Organisational Theory and Practice Report on British American Tobacco

This report provides an in-depth analysis of British American Tobacco's (BAT) organisational theory and practice. It examines the management styles employed, focusing on the democratic approach and the application of Theory X and Y to motivate employees. The report explores the structured steps BAT takes to achieve high performance, including the use of Hofstede's cultural theory to maintain a healthy internal environment. It delves into the leadership styles adopted by BAT, specifically highlighting the transformational leadership approach and its impact on employee motivation and engagement. Furthermore, the report investigates the effects of power, its influence, and the potential for conflicts within the organisation. Finally, it discusses the types of motivation used, including Maslow's hierarchy of needs, to ensure a motivated workforce. The report concludes with recommendations for BAT to maintain its competitive advantage in the market.

ORGANISATIONAL
THEORY AND PRACTICE

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
TASK A...........................................................................................................................................3
Management style, principle and functions of management.......................................................3
TASK B...........................................................................................................................................4
Structured steps taken by organization to achieve high performance.........................................4
TASK C...........................................................................................................................................6
Leadership style...........................................................................................................................6
TASK D...........................................................................................................................................7
Effects of power, its influence and conflicts...............................................................................7
TASK E...........................................................................................................................................8
Types of motivation.....................................................................................................................8
CONCLUSION/ RECOMMENDATION.....................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Businesses in the market need to use the right theories and practices to be able to compete
with the competitors in the market so that there is going to be effective working. British
American Tobacco’s which was established in 1902 is having its headquarters in London, UK.
CEO of the business is Mr. Jack Marie Henry David Bowles who has used the right experience
and knowledge at the right time to make the company have a net income of £5.849 billion as of
2019. The report consists of the management style, leadership styles, culture and motivation
theories which Jack has been using in BAT to make the organization gain competitive advantage
in the market.
TASK A
Management style, principle and functions of management
It is very important for having the right management style in the organization which is
going to make the productivity of the organization improve. Democratic management style is one
of the most successful styles which is present in the market and is being used by Jack as well so
that the company will be able to benefit from it. Theory X and Y is a management theory which
is used so that the employees can be motivated. There are employees who want to work and give
in their personal best in the organization which come in the Y type and the employees who do
not want to try and give in their best are the X type (Weideman, 2017). X type of employees are
not good for the long run and the company will not be able to progress in the market as well as
expected by the management as well. There have to be good strategies like democratic is the way
in which Jack works so that there is going to be better functioning and the organization will be
able to operate effectively in the market. When the employees will have a say in the decision
making or discussions taking place in the organization there are going to be more involvement of
them in the working of the company as well which is good for a long term goal.
Functions of management are to monitor, control and look after the customers as well.
The main functioning of management is to make the right decisions for the organization so that
the company will be able to operate and perform better in the competitive market which is

increasing rapidly. There are principles of management which have to be followed in the
organization so that there is going to be better functioning which are responsibilities and
discipline which the management will follow only then the company will have good internal
factors. Jack makes sure that the working environment of BAT is very strong so that the
productivity and operations of the firm are not going to get affected in any way possible (van
Lieshout, 2017). There has to be fair environment for the employees to work in so that there are
going to be higher results in the organization which is beneficial and the company will be able to
have higher profit margins as well.
TASK B
Structured steps taken by organization to achieve high performance
It is essential for BAT to improve their performance in the market because the
competition in the market is increasing and for that the organization will have to get in the right
steps and strategies to be able to operate. Jack is using Hofstede culture theory so that the
performance can improve and the healthy internal environment can be maintained in the
organization. The further report is going to discuss the theory in detail according to the
organization and Jack who is the CEO of the organization.
 Power of distance index
There are individuals who are going to have the power in their hands but Jack controls and
monitors them closely so that there is not misuse of any of the power in firm. The questions of
the employees are answered very quickly in the organization.
 Collectivism Vs individualism
The individuals will be divided into groups but there has to be good understanding of each
other in the organization so that working is going to be efficient. There are going to be conflicts
which must be solved on time so that the further functioning is not going to be affected
(Holbeche, 2018).
 Uncertainty avoidance index

There are a lot of social changes which have come in the market over time which will have to
be maintained in the organization so that there is going to be effective working. Making more
investments is not a good idea but expanding is very essential for the organization so that the
sales of the organization are going to be intact of the organization in the market. Behaviour,
guidelines, laws, etc should be followed by the organization so that there are going to be less
risks and the company will operate smoothly in the market.
 Femininity Vs Masculinity
There is no kind of discrimination on the base of gender and physical working but on the
capabilities of the employees which are present in the organization so that the best results can be
taken out of the firm.
 Short term Vs long term orientation
There are challenges which are going to be faced by the company but better actions in the
present can make the organization avoid them. Jack makes sure that all the decisions which are
being taken are good for the organization (Burnes, Hughes and By, 2018).
 Restraint Vs indulgence
There is good balance between the freedom of the employees and professionalism in the
organization which going to make the company gain a competitive advantage in the organization
overall.
Jack will have to follow these factors of culture so that there is going to be effective
working in the organization. The organization is having a strong internal working which is
making the working of the organization smoother which is a great factor for the organization.
There is a fair chance and opportunities for the entire workforce which is associated with BAT
which is a great factor for the brand image in the marker as well (Endrejat, Baumgarten and
Kauffeld, 2017).

TASK C
Leadership style
It is very important in organizations to make sure that the employees are giving in their
best and they are having a loyalty and trust level with the business. Jack of BAT is using
transformational leadership style so that he will be able to connect and understand the employees
well. Tobacco is an industry which is very uncertain in nature because the market share is
reducing worldwide since the government does not support this factor. Customers are also
getting aware and conscious about their health which is why it is very important for the
organization to be able to motivate the employees (Five leadership theories and how to apply
them, 2017). BAT is trying to increase the productivity and operations so that they can make the
sales of the organization increase and make higher revenues by promoting themselves in
locations which the customers are going to be influenced easily. There has to be transparency
which needs to be present in the business so that the employees are going to follow and improve
the quality of the products and services as well. All the individual concerns have to be addressed
by the leader of the organization which Jack takes care of so that the employees are going to be
comfortable in the organization and the company will be able to perform efficiently (Haji and
Hossain, 2016).
Jack influences the employees of BAT not by forcing them to follow the changes which
is coming in the organization but also interacts with them and makes sure that they are
comfortable with the changes. Transformational leadership style is a very practical method in the
market in this modern industry. The right leadership style can make the employees be motivated
and makes the company be able to have better functioning and there is more intellectual
stimulation which would be present in the organization. There are going to be innovations and
challenges which are going to be present in the organization so that there is going to be effective
working and the market share as well as sales are going to increase in the market.
Communication is going to be present in the company which is going to make the organization
have a proper sense of direction and the company will be able to operate effectively in the
market (Ruck, Welch and Menara, 2017).

TASK D
Effects of power, its influence and conflicts
There is a great influence of power in an organization which needs to be maintained so
that there is going to be better functioning and the performance of the organization does not fall
in the market. The working of BAT is high in the market because of their experience and
knowledge they have right planning and strategies which are being used in the company (Shuck,
Adelson and Reio Jr, 2017). With power there are going to be a lot of conflicts as well which can
rise in the company. Hofstede model is going to help the business to understand those factors in
detail.
 Rewards
To make sure that the employees are giving their best they are rewards so that they continue
to keep giving their best and Jack personally makes sure that the deserving candidate is getting
the rewards and there is not politics involved in this factor.
 Referent
The employees who are charming, have the right attitude, looks, etc are going to be promoted
and paid attention to more in this stage but Jack does not do this discrimination on looks but on
talent. He trains the employees which need it to match the standards of the organization
(Hofstede’s cultural dimensions theory, 2020).
 Coercive
The management and HR of BAT have the right to fire and take actions against the
employees which are not putting in their best in the organization. Training and development is
provided to the employees and if they are still not trying their best then strict actions are taken
for them.
 Legitimate
Power is in the hands of few which needs to be analysed and only then the decisions in the
organization can be made. Misuse is not good for the further communication and healthy

working environment which Jack makes sure of by including the employees as well in the
decision making.
 Expert
There are a lot of employees who have more experience than the others in the organization
which can add negativity and de-motivate the other employees from giving in their best in the
organization. The experts have to make sure that everyone is having the right knowledge and
help each other so that the bigger picture or objective of the organization can be achieved (Clamp
and Paterson, 2016).
Jack is making sure that any kind of power is not being used in the organization because
the workforce has to be well motivated and all the members of the organization have a very
important role in BAT. Conflicts are going to be less if there is no misuse of power in the
company is what Jack has observed which is why he is putting in his best so that there is going to
be a balance in the working environment of the organization.
TASK E
Types of motivation
It is important for the business to have a motivated workforce in the organization so that
it is easier for the organization to be able to achieve the goals and objectives which are present.
Jack uses Maslow’s hierarchy of needs theory so that he can motivate the employees from time
to time so that the workforce is going to help the organization to maintain their standards and
reputation in the market (Rasooli, Zandi and DeLuca, 2019). There are expectations of the
customers as well which have to be fulfilled and only then the company will be able to have
better relationships with them. The following report is going to discuss the 5 basic stages of need
which are present in human being and have to be provided to the employees of BAT as well.
 Physiological needs
Needs like food, water, shelter, rest, etc are the basic requirement of any human being which
means the employees have to be provided with them. BAT is providing the employees on staying

in the boundaries of the organization and giving them rest as must as required because the health
factor can be compromised.
 Safety needs
Workforce needs safety and security in the organization they are working which is their right
and the businesses must provide them with that factor. Employees of BAT are provided with
safety of their health and extra privileges for medical help or any other factor so that there is
going to be higher performance of them in business.
 Belongingness & love needs
Workforce of BAT are given professional and personal time equally so that they will be able
to balance their life’s in the business well. The employees are given time to interact and get to
know each other so that there are going to be better team working and understanding which
would be present in the organization (Cherry, 2020). Conflicts are going to be less and the
working is going to be higher making the performance overall improve.
 Esteem needs
There are times when the employees feel like they are going to achieve all the goals of the
company and that can get negativity in the organization which is not good. The organization will
have to get positivity in the organization so that there is going to be better functioning which is
made sure of by Jack.
 Self- actualization
When the employees has achieved everything which they had planned to but the needs of a
human being never ends which is why they have keep giving in their best. The company can take
advantage of this factor and retain their employees in the organization so that there are going to
be higher results.
Jack makes sure that the employees of BAT are being provided with these factors so that he
can gain a better relationship with the employees. There are practices which are developed
around this factor of motivation so that the employees are well trained and developed in the

company according to the standards which BAT has gained over years (Ohunakin and et.al.,
2019).
CONCLUSION/ RECOMMENDATION
From the above report it can be concluded that a business needs to have a strong structure
and planning for themselves in the market so that they will be able to operate effectively in the
market. Jack will have to hire more leaders in the organization because handling so many
employees in the organization is not going to be practical for him for a long run. There are more
important decisions and planning which the leaders have to do which is why there is going to be
a need for more leaders in the organization. The theories and practices which are being followed
in BAT are very effective even after being in this industry which is going to have a lot of trouble
since the customers getting health conscious. The management will have to make more changes
in technological aspect so that the organization will be able to operate effectively in the market
which is going to make the company be able to expand themselves in the future as well. The
principles of the business is very good and well maintained as well but there are a lot of
imbalance which is present in the company since the focus on each and every employee is not
present. There are not many conflicts which are present in BAT because of the good leadership
which is present in the organization so that there is going to be higher performance which would
be present in the company. Culture and ethics of the organization are well maintained in the
organization so that there is going to be better but the motivation has to be good in the company
so that there is going to be further functioning and operations which are going to take place in the
organization. The company will have to have good performance in the market so that the
organization will be able to operate effectively and efficiently in the market and the competitors
are going to have lower sales if BAT improves because they have more experience and brand
image in the market which the company has gained over time. There is a reputation and standard
which BAT will have to maintain so that the competitors in the market are not going to find it
difficult to be able to operate and the company will be able to make higher profitability.

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