Organisational Theory and Practice at British American Tobacco

This report explores the management style, organizational structure, leadership style, motivation, and effects of power and conflicts at British American Tobacco. It provides insights into the theory and practice of organization at BAT.

ORGANISATIONAL
THEORY AND PRACTICE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK A...........................................................................................................................................2
Management style and state the principle and functions of management used by the CEO of
British American Tobacco...........................................................................................................2
TASK B...........................................................................................................................................3
Organisational Structure and Organisational Culture at British American Tobacco..................3
TASK C...........................................................................................................................................4
Leadership style of the CEO of British American Tobacco to enhance the organisational
effectiveness................................................................................................................................4
TASK D...........................................................................................................................................5
Effects of power, influence and conflicts at the British American tobacco................................5
TASK E...........................................................................................................................................6
Type of motivation used at British American tobacco................................................................6
TASK F............................................................................................................................................7
Relevant corporate example........................................................................................................7
TASK G...........................................................................................................................................8
Recommendations to increase Organisational Performance.......................................................8
REREFENCES..............................................................................................................................10

INTRODUCTION
An organization is a social group which is made up of a group of people who work
together with each other towards a common goal so that desired objectives and pre-defied aim of
the organization can be achieved (Cooper and et. al., 2019). There are many different kinds of
organizational theories and practises that help in increasing productivity of the company,
problem solving, increasing effectivity and efficiency of the organization, fulfil needs and
requirements of all the stakeholders of the company. These organizational theories and practises
are inter linked with each other that helps in explaining ways in which behaviour or attitude of
people working within organization is impacted, ways in which people are motivated in order to
achieve their target, employees interact with each other. These theories and practises also help in
increasing effectivity and efficiency of management and leadership practises that are carried out
within the organization. Management and leadership play a vital role in success or failure of an
organization. In order to achieve desired target, goals and objectives of business it is important
for company to adopt most appropriate and suitable theory and practise so that their overall
revenue and profit can be increased, positive culture and organizational environment can be
maintained and all the employees can be motivated so that they can work upon increasing their
efficiency for achieving target objective. This report is based upon British American Tobacco Plc
organization. British American Tobacco Plc or BAT is a multinational organization that sells
cigarettes, tobacco and other nicotine products globally in more than 180 countries (British
American Tobacco, 2020). This organization was established in 1902 whose headquarter is in
London, England. On the basis of net sales, in 2019 they became one of the largest cigarette
makers in the world. They have approximately 55,000 employees working for them. This report
will further focus upon describing management style of Mr. Jack Marie Henry David Bowles
who is the CEO of British American Tobacco Plc. Other than this management functions and
principles, organizational culture of British American Tobacco Plc, effect of power, conflict and
influence on organization, leadership style of CEO of British American Tobacco Plc, and lastly
different types of motivation used by British American Tobacco will be focused upon.
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TASK A
Management style and state the principle and functions of management used by the CEO of
British American Tobacco
Management style is a kind of method which is used by a person for management of a
group of people or an organization. Management style is one of the main factors that helps in
success of an organization. Jack Marie Henry David Bowles has a unique management style that
helped the organization in achieving success. Management style adopted by Jack Marie Henry
David Bowles for success of British American Tobacco. Management style adopted by CEO of
British American Tobacco has helped them to enhance their business in a more appropriate
manner and has also helped in becoming largest tobacco organization in the world according to
the net worth. It has been observed that Jack Marie Henry David Bowles uses both collaborative
and transformational management style according to the situation for growth and development of
the organization. Collaborative is a management style which is made up of different kinds of
management techniques that not only helps the manager in management of all the functions and
processes of the organization but also helps them in increasing motivation and satisfaction level
of employees, enhance their efficiency, increase team work and also helps in development of
learning culture within the environment (Ollong, 2017). It is one of the main management styles
which is adopted by CEO of British American Tobacco organisation. Transformational
management style is another kind of approach is us used by CEO of British American Tobacco
company for motivating their employees. Using this style manager leads transformation in
process or functions for inspiring, motivating and encouraging their employees and for bringing
continuous innovation in order to achieve success. Out of bot the management style Jack Bowles
uses transformational management style for motivating their employees and for increasing their
effectiveness and efficiency.
There are many different kinds of principle and functions of management that are being
used by CEO of British American Tobacco, such as:
Planning: It is one of the main functions of management which is focused upon by managers for
creation of strategies and action plan in order to achieve desired goals and objectives of the
company. It helps the managers to manage and plan working of all the operations and functions
of the organization. It further helps the managers in getting an idea of ways in which all the
business functions are required to be managed.
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Organizing: It is another main function of management that helps in organizing all the resources
of the organization in a proper and appropriate manner like human resources, raw materials and
many more (Ollong, 2017). Organizing helps the managers in allocation of task and resources in
such a manner that input put is minimum and output is minimum.
Directing: When task and duties are allocated, managers direct all the employees by providing
them with required support, guidelines so that all the functions can be completed in a proper and
appropriate manner.
Controlling: After providing appropriate directions to employees it is important to adopt proper
controlling technique so that task allotted ate on right track and can be completed in a proper and
appropriate manner.
These are some of the main principle and functions of management that are used by CEO of
British American Tobacco for achieving success.
TASK B
Organisational Structure and Organisational Culture at British American Tobacco
Organisational structure can be defined as system that involves and outlines activities and
their direction in order to achieve goals of British American Tobacco. These activities in
organisational structure include rules, roles and responsibilities. Structure of organisation also
includes flow of information and reporting relationship in different roles within organisation.
Concerned with organisational structure of British American Tobacco board of British American
Tobacco involves CEO and Chairman of the board followed by 9 directors (Shafie and et.al.,
2018). Under CEO roles and responsibilities executed are assistance general counsel and group
company secretary, Chief marketing officer, director of digital and information, director of legal
and external affairs and many other roles. This means that every important activity in
organisation is carried out and leaded by either their chief officer or directors have been
appointed by the company. This means that all organisational activities are well managed with
having effective leadership for them.
Organisational culture refers to a system of shared values, assumptions and beliefs that
govern how members of the organisation behave and what govern their behaviour.
Organisational culture has strong influence on the people and members of the organisation and
performs their job in organisation. Organisational culture of the British American Tobacco
focuses and requires people in organisation to be ambitious, courageous and resilient. Followed
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by this organisational culture of British American Tobacco also ensure that people in
organisation learn quickly and are responsive to opportunities. This means that organisation and
people in organisation become passionate owners and inspire other organisational members
(Anitha, 2016). Organisational culture of British American Tobacco also focuses on driving high
performance, developing next generation leaders and valuing diversity of employees in
organisation and culture of British American Tobacco also focuses in creating an engaging
culture for individuals and teams to be successful.
This culture and values of culture of British American Tobacco make positive impact on
the employees because this highly focuses on employees and their development. However
ultimate objective for focusing on development of employees is that they are able to drive high
performance and bring effective results.
TASK C
Leadership style of the CEO of British American Tobacco to enhance the organisational
effectiveness
Success of leadership plays important role in success of organisation and in relation with
success of leadership style of leadership is most important factor affecting leadership style of
one. Leadership style refers to the way that leaders use in their leadership to achieve vision and
objectives of their leadership. There are several styles of leadership that leaders can adopt and
adoption of leadership style depends on two important factors that are organisation and its
approach for leadership and individual beliefs and approach of leader towards leadership (Wang,
Demerouti and Le Blanc, 2017). Considering these elements of leadership and leadership style it
can be considered that leadership style of CEO of British American Tobacco is transformational
leadership style. This is because transformational leadership style is based on elements such is
encouraging innovation and focused on creativity and changes. This means that transformational
leaders or leaders having transformational leadership style mainly focus on innovation and
changes and concerned with leaders always encourage and motivate subordinates and employees
to identify and develop innovation solutions to their problems and they also focus on adopting
changes. the belief of such leaders is that changes are important for future success of growth of
organisation. on this basis sustainability is highly emphasized in British American Tobacco and
its operations and this is why leaders and CEO of British American Tobacco adopt
transformational leadership style. Along with this development and growth of employees is also
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considered important in British American Tobacco and this is also an important element of
transformational leadership style. All these elements suggest that transformational style of CEO
of British American Tobacco and its suitability for the organisation. Transformational leadership
style have some specific elements that are-
Inspirational Motivation
This means that transformational leaders have a vision and on the basis of this vision
leaders motivate subordinates and employees. This means that leaders are able to communicate
vision in such way that is appealing to employees and they get encouraged to achieve the vision.
Idealised Influence
This means that leaders having transformational style of leadership behave the way they
want subordinates and employees to behave and create model for them (Willis, Clarke and
O'Connor, 2017). This means that transformational leaders do what they want others to do.
Intellectual Stimulation
This is concerned with encouraging employees and subordinates to be creative and
innovative. Transformational leaders are not afraid of change and believe in taking risk and
motivate others to take risk and innovate.
Individualised Consideration
This is concerned with providing individualised consideration to employees based on
their capabilities and abilities. Leaders also believe in motivating and encouraging employees
and also focus on their individuals’ needs and concerns.
TASK D
Effects of power, influence and conflicts at the British American tobacco
There are some critical effects of power and influence on its performance such as:
It is based on cultural norms and some different powers affect in different manner:
Reward power: it is the main power which is being used in all companies in which employers
have power of giving rewards to employees on the basis of their performance. Employees who
contribute the more in accomplishing goals of company get more power of promotion and others
so, it can be said that it is biased free so have positive effects in accomplishment of goals ( Chae,
Choi and Hur, 2017).
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Corrective power: In this type, an individual with power forces other people to work with
keeping his will. It may have both positive and negative effects a it all depends upon the way of
using and the time of using. If people with power use it in while giving punishments then may
have some negative effects.
Workplace conflict: Workplace conflict has negative effects on performance of this company as
it reduces staff retention rate and increases absenteeism. There are several reasons which lead to
workplace conflicts such as biased nature of manager towards some employees, lack of
psychological safety, lack of motivation and opportunities. When people do not find themselves
safe at working environment then they find problems in concentrating on their functions which
lead to poor performance and poor productivity. Biased nature of manager also creates conflicts
among employees and has several negative effects.
So, from the above discussed power and conflicts impacts it can be said that company
require implement8ing some anti-discrimination and other policies and also need to promote
team working for improving relation.
TASK E
Type of motivation used at British American tobacco
In the context of British American tobacco it can be said that it is the world’s most
international tobacco group and has around 55000 employees. Managing all employees is not an
easy task. It is important for this company to motivate them for increasing retention rate because
it believes that employees are one of the main important asset which can help company in
accomplishing goals. So, it makes use of some effective approaches and models for motivating
different types and nature of employees such as:
Maslow’s Hierarchy motivation: This is one of the best models because it allows company to
motivate different nature of employees in a systematic manner as per their needs such as:
Psychological needs: It is believed that all people have such needs as it includes: food, water,
rest needs. People at initial stage requires such needs and by focusing on providing basic salary,
company tries to fulfil these needs of employees and motivate them to stay with the company.
Safety needs: After completing and satisfying basic needs, people seek for safety needs. There
are several companies which do not consider this factor and do not focus on providing safe
working environment. But those companies who focus on providing a friendly and a safe
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working environment to their employees, they are more likely to have skilled and loyal
workforce. It is found that this British American tobacco company get their employees insured
and provide all facilities under employees insurance in order to make them feel safe and
motivated (Bouzenita and Boulanouar, 2016).
Belongingness needs: It is third level of need in which people seek for love and people who can
take care of them and can interact with them whenever they feel low and stressed. For this, it
provides a friendly environment and promotes team working where all members get
opportunities of communicating with each others. It improves their relation and makes them able
to stay with the company. In addition, company also provide flexibility in working hours in order
to allow their employees to enjoy their social life along with professional life.
Self esteem: It refers a feeling of accomplishment and it is 4th level of need. After completing all
above discussed needs some people seek for this need and by providing promotional and other
opportunities, this company motivate employees. On the basis of performance , employer
provide transfer and promotional motivations as it makes them feel valued and motivated.
Self actualization: It is the last stage of need and only few people have such needs in which they
want to make their employees feel proud. They want to enjoy the moment of accomplishing
everything and it is being satisfied by praising employees and celebrating their success
(Shahrawat and Shahrawat, 2017).
So, from the above discussed all techniques and ways it can be said that British American
Tobacco Company uses appropriate model and it helps it out in motivating in increasing staff
retention rate.
TASK F
Relevant corporate example
In the context of management it can be said that British American Tobacco follows
hierarchical structure as it allows making a chain of information and command flow in an
effective manner but the power is in the hand of the top-level of management. Subordinates
require communicating with upper level of management in case of queries and completing
functions.
As per the Schaltegger, Etxeberria and Ortas, (2017) organizational structure as well as
corporate sustainability is one of the effective examples of effective organizational management.
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Both allow companies in satisfying needs of environment, social and economical. By focusing
on satisfying all needs and completing functions in an effective manner British American
Tobacco can accomplish all of its goals of building a better tomorrow by reducing health impact
of business via offering greater choice of less risky products to consumers. It is also found that
this company try to satisfy needs of present consumers without hurting needs of the future
consumers and it is one of the best examples of its corporation as a sustainability and efficiency.
It is also found that this company is owned by shareholders whose rightful expectation is
that it should grow its profitability by the members of its Group. As a corporate social
responsibility, sustainability and effective corporate example it takes responsibility of competing
lawfully of its share of the legitimate market amongst informed adult tobacco consumers.
TASK G
Recommendations to increase Organisational Performance
On the basis of discussion it can be said that British American Tobacco has effective
performance and management and this is made a significant contribution in success of the
organisation. However, one of the elements regarding management and hiring at the organisation
suggests that organisation is involved in hiring top management with those who are already
working with British American Tobacco. This suggests that they avoid hiring from outside the
organisation specifically for higher position. However, this has several positive elements and
factors yet hiring a part of top managerial position from outside organisation because this adds in
value that managerial positions have (Ahmed and Ahmed, 2019). This is because recruitment
from external sources adds value in experience and knowledge that people already have. This
enhances and increases experience and knowledge that employees of the organisation do have.
Hiring from external sources also allows organisation to have creativity and information that
lacks in existing employees of the organisation. Employees recruited from external sources bring
fresh skill and input with them and also enhanced competition in the organisation. This means
that hiring from external sources can improve performance of British American Tobacco.
Other than this one of the suggestion for improving performance at British American
Tobacco is that company should focus on intrinsic motivation and sources of intrinsic motivation
(Makki and Abid, 2017). This is because intrinsic motivation of the employees plays a more
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important role in improving their performance and encourages them to take steps and initiatives
through which they can improve their performance in organisation.
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REREFENCES
Books & Journals
Ahmed, K.U. and Ahmed, B.F., 2019. External Recruitment Practices of an Organization.
Anitha, J., 2016. Role of Organisational Culture and Employee Commitment in Employee
Retention. ASBM Journal of Management. 9(1).
Bouzenita, A.I. and Boulanouar, A.W., 2016. Maslow’s hierarchy of needs: An Islamic
critique. Intellectual Discourse, 24(1).
Chae, S., Choi, T.Y. and Hur, D., 2017. Buyer power and supplier relationship commitment: A
cognitive evaluation theory perspective. Journal of Supply Chain Management, 53(2),
pp.39-60.
Cooper, M.L., and et. al., 2019. Conflict management style and exhaustion in public
accounting. Managerial Auditing Journal.
Makki, A. and Abid, M., 2017. Influence of intrinsic and extrinsic motivation on employee’s task
performance. Studies in Asian social science. 4(1). pp.38-43.
Ollong, K.A., 2017. Contentious corporate social responsibility practices by British American
Tobacco in Cameroon. Conjuntura Austral, 8(41), pp.86-105.
Schaltegger, S., Etxeberria, I.Á. and Ortas, E., 2017. Innovating corporate accounting and
reporting for sustainability–attributes and challenges. Sustainable Development, 25(2),
pp.113-122.
Shafie, N.A and et.al., 2018. Effects of organisational structure on social value: Mediating role of
financial performance. Management & Accounting Review. 18(3). pp.1-30.
Shahrawat, A. and Shahrawat, R., 2017. Application of Maslow’s hierarchy of needs in a
historical context: Case studies of four prominent figures. Psychology, 8(07), p.939.
Wang, H.J., Demerouti, E. and Le Blanc, P., 2017. Transformational leadership, adaptability, and
job crafting: The moderating role of organizational identification. Journal of Vocational
Behavior. 100. pp.185-195.
Willis, S., Clarke, S. and O'Connor, E., 2017. Contextualizing leadership: Transformational
leadership and Management‐By‐Exception‐Active in safety‐critical contexts. Journal of
Occupational and Organizational Psychology. 90(3). pp.281-305.
Online
British American Tobacco . 2020. [Online]. Available Through: < https://www.bat.com/ >
Campaign and Activities 2018. Online Available through: <
https://www.dentalhealth.org/campaigns-and-activities>
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