Organisational Theory and Practice: A BAT Leadership Analysis

This report provides a comprehensive analysis of organizational theory and practice at British American Tobacco (BAT). It begins with an introduction to the subject and then delves into the management style and functions of BAT's CEO, Jack Marie Henry David Bowles, highlighting his participative management approach and the principles of management he employs. The report then examines BAT's organizational structure, including its strategies, mission, and culture, with a focus on the task culture. Furthermore, it explores the leadership style of Mr. Bowles, identifying him as a transformational leader and detailing the four 'I's of this leadership style. The report also discusses the effects of power, influence, and conflict within BAT, including the application of French & Raven's Model of Power. Finally, the report concludes with recommendations for improving the company's organizational effectiveness and a list of references.

ORGANISATIONAL
THEORY AND PRACTICE

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
A- Management style and functions of and Principles of Management......................................4
B- Organization Structure steps for achieving higher performance and also firm culture..........5
C- Leadership Style adapted to enhance organisational effectiveness........................................6
D- Effects of power, influence and conflict.................................................................................7
E- Types of motivation in BAT...................................................................................................8
F-Appropriate Corporate example &Literature review ............................................................10
G-RECOMMENDATIONS.......................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Organisational theory and practice is the study of organisation for advantage of
understanding and identifying themes which are common in nature and for the purpose of
solving and identifying problems which helps in maximising efficiency and productivity in order
to meet the needs of stakeholders. It refers to the interrelated concepts that helps in explaining
behaviour of individual and team who are found to interact with each other to perform the
activities which are intended towards the achievement of common goal of company. In other
words it could be also understood as theories and practices that helps in understanding effects of
social relationship between individual and its actions on company as whole.
British American Tobacco is a multinational company that sells and manufacture
tobacco, cigarettes and other nicotine products. It is established in the year 1902 and is
headquartered in London. According to recent report it is the largest tobacco manufacturing
company and is the biggest retail operations in the world based on sales. It has its operations in
more than around 180 countries and has primary listing on London Stock Exchange.
Jack Marie Henry David Bowles is Chief executing officer of British American Tobacco
commonly known as BAT and French businessman. Mr Bowles joined BAT as head of French
business in year 2004 and later on become head of Malaysian business, before becoming chief
operating officer in 2017. In 2019 Mr. Bowles became CEO of BAT by undertaking throne from
Nicandro Durante who was former CEO of company. It is being found out that Mr. Bowles is a
man of integrity and dignity who maintain the work life balance in flexible manner who
addresses to various issues that come in way of business operation, be in terms of solving
conflicts, motivating employees, directing company to achieve success in business operations
and various others.
Present report will address to management style and various functions of management
used by CEO, will address to how culture and organisational structure contributes in higher
performances. It will give brief on leadership style of CEO and how Mr. Bowles motivate its
employees in company. It will sum up by adding effects of power and how conflicts are resolved
in company by providing recommendation to improve upon same as mentioned.

MAIN BODY
A- Management style and functions of and Principles of Management.
It can be defined as the way in which managers of the organization deal with employees.
It can help in coordinating, planning and implementation various aims and objectives in the firm.
Diverse workforce at workplace has different mindset and to combine them for achieving single
goals this plays significant part (Zhang and Lin, 2019). There are different kinds of management
style follow by the workers for example some give more autonomy to workers which help in
increasing innovation and creativity while some are more autocratic to take output. It becomes
necessary to adopt a proper way to increase quality, efficiency and productivity of workers &
work. CEO of British American Tobacco use participative management style which help in
gaining confidence of workers and increase productivity of work.
Participative Management Style:
In this management emphasizes on participation of employees in decision-making and
also involves other stake holder. CEO of the firm use this style in firm which help in gaining
confidence of employees and loyalty which ultimately impact on efficiency, quality and
productivity of work. Workforce remain informed about economic status of the company. In
these skills related to decision are improved in employees by various training and development
programs. Promotion, incentives, awards and rewards will be given by the management which
impact on personal growth of the employees. It also motivated employees in workload and
increase their productivity. Increasing autonomy wt workplace improve performance of workers
and hence they able to archive higher goals on time. Team participation of workers again help in
effectively work done. This style impact on work life of employees, & they feel respected and
hence feel part of the organization. It decreases chances of depression & isolation at workplace,
and they feel refreshed towards any goal decided by the management.
Principles of Management used by CEO of British American Tobacco
Division of Work: Division of work helps employees in completing and concentrating on
particular task.
Authority and Responsibility: It can define that management has to emphasize work on
effectively and under-guidance so that any problem can be solved quickly.

Discipline: Employees must remain in discipline and focus in work which increase quality,
efficiency and productivity of work.
Unity of Command: There must one senior for the particular task or project and if many then
create confusion in work and hence decrease productivity.
Function of the Management:
Planning: Planning of the resources and project and activities must be done in proper way so
that task can be followed effectively by the employees (Khan, 2018).
Leading: Leadership must be strong so that employees remain motivated and it increase quality ,
efficiency & productivity.
Controlling: Management must control and monitor work in proper way so that any deviation
can be avoided.
B- Organization Structure steps for achieving higher performance and also firm culture
Structure of the firm
It refers to activities, task, allocation, coordination and supervision hence emphasizes on
achieving higher goals on time.
Strategies and mission: Changing in strategies is high costly and risk for the firm but as a CEO
of the firm has to monitor & control of all aims and objectives associated with work. It is
necessary to make changes in structure strategy of the firm in changing world.
Organizational structure: Roles, objectives and responsibilities of different function of the firm
few changes with time because it becomes necessary to frame things according to changing
business.
People: Time to time training and development programs for employees again help firm in
increase quality, efficiency and productivity.
Organization culture at British American Tobacco:
Organisation culture define the way in which firm work and progress in changing world
and the way it contributes in growth of the firm.
Power Culture:
Power culture refer to as a system in which authority is limited in hands of few people. In
this achievement of workers is more important compare to the way in which they achieve.
Decision can be taken quickly in this culture and also needful changes in firm can be taken
quickly.

Role Culture:
In this person's position is more focused in the firm for example CEO of the firm has
higher roles and responsibilities as compare to other employees. Decision making are not quick
in this organization culture and hence many time firm unable to achieve higher goals.
Task Culture:
It can be referred as a team system that jointly work to achieve target in the company.
Equal responsibilities and opportunity give everyone chances in terms of growth.
Person Culture:
In these people as unique and superior at workplace and hence focused on achieving
individual goals as compare to combine(Gamayuni, 2018). Individualism cannot be implemented
in multinational firm.
British American Tobacco follow task culture and it helps in gain competitive advantage
in changing world and increase market share. Employees remain motivated and participative in
tasks and hence increase efficiency, quality and productivity of work.
C- Leadership Style adapted to enhance organisational effectiveness
It is the manner and approach adopted by Mr. Bowles in providing direction to its
employees, motivating them and implementing plan to achieve goals of BAT and helps in
increasing organisational effectiveness. It refers to traits or characteristics of leader behaviour
when it comes to directing, guiding, motivating and managing group of employees in company
It refers to how a leader behaves while leading a group (Sloof, von Siemens,2019). The
leadership style adopted by MR. Bowles in BAT as he is flexible and maintains work life
balance is -
Transformational leadership style –
It is style where Mr. Bowles work with its teams to identify change which is needed by
creating vision among team members that is guided by inspiring employees and motivating them
to achieve the same. It exists in company when the behaviour of employees is influenced by
leaders' behaviour which inspires employees or team members to perform beyond their perceived
capabilities to achieve unexpected and remarkable results in BAT. It helps in giving
autonomy/power to employees over specific jobs and to make decisions in company once they
have been trained. This style adopted by Mr. Bowles helps in creating positive vibe of change of
its followers attitude and organization as a whole.

It helps in serving employees to enhance there motivation, morale and job performance
to achieve goals of company. It includes four distinct behaviours performed by Mr. Bowles also
known as four I's
Inspirational motivation- It is when leader inspires its employees to achieve where it sets high
and reasonable goal for its employees and company. It creates shared vision of company and
inspire commitment of employees towards the same which lays down expectation of leader
clearly.
Idealized influence- It is found when Mr. Bowles act as a strong role model and leads by
example in BAT where the needs of employees are considered and are highly on priority basis. It
is based on ethical grounds where the followers try to match up with leader as they highly tend to
identify with them easily (Boamah,2018).
Intellectual stimulation- It is there when leader encourages its employees to think of their own
as they tend to tolerate mistakes of its followers and believe to promote improvement and growth
in same as they are innovative and are open for ideas.
Individualized consideration- It is found in BAT as Mr. Bowles establishes strong relationship
with its employees and act as supportive resource for employees as it provides mentoring and
allocating time to develop potential of employees (Sahu, Pathardikar, Kumar,2018).
D- Effects of power, influence and conflict
Effects of power in BAT leads to command, influence and respect in the eyes of others
where the person in power at BAT is able to influence others more easily which helps in
performing job more effectively and leading to accomplishment of desired goals of company.
Leaders should implement power in positive and favourable way so its followers get influence to
achieve greater performance and derive job satisfaction and ensures stakeholders that operation
of company are in smooth flow and vital. It could be understood by implementing
French & Raven's Model of Power-
Reward power- In this power of company grants valuable rewards if its employees follow
instruction as being laid down. This power helps in increasing motivation level of employees as
they believe performing better results in earning rewards that are valuable which in turn develop
sense of to perform better.
Coercive power- It is power which states that leader will penalise who don't carry out
instructions or perform task as laid down by leader. This power results in high rate of employees

turnover as a result of job dissatisfaction and leads to conflicts between employees and managers
certainly where focus from task shifts and creates misunderstanding (Sources of Leadership
power.2019).
Legitimate power-This is defined by person's job title or hierarchy position where the person at
high position have the right to issue order for which employees pay due respect.
Expert power- It is defined by having superior knowledge and expertise or experience in relevant
task to be performed to meet goals of company (Kovach,2020).
Referent power-It is gained by leader of company who possesses strong interpersonal skills
which is focused on increasing collaboration and influence of employees rather than
commanding and controlling
Mr. Bowles in BAT implement referent and reward power where it believes that
employee's productivity and efficiency lies in power which helps in buliding relationship to
perform extraordinary and rewarding same so that they can be motivated to produce better results
in future too.
It is certain that conflict in BAT will occur which result in members to become frustrated
as there opinions go unrecognised as a result members become stressed out which affect there
personal and professional lives so it is required on part of Mr. Bowles to develop and implement
strategy that strengthen organisational structure in a way that conflicts get reduced and there is
smooth functioning of business operations which will help in deriving motivation to employees
and company towards path of success.
E- Types of motivation in BAT
Motivation is process that guides, initiates and helps in maintaining goal oriented
behaviour. It results in employees action in company which guides to achieve goals of company.
It is way in which business encourages employees of British American Tobacco to give their best
who care about success of company and work better. Motivated workforce at BAT results in
increased outputs which is a result of extra output by employees. This is important on part of
management to keep its workforce motivated as it help to meet company goals by increased
productivity and allows achieving higher level of efficient production of output. It is derived
from word motive which means needs required to be satisfied on part of employees.
Herzberg's two factor theory

It argues that there are two factors that BAT can adjust with in influencing behaviour
motivation at workplace. These are Motivators which encourages employees to work harder and
Hygiene factor that don't encourage employees to work harder but if not present will lead to
become unmotivated. Motivator factor are present in actual job but hygiene factor are not present
in actual job but surrounds the environment
Motivator factors include
Achievement- It includes that job of employees at BAT needs to give sense of achievement as it
gives feeling of having done something difficult
Recognition- It includes job that provides employees with praise and recognitions from superiors
and peers.
Work itself- Job at BAT should be interesting and driven by challenges to motivate employees.
Responsibility- Employees feel motivated as they are held responsible for completing task on
their own.
Advancement- Promotions and others should exist for employees to derive high motivation at
workplace
Growth – Employees at BAT are given opportunities to learn new skills which derive their
motivation (Herzberg’s Motivation Theory – Two Factor Theory,2018).
Hygiene factors include
Company policies- Employees at BAT remains motivated as policies are clear & fair which are
also equivalent as its competitors
Supervision- Employees are supervised in fair and appropriate basis where they are given
reasonable autonomy.
Relationships- Unbiasness in BAT is disregardful where it employs strong relationship between
peers, subordinates and superiors which enhance motivation (Ozsoy,2019).
Working conditions – Equipment at BAT are safe, hygienic and fit for the purpose which
increase employees productivity.
Salary – The pay structure in company is fair and reasonable at all level& is competitive with
other organizations
Security& Status- Employees in company feel secured at job place and are under no threat which
lays in performing meaningful work and deriving status of what they do.

F-Appropriate Corporate example &Literature review
According to Vallicelli (2018), workplace culture in company is shared values, belief,
norms and attitude which influences behaviour of individual and team performance. It defines
proper way to behave within the organisation. It also includes expectation, experiences,
philosophies& values that guide in influencing members behaviour to achieve goals of company.
Culture of company includes vision, systems, symbols and others which lays down how things
are done in company. Favourable and positive culture in company helps in deriving employees
satisfaction where they are motivated enough to perform task more effectively and productively.
Fiaz, Su, Saqib(2017), has stated that management and leadership style in company is
manner in which managers exercise there authority in workplace which helps in ensuring that
objectives of companies are meet as desired and laid down. It is the behavioural pattern that
leaders of company adapt to influence the behaviour of its employees or followers that can be
referred as the way to give direction to subordinates and motivate them to accomplish given
objectives.
In contradiction to above, Arundell (2018), has stated that company should not adapt to
culture which is harsh in nature as it results in employees increased level of frustration and stress
level which decreases there quality of living life and affect personal as well as professional life in
negative way which in turn leads in decreasing efficiency and productivity to achieve goals.
Further, to above Arundell (2018), has also stated that if leaders of company are not flexible
enough and are autocratic in nature than it may result in company facing issues which can be in
terms of employees leaving company which leads to workforce turnover and which in turn
increases cost of company to hire new employees.
In the view point of (Hauke-Lopes, Fonfara, Ratajczak-Mrozek (2020), conflict in
company is disagreement between employees or members of company arising out of view point
that there view points are not recognised. It is state of actual or perceived opposition of needs,
values& interests in between the people who are working together which can take place in
company in many forms.
G-RECOMMENDATIONS
It is recommended on part of British American tobacco to continuously monitor and
evaluate its strategies which help them to achieve desired goals. The company can improve on
various areas to derive more effective and smooth flow of operations. Company can inculcate

culture in a way where employees feel working is joy and fun which will increase there
productivity more and which will derive producing valuable outputs on side of employees. It
should be made sure on the part of employees that performance appraisal are consistent which
will develop sense of responsibility and understanding about how important employees job role
is in company and how it helps in achieving goals of company. It should be also ensured on part
of superiors that do not exercise their power in negative and unfavourable way which may
unfortunately lead employee's to leave company and where BAT can't even realise what they
have lost in terms of talented employee who can be one of the sources in contribution towards
achievement of company goals, Company leaders and managers should properly execute and
implement its function and style in a way which is not autocratic in nature and which directly
contributes in achieving goals of company where they can invite innovative ideas, opinions,
views and others to support effective functioning of organisational goals.
Company also needs to implement strategies which helps in resolving conflicts in
efficient manner and make ensures that its processes and policies are so well designed that it
does not give rise to future conflicts. Company also need to motivate it employees on regular
basis to boost up their morale and confidence which ensures their work efficiency in order to
meet goals of company. British American company can implement strategies where it can
promote activities of Training and development of employees where it should be considered at
utmost priority, as for any company its employees are its valuable resources who derive success
of organisation where they can be empowered to perform their job more productively. Company
can also improve its business performance by giving employees autonomy to take decision on
their own and by collecting regular feedbacks from employees on areas which needs to be
improved upon

REFERENCES
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patient safety outcomes. Nursing outlook 66(2) pp.180-189.
Fiaz, M., Su, Q. and Saqib, A., 2017. Leadership styles and employees' motivation: Perspective
from an emerging economy. The Journal of Developing Areas. 51(4). pp.143-156.
Gamayuni, R.R., 2018. Factors affecting internal audit function effectivity (internal auditor
competence and objectivity, management support and organisation culture) at local
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Hauke-Lopes, A., Fonfara, K. and Ratajczak-Mrozek, M., 2020. Conflicts in Foreign Inter-
organisational Relationships of Multinational Enterprises. In Contemporary Challenges
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Sahu, S., Pathardikar, A. and Kumar, A., 2018. Transformational leadership and
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