Analysis of Leadership and Management at British American Tobacco

This report delves into the organizational theory and practice of British American Tobacco (BAT). It examines management styles, including the democratic approach used by the CEO, Jack Bowles, and analyzes the principles and functions of management within the company. The report explores the organization's structure, the impact of its power culture on employees, and various leadership styles to enhance effectiveness. It also analyzes the effects of power, influence, and conflicts within the firm and discusses the types of motivation employed. The report concludes with suggestions for strategies to increase organizational performance, drawing on corporate examples and literature to justify its findings. This report is designed to analyze how BAT implements leadership and management to achieve organizational goals and enhance performance.

Organisation
Theory
and
Practise

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Task 1...............................................................................................................................................1
P1. Examine the management styles and state with principle along with functions through
management that used by CEO of British American Tobacco?................................................1
Task 2...............................................................................................................................................3
P2. Analyse the steps taken in organisation structure and discuss the impact of organisation
culture at British American Tobacco on employees..................................................................3
Task 3...............................................................................................................................................4
P3.Describe the leadership style of the CEO of British American Tobacco to enhance the
organisation effectiveness...........................................................................................................4
Task 4...............................................................................................................................................5
P4. Analyse the effect of power, influence and conflicts at the given firm................................5
Task 5...............................................................................................................................................7
P5. Discuss the various types of motivation which used at British American Tobacco.............7
Task 6...............................................................................................................................................8
P6. Use the appropriate corporate examples and literature justification.....................................8
Task 7...............................................................................................................................................9
P7. Through based on discussion and debate what suggestion or recommendation in terms of
strategies to increase the organization performance? .................................................................9
CONCLUSION..............................................................................................................................10
.......................................................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The term organisation theory is the combination of interrelated concepts, definition which
describes the behaviour of individual and group of peoples, where they tend to interact with each
other to perform the activities for successfully accomplishment goals. There are three main
organisation theories which comprises Classical, Neoclassical and Modern Structure
Organisation theory.
In the report the company is taken the British American Tobacco Plc is a British
American multinational company that manufacture that used to deal with promoting cigarette,
tobacco and other form of nicotine product (Andriof and et. al., 2017). The company was
founded in 1902, and it basically operated from the headquarter in London, United kingdom. The
topic is going to cover in the following report to explain about management styles along with
functions and principles, highlight the steps for achieving the successful performance and state
organisation culture (Antonacopoulou and et. al., 2019). Elaborate the different leadership styles
as well as power in organisation and how it create an impact on company. Different form of
motivation is discussed on the perspective of British American Tobacco.
MAIN BODY.
Task 1.
P1. Examine the management styles and state with principle along with functions through
management that used by CEO of British American Tobacco?.
Introduction of Management: It is form of administration of an organisation that
relates to the business activities along with to handle by the managerial functions such as
planning, organising, directing and controlling. Similarly, British American Tobacco company
also having their management team which effectively monitor the overall internal and external
activities of company.
Management Styles: As Managers in organisation need to perform different roles in an
organisation and how they monitor on the basis of situational context where it depends upon the
styles follows by the particular company management. In British American Tobacco, their top
level manager usually follows the Democratic(Participative) Management Styles as it stats
about manager allows employees and subordinate to initiate for taking part in decision making
process for gaining suggestion for better exploring on the basis of majority. Similarly, British
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American Tobacco's managers they allows their staffs to taking free participation in decisions
and share their suggestion which helps to provide more creative and innovative ideas.
Principles of Management: As there are own principles of British American Tobacco which
they uses in their business operations. In following the principles are elaborated below: Mutual Benefit: According to this principle, it helps to build the long term relationship
with stake holder as well as manager of British American Tobacco believe to understand
and considered the account of all stakeholder. Relationship product Stewardship: In this principle, it derives about to meet and fulfil
the customer demand for a legal product that arises harmful diseases (Bergström and
Lindh., 2018). Thus, the product of British American Tobacco critically evaluate the
tobacco product specification to reduces the negative risk which not create any impact
on health.
 Good Corporate Conduct: Through this principles, it basically emphasis about to set the
standard that helps to manages as well as it brings the achievements. The management
team of British American Tobacco follows this principles because it enhance to
facilitates the optimum results on the basis of result by the company expectations.
Management Functions: As the functions which follows by British American Tobacco
company are explained in below:
 Marketing and Distribution: The condition of marketing in British American Tobacco
helps to require effective skills which is beyond the demand of other products. This
ability is to making the comparison the marketing initiatives to manage the productive
and profitable relationship (Bigby and et. al., 2019). Distribution helps to promote and
transport the tobacco product in one place to another.
 Human Resources: This department in British American Tobacco plays an important
role to hire and retain talented or high potential employees as well as serve to assigning
the jobs and monitor the performances of employees. Through this function strives to
accomplish the win-win situation for company that helps to accomplish the essential
goals.
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Task 2.
P2. Analyse the steps taken in organisation structure and discuss the impact of organisation
culture at British American Tobacco on employees.
An Organisation is structure that comprises the system which support through proper
guidance enhance by manager to accomplish the goals towards organisation benefits. The
activities in organisation culture is involves the roles and responsibility. The British American
Tobacco company is also having their Organisation structure:
Steps which considered by British American Tobacco organisation structure in order to
accomplish the goals by assigning the task or roles and responsibilities on the basis of employees
capabilities that helps to enhance the high performance (Daniels, 2019). To facilitates effective
training and development to improve the skills where employee could perform better in
organisation activities.
Organisation Culture in British American Tobacco:
Organisation culture is defines about the various rituals, norms, values and tradition of
specific company that provides the commitment towards the objective or mission. As many
culture are consists in organisation such as power, task, person and role culture, but British
American Tobacco follows the Power Culture:
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Power Culture: In this culture, it depicts about the individual or small members who
having power of authority or high dominance to making the effective decision making for the
organisation. Similarly, in British American Tobacco having their superior who commence
power culture and claims the power to change or implement the decisions for develop the
internal scenario of the company (Dovstedt. and Johansson Ekstrand., 2020). This culture create
an impact on employees performances as well as behaviour in positive or negative perspective.
The decisions which undertaken by the higher authority need to follow by the employees for
their further benefits in terms of productivity, better understanding of company's mission and
vision, promotion etc.
Task 3
P3.Describe the leadership style of the CEO of British American Tobacco to enhance the
organisation effectiveness.
Introduction of Leadership: The term leadership is art of motivating the individual or
team member for accomplish the common goal. In Leadership, leaders are tend to be inspire the
people as well as to motivate them for their goals and objectives, they must personable enough to
others to make them influence for following the order to engage about what in actual reason the
leaders want to lead them act. As in British American Tobacco they appointed leader, whose
having the critical thinking skills to know the best alternative way for assorting resources to
making the company growth as well as increase better productivity.
Leadership styles: A leadership styles comprises about the specific leader's method that helps
to provides the effective direction, design and implement the plan along with motivating the
people.
There are four main styles of leadership through which Jack Bowles who is the CEO of British
American Tobacco company, he generally approach the Democratic leadership style, according
to this style, it defines about the individual leader behaviour perspective that encourage as well
as allows to the participative in the decision making process (Fjeldstad and Katera., 2017).
Similarly, the CEO of British American Tobacco Jack Bowles tent to assorting this leadership
style to making the business effectiveness:
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 By making employees engaging in decision making activities, it helps to improve the job
performance by discussing or sharing the thoughts or any view point that could contribute
in decision.
 Enhance the better job satisfaction which arises when leader or manager provide
recognition towards the work deliverables.
 Different employees having significant views or suggestion helps to provide alternatives
approaches for better accomplish to the objective
 Helps to maintaining the awareness about the state of the organisation's people morale
along to implies the action to make it effective enhancement.
 Through constantly discussion of opinion and suggestion between superiors and
employees improve the decision making skills (Haggman., 2018).
 Helps to allows to commencing work in team for better flexibility as well as it increases
the morale of individuals.
 It would create positive working environment and healthy relationship between superiors
and employees.
 Through participative leadership style, CEO of British American Tobacco offer more
than one opportunity with having motive to improve the income as well as high quality
performance to potential employees. It will helps to improve the employee retention and
reduces the cost of turnover.
 At the time of discussion with employees and superiors where superiors allow to
employees by giving the opinions on business related issues (Hay and et. al., 2017). It
empowers the employees for using their creativity for developing the more productive
work that enhance to create the company efficient growth.
Task 4.
P4. Analyse the effect of power, influence and conflicts at the given firm.
The organisation power is describes about the ability of organisation structure that helps
to utilise overall essential resources for development in the organisation. The power is
comprising the ability to influence the people in positive and negative, it also refers the capacity
that affect the behaviour of the employees with the control of resources. The utilising of the
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power in the British American Tobacco organisation through top level of managers where they
influence the employees, ability to change the policies and others.
There are many types of power that differentiate as in Reward, Coercive, Legitimate, Referent
Power, Expert power all are involves in category of power.
The manager of British American Tobacco company is generally utilise the Expert source of
power, this power is claim by the person who is well experienced and proper knowledge about
the particular field which fulfil the target, it create the effect to make influence and reduces the
presence of conflicts given below:
 There is required of trust building between the employees and superior ones in terms
of sharing the information to the agent in optimum and systematic way.
 Sharing of information must having relevant source that help to accomplish the
objectives (Kools and et. al., 2020).
 By utilising of expert power it provide to support by reducing the conflicts and
influence motivation at the time of pursuing the work for attaining the target.
 It helps to make the employees perfect in the particular expertise, skills and
knowledge that provides to give them power.
 To other subordinate create influence for some elements particular knowledge and
skills to attain as well as improve the decision making which helps to support and
respects.
 By making the staffs or subordinates more coordinative or engaging which increase
the capability to accept the instruction.
 There is necessity of expert power in British American Tobacco because a
experienced and knowledgable leader or manager helps to guide the employees to
their work for their betterment as well as they will work under the effective
supervision.
 To gaining positive suggestion and advices related with working objective that
influence to contributes the more efficiency as well as reduces the conflicts (Manidis
and Addo, 2017).
 By getting the optimum guidance from expertise power, it will enhance the inner
confidence that will lead towards the objectives.
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Task 5
P5. Discuss the various types of motivation which used at British American Tobacco.
Motivation: This concept is a managerial process which initiates, guidance and maintains
goal oriented behaviour. It derives the needs and wants to fulfil by the influence or having
willingness and goal achievement. It allows the various types of motivation which elaborates in
the two segmentation such as Content and Process motivation (Moloi, 2019). The British
American Tobacco manager or leader approach the one of the motivation theory which is
essential in the company premises.
Maslow hierarchy needs: According to this motivational theory that constructs in the
framework of five tier model that comprises basic human needs (Nachbagauer and Schirl-Boeck,
2019). Similarly, the need of Maslow hierarchy is considered by the British American Tobacco
manager to concerned the needs of their employees to fulfil it effectively. There are five needs
which explains the Maslow Achiever theory such as: Physiological needs: According to this need, it indicate the basic needs for survival such
as air, water, food and water. In British American Tobacco manager provides this basic
need requirement to fulfil the people in better way. Safety and Security Needs: This needs is defines about the requirement of security or
some resources that helps to reflect the long term safety such as financial security, health
and wellness or polices. As in British American Tobacco the employees are getting
insurance, allowances and other incentives that reflect security in the job. Social Needs: the need is highlight to build the relationship or love and acceptance with
peers is creates responsibility that drives the better human behaviour (Oxenham, 2017).
The relationship could be friendship, romantic bonding, belongings with family etc.
There is necessity that employees should have to engage with other employees for better
relationship management in British American Tobacco company. Self Esteem: In this need it arises in individual when there is high presence of sense of
accomplishment that motivate the employees as well as behaviour in positive manner
(Priola and et. al., 2018.). Similarly, in British American Tobacco company employees
are getting hierarchy when they deliverables high form of productive work and increase
the self esteem in terms of respect or pride in the premises. To maintain and fulfil the
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specific employee self esteem through providing the more incentives, promotion and
increase in salary hikes.
 Self Actualisation: In this need theory of tier it defines about the individual performance
that helps to accomplish every thing where the individual increase the capability (Rogers,
Kinnafick and Papathomas, 2019). In the situation of British American Tobacco
employees better realised about their goal which they are seeking and better understand
about the need of relationship as well as sense of self expressed that helps to reform the
attractive personality and always keep in motivating behaviour.
Task 6.
P6. Use the appropriate corporate examples and literature justification.
By considering the suitable and related examples of British American Tobacco
perspective, as the competitors example of this venture is Imperial Tobacco, it is New Zealand
based organisation as they have also faces the conflicts and challenges in different situation
context. When Imperial Tobacco started their new business venture in United kingdom, they
faces legal regulation issues and environmental factor problems which creates the situation
complex for not able to pursue the business in effective manner (Samson and Kalchschmidt.,
2019). As their employees and internal management system get disturbed and they faces huge
loss, from that they started to improve the management activities system by following the rules
and regulation of United Kingdom political and legal factor. As the another competitor British
American Tobacco pursuing their business effectively through which Imperial Tobacco develop
the human resource and leadership style is adopted by their leader and manager to create positive
environment.
Imperial Tobacco have to change their policies that reforms new regulation which follow
by the employees as well as provides the benefits to the company. Pestle Analysation is play
important role to understand the external environment of United Kingdom which support to the
manager of Imperial Tobacco to gain the better competitive advantages. As the product are
similar of Imperial and British American Tobacco deals with cigarettes and other form of
tobacco which prevails more competition in market. The clashes between these two companies in
terms of prices and quality kind of product. Somehow, the top level managers of Imperial
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Tobacco also adopt the Expert power to reduces the conflicts as well as the negative issues that
creates more complexities to support to enhance better sustainability in the competitive market
as well as effectiveness practices in the business regulation.
Task 7
P7. Through based on discussion and debate what suggestion or recommendation in terms of
strategies to increase the organization performance?
As per above discussion on the different situation management practises, leadership,
power and motivation factor for the context of British American Tobacco as well as highlight the
effective method and styles for the betterment of the company performances. As there is some
suggestion and recommendation is comprising terms of strategies which help to develop the
internal and external activities. There is suggestion and recommendation related with British
American Tobacco are as follows:
 The company need to more research in the market for better platform to perform and
gain more competitive advantages. Such as effective marketing research that helps to
procuring the information related to the tobacco market which enhance more business
effectiveness.
 There is a requirement of expertise who helps advise and suggest best market for
investment purpose in terms of gaining more market share.
 By commencing the practises of Pestle analysis, Porter five forces and Ansoff matrix
these three main managerial strategies helps study the overall competitor market where
Pestle helps to understand by providing the external business environment, Porter Five
force will facilitates the competitors, buyer and supplier behaviour and Ansoff would
helps to provide the better business decision making in terms of market and product.
 New products introduce in market with different concept, it will helps to explore and
gain new customer.
 Manager or Leaders of British American Tobacco company should engage the potential
employees by providing them promotion and incentives on the basis of their promotion
(Szeto and Cheng., 2018). Training and Development commence through leader will
improve the skills and knowledge of employees.
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 By appointing effective and experienced leaders would provide more knowledge as well
as better understanding of business practises by improvising the better attributes of
employees.
Above all suggestion and recommendation in points are derives the better business
practises of British American Tobacco company that enhance proper business effectiveness.
CONCLUSION
From above report of Organisation theory is come to conclude that it comprises about the
one management style as Democratic management style, functions and principles that provide
the better mange of internal activities. In the organisation perspective the culture is creates an
impact in the employees and organisation activities in situation of productivity, behaviour
changes and approach the business task objective in systematic manner. By implies the
Participative leadership style that commence by manager or leader to invite the employees in
decision making, by considering the expert power helps to provide optimum guidance and
reduces the conflicts in the organisation. For taking one theory of motivation as Maslow
Hierarchy need that explains the needs of employee which they expects from the organisation
and it fulfil in five different ways of needs. At last there is discussion on debate the
recommendation and suggestion that helps to increase the performance.
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