Organisational Theory and Practice: BAT Case Study Analysis

This case study delves into the organizational theory and practices of British American Tobacco (BAT), focusing on the leadership of CEO Jack Bowles. It examines his participative management style, principles, and functions, and how these contribute to BAT's vision of 'A better tomorrow.' The analysis explores the company's hierarchical organizational structure, its competitive culture, and the impact on employees. Furthermore, it investigates Bowles's 'Laissez faire' leadership style, motivational strategies, and the effects of power, influence, and conflict within the organization. The study also discusses the different types of motivation used at BAT, including Maslow's hierarchy of needs and financial methods. Overall, the case study provides insights into BAT's approach to achieving high performance, fostering a positive work environment, and adapting to the changing tobacco industry.

Organisational Theory
and Practice -
Individual Case Study
Analysis

Table of Contents
INTRODUCTION...........................................................................................................................3
Examine the management style and state the principle and functions of management used by
the CEO of BRITISH AMERICAN TOBACCO? ...............................................................3
Analyse the steps taken with regard to organisation structure in order to achieve high
performance and state the organisation culture at BRITISH AMERICAN TOBACCO and its
impact on the employees........................................................................................................5
Describe the leadership style of the CEO of BRITISH AMERICAN TOBACCO to enhance
the organisational effectiveness. ............................................................................................7
CONCLUSION................................................................................................................................9
British American Tobacco, 2020 ..................................................................................................10
Our ethos, 2020 [online], Available through<https://www.bat.com/guidingprinciples>11

INTRODUCTION
Management and leading Style of every individual varies in a organisation that is
completely depended in the way different principles & functions that are used by Board where
major part is handled by Chief executive officer on a organisation (Rathnaraj. and Vimala,
2018). Present report is based on CEO of British American tobacco that is a global tobacco
brand sold across 200 markets and 57000 people are employees across world where there is
indirect employment through supply chain. There is analysis of steps that are covered for
achievement of higher performance. Further there is analysis of power, confit and influence of
British American tobacco.
Examine the management style and state the principle and functions of management used by the
CEO of BRITISH AMERICAN TOBACCO?
Jack Bowles became chief executive in April 2019 and joined this group in 2004. The
main vision of Jack Bowles is to provide with opportunities to energise and build up ties to
deliver a sustainable growth for BAT and all their respective shareholders.
The main vision of BAT and CEO is to compel a vision of building “A better tomorrow” where
there is offering trio hundreds of adult smokers a diverse range of reduced risks alternatives to
traditional cigarettes.
He believes in power of diversity that is harnessing of diverse perspectives and thinking
ways that can help them in understand their target segment of customers that is adult customer in
dynamic changing markets (Sah,. and Dadwal, 2018). There are different types of management
styles in TBA Jack Bowles has adopted participative style of management where employees &
leaders working across different levels can take part in the decision making process. Staff is
provided with accurate information regrading goals of organisation os that they can provide

some innovative and effective solutions. CEO is willing to seek ideas, opinions of staff and
thoughts as it helps in getting a insight of customer mind set and thinking process while
purchasing their products. The management style of Jack Bowles is focussed on empowering
leaders and employees across organisation to help the organisation in moving forward.

Principles & functions of management of Jack Bowles:
 The main principle for using a participative approach is that employees are feeling more
valued by management team & organisation as whole can respond with high productivity
and motivation level (Hassan, Hamzah, Saleh and Kamaludin, 2019).
 There is enhancing of the innovation process according to future customer needs. Jack
posses a track record of innovation and experience across many different geographies so
that they can position themselves extremely well as a tobacco products brand.
 Vision of BAT is to satisfy customer preferences in tobacco & beyond this has lead to
satisfaction of customer preferences in combustible products and establishment of a multi
category reduced risks business.
 Jack Bowles believes that Tobacco industry is changing at a fast pace because of
customers preferences in Tobacco and enabling to deliver a year on growth in
combustible products that can lead to establishment of a successful multi category
product business.
Analyse the steps taken with regard to organisation structure in order to achieve high
performance and state the organisation culture at BRITISH AMERICAN TOBACCO and
its impact on the employees.
Organisation structure at BAT:
There is adoption of hierarchy organisational structure at BAT where there is division
according to amount of roles & responsibilities that are allotted to different levels of
organisation.
The board:
BAT Kenya board charter 2019:
The board charter is setting values, mode of operations , principles and roles of Board of
directors. The provision of board carter are related to application of regulations. It consist CEO,
Chairman, Director sue farr and other directors like Marion helmes, Luc jobin, Savio kwan.
Further, there are other departments that include marketing it includes digital marketing & e
commerce, digital & information, that consist of technology delivery legal & external affairs
which includes external afford, japan & Korea. Operations department consist of locations such

as APAC & middle east, AmSSA, EU & North Africa. Further other functional department
includes, scientific research, talent & culture, finance, imperial tobacco, Reynolds American.
(Source: British American Tobacco, 2020)
Organisation culture at BAT:
There is a highly competitive culture that is build up to create a differentiate reputation
as employer. Top management is willing to provide a attractiveness of rewarding career so that
there can be valuation of international business that can support the process of development and
professional learning (Al Zuned, 2017).
CEO and higher board of directors are willing to focus on creation of engaged teams,
excellent people and great place to work. The way people are performing their functions is
depicted by BAT ethos that is underpinning the culture and further guiding the way to deliver the
strategy (British American Tobacco, 2020).
The culture of BAT is discussed on development of insider talent and then supporting
high performing managers which can deliver their strategy. In year 2019, 89 percent of senior
appointments are drawn from people who are already part of business and there can be formation
of diverse teams. In case of external recruitment there is actively seeking of employees who can
provide additional knowledge & skills that can strengthen teams and creation of a stringer
business.
Illustration 1: Hierarchical structure at BAT

There is supportive culture, with a safe working environment and protection of well being of
employees by listening to their views. The culture is based on responsibility and personal
commitment that is attracting, engaging and retaining of diverse and talented people.
Describe the leadership style of the CEO of BRITISH AMERICAN TOBACCO to enhance the
organisational effectiveness.
CEO Jack Bowles is focussed on creation of a excellent strategic leadership position that can
lead to driving of productivity improvements and building of strong management teams. His
main objective as a leader is to take advantage of opportunities through a transformation process
at BAT with a stringer multi category nicotine and tobacco products company (SAHOO and
DASH, 2017). Jack Bowles is basically using a “Laissez faire leadership style”. Here there is
main emphasis on delegation of initiative to all team members. It can be a successful strategy if
team members are willing to take responsibility, competent and prefer engaging towards their
assigned work.
Bowles has a believed that organisations in Tobacco industry have to align their marketing and
sales efforts with market latest trends. Tobacco organisations have to change their positioning
and strategy for tapping new business opportunities (Alnoaimi, 2018). It helps in understanding
the sift of market dynamics to ensure maximum sales in coming future time period.
Illustration 2: Different traits of leaders in BAT

Boweles had a focus on ensuring BAT's leadership capabilities are aligned to strategies of
business & future needs. There is predominance assessment as a criteria that is focussed on
leadership development and leadership capability. Another approach is identification of critical
experiences that is basis of performance evaluation. Here, junior level is related to execution,
mid level management is achievement of higher performance and at senior level it is part of
business alignment and at final stage if executive level there is strategy formulation. The
approach is based on revision of leadership capabilities where there is making of how individuals
are comparing with their peers. With application of this calibration process there is
encouragement of objective conversations that promotes leadership potential and discussion.
This calibration process is based on application of a participative leadership style where there is
encouragement of more objections conversations and promotion of employees initiatives.
Bowles has a track record of involving in timely innovation & his personal level of experience in
different business areas will help him to assume a position that can leads to a next successful
chapter of BAT history (Homberg and et.al 2016). He as a person ahas accepted the challenge of
taking over of BAT during evolution of moving from traditional cigarettes and to one of best
selling products that are electronic cigarettes, heat not burn cigarettes & other innovative
products.
As a leader and providing guidance to all their subordinates of Bowles strategy is focussed on
transformation of business to a potential reduced risk business and acquisition of Reynolds
American Inc has created a stronger nicotine business by delivering of a consistent growth.
Analyse the effects of power, influence and conflict at the chosen firm. (400 words)
There are a number of effects of power, influence and conflict in BAT like every other
organisation. Every employee in organisation is vested with different powers and these powers
enable them to influence others. It is often seen that leaders in BAT are influencing employees
towards their goals. Often there are also conflicts seen in organisation due to these influences of
powers. It is necessary for managers at BAT to manage their employees in a way that there are
no conflicts in organisation. They use the theory of Human Needs Models in order to resolve
conflicts in their organisation. The theory was developed by John Burton. According to this
theory Burton states that it is the fundamental right of human that they are treated equally and
their participation in organisation is also equal. When this does not takes place it is seen that
conflicts between employees in organisation arises. It is also important for managers in

organisation to understand that they are required to solve issues. In order to resolve such issues
the managers of BAT are keeping the needs and demands of employees that are essential at the
top (Habtoor, 2016). They are required to make sure that essential needs of employees are not
threatened otherwise it may lead to requirement of restructuring of relationships within
organisations. Managers at BAT take care of the fact that employees needs are fulfilled and both
the parties who are involved in the conflict are at peace.
There are also a number of different ways through which conflicts are resolved and
negotiation is conducted between parties those are involved in conflict. Through this the conflict
which is between employees in organisation can be transformed into a deal of negotiation. The
negotiation can be equal as well as unequal. Often those in power at organisation are influencing
others. This can be a reason for conflict or can also help the organisations in resolving conflicts.
When taking BAT into consideration the people in organisation with power are helping the
employees in organisation to resolve their conflicts. They influence employees with their
personality and communication skills and help organisation to manage a healthy and positive
working place.
Discuss the various types of motivation used at BRITISH AMERICAN TOBACCO.
Motivation aids the organisation to determine how hard workers are dedicated towards their
work for a business. In which Maslow hierarchy need theory is a best tool for motivating
employees at workplace. It consist five levels of needs which is started from lower level to
higher level respectively. All these needs are Physiological, Safety& security, Social, Esteem and
Self actualization. Once employees have been met their lower level needs which is basic
requirements, then they will jump to next level needs (Acevedo, 2018). Mr. Jack Marie Henry
David Bowles, CEO of BRITISH AMERICAN TOBACCO usage this theory for motivating
their employee in order to increase efficiency and effectiveness of workers performance. And
there are some more financial methods of motivation adopted by CEO of BRITISH AMERICAN
TOBACCO to motive their staff members. These are discussed below:
Remuneration- After recognizing the needs of employees, they planned remuneration
polices to see real distinction among individual and team within organisation. For this they uses
criteria like qualification skills, performance contribution and responsibilities. They remunerate
and reward their worker for maintaining high performance and highly motivated culture.

Equal opportunity- They provides equal opportunity to each and every workers who are
at same position within firm fr maintaining healthy and positive workplace environment. That
bring motivation among employees for performing in effective manner.
Promotion- This is an another method to used by CEO of BAT to motivation their
employee. In which performance of every employee is measured and on that basis promotion is
carried out (Hegghammer, 2017). It provides higher ranking position with more responsibilities.
Term promotion refers to an employee earns more wages and acquire high financial benefits.
This feel worker more valued by a firm.
Performance and Rewards- On the basis of performance of workers, CEO of BRITISH
AMERICAN TABACOO encourage and motivates their employees by giving them rewards,
bonus, monetary incentives and performance appraisal. It maintain positive and healthy
workplace environment and that will assist company for maximizing productivity and
profitability of company in order to accomplish goal or objective of firm.
Training and Development- CEO of BAT offers opportunity to their employee for
enhancing their knowledge and skills by providing them training and development session.
Training helps them to understand how their work fits into organisational goal, mission and
achievement. Workers feel more motivated after understanding, how they are important for
company towards growth and success of firm.
Use appropriate corporate examples and literature to justify your stand.
According to Dugan, (2017), there are a number of benefits brought in by Maslow
hierarchy of needs applied on organisation. It is often seen that the fulfilment of needs begins
from bottom level itself. Therefore the organisations are to focus on higher needs of consumers.
There are a number of companies who have been using Maslow's need hierarchy theory such as
amazon which focuses on continuous development of their employees. It is necessary that all the
employees in organisation feel motivated. Employee motivation is directly related to increase in
productivity in the organisation.
According to Chowdhury, Rana and Azim, (2019), it is necessary for organisations to
make sure that they are using best suited leadership style. Laissez faire style of leadership
provides organisation with employees who are more productive, motivated and encouraged
towards their work. It is necessary that employees in organisation are asked to ring out their
creativity which will further enable them to help leaders take decision. There are a number of

such organisations who are successfully using Laissez faire style of leadership in order to
continuously bring in new innovations. Microsoft and google are such organisations who are
continuously bringing in new developments taking help from employees and making them feel
important for organisation.
According to Healy, (2016), BAT is successfully using highly competitive culture in their
organisation as well. It is a great culture that can be used by employees to successfully bring out
the best in employees. In competitive culture employees always focus on goals and overall
performance of employees can be increased. It is a positive change in organisations through
which they are also attracting new and talented employees towards the organisation. Tesco, and a
number of other retail sector players are using highly competitive cultures in their organisation to
reach their revenues target. This encourages employees to do better in organisation.
Based on the discussion and debate what suggestions / recommendations (strategies) would you
make to increase organisational performance?
There are a number of ways which can be used by an organisation to successfully set up a
positive workplace environment. It is necessary that employees and employers are together
working towards fulfilment of objectives of the organisation. British American Tobacco can
effectively work out a number of ways through which they can successfully increase their
organisational performance. Below mentioned are some of such suggestions:
 It is necessary that BAT is successfully training their employees. Training and
development is an important factor for every organisation. It enables an organisation to
enhance skills and talent present with them. When organisations are training their
employees their productivity increases. It also helps in retaining employees in
organisation. This saves cost of recruitment and selection in business. Human resource
training and development also provides organisations with a competitive benefits in the
market place as well.
 In order to increase organisational performance it is necessary for BAT to continuously
keep motivating their employees. They need to use perquisites other than just the
monetary one's (Lu, Wei and Wang, 2020). It is required that they are successfully
providing bonus, appreciation, awards, promotions, social status etc. to their employees
which will help to keep them motivated. It is always seen that motivated employees are

more productive. When employees are motivated the atmosphere organisation is healthy
and positive.
 Another suggestion for BAT in order to increase their organisation performance is that
they should successfully choose leaders in organisation. Transformational style of
leadership is a great style which enables the leader to mould their leadership style
according to the requirement of organisation. It is successful practice which provides
flexibility to leader and the employees are also allowed to take part in decision making.
When BAT adopts this style of leadership they can influence their employees and make
sure that the individual goals of employees are successfully aligned with organisational
objectives.
In this way meeting small requirements will help British American Tobacco to
successfully meet all their goals and objectives in stipulated time period.

CONCLUSION
From above mentioned points it can be summarised that leaders play a very crucial rile in
development of strategic position of organisation. They are responsible for attainment of a
strategic position in the highly competitive environment,. According to changing situation a
particular leadership style is used such as in present scenario there has been adoption of a
participative management and a Laissez faire leadership style of leading teams. When
employees are contributing towards different types of decisions then it leads to timely innovation
and higher amount of creativity for the purpose of timely decision making. First recommendation
for leaders is to ensure that In future the situation can be improved ensuring that there is
incorporation of vision in organisational functioning of “Creating a better tomorrow”another
recommendation is to focus in satisfaction of changing customer preferences by focussing on
combustible products and a successful multi category reduced risk business.

REFERENCES
Books and Journals
Rathnaraj, S.N. and Vimala, A., 2018. Role of Transformational and Transactional Leaderships
in Job Satisfaction: in a Select Public Sector Organisation. SCMS Journal of Indian
Management, 15(3), pp.91-97.
Sah, S.K. and Dadwal, S.S., 2018. Managing Strategic Change and ERP Implementation under
Distinctive Learning Styles: Quantitative case of Burberry PLC.
Hassan, H., Hamzah, N., Saleh, N.M. and Kamaludin, A., 2019. The Effect of Transformational
Leadership Styles Towards Managing Knowledge Assets. Asian Journal of Accounting
and Governance, 11.
Al Zuned, A.M., 2017. Effective business leadership styles: A case study of Harriet
Green. Middle East Journal of Business, 55(5380), pp.1-10.
SAHOO, M. and DASH, B.B., 2017. LEADERSHIP STYLES ACROSS ORGANISATIONAL
TYPES: A COMPARATIVE STUDY IN ADMINISTRATIVE AND FINANCIAL
ORGANISATION. CLEAR International Journal of Research in Commerce &
Management, 8(9).
Alnoaimi, A., 2018. The Relationship Between Culture, Manager’s Leadership Styles, and
Employees’ Motivation Level in a Bahraini Service Organisation Environment (Doctoral
dissertation, University of Plymouth).
Homberg, F., Vogel, R., Fazzi, G. and Zamaro, N., 2016. Exploring the interplay between
leadership styles and PSM in two organisational settings. International Journal of
Manpower.
Lu, W., Wei, Y. and Wang, R., 2020. Handling inter-organisational conflict based on bargaining
power. International Journal of Conflict Management.
Healy, K., 2016. A Theory of Human Motivation by Abraham H. Maslow (1942). The British
Journal of Psychiatry. 208(4). pp.313-313.
Chowdhury, L.A.M., Rana, T. and Azim, M.I., 2019. Intellectual capital efficiency and
organisational performance. Journal of Intellectual Capital.
Dugan, J.P., 2017. Leadership theory: Cultivating critical perspectives. John Wiley & Sons.
Hegghammer, T. ed., 2017. Jihadi culture. Cambridge University Press.
Acevedo, A., 2018. A personalistic appraisal of Maslow’s needs theory of motivation: From
“humanistic” psychology to integral humanism. Journal of business ethics. 148(4). pp.741-
763.
Habtoor, N., 2016. Influence of human factors on organisational performance. International
Journal of Productivity and Performance Management.
Online
British American Tobacco, 2020 [online] Available
through<https://www.theofficialboard.com/org-chart/british-american-tobacco>
Our ethos, 2020 [online], Available through<https://www.bat.com/guidingprinciples>