is
to respect everyone in the company irrespective of their designation. This will help them to stay
satisfied and focus on work (Ruben and Gigliotti, 2017).
Self Actualization-
This need is the last stage and it is that need which will keep the humans motivated when
they have achieved things as per their full potential. There are only few who reaches at this stage
and for them British American Tobacco Company sets a meeting and they are selected for the

position which is the top most in the company such as CEO, COO so that they stay motivated
(Cole and Martin, 2018).
F) Use appropriate corporate examples and literature to justify your stand
As per the view of (Burke, 2017) British American Tobacco has stared many campaigns
just so that they can keep up with the activities of CSR. They are working on making changes
and shaping the industry of tobacco so that they can sustain the market and achieve long term
growth. Company will focus on reducing the rate of health issues which is caused by products
offered by them. Other than this they are looking in contributing the area of farming so that they
can sustain it. The company supports those farmers fully who supplies them leaves of tobacco.
This is the core need of their product they take leafs from suppliers and fulfill their objectives
and then they focus on developing the growth of their farmers by contributing in their machinery
and equipment so that improve their business and earn more.
In accordance with (Bowen, 2016) the main focus of CSR activities of company is on the
issues of reduction in the level of harm caused to people, agriculture on a sustainable basis and
improving the livelihoods of farmers and maintaining their behavior in the sector of corporate.
Currently the most important and severe campaign of the company is reduction of harm from
tobacco. The community of scientific and public health has raised concerns over the use of
tobacco so that they can help around 1.3 billion smokers over the world, for those smoking is
very crucial and they are still doing it. This is why British American Tobacco has tied up hands
with them so that they can conduct research of the market so that they can come up with
alternatives of nicotine and tobacco products which are less risky for the consumers.
G) Recommendations
There are many areas in which company needs development and change their approach
which will help them to improve their performance. First one is to change the style of
management and the culture of the company as they are working with an orthodox approach
which is not allowing the employees to work on their own. The management style of the
company is authoritative and the only benefit of that is they are able to manage the work with
discipline. But on the other hand employees of the British American Tobacco are not satisfied
which is increasing the turnover of the company. They are lacking in maintaining the
professional development and engagement between employees. Employees are feeling that there

is competition between them and management. It is very important that approach of management
changes so that the level of innovation which is getting affected can be improved. Other than it is
necessary that management of the company looks after the motivation of the employees as per
their own wants because not everyone will be motivated with the same approach. It is necessary
that they come use different styles of motivation that too after analyzing their wants because
some of the employees will be motivated with awards for their performance and some of them
will be motivated with reward. That is the difference they need to assess in order to keep them
motivated. Apart from this the activities of CSR that are undertaken by British American
Tobacco needs to be more diversified and focused on the development of the society as their
current focus is developing the society in those areas with which they can improve their business.
That sounds and seems like a selfish deed in order to improve their reputation and gain
acceptance from people it is necessary that their sole focus while undertaking these activities
must be on the development of society such as providing education etc. if these measures are
carefully undertaken with the right implementation of strategies then they will be able to easily
increase the performance of their organization.
CONCLUSION
From the above studies it has been concluded that the management of the company works
with modern and independent approach because till the employees are not allowed to work with
autonomy then they won’t be satisfied. This will limit the growth of the company and they will
have to keep finding new employees as the rate of turnover will increase which will also increase
the cost and in compensation the disciplined culture of the company won’t help. It is necessary
that they cope up with the changes of environment and the ties that they have made with public
health officials otherwise legal actions can be taken against them. They need to design the
campaign for the development of society not for the improvement of business. Only this way
they will be able to establish themselves as a reputed brand.

REFERENCES
Books and Journal
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interdisciplinary view. Human Resource Management Review, 26(1), pp.4-13.
Burke, W.W., 2017. Organization change: Theory and practice. Sage publications.
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Theory: This Time with Feelings. AERA Online Paper Repository.
Dalkir, K., 2017. Knowledge management in theory and practice. MIT press.
Garvey, R., and et.al., 2017. Coaching and mentoring: Theory and practice. Sage.
Hatch, M.J., 2018. Organization theory: Modern, symbolic, and postmodern perspectives.
Oxford university press.
Heding, T., Knudtzen, C.F. and Bjerre, M., 2020. Brand Management: Mastering Research,
Theory and Practice. Routledge.
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Manning, K., 2017. Organizational theory in higher education. Routledge.
Ruben, B.D. and Gigliotti, R.A., 2017. Communication: Sine qua non of organizational
leadership theory and practice. International Journal of Business Communication, 54(1),
pp.12-30.
Waldman, D.E. and Jensen, E.J., 2016. Industrial organization: theory and practice. Routledge.