Organisational Theory and Practice Analysis: BAT PLC Report

This report provides a comprehensive analysis of organisational theory and practice within British American Tobacco (BAT) PLC. It examines the role of management styles, focusing on the leadership of CEO Mr. Jack Bowles and his implementation of democratic and situational leadership approaches. The report delves into the company's flat organisational structure and its impact on employee communication and decision-making. It further explores BAT's organisational culture, including the application of Handy's cultural dimension model, and its influence on employee behavior and performance. The analysis covers the effects of power, influence, and conflict within the company, and identifies the types of motivation used at BAT. The report also includes a literature review and concludes with recommendations for further improvement. This report aims to provide a detailed understanding of how organisational theory and practice contribute to BAT's business performance.

Organisational
Theory and Practice

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAINBODY...................................................................................................................................4
Role of management style...........................................................................................................4
Organization structure and culture of the BAT plc and it’s direct impact on the employees......5
Leadership style of Mr. Jack Bowles of BAT plc.......................................................................6
The effect of power, influence and conflicts at the British American Tobacco plc....................7
Types of motivation at BTA plc..................................................................................................8
Literature Review........................................................................................................................9
CONCLUSION & RECCOMENDATION...................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Organizational theory refers as a study of individuals behaviour and culture of the
company and it’s business environment. In simple word, a set of principles that gives technique
to deep study over company’s structure, functioning and it’s business performance in the
business market. it is one of the major effective approach that provides understanding about
individuals behaviour, needs and requirement from their job and responsibilities. It comprises
different types of organizational theories i.e. contingency, classic, organizational theory and
others which supports employees to understand business culture, it’s goals and it’s performance
in the business sector. There are lots of companies implement different organizational theory in
order to gain high profitability in their business and improves individual’s engagement within
workplace. However, organizational structure is also considered one of the major organizational
approach that helps to represent various roles and responsibilities through hierarchical level in
order to accomplish aim of the business (Wilson, 2018). While organizational activities such as
roles and responsibilities support to improve goodwill of the company in it’s business
environment. On the other hand, contingency theory support corporation to take right decision in
dynamic situation. The reason behind is that it comprises different leadership styles so
individuals can easily practice any leadership accordingly situation. With the support of different
leadership style individuals can lead sustainability in the business performance in it’s business
sector.
There is an example of British American Tobacco (BAT) plc that will channelize to
understand role of organizational theory and practices in the business market. It is a
multinational company that produces and trades cigarettes, tobacco as well as other nicotine
products. It is established in 1902 and headquartered in London, UK. In 2019 it has famed as
largest cigarette makers in the global market due to it’s net sales. BAT is operated more than 180
countries and comprises number of brands such as Dunhill, Kent, Lucky, Pall Mall and
Rothmans. It is primary enlisted on the London Stock Exchange as well as has enlisted on the
New York Stock Exchange. In this report will discuss over leadership style of the CEO who has
implemented in British American New York to improve it’s business performance effectively
(Barry and Wilkinson, 2016).

MAINBODY
Role of management style
Management style can be defined as the set of principles that comprises different abilities,
methods and tools which practices by manager and leaders to deal with different situations. A
effective management style supports to determine different roles and responsibilities of
hierarchical in order to bring better functioning in it’s business market. A effective management
style always supports organization to achieve high productivity in the corporation and gain all
short-term and long-term goals within different timeframes. There is different type of
management styles such as autocratic, democratic, vision, servant, transactional, democratic,
transformational and others. Such styles help organization to develop high brand image and
manage individuals effectively at the workplace. Mr. Jack Maric Henry David Bowles is the
CEO of the BAT plc practices different leadership styles to deal with different situations of the
business which have faced in developing business precisely. The main goal of the CEO of BAT
is to build a better future by declining negative health impact of company through offering a high
standard choice with less risky goods to the users. British American Tobacco follows flat
organizational structure wherein CEO are the responsible for taking all decision in the favour of
organization and employees. While other functional units are aligned at single platform or no
levels among different departments that supports productivity of the company (Dutta and Khatri,
2017). So, Mr. Jack Bowles has implemented democratic leadership at the workplace to lead
satisfaction in them for the job and company. With this leadership style Mr. Jack Bowles
emotionally connect with staff members by communicating them effectively and meets their
needs. To make individuals feel valuable for the company involves them into decision-making
process by CEO of BAT. In addition, CEO encourages individuals to give creative performance
at the workplace and resolves their issues personally related to salary and work pressure. Thus,
company become successful in leading satisfaction in the staff members for the job. Mr. Jack
Bowles has taken decision to implement flat organizational structure because he believes that
level carries variance in individuals for the job role which creates conflicts among them.
Whereas flat organization structure does not have any level among functional units that brings
effective communication and leads understanding significance of teamworking in them. Thus,
company has enabled to achieve various goals and objectives in predefined period.

To influence brand popularization in the global market has implemented brand equity model by
the Mr. Jack Bowles in the business. So, CEO of the BAT conducts technical skill program for
the staff so that individuals improves their technical skills while operating different machines.
Mr. Jack Bowles has goal to make individuals experts at the workplace so that they give such
performance which brings satisfaction in customers and retain them prolong time with company.
This initiative has supported company to achieve good brand image as largest cigarette maker in
the world. Even it enables to retain talented staff at the workplace for long time that reduces
additional cost of training for new joiners. Autocratic leadership style also practices by Mr. Jack
Bowles to achieve short-term goals within period of time (Leiber, Stensaker and Harvey, 2018).
This leadership allows CEO of BAT to take all decision quicker in order to achieve all objectives
of the company at different timeframe. Thus, company enables to take competitive advantage
from it’s competitors in the UK market. Thus, Mr. Jack Bowles is the CEO of British America
Tobacco has practiced different leadership styles and principles for better functioning in it’s
business market.
Organization structure and culture of the BAT plc and it’s direct impact on the employees
Organizational structure refers as a visual diagram of the company that explains how
activities like task, allocation, monitoring, coordination etc. are guided towards to
accomplishment of business objectives. There is various type of organizational structure such as
hierarchical, division, matrix and others that are follows by organizations to align it’s business
activities so that they get their aim in predefined time. Functional organizational structure or flat
organizational structure wherein all functional units are performed similar tasks so they work in a
team so that enables to achieve organization’s objectives. There is all functional units like HRM,
operation, finance, senior management and marketing department are grouped together. The
benefit of the such structure comprises quick decision-making because all departments can
communicate easily to each other, even they have similar skills sets and capabilities as well. In
this structure does not have any level among functional units but upper management has level
and they are responsible for taking all decision effectively while other functional units have to
implement all decision without argument (Gandolfi and Stone, 2018). Such organizational
structure provides open communication facility whereas individuals can direct communicate with
upper management like CEO regrading their issues. Thus, conflict crisis is taken place rarely in
flat organizational structure. However, all department have to give answer to the CEO of the

company because he has power of taking decision and oversees all business activities effectively.
Mr. Jack Bowles mainly focuses on human resource and IT and production department and
marketing department who perform different roles but work in a team. these departments have
power to delegate different tasks among staff members. Generally, this organizational structure
posses some limitation such as lack of engagement in decision-making process often brings
conflict crisis among individuals. But CEO of BAT always conducts conference meeting in the
company and encourages them to share viewpoints and resolves their issues effectively.
Organizational culture includes shared beliefs, assumptions, values that are sufficient to
understand individual’s behaviour effectively at the workplace. British American Tobacco plc
has followed handy’s cultural dimension model that comprises four type cultures i.e. power, role,
task and personal culture in the business. With this model enables to understand about different
culture wherein people can fit comfortably and can lead profitability in the company. Role and
task culture are practiced by CEO in the organization and delegates different tasks among
functional units so that individuals can perform their roles productively as result will be achieved
high profitability by the company (Fiaz, Su and Saqib, 2017). For example, role culture provides
understanding in individuals about role of designated post and make them goal-oriented. While
task culture projects all objective precisely and remove confusion in individuals for their job
responsibility. Later on, Adam’s Equity motivational theory also follows by CEO to keep fair
balance between input and output. With this theoretical model company is not only enable to
maintain wellbeing of individuals but also in return maintain sustainability in the UK market.
Mr. Jack Bowles also make individuals creative and proactive at the workplace by developing
creative working environment at the job place. Thus, organizational structure and organizational
culture also supports company to stay long run in the competitive market.
Leadership style of Mr. Jack Bowles of BAT plc
Leadership can be defined as the ability of individuals to direct and encourage group of
people to work together towards achieving common goal of the company. A good leadership
style is not only supported to fulfil company’s objective but also develops strong relationship
between staff members and management. There are various leadership styles such as democratic,
situational, transformational and others styles which supports leaders to keep motivated
individuals to work in right direction and become proactive at the workplace. Mr. Jack Bowles is

CEO of BAT plc situational leadership style. It comprises different styles i.e. directing, coaching,
participating and delegating leadership styles. With this situation leadership style Mr. Jack
Bowles enables to practice different leadership style as per the situation and make working
environment more creative and proactive. However, it is essential for the manager of leader to
adjust their leadership style in order to meet situation of workplace otherwise expected results
cannot be achieved precisely. Mr. Jack Bowles practices coaching styles that is one of the main
leadership styles of situational leadership. With coaching leadership style CEO organizes skills
and development program for the employees and make them learn how to give best quality
services to the customer at the workplace as well as includes such employee engagement
activities in order to determine their weaknesses and strengths effectively. Executive leadership
style also follows by CEO to keep control on all business activities such as employee and
customer retention rate, selling revenue and functioning of business (Yahaya and Ebrahim,
2016). However, Mr. Jack Bowles posses’ all leadership skills or characteristics i.e. motivation
leadership styles, job experience, problem-solving skills and others which supports him to tackle
business issues and opportunity effectively. Mr. Jack Bowles has good analytical skills that
supports to examine individual’s performance effectively. Thus, these leadership style has led
effectiveness in organization in the form of brand image and makes individual responsible for the
job.
The effect of power, influence and conflicts at the British American Tobacco plc
British American Tobacco plc is a American manufacture and seller of the company in
London, UK. It has achieved good brand image in the UK market due to it’s wide product line.
Diverse product portfolio has improved selling behaviour of employees that helps to build large
customer base. With strong customer base company enables to expand it’s business in multiple
countries and generates high revenue on it’s market. So, it has become largest cigarette maker in
the world. It posses’ strong workforce with high expertise because CEO of BAT always conducts
training and development program, technical skill program and others to improve individuals
existing skills and make them more competent and creative as compared others organization.
Strong distribution network is also considered one of the major powers among others that helps
company to offer products into multiple countries before deadline. With strong distribution
network company enables to get raw material at lower cost with standard quality as resultant
gain high profit margin on each product. These are major strengths of the BAT plc that gives

power to stay as competent brand in the UK market (Al Khajeh, 2018). There are various
opportunities such as decreasing transportation cost that influences company to gain high market
share. For example, UK’s government has announced to decrease transportation cost that bring
down cost of BTA’s products because shipping prices have decreased, Thus, organization
enables to improve purchasing behaviour of customers and in return gains high market share on
it’s certain products. Emerging market is another opportunity for the BAT plc that helps to
expand it’s business in global market effectively. These are important stimulants that improves
organization’s profitability, performance and operations effectively.
Shortage of skilled suppliers in the UK is the major issue of the company because it reduces
profitability ratio that directly brings negative impact on brand image (Fotohabadi and Kelly,
2018). Emerging technologies has led negative impact on organization performance because
number of staff resist to bring change in their existing operations but Mr. Jack Bowles practices
change management leadership style to resolve their conflicts and encourages them to accept
change.
Overall CEO of BAT plc manage all business activities of the company effectively in dynamic
environment.
Types of motivation at BTA plc
There is various type of motivation theories has implemented by British America
Tobacco plc to stay motivated it’s staff members effectively by fulfilling their needs for the
workplace. For example, content theory is projected to understand needs and behaviour of
individuals at the workplace. It comprises various motivation theories model wherein Maslow’s
hierarchical needs is one of the best motivational theory that is proposed by Abrahams Maslow
to understand businessman significance of human being needs and expectation for organization’s
success. Mr. Jack Bowles practices this motivation theory in it’s organization to understand
needs of it’s staff and leads satisfaction in them for job (Raziq and et.al., 2018). However, this
model comprises five basic needs i.e. physiological, safety, social, self-esteem and self-
actualization needs. Physiological needs are good working environment, air-conditioning
workplace, coffee facilities and others to stay staff late time except working hours. Mr. Jack
Bowles always take care of organization’s infrastructure and workplace so that no employees
have to face inconvenience while working. Safety needs are workplace safety, health safety and

others that encourages individuals to give productive work at the workplace. Mr. Jack Bowles
provides health insurance policy, workplace safety and job security that brings satisfaction in
individuals and their family for the job and retain them prolong time. Belonging needs such as
teamworking, open communication, involvement in decision-making process and others.
Organization structure and organizational culture of BAT supports to fulfil social needs of
individuals in the organization that maintains their wellbeing within company. Self-esteem
comprises respect, appreciation and recognition that expects by anyone whereas they offer their
services. Mr. Jack Bowles monitors all departments activities effectively and maintains dignity
of individuals by listening them properly. Thus, BAT try to fulfil all needs of individuals which
they expect from the company as resultant company has good brand image in it’s market due to
strong workforce. Overall company has implemented this motivation theory successfully in it's
business that has proved through it’s achievements in the global market (Schoar and Zuo, 2017).
Literature Review
As per the view of Mawere and et.al., (2016), organization behaviour is the essential part
of the busines because it helps company to achieve all goals and objectives within timeframe as
well as improves goodwill of company in the business market. A effective organization culture
lead perceived value for the customer in the company and retains them with company for long
time. in addition when company posses’ effective organization culture then it can easily
influence it’s customer to bring change in their existing practices so that productivity can be
maintained in their working. As same motivation is another important factor for all companies
because it leads motivation in individuals to give outstanding performance at the workplace.
There are numerous motivation techniques such as emotional intelligence, Maslow’s hierarchical
needs, Adam’s equity model and others that helps to influence individuals to work effectively.
However other Taucean, Tamasila and Negru-Strauti, (2016) have given an example of
Tesco plc to understand role of motivation, organization structure, culture, leadership styles and
others in their published articles such as Tesco is a British multinational company that famous as
general merchandise retailer in the global market. It is quite successful company in it’s business
market. there are some reasons such as it posses’ good organizational culture due to this manager
of the company always implemented such strategies that leads positive aspect on employees and
consumers. Maslow’s hierarchical needs model also has implemented by Tesco to bring

satisfaction in individuals for the job effectively. For example, flexible working hours and profit
sharing facilities are offered by Tesco plc to it’s staff that stay motivated them and always
influences them to give best performance in the workplace. Overall upper management of Tesco
plc always keeps it’s staff proactive and highly satisfied from the job.
CONCLUSION & RECCOMENDATION
It has concluded about organization culture of the British America Tobacco plc due to
this it succeeded in the global market effectively (Suyono and Mudjanarko, 2017). Mr. Jack
Bowles is the CEO of BTA plc has practiced number of management style and leadership style
to led effectiveness in the business operations effectively as resulted develop strong workforce in
it’s business. Flat organizational structure followed by BTA plc that empowered only upper
management while other functionals units performed their duties at similar level. Thus, Mr. Jack
Bowles led success in it’s business in the global market. There are several recommendations for
the British America Tobacco plc such as:
 British America Tobacco must follow Artificial Intelligence strategy that will assist to
bring innovative at the workplace as well as lead advancement in the existing
technology. With advanced technology company can build large and loyal customer base
for the company that will improve it’s approach as well as revenue stream of business.
 360 Degree feedback strategy must follow by Mr. Jack Bowles who is the CEO of BAT
plc that will increase effectiveness of taking decision and will lead high support of
employees as well (Bland and DeRobertis, 2017). For example, with this strategy Mr.
Jack Bowles can gather feedbacks from staff members about his strategy and decision
that damn surely helps to take productive decision and maintains wellbeing of
individuals. In addition, company can analyse individual’s performance by collecting
reviews from customers about product and employee’s performance. Thus, it will prove
beneficial for the company to achieve all success effectively.

REFERENCES
Books and Journals
Wilson, F.M., 2018. Organizational behaviour and work: a critical introduction. Oxford
university press.
Barry, M. and Wilkinson, A., 2016. Pro‐social or pro‐management? A critique of the conception
of employee voice as a pro‐social behaviour within organizational behaviour. British
Journal of Industrial Relations, 54(2), pp.261-284.
Dutta, S. and Khatri, P., 2017. Servant leadership and positive organizational behaviour: The
road ahead to reduce employees’ turnover intentions. On the Horizon.
Leiber, T., Stensaker, B. and Harvey, L.C., 2018. Bridging theory and practice of impact
evaluation of quality management in higher education institutions: a SWOT
analysis. European Journal of Higher Education, 8(3), pp.351-365.
Gandolfi, F. and Stone, S., 2018. Leadership, leadership styles, and servant leadership. Journal of
Management Research, 18(4), pp.261-269.
Fiaz, M., Su, Q. and Saqib, A., 2017. Leadership styles and employees' motivation: Perspective
from an emerging economy. The Journal of Developing Areas, 51(4), pp.143-156.
Yahaya, R. and Ebrahim, F., 2016. Leadership styles and organizational commitment: literature
review. Journal of Management Development.
Al Khajeh, E.H., 2018. Impact of leadership styles on organizational performance. Journal of
Human Resources Management Research, 2018, pp.1-10.
Raziq, M.M and et.al., 2018. Leadership styles, goal clarity, and project success. Leadership &
Organization Development Journal.
Schoar, A. and Zuo, L., 2017. Shaped by booms and busts: How the economy impacts CEO
careers and management styles. The Review of Financial Studies, 30(5), pp.1425-1456.
Mawere, M and et.al., 2016. Chapter Three Maslow’s Theory of Human Motivation and its Deep
Roots in Individualism: Interrogating Maslow’s Applicability in Africa. Theory,
Knowledge, Development and Politics: What Role for the Academy in the
Sustainability of Africa, 55.
Taucean, I.M., Tamasila, M. and Negru-Strauti, G., 2016. Study on management styles and
managerial power types for a large organization. Procedia-Social and Behavioral
Sciences, 221(1), pp.66-75.
Suyono, J. and Mudjanarko, S., 2017. Motivation Engineering to Employee by Employees
Abraham Maslow Theory. Journal of Education, Teaching and Learning, 2(1), pp.27-33.

Bland, A.M. and DeRobertis, E.M., 2017. Maslow’s unacknowledged contributions to
developmental psychology. Journal of Humanistic Psychology, p.0022167817739732.
Fotohabadi, M. and Kelly, L., 2018. Making conflict work: Authentic leadership and reactive
and reflective management styles. Journal of General Management, 43(2), pp.70-78.