Organisational Theories and Practices at British American Tobacco

This report provides a comprehensive analysis of organisational theories and practices within British American Tobacco (BAT). It examines the management styles employed by the CEO, including visionary and coaching approaches, and discusses the application of management principles such as authority and responsibility, and unity of command. The report evaluates the steps taken by BAT to enhance organisational performance, focusing on internal growth strategies, removal of internal roadblocks, and training and development programs, while also exploring the impact of Handy's model of organisational culture on employees. Furthermore, it analyses the leadership styles of the CEO, including authoritarian, participative, transformational, transactional, and laissez-faire approaches, and their effects on organisational effectiveness. The report also investigates the effects of power, influence, and conflict within the firm, highlighting the importance of effective leadership in managing these dynamics. Finally, it explores the different types of motivation used by BAT to improve employee performance.

Organisational theories
and practices

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ................................................................................................................................1
Examine the management styles and discuss principles & function of management used by
CEO of British American Tobacco.............................................................................................1
Evaluate the steps taken with respect to organisation structure in order to achieve high
performance and also discuss organisational culture and its impact on employees of British
American Tobacco......................................................................................................................2
Discuss leadership styles of CEO of BAT in order to enhance effectiveness of organisation.. .4
Analyse the effects of power, influence and conflict at the chosen firm....................................5
Use suitable examples and literature to justify answer...............................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Organisation is the process of identifying and grouping of work to be done, assigning &
delegating, authority & responsibility and building relationships between employees to work
together effectively for achievement of business objectives.
Organisational theory refers to the set of interrelated activities that defines the behaviours
of individuals and groups. It helps in finding out the suitable structure for organisation in order to
deal with specific problems.
British American tobacco is a British tobacco manufacturing company that sells
cigarettes and other nicotine products. The company introduced in 1902 with its headquarter in
London, UK. It is the world's second largest publicity traded tobacco company in terms of
market share after Philip morris international.
In this report management styles, principles & functions used by CEO of respective firm
and steps to be taken for improving performance of employees are discussed. Further leadership
styles types of motivation adopted by CEO and effects of power, conflicts & influence on
respective firm are considered. In addition appropriate corporate examples and suggestions are
discussed to enhance performance of employees.
MAIN BODY
Examine the management styles and discuss principles & function of management used by CEO
of British American Tobacco.
Management styles
Visionary: In this styles of management manager of BAT communicate the purpose and
vision of the business with their team and make them believe in which convince employees to
work hard in order to execute this vision of firm (Hayes, 2018). Visionary managers allows
employees get to work own their own terms till thy are productive. This motivates employees
and enhance their performance.
Coaching:Another important style used by manager of respective firm is coaching to
improve long-term professional development of their employees. Coaching managers ensures
professional development opportunities for employees such as- promotions and assign more
responsibility. These creates hunger in employees for knowledge and their development
improves performance of teams.
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Management principles
Authority and responsibility: It is used by respective firm to maintain work efficiency by
giving authority to employees for doing work as per their own knowledge and make them
responsible for work done with proper guidance (Johnston and Sheehan, 2020). This enhance the
performance of employees as well as maintaining discipline at workplace.
Unity of command: The CEO of respective firm uses this principle of management to
reduce chances of conflicts and confusion arise when one employee is responsible for more than
one boss. The manager ensures employee has to follow orders & command of one boss. This
makes it clear for individuals to without having pressure in mind that results in timely
completion of work.
Management functions
Planning: This function of management is used by CEO of respective company for
deciding in advance what to do. For instance company decide what type of activity to do for
weaken the competition in market like consumer ended activity.
Organising: It means to know what steps are to be taken and how they work together.
For instance in terms of respective firm after displaying a brand manager contact with
distributors & retailers and recruiting employees.
Staffing: In this function of management CEO of respective firm should train employees
for proper communication with customers.
Leading: Here manager of respective organisation supervise its employees and their
work for ensuring effectiveness in employees performance (Dalkir, 2017).
Motivating: This function of management is used by CEO of respective firm to motivate
and encourage its employees for effectiveness in productivity.
Controlling: It is used by board of director of BAT to measure achievements against
business objectives and take corrective actions for make sure that plans are working on track.
Evaluate the steps taken with respect to organisation structure in order to achieve high
performance and also discuss organisational culture and its impact on employees of British
American Tobacco.
It is very important for organisation to take necessary steps time to time for improving
and increasing performance of employees (Veldsman and Veldsman, 2020). In terms of British
American Tobacco various steps are taken by CEO discussed as below:
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Grow company within: It is related to internal changes of organisation such as- changing
strategies & mission which is difficult to map out with organisational culture. In terms of
respective firm managers taken the decision of simplifying organisational culture due to
successful completion of merger with Reynolds American Inc.
Identifying and removing internal roadblocks: In terms of CEO of respective firm
identifies the internal barriers that affected the growth of organisation in negative ways and
necessary steps are taken to remove them. For instance expended role of r&d and marketing
department for expanding business and create opportunities for employees to explore their
performance.
Training and development strategies: Another important step taken by the manager of
British American is to arrange training and development programmes for achieving efficiency
and effectiveness in the performance of staffs (Lake, 2016). For instance company uses group
discussion, outward bound training and video training from experts which leads the rising in
employees performance and productivity.
Handy's model of organisational culture
Organisational culture is described as the values, behaviours and ways that added value to
organisation's unique psychological and social environment (Patterson, Zibarras and Ashworth,
2016). There are four classes of hand's model such as- task culture (used by firms to address
unique projects and problems), power culture (organisations in which power is in the hands of
few people), role culture (power drives from a position of a person in organisations with role
culture), person culture (here power is in the hands of every individuals within each group). In
terms of British American Tobacco based on person culture explained in details below:
Person culture: British American Tobacco is a organisation with person culture, here
everyone is responsible for completion of their tasks and power and authority holds by
individuals to perform jobs with their own space. It makes employees feel motivated towards
work hard with full potential to reach targets of effective productivity and performance for self
satisfaction. BAT focuses on gender equality, nurturing of local talents and creating healthy
work environment so that they can set the example for industry. Thus, organisational culture has
an positive impact on its employees which leads to rising skills and performance of employees.
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Discuss leadership styles of CEO of BAT in order to enhance effectiveness of organisation.
It is defined as basic framework that provide guidelines to leaders how to implement
strategies and plans & how to motivate employees for better performance (Maylor and Turner,
2017). Following are the some styles that helps leader of respective firm:
Authoritarian leadership: When team members required specific and clear guidelines,
then this type of leadership style is used by the leader of respective firm. It helps in critical
situations in order order to achieve effectiveness in performance of teams within limited period
of time. It creates healthy relationships between teams and leaders so that both can work together
for achievement of business objectives.
Participative leadership: This style is used by the CEO of BAT to formulate strong
teams with highest creativity and productivity in employees performance. Employees are allow
to participate in important decision-making of organisation so that employees can feel
themselves a part of firm and motivate to work hard for achievement of business goals.
Transformational leadership: Leader of respective firm used this style of leadership for
inspire employees through communicating them the vision of organisation to gain help of
employees in achievement of this vision. This helps in motivating employees and empowering
them for accomplishment of business objectives and vision of organisation.
Transactional leadership: CEO of BAT uses this style for eliminating the chain of
command and increasing performance of employees (Schwarz and Baker, 2016). For motivating
and encouraging employees for working hard gifts, perks and rewards are exchanged by leader
for getting work done in efficient way. Thus, there is a transaction between leader and staff that's
why it is known as transactional style of leadership.
Laissez-faire leadership: This style of leadership used by CEO of British American
Tobacco to give authority and power in hands of employees for completion of tasks with their
full capacity. This strategy make employees independent and generating healthy work
environment so that people feel motivated and work hard. It plays important role in improving
performance of employees.
Thus, these are the important leadership styles used by CEO of respective firm as per the
requirement of different situations and helps in maintaining flexible and positive environment.
These styles helps the CEO in rising the effectiveness of organisation with smooth functioning
and higher productivity within the firm.
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Analyse the effects of power, influence and conflict at the chosen firm
Working in collective manner is not an easy task and every individual has their own
perspective, opinion and way to perform their job. Their different ways and perspective tends to
develop conflicts among them and to manage teams, British American Tobacco need both
managers and leaders to effectively manage employees to work them with full efficiency and
potential. In regard of respective company power, conflict and influence plays an important role
to make the functioning of employees smooth and easy. These factors are mentioned as under:
Influence: As per this factor, it is essential to influence employees to perform in an
effective manner and for this, fellows need proper direction and guidance (Mahon and et. al.,
2017). In terms of British American Tobacco, they need efficient direction and guidance of
leaders as they are the one who can prominently influence and motivate employees to perform
with full potential. Support of leaders is useful in accomplishing significant goals and objectives
as they are capable in identifying the needs and requirements of employees, so it is important for
them to motivate them by considering the requirements.
Power: It depicts the prominent power that regulates within the culture of company and
for this, it is essential for managers to prominently delegate suitable power and authorities to
employees along with proper responsibilities. Both power and responsibilities should be assigned
simultaneously to employees as by this they does not misuse it otherwise it tends to develop
politics within an organisation. In terms of British American Tobacco, their managers and
leaders both are efficient in terms of delegating significant authorities and responsibilities to their
employees and also analyse their skills and competencies in terms of performing with full
potential.
Conflict: It refers to the disagreement and disputes among employees regarding their
overall decisions and suggestions. It represent that most of the employees does not have common
suggestions and opinions and it also does not matches with each other that tends to develop
conflicts among organisation and it put huge impact on the overall performance of employees
and company as well. In terms of British American Tobacco, their leader and managers both
tends to make sure that their employees have common perspective and opinions and take
decisions considering the innovative and fresh ideas of their employees that leads to motivate
them in performing very well.
5

Explain the different types of motivation used by respective firm.
Motivation styles are the basic rules and theories that guide and help managers in
planning & organising strategies, taking important decisions about organisations, assigning tasks
and authority to employees and monitoring & managing organisation in effective ways (Prøitz
and Wittek, 2020). Following are the types of motivation used by manager of respective firm:
Intrinsic motivation:- It is the type of motivation where, motives are generating from
inside of human body. This includes biological factors such as- thirst, hunger, sleep, temperature
regulation, relief from pain etc., curiosity to learn and gain something, fear of rejection, wants to
gain power etc. theses factors motivates people by their own.
Extrinsic motivation:- According to this motives are generate from outside of human
body and motivates employees on a wast level. These external factors considered bonus,
incentives, allowances, rewards & punishment, promotion & demotion etc.
Manager of British American Tobacco uses Maslow's theory of motivation to influence
and encourage employees from inside and outside factors.
Maslow's theory of motivation
Malsow indicates five stages in its theory of motivation for achieving effectiveness in
business goals. In terms of CEO of respective organisation this theory is used to motivate
employees for better performances. Stages of this theory are explained below:
psychological needs: This stage is related to water, food and shelter. In terms of
respective organisation manager ensures comfortable working conditions, necessary breaks,
reasonable work hours etc. (Kontinen, 2018) for satisfying psychological needs of its employees
in order to make them comfortable and encourage for increasing effectiveness in performance.
Safety needs: It includes personal & financial safety and security needs of people at work
place. Managers of respective firm provides wages & salary, job security, insurance to fulfil this
stage of staff desires with respect to add value in organisational goals.
Social needs: Another important requirement of employees is related to acceptance and
interactions with teams and groups in organisation. With respect to British American Tobacco
manager ensures group activities, effective supervision, building co-operative teams and groups
to satisfy social need of employees to gain productivity.
Self-esteem need: Manager of respective firm praised individuals for their co-operation
in tasks achievements, rewards for doing good work, job-enhancement, promotion etc. to fulfil
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this need of their staffs. It motivate employees of working hard and earn respect and good image
within the firm.
Self actualisation need: This is related to the need of reaching full potential or strength.
Manager of respective enterprise improving and enhancing skills & performance of employees
by offering them flexibility in tasks & jobs, assigning challenging tasks, inviting them into
decision-making process of business. So that they can feel themselves a important part of
organisation and influenced for working hard with full potential.
Use suitable examples and literature to justify answer.
Maslow's theory is important to identify different needs and desired of employees at
workplace and satisfying these needs plays significant impact on the performance of them. In
terms of respective organisation this theory of motivation is used to encourage employees in
order to improve their productivity and performance (Howitt, 2019). Following are the examples
why it is important to consider this model for British American Tobacco:
Example1: Everyone wants some sense of security whether it is related to workplace or
personal life of a person. In terms of workplace employee wants some security related to
monetary terms, safety & security against health, financial security for family etc. in absence of
fulfilment of these needs increases feeling of dissatisfaction in employees minds about
organisation and reducing employees performance (Ober and Sakdapolrak, 2017). Thus, for
increasing their performance it is important to satisfy these needs of individuals working in
organisation. In terms of manager of respective firm ensures measures to remove mental pressure
of mankind and motivates them to feel free while working. It leads to remove hurdles in
continuity of work and enhances performance of employees.
Example2: Employees wants feeling of affection and belongingness within organisations
in terms of involving in teams & groups and expects acceptance of themselves by the the people
of organisation. If employees are not interact with each other they feel bored and no co-
ordination can developed between them. So that Maslow's theory help manager of respective
firm in identifying needs of individuals within the organisation (Garvey and et. al., 2017). It also
helps in ensuring various group activities so that people can interact with one another and
healthy work environment can be exist in enterprise. Managers also formulate teams to get work
done with co-operation and co-ordinations which enhancing the skills and abilities of employees
and adding a value to rising performance standards.
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Discuss the suggestions and recommendation to increase organisational performance.
In terms of increasing organisational performance CEO of British American Tobacco can
expand their motivational strategies and using different cultures as per the requirement of
situations. Company uses Maslow's motivational theory to influence employees on the basis of
levels of needs. It not enough to motivate employees on the basis of one theory. For instance if
someone needs money, holidays and leaves doesn't matter and inspire particular employee. Thus,
considering values, beliefs and emotions are also important to motivate employees and enhance
their performance. Leaders and mangers of respective firm can also use different fringe benefits
such as- maternity leaves, sick leaves, holidays etc. motivate and encourage their employees. It is
suggested to managers of respective firm use of exercise power in positive ways. For instance
use of power for assigning roles and duties of employees, formulating teams & groups. CEO of
British American Tobacco should also influence employees by setting example to inspire them.
Managers and leaders of respective firm should also ensures proper implementation of plans and
vision of firm so that employees can trust on vision as well as leader (Foray, 2018). It helps in
working with concentration without having confusion in mind. In terms of respective
organisation it is recommanded to use different reward schemes to influence people such as
praised for better performance, job-enhancement and assigning challenging tasks and duties in
order to make them independent and develop self-motivation skills. It is important to provide
necessary guidelines in order to get work done within specified time and participating employees
in decision-making process and addressing their important suggestions. Thus, leaders and
managers of British American Tobacco should use different leadership styles such as
participation, laissez-faire to motivate and encourage employees for working with full potential.
This will enhance the performance and behaviours of employees as well as groups within the
organisation which impact position in market and build high brand image within the industry.
CONCLUSION
Therefore, by considering the above discussion, it is identified that to smoothly run
organisation, it is essential to have effective theories and approaches which is useful in
performing well. Along with this, proper examination is considered with effective management
styles and signifiant functions of management which is used by CEO and identify the steps
which are considered for effective structure and culture in terms of performing high. Along with
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this, prominent leadership style is developed in terms of enhancing the organisational
effectiveness and also identify the impact of power, conflict and influence by discussing the
types of motivation used in company. Lastly, prominent recommendations are given in terms of
increasing the performance of company and improving behaviours of mankind. So that company
can work effectively and efficiently without any barriers.
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REFERENCES
Books and Journals
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Foray, D., 2018. Smart specialisation strategies and industrial modernisation in European regions
—theory and practice. Cambridge Journal of Economics. 42(6). pp.1505-1520.
Garvey, R and et. al., 2017. Coaching and mentoring: Theory and practice. Sage.
Hayes, J., 2018. The theory and practice of change management. Palgrave.
Howitt, D., 2019. Introduction to qualitative research methods in psychology: Putting theory
into practice. Pearson UK.
Johnston, J. and Sheehan, M. eds., 2020. Public relations: Theory and practice. Routledge.
Kontinen, T., 2018. Learning and Forgetting in Development NGOs: Insights from
Organisational Theory. Routledge.
Lake, A., 2016. Smart flexibility: Moving smart and flexible working from theory to practice.
CRC Press.
Mahon, K and et. al., 2017. Introduction: Practice theory and the theory of practice architectures.
In Exploring education and professional practice (pp. 1-30). Springer, Singapore.
Maylor, H. and Turner, N., 2017. Understand, reduce, respond: project complexity management
theory and practice. International Journal of Operations & Production Management.
Ober, K. and Sakdapolrak, P., 2017. How do social practices shape policy? Analysing the field
of ‘migration as adaptation’with Bourdieu's ‘Theory of Practice’. The Geographical
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Patterson, F., Zibarras, L. and Ashworth, V., 2016. Situational judgement tests in medical
education and training: Research, theory and practice: AMEE Guide No. 100. Medical
teacher. 38(1). pp.3-17.
Prøitz, T.S. and Wittek, L., 2020. New directions in doctoral programmes: bridging tensions
between theory and practice?. Teaching in Higher Education, 25(5), pp.560-578.
Schwarz, B.B. and Baker, M.J., 2016. Dialogue, argumentation and education: History, theory
and practice. Cambridge University Press.
Veldsman, T.H. and Veldsman, D., 2020. Critically problematising existing organisational
identity theory against practice: Part 1–The thinking framework of organisational
identity. SA Journal of Industrial Psychology. 46(1). pp.1-12.
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