CONTENTS Contents...........................................................................................................................................2 INTRODUCTION...........................................................................................................................3 MAIN BODY..................................................................................................................................3 The management style along with principle and function of management used by CEO of British American Tobacco...........................................................................................................3 Step taken with regard to organisational structure for higher performance and organisational culture at British American Tobacco...........................................................................................5 LeadershipstyleoftheCEOofBRITISHAMERICANTOBACCOtoenhancethe organisational effectiveness.........................................................................................................6 The effects of power, influence and conflict at the chosen firm.................................................7 The various types of motivation used at British American tobacco............................................8 Use appropriate corporate examples and literature to justify your stand....................................9 Based on the discussion and debate present recommendations for increasing organisational performance...............................................................................................................................10 CONCLUSION..............................................................................................................................10 REFERENCES..............................................................................................................................12 2
INTRODUCTION The performance of an organisation is depending over its management board and policies over which its operations are being executed.These policies are set of principles or standards which are fixed by the organisation for guiding the actions performance by employees by following all the values and ethics. The current report is based on British American Tobacco company which is British organisation that operates toward manufacturing and selling of tobacco, cigarettes other kind of nicotine products. This company was established within year 1902 which is headquartered within London, England with the name of Imperial Tobacco, but later on it set a joint venture with American Tobacco company. Now this organisation has become one among the largest cigarette maker within the world as per the net sale done by the company. This offer range of tobacco and nicotine product and also offered certain Potentially Reduced Risk products which includes tobacco heating products, vapour, modern oral products, tobacco free nicotine pouches(Nguyen, Mia, Winata and Chong, 2017). Along with this it also offers certain kind of oral products such as snus and moist stuff. The company manage its busines in several segments such as America, United States, Sub-Saharan Africa, North Africa, European, Middle East and Asia Pacific. This report contains detail about the management style, organisational structure, culture and leadership style to present its impact over the organisational performance as well as employees efficiency. Other than this it also present detail about the effects of power, influence and conflict over British American Tobacco. MAIN BODY The management style along with principle and function of management used by CEO of British American Tobacco The British American Tobacco is ranked as second largest tobacco organisation as per the global market share. This become possible due to the guidance its workforce is getting from great leaders the CEO of British American Tobacco. The CEO of company follows the participative management style which ensure that employees get maximum engagement within the organisational activities by getting support and guidance from management (Prouska, Psychogios and Rexhepi, 2016). The effectiveness of participative management style can be better understood using below mentioned theory, 3
This theory of participative management style shows that the CEO of British American Tobacco states that they try to maintain a better flow of communication in order to facilitate employees with a medium to perform conversation for presenting their issues, concerns or ideas in front of management so that corrective actions can be taken. Other than this, company also follows transparency in sharing of information to ensures that employees have clarity about their direction to work. Additionally, for better execution of work they also focuses toward analysing all the available information internally as well as externally and try to take more effective decision for better execution of work (Sethibe and Steyn, 2016). After forming up decision this get communicated to employees for taking feedback and encourage them to remain more participate in work and dedicate al their efforts in accomplishment of goals. Despite of this the principle and management functions adopted by the CEO’s of British American Tobacco also support a lot in forming better organisational culture which enhance the employee engagement in work and also motivate them to perform well. The main business 4
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principle adopted by British American Tobacco (BAT) can be understood using following description: ď‚·Business principle:The BAT operates over the three main business principles to ensures that business run responsibly. These principles involve Mutual benefit, Responsible Product Stewardship and Good Corporate Conduct, and eighteen Core Beliefs (Marques and et. al., 2016). These principles focus toward ensuring that each action taken by company must results into the benefit of all the stakeholders involved. ď‚·Principle of engagement:The BAT remains committed toward corporate transparency where it ensures that all the engagement activities performed by organisation must be guided by the internal standards. This help in assuring that each practice must get performed ethically and legal which in turn bring better outcome out of efforts performed by the employees toward a particular goal. Step taken with regard to organisational structure for higher performance and organisational culture at British American Tobacco The British American Tobacco company operates at big level and maintain a larger customer base which instantly increases the demand and expectation toward the organisation. So, in order to deal with the expectation of customers base it is essential for BAT to enhance its performance and be able to cater the demand of its customers base. From ensuring this BAT follows the functional organisational structure. A functional organisation structure is one where organisation divide its specialized functional area for ensuring that each function moves smoothly without any kind of hurdle. This in turn brings greater operational efficiency as all the employees share knowledge and skills regarding a particular area of expertise (McKibben, 2017). The BAT divided its functions into marketing, digital & information, legal & external affairs, operations, finance etc. these I turn help in enhancing the level of confidence in working and with the engagement of experts this become easier for the employees to enhance their skills and knowledge which in turn further contribute toward improving their performance as they only have to work over a particular area in which they are expertise. Other than organisational structure, the culture adopted by a company also have a greater influence over employees and their performance. The organisational culture is all about the expectation, values and practices which guides the employees to behave and act in certain 5
manner. As per the model given by Edgar Schein over organisational culture, there remains three layer in culture. These are explained below: Artifacts:These are consider as surface of culture within every organisation which includes awards winning, manner of dressing, language, stories or myth circulate among staff members indicates what type of persons are consider to be heroic, manner in which situations are handle. For the British American Tobacco employees their leaders such as CEO’s are the real hero who take business to new hight inspire them and keep motivated toward work(Su and Baird, 2017). Values:When it is about basic assumptions, values remain higher level of consciousness and reflect about the opinion of members over How things should be done. These values help the organisational members in classifying about the situation and whether they follow values or not when it come to act as per value. The BAT follows the culture of engagement where each employee follows all the standards and values when performing their work. Basic assumption:This is a kind of belief which is taken for granted and never get challenged. This about pattern of assumptions which are evolve among the groups within organisation. The core environment of BAT is developed in such a manner that employees are more strict toward adopting the values and principles formulated by the top management. Hence the organisational culture of BAT is more disciplined and way of better employee engagement. LeadershipstyleoftheCEOofBRITISHAMERICANTOBACCOtoenhancethe organisational effectiveness The leadership practice is considered to be very much essential for an organisation as it help in guiding and direction the employees toward accomplishment of organisational objectives. Leadership is consider as the act of leading group of people toward a particular direction in order to maximise the efforts of others toward the accomplishment of certain set of goals. The British American Tobacco is a brand which are being operated by some of the great leaders that are working toward enhancing the efficiency of operations performed within the organisation so that its tradition product can be replaced with new technologically advanced products such as electric cigarette(Alsayyed and et. al., 2020). The CEO of British American Tobacco follows the strategic leadership style which is consider to be set of actions that creates an intersection among the company’s main operations as well as its growth opportunities. The main focus here remains that the current working condition of the organisation remain stable for the employees just by 6
changing or improving the strategic plan to adjust the challenges with eth skills and knowledge of employees to ensure the quality should remain at its high. The strategic leadership theory states that a leaders must adopt remains strategically active in order to ensure better formation of actions plan for guiding the efforts of employees in right direction. The CEO of BAT follows the strategic leadership style which allows them to interpret the challenges surrounding the business and main cause behind their existence. This theory of strategic leadership suggest that the leader must change his style of managing with situation when the situation varies(de Waal, van Nierop and Sloot, 2017). This in turn further support them in forming better strategic to taken action in his regard and improve the condition of the organisation by providing with the action plan to deal with challenges. This in turn further support in improving the efficiency of organisation as when employees are directed with strategies their outcome become more effective. The effects of power, influence and conflict at the chosen firm British American Tobacco as name suggested it is a joint venture of imperial Tobacco of UK and American Tobacco of US. The joint venture of both the organisation shows the synergy between the power and operation which has a great impact over the success of a business. As with joint venture allow BAT to get market share with more freedom and achieve growth over the tobacco industry. The power of both the organisation supported a lot n growth of BAT and make it achieve the leadership of the global tobacco industry by ranking at second highest organisation within industry. Despite of this there are number of conflicts in which the British American Tobacco company get stuck and also get affected in term of its operations(Saunila, 2017). This includes the illicit trade when BAT started using the illegal channels to supply cigarettes within country. But with its increasing power within the industry, it started using the smuggling of its product as a market entry strategy for leveraging the negotiation process with the government for tax concessions and competing with other transnational tobacco company. This is a greater example of power which the company hold and manner in which it influence its market performance. The British American Tobacco company many offer its products such as cigarettes at relatively lower price within new country and make it available to users illegally by smuggling. This in turn make them addicted to them and then they make deal with the government to ensure a tax concession, circumvent the local import restrictions as well as unstable political and economic condition. These are the major effect that the power, conflict and 7
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influences brings over the organisation. As with the help of power it is dealing with the challenges, conflicts and ensures the capturing of larger market shares by competition with the other tobacco businesses that are operating in different country. Other than this with its influence over the people of different country by making them addictive to product by offering at lower price to get it establish within new marketplace(Ayotunde, Omotayo and Osotimehin, 2018). BAT mainly operates with the distributors as well as local agents for exploiting the weak government capacity for gaining the substantial market share with major countries throughout the world. This help a lot in becoming a global market leader within the tobacco industry. The various types of motivation used at British American tobacco Motivation is refers to the process of creating an inner urge among employees to keep them concentrated toward their goals and work assigned to them for getting best possible outcome out of efforts. The motivation among employees support an organisation to bring efficiency within operations performed within organisation and also be able to accomplish the set goals and objectives. The British American Tobacco company perform of lot of things to keep its employees motivated and align toward their area of work (van Assen, 2018). The company operates its motivational practices on regular basis to ensures that each employee remain motivate by getting all their demand get fulfilled in certain manner. This motivation practice adopted by BAT can be better understood using the Maslow hierarchy of motivation which provide level to level explanation about the things which motivate employees and manner in which these are satisfied by BAT within organisation. This theory of motivation is explained below: Physiological need:This is first stage of Maslow’s theory which state that basic need of an individual must be fulfilled in term of food, shelter etc. The British American tobacco company offer its employees with a salary so that they can fulfil their basic need and remain connected with company to perform work and earn their livelihood. Safety need:After fulfilling the physiological need, the next employees started demand for the safety and security at workplace as a medium to get comfortable and motivated while working. The BAT operates several of the policies and principles which ensures that the employees while working for BAT remain safe and in any kind of accident or other risk they will be compensated. This help in keeping them motivated to work well. 8
Social need:After being able to earn livelihood and get assured about the safety while working in BAT, the next employees want the group or relations with the people working with them so that they feel good to around and e able to perform well. The BAT follows the culture of employee engagement where it assign several of the group tasks and encourage employees to work co-ordinately. This help them in providing employees with a place where they can socially interact with each other and can enjoy working all together. Esteem need:At this stage employees expect that the get respect and appreciation for the work done by them to feel motivated as the above mentioned need are not remain in spark to motivate them (Veliu, Manxhari, Demiri and Jahaj, 2017)BAT do a lot in keeping the employees motivated toward their work and for this the extra efforts presented by the employees will be incentivise and at the same time also get appreciated in front of other to keep all motivate to achieve best. Self-actualisation need:This is the last stage of Maslow’s theory where people started expecting for the position or status within their social groups. The BAT arrange a regular performance appraisal practices determine the actions performed by people and also aware them in the form of monetarily or positional promotions. This help in keeping the employees motivated toward their job role and at the same time allow BAT to keep its talent remain within organisation. Use appropriate corporate examples and literature to justify your stand The management style, organisational structure and culture plays a significant role within keeping the employees align toward the organisational goals. This help in guiding and directing the each actions of employees and at the same time help forming the working behaviour of employees over the set standards. This can be seen with an example of electric cigarette launched by the company in order to decrease the smoke. This was very new concept to the market but with the proper guidance from leaders and organisational culture of accepting changes for bringing innovation supported a lot in working toward this project and present it is most successful project of the company. There are number of electronic and vaping product that are being offered by company within market. Despite of this,Zaabi, H.H.J.A., Singh, S.K. and Ajmal, M.M., 2017, stated that the motivation is consider to be a significant part of organisational success as it help in directing the efforts of employees toward right path by making full utilisation of skills and knowledge an 9
individual holds. By keeping employees motivated the performance as well as organisational efficiency can be improved. This can be seen with an example, before starting the production of these electrical cigarettes the employees are provided with appropriate training and make them learn about whole process. This in turn help them in keeping motivated to start a new process of work by learning each and every aspect of it which reduce their burden to perform work. Based on the discussion and debate present recommendations for increasing organisational performance The British American Tobacco company operates at several different part of the world which in turn creates several issues in term of culture acceptance, change in demand, new rules, policies and many more. This directly influence the organisational performance and to ensure that the performance can be maintain at its best the efficiency of employees are required to be enhanced. From the above discussed information about the British American Tobacco, it can be said that in order to improve the organisational performance following actions can be undertaken, ď‚·Performanceappraisal:TheBritishAmericanTobaccocanarrangeregular performance appraisal for its employees where their planned and actual performance are measured over a scale to determine the gap between both the performance. After determining the issues proper guidance as well as training must be provided to employees sothaterrormadebythemcanberectifiedwhichinturnimprovetheoverall performance of employees. ď‚·Effective leadership practices:The British American Tobacco must focuses toward providing the employees with effective leadership practices where they must get the proper guidance and support from the leaders. This in turn help them in avoiding the chances of error and at the same time enhancing their skills which support them in performing well. CONCLUSION From the above-mentioned information, it can be said that an organisation operates at global level have to face a range of challenges. But to ensures the performance of an organisation can be maintained it has been found that the organisational structure and culture of the organisation plays a significant role in guiding the actions performed by employees and forming up their behaviour while dealing with a particular situation. Other than this the leadership and management style is also consider to be a essential part of organisation performance and its 10
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success at large. This is so because the management and leaders are those which help in keeping the employees aligned toward their goals for performing their set of actions nada los help in directing them about the manner in which actions are to be performed. 11
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