A Comprehensive Report on Organizational Theory and Practice at BAT

This report provides a comprehensive analysis of organizational theory and practice within British American Tobacco (BAT). It examines management styles, including the autocratic approach of CEO Mr. Jack Bowles, and explores the principles and functions of management within the company. The report delves into BAT's organizational structure, highlighting its matrix structure and its impact on individuals, along with the influence of organizational culture. It analyzes the role of Mr. Bowles' situational leadership style, including coaching, and executive leadership, on organizational effectiveness. Furthermore, the report discusses the effects of power, influence, and conflict within the firm, examining various forms of power and motivational factors. A literature review supports the analysis, and the report concludes with recommendations for further improvement. The report aims to provide insights into BAT's operations and strategies.

Organisational
Theory and Practice

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Management Style and Principle & Functions of Management..................................................3
Organizational structure and culture of the British American Tobacco and it’s impact on
individuals....................................................................................................................................5
Role of leadership style of Mr. Jack Bowles on organization’s effectiveness............................6
Effects of power, influence and conflict to firm: -......................................................................7
Motivation in the British American Tobacco: -...........................................................................8
Literature Review........................................................................................................................9
CONCLUSION................................................................................................................................9
Recommendation: -....................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Organization theory and practises refer to the theory of organization in the study of the design or
organization and relationship & structure. It focusses on such dimension of the organization
formulation, specialisation, hierarchy of authority and standardisation with the size and goal
strategy. Organization theory is an important part of the organization working because it helps in
understanding the issues and practices the company required to understand the market of the
company. It helps in roles and status patterns of individual and group. It also helps in
understanding of rational perspective system, division of labours etc. The British American
Tobacco is the company that manufacturer and sell cigarettes and tobacco including the other
nicotine products. Th company stated from 1902 and still working in more than 180 countries
and providing the best quality product to the world. Working from such long time gives the
company in getting the trust all over the globe and is keep on working with that much good
services to the people(Hatch,2018).
BAT is having a primary listing of stocks in London stock exchange and is constituent of
FTSE 100 index. BAT have reached most of all the global market and giving the variety of
product to its customer with the best of the quality and variety in products. The report will help
in understanding the importance of the organization theory and practices in the market
organization and in the working of the operation of company. Further the report will see the
principle and functions of the management, including the steps company taken in the structure of
the organization management. The effect of the power on the company and the influences
company gets from its internal and external factors. The conflicts which are affecting the
company in getting the objectives. The factors which include in the motivations of the company
employees and the ways by which they can get the best use of motivation in the performance
towards the company and improve the working of the company. Further the report will explain
the literature to helps the justify of stands taken in the organization.
MAIN BODY
Management Style and Principle & Functions of Management
Management style: -
It refer to the style of leadership and management in any organization.
Autocratic style of Management: -
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Autocratic leadership management style refers to the leadership which is controlled by an
individual over all the decision and a very little input from group and team member. It is a style
of management which make typical choices on the basis of ideas and judgments and the leader
rarely accept advices from its followers. It is one of the best controlled management styles over a
group of people. Autocratic style is a commanding style of leadership in management which
works according the leader and the commander. It includes all the decision by the leader, and
gives the ability to dictate the work methods and the process to the employee and staff.
Benefits of this style is it allow the quick decision even in the stress filled situations and it offer
the clear chain of command to the works and in case of big organization it is best to control the
staff and this style is needed. But it has drawbacks as it can be discouraging the input of the
group, and can hurt the moral and confidence of the employee & leads resentment(Young,2016).
Principle and functions: -
The basic principle the CEO taking in the British American Tobacco are the: -
1. Division of work properly to maintain the working and giving the proper authorities and
responsibilities to every employee.
2. Providing the best unity in command with the proper discipline plan in the office helps
the company BAT in the working to get the result.
3. The remuneration and scalar chain help the company as company is working in more than
180 countries and working on such huge level needs a proper leadership and
commanding.
4. Orders and equity is important in the functional principle of the company working on
such a large scale.
CEO of the company BAT works with the autocratic style of management as working in a
Tobacco industry and working in more than 180 countries need a proper commanding officer and
a person who can handle the situations with all the ups and down in the market. Working on such
a big level need to have a proper strict leadership style and the CEO of the British American
Tobacco use the autocratic style of leadership management. Autocratic also helped the company
in achieving the heights they are in todays market is all because of that dedicated leadership style
and controlled on the vast coverage.
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Organizational structure and culture of the British American Tobacco and it’s impact on
individuals
Organizational structure can be defined as the visual outline of the business that provide
brief information about activities i.e. task delegation, authorization, supervision and coordination
which are followed to gain common goal of the company. However, there are different type of
organizational structures i.e. matrix, hierarchical, flat and others. British American Tobacco is a
British multinational company and operates worldwide. So, it follows matrix organization
structure. It is quite effective structure for company because it supports to stay long run in
dynamic environment (Sekar, Gondo and Prasetya, 2017). There are three types of matrix
organizational structure such as strong matrix structure, balanced matrix structure and weak
matrix structure. In strong matrix structure, project manager of the company has power and a
full-time role. While team of project management report to the full-time role manager and
control budget as well. Such structure has less role of functional manager. While balanced matrix
organizational structure project and functional managers shares their authorities. Generally, in
this structure project manager plays full-time job on the other hand, functional managers play
part-time job but both parties’ control on the budget. In weak matrix organizational structure,
project manager posses’ less authority and plays part-time role. Functional manager controls all
the project budget while project manager act as a coordinator. Thus, organization can have a
productive and flexible structure. This the main reason to follow this organization structure. With
this structure Mr. Jack Bowles who is the CEO of the BAT plc enables to focus on HRM, IT,
production and marketing department effectively. This organizational structure allows Mr. Jack
Bowles to take final decision for the business. This, BAT plc has established strong brand image
in the global market and captured large market share on it’s certain products.
Organizational culture comprises assumptions, values and shared beliefs which is
efficient to understand individual’s behaviour in the workplace. Handy’s cultural dimension
model has followed by BAT plc that contains four dimensions of culture i.e. power, task, role
and personal culture. With this model CEO of the BAT enables to understand individuals needs
at the workplace and maintains their wellbeing by fulfilling their needs (Lukinaitė and Sondaitė,
2017). Mr. Jack Bowles practices role and task culture to in order to gain high profitability in the
business and retains highly talented staff in the company. Role culture brings understanding in
individuals about their role and responsibilities and make them goal-oriented. On the other hand,
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task culture frames all defined objectives in efficient manner as resulted individuals enable to
gain all framed objectives by performing their responsibilities effectively. However, Mr. Jack
Bowles always focuses on employee’s wellbeing so that they give honest performance at the
workplace which brings productivity in business. Such culture impacts on individuals positively
because they get all type facilities which they expect from the company. It also helps company to
stay long run in the global market.
Role of leadership style of Mr. Jack Bowles on organization’s effectiveness
Leadership is the process of leading and motivating individuals and group of people
towards common goal. An effective leadership helps company to build good working
relationship with staff members and on the behalf of this it can retail talented staff in the
company for long time. Mr. Jack Bowles is the CEO of the British American Tobacco plc has
followed situational leadership style. The reason behind is that it comprises four type leadership
styles i.e. coaching, directing, participating and delegating (Sahrain, 2018). So, it become easy
for the CEO to adapt different leadership style accordingly situations. With the situational
leadership Mr. Jack Bowles has enabled to make working environment highly competent,
proactive and innovative. It is important for the managers and leaders of the company to fit
different leadership styles in order to gain framed objectives. The CEO of BAT plc has practiced
coaching leadership style which is one of the main leadership style of situation leadership style.
With this coaching leadership style Mr. Jack Bowles conducts employee orientation program for
the staff and make them understand about their responsibilities. In addition, Mr. Jack Bowles
explain reason behind of this program so that individuals participate in this program on serious
note. Overall, company has achieved good outcomes because individuals perform more
effectively and gains all projected objectives within time period. Mr. Jack Bowles also follows
executive leadership style for controlling on overall business activities such as employee
retention rate, customer’s reviews, revenue and others functional activities of business. Apart
from this, Mr. Jack Bowles posses’ different leadership styles and characteristic i.e. problem-
solving skills, time management, digital literacy and others for running business potentially.
Thus, different leadership style has brought success in the company that is evident by it’s global
positioning and employee retention rate.
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Effects of power, influence and conflict to firm: -
Power: -
The most common descriptive of the power is given by French and Raven. They have
divided it into 5 forms which are used by the company British American Tobacco are follow: -
Coercive Power: - This is the power when someone is forced to do things against their will. It is
a power of dictatorship which shows the bully nature of the leader. This power can give result in
harms, coercive is the ultimate power of all government.
Reward Power: - Reward power is something which give motivation to the employee as the
main reason we work is for money and getting money and rewards for the working helps in
motivation and perform better. It gives the ability to give other what they want.
Legitimate power: - Legitimate power is one of the higher powers but it is controlled under the
coercive power. The main reason people forgot is that, the people are obeying to the role and
position not them.
Expert power: - Expert power is the power of a person who can control people and is expert in
doing a particular work in the company. It is mostly used in trade unions and also when the
expertise required.
Informational power: - Information power is the power which gives the information to a person
who think and act in a different way to make the action gets rewards.
The power should be done on the situations and should be choose on the situational bases
and the company leader should command the employee in such a way that they do not feel
pressurised and stay motivated.
Influence in British American Tobacco: -
The light cigarettes: - The influence in the market strategies of the company changes with the
innovation to the light cigarettes and the trend of lights in the market. The company is focusing
in making more of the lights as the women smoking population is rising.
Snus: - Introduction of snus in the market have change the strategies of the company and make it
divert to the snus as it is less harmful than cigarettes. It is a kind of innovation that facilitate the
lesser of tobacco influence(Christensen,2020).
Conflict in the British American Tobacco: -
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Style of leadership: - The major conflict in the organization is because of the leadership style as
the autocratic leadership style is affecting the moral of the employee and making them
demotivated towards the work and make them feel pressure in working for the company.
Internationalization: - Becoming internationalization affect the company as they need regular
training and development as working in the new country required as lot of skills and because of
that they need higher decision-making ability on international level(Zietsma,2019).
Motivation in the British American Tobacco: -
Maslow need Hierarchy theory: -
It is a hierarchy of motivation theory made by Maslow and is divided into 5 tier model of
human needs: -
Physiological needs: - Physiological needs are those need of the human which make them
motivate toward the basic biological requirement for a person to survive on daily bases. It
includes the factor of basic needs like the water, sex, cloths, shelter sleep, warmth etc. It is one of
the basic needs a human want for living. Employee works for basic needs first. The first step
company should take is to make sure the wages are that much so that the employee can get its
basic needs completed(Egeberg,2016).
Safety needs: - after getting the basic need completed the next thing a human gets motivated for
is the security and safety needs. It is one of the most important need of the people as the safety
and security is important and the companies need to work on that to provide the safety to the
employees by giving safety to their jobs, health facilities, social security etc.
Love and belongingness needs: - After the completion of the basic physiological needs and the
safety & security needs the third need of the human is of the love and belonging needs which
include the relationship, trusts, intimacy, acceptance, getting affection and love etc. The need of
the interpersonal relationship helps the employee in motivational behaviour. These needs occur
when the basic and safety needs get fulfilled.
Esteem needs: - The fourth need in the motivation theory by Maslow in its hierarchy is the
esteem needs of the human which include the esteem for oneself, achievements, independency,
the desire for the human to get reputation in the company, to get the prestige in life etc. This
include the Respect and status freedom and required the attention in the company and for that the
company make regular growth and the rewards to make sure their employees do not feel left
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over. Getting the respect and status by the company helps in motivation the employee to perform
more better for the company and improve the performance for the British American Tobacco.
Self-Actualization: - Self-actualization refer to that stage where the human feel that they have
achieved everything in their life and they do not have any future to achieve in life. They feel that
their desire to become the most is completed and they are done for everything. At this stage the
motivation increases as the needs of the human meets(Clegg,2017).
Literature Review
According to Awadari and Kanwal, (2019) organization behaviour and culture are the
important part of the company. The reason behind is that it helps business to gain all framed
objectives within timeframe and also enhance goodwill of the company in the business market.
When a organization has effective organizational culture that brings prosperity and mutual
benefits in the business. A effective organizational culture always keeps individuals innovative
and highly competent. So it will be valid to say that a strong organization culture supports
company to stay long run in the business market.
Kapur, (2018) has quoted about Tesco and it’s culture in their published research papers
that Tesco is one of the great example to define role of organization culture. It is successful
company as compared others because it follows Handy’s and Hofstede cultural dimension
models for maintaining wellbeing of diverse workforce. So, it has achieved strong brand
positioning in the business as well as has established loyal customer base. Tesco always focuses
on customer’s needs while managers of Tesco pays attention on staff members. The reason
behind is that the main goal of the company is to bring satisfaction in individuals. There are
various initiatives like collaboration with healthcare companies, consumer marketing campaign
and others that have taken by Tesco for maintaining wellbeing of individuals and gains all
framed objectives within timeframe.
CONCLUSION
The report disclose that CEO of the company BAT works with the autocratic style of
management in its operations and working in a Tobacco industry and working in more than 180
countries need a proper commanding officer and a person who can handle the situations with all
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the ups and down in the market. Its important for the CEO to understand the importance of the
management style and choose the best in which the company doesn’t get loss of employee and
retain the employees for a longer period of time. Motivation is one of the most important part of
the organization and the CEO and the management of the BAT are focused in developing the
strategies to make it happen to get every single employee to be motivated and work in the best
direction with a positive attitude. The motivation is explained by the hierarchy of the human
need theory of Maslow which explain all the factor which connect the motivation factors of the
human. Further in the report the effect of power in the leadership style is being told as it is
important for the leader to use the power but never should pressurised someone to get
demotivated. The influence of new opportunities and the conflict by which the companies are
dealing in the internal and external sector of the business. The influence of internationalisation
which is causing the conflict in the organization with new training and regular development
required(van den Oord,2017).
Recommendation: -
Recommendation to the BAT organization and the CEO of the company is to make the
leadership style in such a way that nothing happen wrong with the employees and the employees
does not feel pressure in the working of the company and can rely on the company to work more
for the better performance in the organization to get the desire results. Company should do
regular programme to train and develop the employees and make sure that every person in the
organization feel motivated and keep working hard for the company. The BAT should focus in
divide the power from one person to a sum of people so that its easy to get the work done and it
will make better in the communication of the employees and management(Zhang,2016).
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REFERENCES
Books and Journals
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Tesco PLC. International Journal of Financial, Accounting, and
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Instrument, culture and myth. Routledge.
Clegg, S.R. ed., 2017. Organization theory and class analysis: New approaches and new
issues (Vol. 17). Walter de Gruyter GmbH & Co KG.
Egeberg, M., Gornitzka, Å. and Trondal, J., 2016. Organization theory. In Handbook on theories
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Hatch, M.J., 2018. Organization theory: Modern, symbolic, and postmodern perspectives.
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Kapur, R., 2018. The Significance of Organizational Culture, Politics and Job Satisfaction
among the Employees in Various Job Settings.
Lukinaitė, E. and Sondaitė, J., 2017. Mindset of employees working in a matrix organizational
structure. Business: Theory and Practice, 18, pp.144-151.
Sahrain, A.K., 2018. Changing Organisational Culture: Leader’s Role In Changing
Organisational Culture. Tadbir: Jurnal Manajemen Pendidikan Islam, 6(1),
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Ethic, and Work Motivation on The Employee’s Performance (Study on the
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van den Oord and et.al.,2017. A cognitive organization theory (COT) of organizational
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Young, C. and Ghoshal, S., 2016. Organization theory and the multinational corporation.
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Zhang, W., 2016. A supplement to self-organization theory of dreaming. Frontiers in
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Zietsma and et.al., 2019. Emotions in organization theory. Cambridge University Press.
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