Organizational Theory and Practice

This document explores the theories and practices of organizational management, leadership, power, and motivation. It focuses on BRITISH AMERICA TOBACCO as a corporate example and provides literature to support the concepts discussed. The document covers topics such as management style and functions, organization structure and culture, leadership style, power and politics, types of motivation, and corporate examples and literature.

ORGANIZATIONAL
THEORY AND PRACTICE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
A. Management Style and functions............................................................................................4
B. Organization Structure and Culture.........................................................................................5
C. Leadership Style......................................................................................................................6
D. Power and politics in the organization....................................................................................7
E. Types of Motivation................................................................................................................8
F. Corporate examples and literature for justifying own stand....................................................9
G. Suggestions and recommendations for increasing organisational performance...................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
Online Reference:..........................................................................................................................12

INTRODUCTION
Organization theory refer to ways in which organizational goal accomplished. There are
many theories of organization which has be formed with changing world such as Classical
Organization theory, Neoclassical Organization Theory, Contingency theory, System theory etc.
This organization theory uses in various practices of the organization such as engage workers,
reward effort, be vulnerable, stay committed, seek clarity, cultural cohesiveness, team effort,
Meetings etc. Theories help in growth of the organization by changing in system, structure and
culture. It also impacts on employee’s relation and customer satisfaction level. BRITISH
AMERICA TOBACCO established in the year 1902 (BAT, 2018). Changing time company uses
various leadership style such as autocratic in the beginning and in the later period use
transformative leadership style. Company follow Henry Fayol principles in the organization for
effective management and hence able to increase quality, efficiency, productivity and a
sustainable business. Company's culture encourages and motivate employee for achieving higher
goals. Transformational theory is used in Management style by Management which develops
innovation and creativity of employees. Company divided it functions and give more autonomy
which increase performance of work and hence impact on growth of the organization. System
design theory use in structure and culture of the organization which improve atmosphere of the
organization for employees and hence increase quality, efficiency and productivity of the
organization. Group Thinker model use by organization with transformative leadership style
which enable company to achieve higher goals and impact on personal growth of the employees.
French and Reaven Power theory is use by the organization in power distribution and use by
different management and leaders. Expert and referent power is use by leaders which helps in
achieving higher goals for the organization. McClelland’s theory of needs motivation use by
organization in giving different type of motivation to employee and impact on their performance.
Report highlight Management style use by organization also give details about its function.
Report also describe about organization structure and culture and impact on employee's
performance. It emphasize on leadership style use by CEO and effect of power, influence and
conflict on company. It also describes various types of motivation use by firm. In the end report
gives corporate example and literature with recommendation for the organization.

MAIN BODY
A. Management Style and functions.
BRITISH AMERICA TOBACCO is one of the leading organization in UK, Succession
behind the organization is strong leadership and effective employees' involvement (Hatch,
2018). Company use transformational leadership in the organization to increase efficiency,
quality and productivity of the workforce. In the changing market and technological
advancement and increasing economy, personal growth of employees is focused by management
and hence more talented and skilled workforce contribute in organization's growth. Management
encourage employees for innovation and creativity in working culture and hence able to achieve
higher goals with the contribution of the employees. BRITISH AMERICA Tobacco's
management provide various training and development programs in the organization to
employee which help in gaining competitive advantage with advance skill and talented
workforce. Company also encourage for team participation in meeting which increase
communication skills of the employees and motivate them for future endeavours. Autonomy in
work culture is another factor that impact on growth of the organization. Management provide
awards, rewards, recognition, incentives, increment and promotion which also contribute in
growth of the organization. Management takes feedback and suggestion in training and
development program and work culture enhancement from the workforce and its build strong
employees relations (Waldman and Jensen, 2016).
Organization consider Henry Fayol principle in management of the organization.
Organization divide workforce according to skills and talent and hence increase, efficiency,
loyalty and productivity. Authority provide types of work system in the organization and on the
hand it is duty of workforce to follow according to provided guidelines. British American
Tobacco work culture is will manage with discipline and hence its impact on growth of the
organization. Company also provide different managers and team leaders in the organization so
that they will not confuse with different seniors different direction. Workforce and management
set fixed target and work on it and joint effort takes fruitful outcomes. BAT also provide various
awards, rewards, recognition, incentives, increment and promotion to employees which motivate
them for achieving higher goals.

Company has various function which impact on growth of the organizational. Marketing
and distribution function of the organization to connect with market and sell products, It also
analyses market taste and trends, product demand and feedback or suggestion from the customer.
By analysing market and customer satisfaction level provide report and details to R&D and
Production team. HRM of the organization provide various training and development programs
to the employee according to changing technology and trend. HR also hire talented ad skill
workforce for the organization. Corporate & Regulatory Affairs focus on commercial objectives
of the business. Company also has separate CSR which focus on sustainable growth of the
business with less environment affect.
B. Organization Structure and Culture.
System design Theory is used by BRITISH AMERICA TOBACCO to enhance quality,
efficiency and productivity of the organization. In this various department of organization are
interconnected but has autonomy at individual level. Company has functional structure and has
different department has own autonomy in work but interconnected through sharing of ideas.
Transfer of information contribute in growth of the organisation for example Marketing team
analysis taste and trend of customer, product demand and competitor, Suggestion and feedback
etc. After analysis, report is created which transfer to R&D and Production team for product
changes and management (Young and Ghoshal, 2016). Functions are divided according to work
for example recruitment and training and development handled by HR, Market and operation has
marketing team etc. This separate function of organization but CEO has control over it.
Departments have Managers and different team leaders which control operation and management
of work of the employees. Division of work according to function increase efficiency, quality
and productivity of the organization. Separate function provides training and development
programs according to require skill of the work. It also decreases tensions between department
for example Production and R&D if connected then production has to wait for R&D changes in
product and hence effect on timely delivery of the products.
BAT has friendly culture and hence all members of the organization focus to achieve
higher goals by supporting each other. Different management focus on growth of the employees
such as development of skill in advancing technology by providing proper training and
development programs, increase their financial capacity by remuneration. This increase loyalty,
creativity, innovation, efficiency and productivity of the employees and hence impact on growth

of the organization. Before starting any market or product development company construct
proper strategy and goals. Employees are guided and in detail explain the way in which goals of
the organization are achieved, it decreases any confusion among employees and hence able to
achieve higher goals. Management and Board of director focus on cultural changes in the
organization to achieve higher goals. System design theory is implemented from hierarchy to low
level and hence contribute in growth of the organization. Require modification and changes done
by the management for proper execution of work. Workforce provides various programs for
training and development according to changing culture of the organization. BAT make change
in legal structure of organization according to system design theory. This cultural changes help
employee engagement and contribute in growth of the organization.
C. Leadership Style.
Organization use Group -Thinker Model which helps in increasing creativity, innovation
and team participation of the employees. Organization CEO use transformational leadership style
dealing with employees with use of Group-Thinker Model. It gives more autonomy to employee
in their work and hence improve their skills and creativity which ultimately trigger organization's
growth. CEO also encourage employee in the organization for innovation and creativity and
hence this leadership style impact on growth of business. CEO also provide resources like raw
material, finance, design, similar example etc and hence support employee for product
development and innovation according to their own way. It decreases time and effort of the
leader(CEO) for focusing different employees work and employee has free hand for changes
which impact on their personal growth. Workforce focus on developing and innovating product
according to changing taste and trend of the customers and hence increase customer satisfaction
level and attract large number of customers. However, there are certain parameters fixed by CEO
which employees haven to follow in work culture but transformational leadership style of CEO
does not affect much from such changes. Leaders monitor operation by performance
management tools and product changes done or require. Leaders take suggestion and opinion of
employees before implementation and provide proper training and development programs and it
decreases time of leaders in providing unnecessary training (Sarich, 2016). Team participation of
employees again contribute for changes as per required by the employees. Feedback boxes are
provided in the organization by leaders for employees and hence able to solve problems timely.
Leaders also focus on personal growth of the employees for example promoting or providing

new opportunity if they are working well. Various awards and rewards are given by leaders to
employees according to their performance assessment on year bases. Bonus and incentives gain
contribute in personal growth of the employees in BRITISH AMERICAN TOBACCO. Time to
time increment in salary by leaders' suggestion to management again help employee in becoming
financial strong. Company's leaders also interact with each workforce and try to understand
problems or suggestion they require and hence decrease chances of isolation and depression
(Clegg, 2017). There are multiple programs organized by the leaders to refresh employees from
routine work for example sports week, dance and also provide refreshing activities.
D. Power and politics in the organization.
Company has functional structure which gives autonomy to different department and
hence create division of power (Amado and Amato, 2018). However, there are various problems
company faces in workforce management and building employees relations. Company has
transformational leadership but at various point few department team leaders take it advantages
to increase burden by giving extra work to employees. This extra work trigger mental pressure
which effect on efficiency, quality and productivity of the employees. Giving more autonomy in
words and actual are totally different for example few managers fear of decreasing quality of
products by employees innovation and creativity. More engagement of managers and team
leaders effect on creativeness and innovation of the employees. Influence of leaders also effect
on growth of the organization for example if the leaders influence by other leaders of different
organization so unable to follow company ways of dealing and working with the employees.
Company also influence from various macro factors such as political changes, economic reforms,
social changes etc. This effect on organization growth for example new economy policy After
COVID and BREXIT increase unemployment and inflation rate which decrease purchasing
capacity of consumers. There are many conflicts company faces such as among employees,
union vs management in the organization. There are many reason behind for example improper
work environment or culture for the employees and hence union raise such issue for changes.
Company use French and Reaven theory for power distribution and control the
employees. It describe power of the organization five forms, namely coercive power, reward
power, legitimate power, referent power and Expert power. In coercive power employees of the
organization work against their but in BAT this power is not use by management and leaders.

Reward focus on giving reward to employees for their achievement, BAT leaders use reward
power which increase, efficiency, quality and productivity. Legitimate Power use according to
position of individual for example if the employee is team leaders then reward and punish
according to his position, BRITISH AMERICAN TOBACCO Management use this power
according to their position in the organization. Referent Power emanates from idol of individual
but mostly it used with admiration or charm for example BAT's manager emanates from Tesco's
manager. Expert power define as power develops from experience and observation by individual.
Organization's CEO use Expert power in his decission.
E. Types of Motivation.
Company provide various kinds of Motivation in the organization such as achievement
motivation, affiliation motivation, competence motivation, power motivation, attitude motivation
and incentive motivation. McClelland’s theory of needs motivation is used by the organization
to give various kinds of motivation (Bagdadli and Gianecchini, 2019). It focuses on three
components such as achievement, affiliation and power.
Achievement Motivation:
In this individual is focused on achieving higher goals and company provide various
resource, training and development for doing that. Employees focus on personal growth such as
increase skill and talent according to changing market.
Affiliation Motivation:
Employees are motivated by the organization by giving them recognition in front of
people or award and rewards in various function for their accomplishments. Sometimes
affiliation trigger the performance of the employees and hence increase quality, efficiency and
productivity.
Competence Motivation:
Workforce motivate with greater performance and operating different kind of work for
example Marketing employee able to attract various kinds of customer for not popular product. It
increases their motivational level and able hence able to achieve higher target timely.
Power Motivation:

In this employee motivated for increase power and hence able to take risk and achieve
higher goals for the organization. In this power of the employee impact on efficiency, quality and
productivity.
Attitude Motivation:
Employee self-motivate for achieving higher goal for example regular success of
employee impact on attitude of worker to achieve higher success easily in future too,
Incentive Motivation:
Company provide various incentives on increasing performance of the employees and
hence increase their performance of work.
F. Corporate examples and literature for justifying own stand
According to Peters (2019) each company or business has highly required to make to use
different modern business strategies in this dynamic and modern world. There are top-level ma
management and administration of different companies like; CEOs and MDs have to highly
develop their skills of leadership, because this is very necessary to make different gain huge
competitive advantage in this highly competitive market. Many times, businesses not achieve
very effective return in market place just because of their poor leadership styles and strategies.
That’s why existing leaders, managers and CEO within each company have to make their
personality very effective and dynamic to systematically lead lots of people within the
workplace. For example; Elon Musk is one of the best corporate leaders in the across world.
Basically, he is the CEO of many businesses, like; Tesla Motors, SpaceX, etc. To handle group
of businesses is not a small task to a person, in which Elon Musk can simply manage its different
ventures or businesses just because of his effective leadership styles. In this situation, Elon Musk
and British American Tabaco’s (BAT) CEO Jack Bowls are the best examples for the CEOs and
MDs of other businesses.
On the basis of Dorfman (2017) there are top-level management of an organisation
should have very excellent and well-developed conflict management skills, because these skills
always supports in removing different conflicts from the work place. Mr. Bowls has these skills
in very well condition, so that he is able to simply manage different conflicts in workplace.
Basically, conflicts in workplace always very badly or negatively affects to any company’s
processes, in which existing management of every business need to take quick steps towards
developing own conflicts management skills. On the other side, organisational politics also

negatively affects to a business or company in market place, because politics has used by a
person within an organisation just because of fulfilling its personal advantages and benefits. This
politics aspect always demotivates employees in workplace, and at the end, employees will not
able to give their best performance in the workplace. Currently the BAT CEO Mr. Bowls
completely aware about the negative impact of politics, in which he made some strict policy
against people or employees of the company which uses politics in workplace. He said that,
politics can decrease the existing sales ratio of a company. That’s why it is very necessary to use
that, always avoid his negative factor from own business environment.
As illustrated by Vrieswijk (2017) the management of a company have to use different
types of motivation to highly motivate employees or workforce in the workplace. There are
motivating employees is very mandatory task to a company or business for taking very
productive work from all existing employees. The CEO of British American Tobacco currently
uses different styles of motivation, like; Achievement Motivation, Affiliation Motivation,
Competence Motivation etc. in which these all styles are enough to him for highly motivating all
employees in workplace. Day by day competition within each industry is increasing, in which
adopting and using different styles of motivation is the best deal to a business for gaining huge
competitive advantage in market place.
G. Suggestions and recommendations for increasing organisational performance
On the basis of above findings, CEO Jack Bowls have very appropriate styles and skills of
leadership. With the support of own effective leadership styles, Mr. Bowls is able to manage its
various organisational functions, but he still need to improve its various skills and competencies
for getting better outcomes in market place. For example; existing decision-making skills CEO is
not much effective, because many times he takes such decisions which negatively affects to
whole BAT company (Kohntopp and McCann, 2020). In this situation, Mr. Bowls have required
to take quick action towards developing its skills of decision-making. On the other side, top-level
management of British American Tobacco company need to follow the concept of continuous
learning in own personal life, because this is very necessary to him for making its company very
effective at the international level.
Mr. Bowls have to understand one little thing that, effective employee relations also plays
great role to a company as employee motivation. Of course, he has taken lots of steps towards
highly motivating its employees, but it needs to take actions or steps towards improving

employee relations as well. Basically, employee relations play an effective role to a business for
retaining its various talented and skilled employees, so that BAT CEO jack Bowls have to focus
on this factor. On the other side, the CEO should be focused on developing its business
strategies, like; marketing, HRM, conflict management and people management, because after
having appropriate business strategy, he will enable to gain huge profit in market place.
CONCLUSION
It can be concluded that the leadership styles play very effective role to the chief executive
officer of a company. With the support of well-developed leadership styles, British American
Tabaco’s CEO Mr. Jack Bowls is simply managing its various organisational activities and
operations in very effective manner (Tichi, 2016). It also can be concluded that, CEO Jack Bowls
has proper knowledge about the employee motivation as well, because he completely
understands that which style of motivation can play effective role him in the terms of motivating
different employees in the workplace. Currently CEO of BAT really has very dynamic
personality. On the basis of mentioned literature and examples, the CEO should be focused on
developing its business strategies, because BAT still uses many traditional strategies, so that it
can be concluded that, Mr. Bawls use some modern strategies of business, then it will achieve
positive outcomes in market place.

REFERENCES
Books and Journals
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Bratton, J. ed., 2020. Organizational leadership. SAGE Publications Limited.
Clegg, S.R. ed., 2017. Organization theory and class analysis: New approaches and new issues
(Vol. 17). Walter de Gruyter GmbH & Co KG.
Dorfman, H. A., 2017. Coaching the mental game. Rowman & Littlefield.
Hatch, M.J., 2018. Organization theory: Modern, symbolic, and postmodern perspectives. Oxford
university press.
Kohntopp, T. and McCann, J., 2020. Leadership in Virtual Organizations: Influence on
Workplace Engagement. The Palgrave Handbook of Workplace Well-Being. pp.1-26.
Peters, L., 2019. The Simple Truths About Leadership: Creating a People-Centric Culture.
Springer.
Sarich, R., 2016. Full life cycle analysis of Dunhill International cigarettes as produced by
British American Tobacco. ANU Undergraduate Research Journal.8.pp.157-167.
Tichi, C., 2016. The Facts of Life and Literature. In The Oxford Handbook of Jack London. (p.
27). Oxford University Press.
Vrieswijk, M., 2017. ADCN talent leader. In SIGGRAPH Asia 2017 Computer Animation
Festival. (pp. 1-1). ACM.
Waldman, D.E. and Jensen, E.J., 2016. Industrial organization: theory and practice. Routledge.
Young, C. and Ghoshal, S., 2016. Organization theory and the multinational corporation.
Springer.
Online Reference:
About British American Tobacco. By BAT, 2018, Available
Through<https://www.bat.com/group/sites/UK__9D9KCY.nsf/vwPagesWebLive/
DO52AD6H>