Organisational Theory and CEO Leadership at British American Tobacco

This report provides a comprehensive analysis of the leadership and organizational practices at British American Tobacco (BAT), focusing on the CEO, Mr. Jack Marie Henry David Bowles. It examines his management style, principles, and functions, identifying his use of democratic management and principles like Henry Fayol's 14 principles. The report explores the company's organizational structure, highlighting its hierarchical nature and its impact on performance and employee applicants. It delves into the organizational culture using Handy's model, and assesses the CEO's leadership style, emphasizing transformational leadership. Furthermore, the report discusses the effects of conflict, power, and influence within the company, referencing French and Raven's power model. It also explores various motivation techniques employed by the organization and provides recommendations to enhance overall performance.

Organisational Theory and Practice
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Table of Contents
INTRODUCTION...........................................................................................................................2
TASKS.............................................................................................................................................2
A) Management style, principle and functions of management used by Mr. Jack Marie Henry
David Bowles.........................................................................................................................2
B) Steps taken in context of company structure to enhance performance and organizational
culture impact on applicants in British American Tobacco Company...................................3
C) Leadership form of CEO of organization to enhance organizational effectiveness..........6
D) Effects of conflict, power and influence at British American Tobacco firm....................7
E) Different types of motivation used at organization...........................................................8
F) Examples of corporate and literature to justify information............................................11
G) Recommendations to increase performance of enterprise...............................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Organizational theory puts substantial emphasis on people in companies and how they are
treated. It studies firms to determine structures and patterns they can utilize to solve issues,
enhance performance of business and productivity as well. It then uses these things to formulate
normative models of how a company work the best. While organizational practices are
considered as actions and behaviours of workers. The current assignment will be based on CEO
of British American Tobacco and he is Mr. Jack Marie Henry David Bowles. This study will
define management styles and principle as well as functions of administration used by him.
Furthermore, this report will explain stages taken with regard to company structure to achieve
higher performance. In this assignment Organizational culture of chosen company and its affect
on applicants will de described. It will define issues faced by organization and its impact on
workers as well as business performance.
Moreover, it will clarify leadership style of British American Tobacco CEO and effects
of conflict, influence and power at firm. Motivation sources utilized in company, corporate
examples and appropriate suggestions to increase organizational performance will be justified in
this study.
TASKS
A) Management style, principle and functions of management used by Mr. Jack Marie Henry
David Bowles
Jack Marie Henry David Bowless is a French entrepreneur and chief executive officer of
British American Tobacco, which falls under list of biggest tobacco companies in the world.
Performing role as CEO in company, he uses effective management style, which is quite
beneficial for organization in term of managing their business operation, activities and worker’s
performance. There are varied types of management styles accessible in the world of business by
and used by several businessmen’s. Democratic, affiliative, persuasive, authoritative, Laissez
faire etc. are the examples of effective management styles (Ayub and et.al., 2017).
Management style-
CEO of chosen company can uses democratic management style, through which he can
drive all workers, managers and leaders towards taking part in decision making procedure which
is very helpful for organization in term of getting several innovative ideas that administration can
use to improve organizational performance in effective manner (Huang and et.al., 2016). This
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management style is appropriate for those business atmospheres where group members are
competent but not motivated and inspired. It can be analysed that inflexibility and lack of
management direction are two different issues workers faces in firm while doing job in company.
Principle and functions of management utilized by CEO-
Jack Marie Henry David Bowless as chief executive office at British American Tobacco
follows the entire norm as well as functions of management in ethical manner. Henry Fayol is
one of the best models that here can be used to describe principles of administration. It comprises
14 effective norms that CEO can use to manage performance of his company and workers
effectively (Adeagbo, Mohammed and Abdulkadir, 2019). Division of work is one of the Henry
Fayol’s management principles that Jack Marie uses to manage operational and functional areas
of company in effective manner. Other norms such as Authority & responsibility, discipline,
unity of command, unity of direction, subordination of individual interest, remuneration,
centralization, scalar chain, order, equity, stability, initiative and Esprit de corps are the 14
elements of above chosen model that CEO can use while managing his organization.
Functions of management used by British American Tobacco Company CEO-
Planning, organizing, staffing, directing and controlling are the key five functions of
management that Jack Marie Henry David bowless uses to effectively manage organizational
practices in its sector (Krutyakova and Anyushenkova, 2018). In field of administration,
planning is an action to achieve a particular aim of company and that is to build a better future by
reducing health affect of firm through offering a greater choice of less risky and enjoyable goods
for consumers. This function can be divided to long run, instant or short run time according to
forms of venture. Along with this element, CEO uses other one as well to make his business
more successful and progressive than other companies. In context of problems, such as lack of
flexibility and management, chief executive officer of chosen brand can uses administration
functions as he can make plan to provide flexible work structure.
B) Steps taken in context of company structure to enhance performance and organizational
culture impact on applicants in British American Tobacco Company
Organizational structure can promote or inhibit performance, depending how efficiently
leadership relations and work flow influence productivity (Huang and et.al., 2018). It can be
considered as approach by which work flows through a company. An effective and appropriate
organizational structure defines how actions such as task allocation, supervision and coordination
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are directed towards achievement of companies. In order to enhance and improve the
performance of British American Tobacco, management take key steps to make their structure
better than before. Chosen organization is using hierarchal organizational structure, which
gives workers more clarity, help administration expectations, allow better decision making and
cater consistency (Giri and Ramakrishnan, 2019).
Figure 1Organizational Structure
(Source: Organization Structure of British American Tobacco, 2019)
Management while managing performance of company, effort to manage structure of
firm which make CEO and other stakeholders able to beat their competitors in effective manner.
They can analyse the performance of all workers in different departments to make decision in
context of enhancing their productivity and work activities that can help to achieve high
performance of organization. Due to above two issues, company was unable to manage workers
performance within different department.
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Organization culture and its affect on candidates-
An culture of organization encompasses behaviours and values that contribute to
psychological environment of a company. This atmosphere directly impact performance of
workers and their productivity level at workplace. To define the organizational culture of British
American Tobacco and its influence on each applicant, here Handy’s models of organisational
culture can be used that define four different kinds of cultures (Maher, 2020).
Power culture-
With this type of culture, company can provide overall accountabilities to just a few
peoples whose influence spread through business. This influence can be positive when CEO or
manager in British American Tobacco can use his power without making any differences in
context of providing flexibility in working hours.
Role culture-
Firms with this culture are based on rules & appropriate policies. Management with this
form highly control each applicant in workplace knowing what are their responsibilities and
roles. This dimension influences in positive manner when performance of employees is managed
accordant to his or her roles in firm.
Figure 2Model of Organizational Culture
(Source: Handy's Model of Organization Culture, 2018)
Task culture-
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It forms when group in a firm are developed to address specific issues or projects. Task is
an essential thing, so power within unit will often move depending on mix of group members
and according to statues of work.
Person culture-
With this kind of organizational culture, an individual in companies are quite much see
themselves as superior as and better than the others. This type of culture puts negative impact on
staff performance as well as companies, because when individual thing about themselves they
could less support other at workplace in regard to accomplish day to day work on time (Kennedy
and et.al., 2020).
In context of chosen company, administration follow power culture in British American
Tobacco firm and use their power without making any differences between female and male
employees. With this culture CEO, influence other positively as they guide staffs to work by
following rules and regulations which is developed for each of them by high authority of
organization.
C) Leadership form of CEO of organization to enhance organizational effectiveness
Leadership style is method and manner of providing direction, motivating workers and
implementing plans. It includes total pattern of implicit and explicit actions performed especially
by leaders in companies. There are different types of leadership styles accessible in business
world that Jack Marie as CEO in British American Tobacco can use in order to enhance
effectiveness of company rather than its competitors in marketplace. Authoritarian, Delegative,
participative, transactional and transformational are examples of leadership styles.
Transformational leadership style is one of the best forms that chief executive officer
of selected organization can use (Nguyen and et.al., 2017). In chosen style, CEO inspires his
workers with a clear vision and then empowers and encourages them to achieve it. With this
practices leader can create change that can aid shape further success of firm. For example, by
using transformational leadership style, Jack Marie Henry David Bowles can motivate his
workers in effective manner to innovate something new and different from other brands, it will
enhance organization and operations effectiveness successfully. He can provide flexible working
hours in a week to workers. With this approach, he is able to encourage people at workplace to
perform even better than last few months or years. He can motivate applicants without
micromanaging; he trust trained them to take authority over judgements in assigned roles. It is a
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leadership style that is created to give workers more space to be creative and innovative, look to
further and find new methods and appropriate solutions to solve issues. By using and
implementing the characteristics of transformational leadership style, CEO can effectively and
efficiently enhancing performance of British American Tobacco.
The main trait of this style is motivation; chief executive officer can encourages
motivation and positive development of workers. He can foster an ethical work atmosphere with
clear priorities, values and standards. CEO with transformational leadership style can also builds
organization culture by motivating workers to move from an attitude of self interest to a mindset
where they are performing for common good; it can also contribute towards enhancing business
performance (Baškarada, Watson and Cromarty, 2017). It can be said that, transformational
leaders such as Jack Marie Henry David Bowles can generate greater involvement in work of
applicants. This involvement outcome in term of higher satisfaction and efficiency lead to
organizational and managerial performance. This leadership style is positively correlated with
variety of business results. It can aid foster workers collective efficiency and leads to distal
results; organization performance.
D) Effects of conflict, power and influence at British American Tobacco firm
There are varied external and internal factors available in market that can impact business
performance and workers productivity in positive or negative manner.
Impact of power-
Range of models is accessible in commercial world that companies’ leaders can use.
French and Raven’s five forms of power concept is the best model a company or administration
can use to choose appropriate form.
Legitimate power-
This power comes from faith, trust and belief that an individual has formal right to make
requirement, and to expect others such as workers to be obedient and compliant.
Reward power-
By using this power, management or manager in company can influence applicants
effectively and retain them for long.
Expert power-
This power is based on an individual high extent of knowledge, talent and skill. With this
power, administration can act towards increasing productivity level.
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Referent power-
This power outcome of a person’s perceived worthiness, attractiveness and right to other
respect.
Coercive power-
This power comes from faith that a senior or leader can punish others for non
compliance.
From above discussion, different types of powers can impact business growth and
workplace atmosphere. For instance, when Chief Executive Officer and other members utilize
his or her reward power without making any type of difference, when they provide rewards or
incentives based on workers abilities and attempts. They can enhance performance of employees
even better and drive all of them towards further growth. When power in company is to provide
working flexibility at workplace in a week, it can put positive impact on business environment
and spread positivity.
Conflict affect-
It is considered as an internal factor put negative impact on sales & productivity of
company and working environment at workplace. It decreases the motivational level of workers
and performance more than before, which in return decrease profits and operational efficiency of
British American Tobacco. It can be said that workplace conflict affect can include decreased
productivity, work disruptions employee absenteeism, project or works failure, termination and
high employee turnover. All these things are not beneficial for chosen company as it only
provides losses either financial or operational. In context of organization, management solve any
kind of conflict within company which influence on performance and growth of business in
positive manner by using range of motivational techniques and tactics.
Influence-
With collaborative and supportive practices, CEO can put positive influence on workers;
He can help applicants by providing excellent and innovative recommendations, which is really
quite essential for growth of British American Tobacco. Internal influences are affects that a
company has some control over, such as influence include resource management, location
organizational culture, management etc. For example, When Human Resource manager consider
needs of staff at workplace and then arrange everything accordingly, it put positive influence of
morale of people and like to retain with firm for longer.
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E) Different types of motivation used at organization
Motivation is procedure that guides, initiates and maintain goal oriented behaviours of
individual. This element can help in growth and success of any firm; it includes emotional,
cognitive, social and other forces that activate behaviour. It is one of the most important
components in setting and achieving one’s objective of enterprises. It is an internal procedure
that drives each applicant towards attaining common goal and business objective. Some of
significant forms of motivation are as follows; affiliation, attitude, achievement and incentive
motivation. In the business world, there are different kinds of models available that describe
forms of motivation. British American Tobacco Plc can use two or more types of motivation for
workers, which are quite beneficial for them in term of retaining talented staff members and
increasing organization and workers performance in effective manner.
Maslow’s Hierarchy of needs-
Physiological needs-
These needs are probably clearly noticeable; include things that are essential to workers
survival. Some examples of this need include food, breathing, water and homeostasis. When
management consider home and shelter needs of staff members and then provide all facilities
accordingly, it helps to enhance motivational level (Guo and et.al., 2019).
Safety and security needs-
The second phase of this model is also important like others. At this stage, needs for
employees safety and security as well as health concern become primary and main concern of
management within chosen company. By providing financial security and workplace security
against injury or any unintentional accidents, manager increase performance and morale of
applicants.
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Figure 3Maslow’s Hierarchy of needs
(Source: The 5 Levels of Maslow's Hierarchy of Needs, 2020)
Social needs-
After passing above two phases of motivation model, manager of British American
Tobacco Company can move up to third level that also drive them towards enhancing
performance and productivity of workers as well as business. For instance, leader by working
with staff let them feel as part of company or key stakeholder.
Esteem needs-
This is the fourth level in above model which describes need for respect and appreciation.
By respecting and appreciating efforts of each candidate, leader and manager both make people
capable to work with them for long.
Self actualization needs-
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After passing all stages, management can moves to last one where workers have high
motivation level. This kind of individual are self aware, less concerned with suggestions of
others, concerned with personal growth and interested in fulfilling their potential.
It can be said that within British American Tobacco Plc, CEO and managers can be used
the best motivation techniques. For example, manager and leader by performing and act together
identify needs of staff related to growth and appraisal and then provide incentives in form of
reward which turn into increased productivity and creating positive environment at workplace, it
will also help to motivate and encourage workers as well.
F) Examples of corporate and literature to justify information
Akhmetshin and et.al., (2018) there are many companies in the world of business either
small or big are utilizing range of motivational approaches and methods and are taking major
actions towards managing their organizational culture and setting right structure. For example,
human resource management and its managers at Imperial Brands use Career Professional
Development as approach in order to enhance performance of workers and encourage them
through developing or improving his or her knowledge, abilities and skills excellently. The
vision of organization is to create a appropriate environment at workplace where management
and leaders as well as all applicants take care of each other, every day and everywhere.
According to their vision manager and leaders work and drive their team or groups towards it.
They also create an atmosphere where everyone take their personal accountabilities for safety
and work completion.
Shafaie and et.al., (2019) highlighted that companies in recent time provides wide value
to staff and their workplace condition. Japan Tobacco as competitor of British American
Tobacco Company, believe that their workers are foundation for their success and growth and
well being. They try to enhance and increase performance and capability of applicants by
committing to ethical and honest behaviour, they want commercial staff members and others
with whom they engage, to consider them to be transparent and trustworthy. Manager makes
necessary changes within existing practices and business functions only for sake of employee’s
welfare, which is really very important and helpful approach.
G) Recommendations to increase performance of enterprise
 From above analysis, it has been identified that lack of flexibility is one of the major
issues faces by workers within British American Tobacco that affects motivation, morale
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and productivity. Management to overcome this problem can take right actions; they
should solve it for developing better growth opportunities in the future. Organization
must create a plan with concentrate on growth and development of workers, they should
create training and development systems after identifying the needs of skills development
which will increase productivity of staff and in return improve performance of business
in further which is very beneficial for them. Leaders must require active measure and
monitoring to work with varied groups and applicants. They should comprehend
strengths and weakness of people before making training session to improve
effectiveness of company.
 Technological tools also play essential role for increasing performance and practices of
workers and company. By making utilize of the latest technologies management can
improve or enhance organizational efficiency rather than other major players, who are
operating in same sector. Manager must use software and the best market analysis tools
which make them capable to identify external factors and aware manager about it.
 Organization must use McClelland’s need theory, which falls under list of the most
effective motivational models in the business world.
CONCLUSION
By summing up above discussion, it has been summarized that by using democratic
management and transformational leadership styles, Jack Marie Jack Marie Henry David Bowles
as CEO at British American Tobacco, performing effectively. He efforts to build innovative and
creative work culture at workplace, which directly influencing performance and productivity of
company and help increasing it more than other companies who are operating their business in
same industry. In order to enhance performance level of organization, he does a lot of things and
adopts several motivational techniques or ways. Furthermore, from above analysis it has been
concluded that, by considering and then implementing the appropriate suggestion in business,
management successfully increasing organizational performance.
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