Organisational Theory and Practice

This document discusses the management style, principles and functions of management, organisational structure, leadership style of CEO, effects of power and conflicts, and types of motivation at British American Tobacco.

Organisational Theory and
Practice

Table of Contents
INTRODUCTION...........................................................................................................................3
Task A..............................................................................................................................................4
Management Style and principles and functions of management...............................................4
Task B..............................................................................................................................................5
Steps taken with regard to organisational structure.....................................................................5
Task C..............................................................................................................................................6
Leadership Style of CEO.............................................................................................................6
Task D..............................................................................................................................................8
Effects of Power, Influence and Conflicts...................................................................................8
Task E..............................................................................................................................................9
Types of Motivation....................................................................................................................9
Task F............................................................................................................................................10
Corporate example and literature to justify stand......................................................................10
Task G............................................................................................................................................10
Recommendations......................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Organisation involves several elements that contribute in normal and regular functioning
of the organisation and among all the elements of the organisation management is one of the
most important elements. This is because management in organisation undertake activities that
contribute in organisational operation, the activities that are planning, organising, coordinating,
directing and controlling these are some of the activities of management on the basis of which
other organisational activities are carried out. Management of the organisation gets affected by
style of management that means what particular way is adopted by the management and manager
of the organisation. Management styles in organisation are mainly considered with the styles of
top managers of the organisation. This report will discuss about management style of CEO of
British American Tobacco. Concerned with organisation and functioning of the organisation
structure of the organisation plays a very important role. Organisational structure can be defined
as layout and system in which certain activities are directed in order to achieve goals of the
organisation. This also inform about authority, responsibility structure and flow of information
along with informing and clarifying reporting of the roles. Organisational culture is another
important factor, this means a system of shared values, beliefs and assumptions that govern how
people behave in organisation. In present environment of business leader and managers are same
person and this is why along with management style they also have leadership style and
leadership style defined their style and specific way of leading the organisation. Followed by this
report will also discuss about effect of power, influence and conflict and types of motivation that
are used at British American Tobacco. British American Tobacco is British Multinational
Company that manufacture and sells cigarettes, tobacco and other nicotine products. The
company was founded in 1902 by Imperial Tobacco, American Tobacco Company as a joint
venture and James Buchanan Duke was first chairman of the company (Kehoe and Greenhalgh,
2018). The company is headquartered at London, UK and worldwide is served by the company.
The company owns several subsidiaries and employs around 55000 employees and as of 2019
company had revenue of £25.877 billion and net income of £5.849 billion.

Task A
Management Style and principles and functions of management
Management style that is way of managing the organisation plays an important role in
success if the organisation. this also reflect the value that is given to employees of the
organisation and what position does employees have when it comes to decision making of the
organisation. Concerned with this management style that is used by British American Tobacco
and its CEO is participative management style (Aqqad and et.al., 2019). This means that
employees and members of organisation are free to express their opinion and company considers
their opinion too. This style of management involve both governance by rules and regulations
and at the same time creativity of the employees is also used effectively by allowing them chance
to express their opinion and considering their opinion. Participation of employees in decision
making is also important for motivating the employees and ensuring that their talent and
creativity is utilised successfully.
Principles of management are those principles that guide management of the organisation to act
in certain way. Principles of management that are used at British American Tobacco are-
Division of Work- This means that focusing on personal and professional development and
ensuring employees expertise match with the area they are working in. British American
Tobacco ensures and focuses on development of employees.
Authority and responsibility- Authority and responsibility at British American Tobacco is also
well defined to all employees of the organisation.
Discipline- Discipline at British American Tobacco is means of ensuring honesty, integrity and
transparency and this is why this is well emphasized in organisational conduct.
Initiative- According to this principle employees of the organisation are allowed to express their
ideas and they are also considered by the organisation.
Equity- This is concerned with maintaining equality in employees and this principle is highly
valued at British American Tobacco.

Remuneration- This is one of the important principle that is applied by all organisations and this
is applied by British American Tobacco as well. Employees are paid well in order to make sure
they are motivated and productive.
Functions of management at British American Tobacco
Functions of management are those activities that are undertaken in context of the
management of the organisation (Terziev, Georgiev and Georgiev, 2017). Some of the functions
of the management those are undertaken at British American Tobacco are-
Planning- This involves activities that are undertaken regarding planning what organisation will
do in future and how it will be done along with role of individuals in the organisational activities.
Organising- This is concerned with organising all resources in order to ensure that all the
activities are effectively completed and resources are well aligned.
Leading- This is concerned with activities that involve directing and guiding employees in
relation with completing their work. This also contributes in motivating employees to effectively
perform.
Controlling- This is concerned with matching actual results with planed results and identifying
the reason for difference if any.
Task B
Steps taken with regard to organisational structure
Organisational structure refers to system of authority and responsibility in the
organisation and also ensures flow of information in organisation. Organisation structure also
plays important role in performance of the organisation. This means that properly defined and
well developed structure contribute in high performance of the organisation. The reason behind
this is that effective structure of the organisation is because all the responsibilities and authorities
are clear in effective structure (Shafie and et.al., 2018). In relation with structure of steps taken
with regard to organisation structure of British American Tobacco it involves 182 executives.
Structure of the organisation involves CEO, Chairman of the Board, and 7 Directors. Other than

officers for all important managerial activities, these are marketing, digital and marketing, legal
and external affairs, other than this Scientific Research, talent and culture, finance. These action
regarding organisational structure and all positions in this inform that there are roles and
responsibilities regarding all important activities and this ensure that organisation is capable of
functioning and undertaking all activities effectively.
Organisational culture refers to collection of values, expectation and practices that guide
and inform all individuals and members of the organisation. This means that organisational
consist of shared beliefs and mutual values of the organisation, culture of organisation has
specific and important impact on performance in organisation. Culture of British American
Tobacco involves developing talent from within, stretching and supporting the high performing
managers that contribute in delivering the strategy of British American Tobacco (Cheek and
et.al., 2019). Along with this culture of British American Tobacco also involve providing safe
place to work, protecting employees’ wellbeing and listening to their views is also fundamental
in culture of British American Tobacco. This has very positive impact on the employees and they
are motivated and encouraged with these factors in culture of British American Tobacco.
Contributing in development of the employees directly contribute in success of organisational
performance.
Task C
Leadership Style of CEO
Leadership plays important role in success of the organisation and effectiveness of
leadership also have significant impact on success of leadership. Leadership style of CEO of
British American Tobacco is considered to be transformational leadership. Transformational
leadership is a style of leadership in which teams to identify needed change and creating vision
to guide the change through vision (Popli and Rizvi, 2016). This means that in this leadership
style leader of the organisation encourage change and innovation because it it considered that
change is important for future growth and success of the company. This leadership style is
practiced at British American Tobacco and this can be understood by their approach of success
of business. this means that British American Tobacco focuses on sustainability of the business
and in order to maintain sustainability continuous innovation and creativity is very important.

This is one of the reason and justification of adopting and practicing transformational leadership.
Transformational leadership is based on four important and key elements that are followed by
CEO at British American Tobacco. These elements of this style of leadership are-
Inspirational Motivation
This means that leaders in this leadership style motivate employees and subordinates by
articulating vision. Leaders develop and articulate vision so that they can motivate and encourage
members and employees to achieve the vision. This is important that employees and members
are well aware about the vision of the leader in order to contribute in achievement of the vision.
They also ensure that vision that they are articulating is appealing to employees.
Intellectual Stimulation
This is concerned with encouraging and motivating employees to find creative solution
and bring innovation (Jermias, Gani and Juliana, 2018). Leaders in this also challenges
assumptions and take risks and ideas of the followers are also considered by the leader, leaders
emphasize on being creative and innovative.
Idealised Influence
This is concerned with individual behaviour and conduct of the leader which works as
model for the employees and subordinates. This means that leaders show the behaviour that they
expect from subordinates and employees and this involves role modelling for ethical behaviour,
instilling pride and gain respect and trust of subordinates.
Individualised Consideration
This is last element of transformational leadership and this element involves concern of
leader for each member and subordinate. This is related to giving individualised importance to
every member. This style also involve that leaders identify and understand specific expertise and
talent individuals and provide them roles accordingly.

Task D
Effects of Power, Influence and Conflicts
Power is organisation refers to having capability to affect and influence actions and
decisions of others, specifically those who are less in position or in the factor which allows
specific power to individual. Power in organisation has several types of impact and effect and
this can be positive as well as negative (Appelbaum and et.al., 2016). Effect that power has in
British American Tobacco involve adherence to rules and regulations of the organisation. This
means that power in British American Tobacco ensures that from the influence of leader and
managers in organisation all members and subordinates in organisation follow rules of the
organisation. This also contributes in ensuring commitment of the employees. Power in British
American Tobacco also bring harmony and plays important role in ensuring avoidance to
resistance of employees in British American Tobacco.
Influence also plays important role in British American Tobacco, influence in
organisations can be of several types, this means that influence can be of seniors and leaders and
this can be of co-workers as well. Influence in British American Tobacco contributes in
motivating and encouraging employee to perform well in organisation (Hasan, Islam and
Chowdhury, 2020). Influence of leader improves compliance and influence of co-workers
improved competition and this directly have impact on the performance of the employee in
British American Tobacco. Influence plays important role when leaders and superiors in British
American Tobacco are willing subordinates to behave in certain way and influence their
performance in organisation.
Conflict can be defined as disagreement and difference in opinion of individuals. In
organisation conflict in two organisational members can create difficulty for the complete
organisation and other members of the organisation who are not directly related to the conflict.
This is the reason that conflict is not considered good and desirable in organisation. Conflict in
British American Tobacco also not considered desirable and effects that conflict does have in
British American Tobacco involves decrease in productivity, especially those who are part of
conflict. This also cause employee turnover in organisation this means that due to conflicts that
employee have with their co-workers and with management they can leave organisation and this
negatively affect turnover in organisation. Conflict mainly is not desirable but still it can have

some of the positive effects in British American Tobacco (Cook and et.al., 2017). These effects
involves improved understanding, this means that conflict management and resolution of conflict
can improve understanding within individuals and groups. This also has positive effect on future
communication in individuals and groups.
Task E
Types of Motivation
Motivation can be defined the factor that stimulate willingness of individual and group to
perform in order to bring desired results. Types of motivation are of two types that are extrinsic
motivation and intrinsic motivation. Intrinsic motivation is the one in which individuals gets
motivated by internal rewards such as job satisfaction, self-improvement and job of individual
because of which individual feel good (Donald and et.al., 2020). This is known as intrinsic
motivation and other type of motivation is extrinsic motivation this is based in external factors
that are reward, fear and monetary benefit associated with something. These are some of the
factors that when contribute in motivation of individual and group this is known as external
motivation. Followed by these two types some of the types of motivation that are used at British
American Tobacco are-
Incentive Motivation
Concerned with motivation this is one of the factors that motivate every employee in the
organisation. This is because incentive and monetary benefit is one of the important reason that
individual work for the organisation and receive monetary benefit in exchange of services that
are provided by them. British American Tobacco provides monetary benefit to all the employees
and this is one of the important types of motivation that is most effective and plays important
role in motivating employee to perform better.
Fear Motivation
This is another important type of motivation that is used by British American Tobacco
and this motivation involves motivation due to fear. This is also known as negative motivation,
however there is no direct fear involved in this but fear of rules and regulations of the

organisation and negative consequences that one can experience motivate individual to perform
and behave in certain way (Wen Lim and et.al., 2018). This means that performing under
standard will have effect on extra incentives that employees are allowed or another example of
this can be that involving individual in any activity that is illegal and against values and code of
conduct of British American Tobacco can create consequences like termination from job or legal
actions taken against the employee or group of employees involved in such act. Other than this
for power and social motivation are also there in British American Tobacco. Concerned with
intrinsic motivation of the employees, competency and learning motivation plays important role
along with culture of the organisation. This means that in culture of British American Tobacco
learning and development is highly valued and encouraged and this is the reason that culture of
organisation plays important role in intrinsic motivation of the employees.
Task G
Recommendations
On the basis of above discussion it can be concluded that British American Tobacco,
employs an effective management in which participative style of management is practiced and
followed by the CEO, and principles of the management has also been effectively applied by
British American Tobacco. The discussion also involved discussion over organisational structure
and this suggests that British American Tobacco has an effective organisational structure that
clarifies role and responsibilities of everyone in the organisation and all the key roles and
activities are leaded by officers for them. In relation with leadership of organisation CEO of
British American Tobacco follow and practice transformational style of leadership. all this
discussion suggests that all activities and practices of British American Tobacco are effective
and does not require any modification and improvement. 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 means that British American Tobacco focuses on internal recruitment for higher positions in
the organisation, this does not means that they avoid and does not recruit from external sources
but focuses in internal recruitment (Ahmed and Ahmed, 2019). This recruitment source also has
several positive elements but hiring a part of top managerial position from outside organisation

because this enhances value that managerial positions have. 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 internal motivation and sources of intrinsic motivation
(Rheinberg and Engeser, 2018). This is because internal motivation of the employees plays a
more important role in improving their performance and encourages them to take steps and
initiatives through which they can improve their performance in organisation.

REFERENCES
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