Organisational Theory and Practice Analysis: British American Tobacco

This report provides a detailed analysis of British American Tobacco (BAT), examining its management styles, leadership principles, and organizational structure. It explores the CEO's use of democratic management, focusing on planning, organizing, decision-making, staffing, and communication. The report investigates the steps taken to achieve high performance, including defining organizational culture, reinforcing positive behavior, and refining leadership styles. It also analyzes the leadership style of the CEO, identifying the use of transformational leadership with components like charisma, inspirational motivation, intellectual stimulation, and individual attention. Furthermore, the report discusses the effects of power, influence, and conflict within BAT, exploring coercive, reward, legitimate, referent, and expert power. Finally, it outlines various types of motivation used and recommends strategies to enhance organizational performance, offering a comprehensive overview of BAT's operational and leadership dynamics.

Organisational Theory and
Practice

Table of Contents
INTRODUCTION...........................................................................................................................1
Management style and principle and functions of management used by the CEO of BRITISH
AMERICAN TOBACCO...........................................................................................................1
Examine 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.............................................................................................................1
Leadership style of the CEO of BRITISH AMERICAN TOBACCO to enhance the
organisational effectiveness........................................................................................................3
Effects of power, influence and conflict at the chosen firm.......................................................4
Various types of motivation used at BRITISH AMERICAN TOBACCO.................................5
Recommendations (strategies) to increase organisational performance.....................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Organisational theory is a process which included study of organisation with an aim to
identify measures and practices to solve organisational issues, fulfil stakeholders need and
maximise efficiency and productivity of company. In simple terms, organisational theory is
stated as a process in which formative study of design, relationship and structures of organisation
undertakes place. In order to assure maximum competitive advancements in today's tough and
uncertain economic world, it is essential for company manager to take use of wide range of
organisational theories and practices (Rudani, 2020). This will assist them to accomplish
objectives and goals of company with effective frameworks, strategies and guidelines.
Present report is being conducted on, BRITISH AMERICAN TOBACCO, company was
established in 1902 and have its headquarter in London, UK. Respective entity is operating their
business operations in tobacco industry and are serving their services and products worldwide.
Report include formative discussions upon management function, styles and principles
undertaken by British American Tobacco. Along with this different types of leadership and
management style application in company is also defined. In addition to this, effect of power,
conflict and influence upon organisational activities are also included in this report. Lastly,
report include recommendations to enhance performance of entity.
Management style and principle and functions of management used by the CEO of BRITISH
AMERICAN TOBACCO
Management style is termed as a method of leadership that managers within entity
undertakes. This allows them to accomplish company goals in effective manner. In relation to
BRITISH AMERICAN TOBACCO, CEO of company take advantage of democratic
management style. By this they aim towards engaging each and every employee the decision-
making process. Further it has been evaluated that this style also facilitate managers to assure
that entity workplace is having extensive communication in which there is free flow of
information with leaders, managers and employees (Gevorgyan, 2020). With the assistance of
this management style, company CEO effectively assure fulfilment of project requirements with
contribution, specialization and skill of each employees. Further it has been evaluated that with
the help of democratic management style, organisation allow every employee to engage in
decision-making process. Thus, with the use of democratic management style respective entity
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provides different types of opportunities to employees. For this regular training and development
measures are being provided to them as to enhance their skill, potential and talent. Further it has
been defined that by emphasising upon all these measures sense of belongingness within
employees also increases towards company. It significantly increase overall profitability and
productivity of organisation.
Planning:
Planning is defined as a primary function which is being done by BRITISH AMERICAN
TOBACCO CEO, within this he undertakes planning process as to disrupt respective industrial
sector.
Organizing:
All the stages and activities of planning process further being systematically organized by
CEO of company. In order to assure this stage success CEO maintain strong connection with
distributors as well as retailers (Novak, Breznik and Natek, 2020). With the help of organising
all the steps is being accomplished with higher efficiency.
Decision-making:
It is an important process which is being undertaken by BRITISH AMERICAN
TOBACCO CEO. Within this process they undertakes effective decisions with an aim to
eliminate unnecessary things to overcome complex stages of decision-making. It has been
defined that CEO take use of decentralized manner according to work priority.
Staffing:
BRITISH AMERICAN TOBACCO CEO, engage in staffing process in effective manner
in which they providing efficient training to employees (Amor, Vázquez and Faíña, 2020). With
this they aim towards aligning employees performance with entity objectives.
Communication:
It is a crucial aspect within which BRITISH AMERICAN TOBACCO CEO implement
strong communication practices and strategies as to assure that in company every essential
information flows as per according to proper system. It will help entity to fulfil their goals in
effective manner.
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Examine 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
BRITISH AMERICAN TOBACCO undertake use of different practices and measures to
accomplish organisational objectives in order to assure higher growth and development. By
evaluating respective culture of company, this has been determined that entity is having
transparency as well as collaboration through which they assure higher profitability. Further
company management make sure that power communication structure must prevails in
workplace, in order to encourage employees performance in more effective manner. Positive
communication culture allows employees to share their ideas as well as concerns without any
hesitation in comfortable manner. There are some significant steps considered by BRITISH
AMERICAN TOBACCO is being defined which is being underlined by Mr. Harbour with an
aim of high performance culture:
Define organisation culture: BRITISH AMERICAN TOBACCO is required to assure
that management underline desired standards and culture as to further develop plan accordingly.
Clarify value and communicate them on daily basis: This is an essential element within
which respective entity manager must ensure the manner through which workers and other
related individuals get treated as to effectively communicate company values with them.
Reinforce positive behaviour:This is an important aspect in which entity is required to
assure that workers are effectively encouraged towards positive behaviour (Xie, 2020). For this
higher executives appraise them with proper recognition, rewards and punishment.
Right people in team: As per in accordance with Mr. Harbour this important for
organisation to providing training and coaching to each and every employees as to further utilize
their skills and talent for higher profitability.
Recruit for values: Within this BRITISH AMERICAN TOBACCO management ensure
that they have efficient recruitment process as to hire talented and skilled candidates.
Refine leadership style:It has been determined that leaders in organisation workplace
structure of respective entity lead individual with having an deliberate nature in order to provide
guidance, lead and inspire employees with adjustable leadership style.
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Regular meetings: It is an important aspect in which BRITISH AMERICAN TOBACCO
management undertake regular meetings communicate every employee with actual aim,
objectives and vision of company.
Commitment: BRITISH AMERICAN TOBACCO conduct their business operations
with positive commitment, in this they effectively transform their organisational culture with
lifelong commitment. For this entity managers and leaders change their leadership and
management style according to situation as to guide employees in effective manner.
As per according to above mentioned evaluation this has been determined that BRITISH
AMERICAN TOBACCO have positive organisational culture, through which they encourage
engagement of employees with the help of commitment and coordination. This encourage higher
level of employees performance.
Leadership style of the CEO of BRITISH AMERICAN TOBACCO to enhance the
organisational effectiveness
Leaders plays crucial role as they are authorised to motivate, lead and guide employees
towards organisational objectives. They inspire individuals with efficient motivation techniques.
In relation to BRITISH AMERICAN TOBACCO leaders, they assure that organisation vision,
mission and objectives get properly communicated to each and every employee as to align their
roles with company objectives. It has been evaluated that respective company consider their
workforce as most important resource, as they play major in entity revenue generation process.
Thus to satisfy their workforce respective company CEO effectively lead each and every
employees towards effective work performance. With the help of this they assure fulfilment of
company in efficient manner.
As per according to the evaluation it has been identified that BRITISH AMERICAN
TOBACCO CEO undertakes use of transformational leadership style, in this four types of
components are included that are charisma or idealized influence, inspirational influence,
intellectual stimulation and personal and individual attention. This has been evaluated that, in
relation to charisma influence, CEO of entity behave in an admirable with an aim to effectively
encourage leaders as role model. On the other hand in terms with inspirational motivation,CEO
effectively provide motivation employees or other followers and communicate their actual roles
and responsibilities accordingly. Further it has been evaluated that With the assistance of having
intellectual stimulation BRITISH AMERICAN TOBACCO CEO effectively challenges
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assumptions and duly lead their employees by encouraging creativity among them. This allows
employees to overcome complex situations in a creative way through which company can assure
fulfilment of objectives and goals in efficient manner. At last, individual attention is stated as a
degree in which BRITISH AMERICAN TOBACCO CEO assures that requirements of each and
every employees gets fulfilled in effective way for this CEO acts as mentor and coach. Further
this has been signified that, Mr. Jack Marie Henry David Bowles significantly provide
appreciation to every workers contribution by admiring their contribution and efforts in team
roles.
Thus, as per according to above states discussions it has been evaluated that BRITISH
AMERICAN TOBACCO CEO by undertaking advantage of transformational leadership aim
towards providing inspiration to employees loyalty towards company. With the help of this
company can assure higher profitability and productivity in effective manner. By evaluating
above discussion this is identified that BRITISH AMERICAN TOBACCO CEO plays their roles
as both manager and leader, as he effectively encourage employees by motivating and energizing
their performance. Along with this they recognise efforts and contribution of employees and
further appraise them accordingly.
Effects of power, influence and conflict at the chosen firm
Power, influence and conflict have significant tendency to impact employees
performance (Alrowwad and Abualoush, 2020). This has been identified that workplace culture
of BRITISH AMERICAN TOBACCO is affected by conflict, power and conflict in many ways
which is further being elaborated below:
It is evaluated that John French and Bertram Raven is having five forms of power that
include:
Coercive Power: According to coercive power, employee against their will are forced to
perform task. With the use of this power entity aim towards compliance. In accordance to,
French and Raven coercive power can be undertaken by an organisation if they are required to
accomplish particular projects under specific time range. However, implementation of this power
have negative impact upon employees performance as it can make enhancement in
dissatisfaction among workers that can further lead towards creation of unhealthy working
culture.
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Reward Power: Rewards and recognition play most important role that allows an
organisation to increase performance and motivation level of employees. In context with this
managers and leader are required to effectively ensures that provide rewards to employees
according to their performance contribution in company goals (Liebler and McConnell, 2020).
They provide timely promotions, compliments and appraisals to their workforce.
Legitimate Power: This power include both punishment and rewarding element. With the
help of legitimate power organisation executives maintain equality within workplace structure by
promoting and demoting employees as per according to their level of performance.
Referent Power: This form of power allows leaders to make themselves a role model for
individuals those who are conducting their role in organisation. One of the most important
advantage of this power is that it facilitate leaders to encourage or influence employees towards
certain goals or objectives (Khattak, Zolin and Muhammad, 2020). However, it has been
evaluated that this power can be lost because of certain circumstances.
Expert Power: As per according to expert power, leaders with this power have significant
set of knowledge, in-depth information and expertise of particular field. Leaders with high
intelligence level encourage or persuade leaders towards accomplishing company in effective
manner.
BRITISH AMERICAN TOBACCO management undertake use of reward power to
encourage performance level of employees. In addition to this, it has been signified that conflict
and power influence organisation in certain way. As if conflict prevails in organisational
workplace structure them it only decreases performance and productivity of employees. Along
with this, this has been determined that if employees get influenced in positive manner via
motivation and rewards then it can enhance productivity of employees at great extent. While
negative influence also affect overall profitability of organisation. Thus BRITISH AMERICAN
TOBACCO are required to positively influence employees while promoting healthy conflicts to
encourage their engagement.
Various types of motivation used at BRITISH AMERICAN TOBACCO
Motivation acts as key essential element for every organisation that facilitate employees
performance towards higher standards. For this, application of different types of motivation
theories allows entity to motivate their workforce in effective manner. In context with BRITISH
AMERICAN TOBACCO, managers and leaders of company is required to increase performance
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level of employees with the help of periodical motivational sessions. Proper understanding and
application of these principles allows respective company to maximise their effectiveness and
competitiveness in market. Management of respective entity by implementing Maslow's
Hierarchy of Needs aim towards satisfying every level of need employees as to enhance
company performance.
Physiological needs: In this basic level of individuals needs are included such as
clothing, food, shelter and other basic necessities. In order to fulfil physiological needs of
employees BRITISH AMERICAN TOBACCO management ensures that every must have access
to basic amenities like comfortable workplace environment, snacks, restroom, meals and clean
drinking place.
Safety: This is an essential need that every employee seeks for, in this BRITISH
AMERICAN TOBACCO management makes sure that employees are provided with secure and
secure environment along with adequate safety measures. Respective entity effectively prioritize
employees security that increases their sense of belongingness towards company.
Love and belonging: According to many surveys, employees spend most of their time in
entity workplace structure. This makes them to seeks for love and belongingness. In order to
fulfil this need BRITISH AMERICAN TOBACCO make sure that every employee get sense of
belongingness and love in company premises. Executives of entity with different practices
facilitate cooperation and coordination in workplace structure as to provide positive working
environment to employees.
Esteem: Every employee seeks for esteem in organisational workplace. This is an
important need that are required to be fulfil by an entity. BRITISH AMERICAN TOBACCO
manager assures that employees contribution and handwork get proper recognition. This
facilitate company to increase performance and confidence level of workforce at extensive rate.
Respective entity effectively appreciate talent of their employees with regular recognition
program.
Self-actualization: It is also most important need of Maslow's hierarchy of needs,
according to this this has been evaluated that every employees wants to know their performance
level. Thus, to fulfil this need BRITISH AMERICAN TOBACCO management, effectively
encourages employee engagement and empower their workforce by trusting them. In addition to
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this, executives of entity ensures that skills and abilities of employees keeps of increasing on
regular manner. For this they push them towards more challenging roles.
Recommendations (strategies) to increase organisational performance
Higher profitability, long term sustainability and increased efficiency of products and
services of entity can be assured with the application of different strategies, theories and
practices. All these measures facilitate an organisation to effectively respond towards unexpected
issues or situations. As per according to the above analysis, respective company is recommended
to utilize their human resource full potential and guide them effectively with efficient training.
As human resource plays essential role through which overall objectives can be fulfilled with
great effectiveness. In addition to this, respective entity is also recommended to continuously
evaluate customers need and demands as to serve them accordingly. With the help of this
company can maximise their share holding in respective industrial segment.
In context with BRITISH AMERICAN TOBACCO, entity is being duly recommended to
provide monetary and non-monetary benefits to their workforce. This will significantly increase
their performance and job satisfaction level through which company can assure more
profitability. It has been evaluated that technology is playing crucial role in every industry,
tobacco industry is also not untouched with regular advancements in technological aspects.
Companies those are engaged in tobacco industry are undertaking advantage of technology to
maximise efficiency of their operations. Thus, management of BRITISH AMERICAN
TOBACCO is recommended to take use high-tech technology and update organisation
technological aspects on continuous manner to significantly assure increase in overall
profitability ratios. Further entity must also engage every employees in the process of decision-
making as to increase employee engagement in work place premises. It increases job
performance of employees in effective way (Robbins and Davidhizar, 2020). BRITISH
AMERICAN TOBACCO is also recommended to ensure that each and every worker is
communicated with their actual and responsibilities and their performance are aligned with
objectives of company. Regular training are also required to be provided by company to every
employees as per according to their need, this practice will aid entity to maximise their overall
profitability at great extent.
All the practices as well measures have significant tendency to maximise BRITISH
AMERICAN TOBACCO growth and development at higher rate. Thus, managerial and higher
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executives authorities of BRITISH AMERICAN TOBACCO is recommended to apply all the
stated recommendation into their business operations for higher growth.
CONCLUSION
According to given report, it is concluded that with the proper understanding and
application of organisational practices and theory entity can effectively fulfil their aim and
objectives. Organisational theories allows managers to take advantage of strategic measures
through which higher profitability and productivity can be assured. While if it is talked about
leadership styles, it facilitates leaders to provide effective guidance and motivation to individuals
within workplace premises. With the help of different leadership styles and management
principles organisation can maximise their overall competitive edge in market place. Further it
has been evaluated that, organisation managers and leaders have proper understanding of impact
of power, conflict and influence upon organisation as to effectively overcome unnecessary issues
effectively. By emphasising upon all these practices and implementing different theories,
company can conduct their business operations in systematic manner while assuring long term
sustainability and higher profitability.
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REFERENCES
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