Organisational Theory and Practice: British Tobacco Company Analysis

This report delves into the organizational theory and practices of British American Tobacco (BAT). It begins by examining the management styles employed, specifically highlighting the democratic approach, and the four key functions of management: planning, organizing, leading, and controlling. The report then analyzes the structured steps BAT takes to achieve high performance, incorporating Hofstede's cultural theory to assess internal environments and employee relations. Furthermore, it explores the leadership style of the CEO, emphasizing transformational leadership and motivational techniques used to improve productivity and address industry challenges. The report also discusses the effects of power dynamics, its influence, and potential conflicts within the organization. Finally, the report provides recommendations for enhancing BAT's performance, offering insights into how the company can maximize its effectiveness and navigate the complexities of the tobacco industry.

ORGANISATIONAL
THEORY AND PRACTICE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK A...........................................................................................................................................3
Management Styles and the functions of Management in British Tobacco Company................3
TASK B...........................................................................................................................................5
Structured steps taken by organization to achieve high performance.........................................5
TASK C...........................................................................................................................................6
Leadership style...........................................................................................................................6
TASK D...........................................................................................................................................7
Effects of power, its influence and conflicts...............................................................................7
TASK E...........................................................................................................................................8
Types of motivation.....................................................................................................................8
TASK G.........................................................................................................................................10
Recommendations to British Tobacco Company for increasing its performance.....................10
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Organisation is the social units where the individuals that are arranged managed to meet a want,
and pursue mutual goals. Organisational theory includes several approaches which analyse the
organisation such as rational system perspective, contingency theory, bureaucratic theory etc.
In simple words, it is the study of organisation which provides advantage of recognising general
themes for the idea of solving issues, increasing efficiency, maximising productivity to meet the
need of stakeholders of company. Generally, three prime concepts of organisational theory are;
process of individual; motivational theory, personality theory and role theory.
British American Tobacco plc commonly trade as BAT is an American British global company
that produce and deals in various nicotine products, tobacco and cigarettes. It is one of the largest
tobacco producing company and have the largest retail and operations of consumer products
form on net sales. The company was established many years back and now is headquartered in
London, England. Company has several subsidiary companies like Reynolds American, Souza
Cruz, Imperial tobacco etc. having its operations worldwide. Company is listed its primary
listing on London Stock Exchange, secondary on Johannesburg Stock exchange and also listed as
American depository shares on NYSE.
This report analyse the principles and functions of management used by the CEO of British
American Tobacco company and management style that he uses, examine the steps in order to
attain high performance related to organisation structure of the company and its influence on
employees. Report also determines the leadership style that the CEO of the company uses to
improve effectiveness of the company and discuss the different types of motivation techniques
used in the company. Further, the report provides the apt and justified examples and provides
recommendations or suggestions related to how company can maximise its performance.
TASK A
Management Styles and the functions of Management in British Tobacco Company
Management Style is a manner in which the manager of the company works to accomplish the
objectives of company. British Tobacco Company follows the Democratic Management Style,
where the managers in the company encourage individuals and teams to provide their input while
making any crucial decisions, but the ultimate authority of finalising the decision is in hands of
the leader. The positive side of using this democratic style of management is that communication

flows in both ways top to down and bottom to top so there are less chances of disappointments
and also increase team cohesiveness (Bhatti and et.al., 2012). Company uses this style, to get lot
of creative ideas from its employees while decision-making.
Functions of Management used by CEO in BAT -
Company applies four management functions i.e. planning, organising, managing or leading and
controlling.
Planning – British Tobacco Company, does planning in order to achieve its specific goals,
company does planning for different time spans every time i.e. for immediate, short period, and
for the long run. Planning plays the crucial role in the company’s growth and helps in maintain
the business strategy. The basic principle behind planning is that to set a clear and smart goal to
makes sure that it succeed, companies who do not set a plan have high chances of failing
(Raduški, 2017). BAT plans include the plans related to finance, product management, marketing
etc. considering the competition in the industry etc. company ensures that all its plans are
realistic and measurable.
Organising – After the process of planning is done, company ensures that there is availability of
resources to carry out the set plan. Organising can be defined as the process of assembling
required resources to achieve the objectives of organisation. The company is this function
determines that how task is to be divided, how resources must be deployed and how the
departments are to be coordinated. The communication in the company flows from both ways so
that in case of any issue it can be resolved at an early stage.
Leading – This function in BAT ensures that the managers guides and inspire the employees and
make them motivated so that they can achieve the organisation’s goal with their full capabilities.
Management of the company leads in order to influence without forcing because the company
needs support from its workforce to achieve its goals. BAT uses the transformational leadership
style to affect its employees leaders defines the vision and plans to make company’s move
towards growth (Kumar, 2020).
Controlling – This is one of key managerial function in BAT, because it helps the company in
checking the error and taking the corrective actions in order to minimise the deviation from the
standard and goals are achieved in desired way. Company previously set the standards and
compare it with the outcomes and take the actions so that the actual goal can be attained.

Company sometimes lowers the standard in situation when the limited resources or greater
influence of external factors. It helps the company in working efficiently.
TASK B
Structured steps taken by organization to achieve high performance
Right strategies and right steps will have to be taken by the organization so that the
performance of BAT can be improved in the market which is going to make the operations in the
market stronger. Hofstede culture theory is being used by Jack so that the performance and
internal environment of BAT can be improved for higher operations and get higher value as well.
The further report is going to discuss the detailing of the company with the help of this model so
that there is higher functioning which can be present.
 Collectivism Vs individualism
There are a lot of conflicts which are going to rise and they have to be solved on time so that
there is going to be no or lower affect which the company will have to face. There has to be good
division of groups so that the understanding between the employees is going to be present.
 Power of distance index
There is a good distribution of power which is present in BAT but Jack controls and monitors
the people who have this power so that there is going to be minimum misuse (Haji and Hossain,
2016). The doubts and questions of employees have to be solved very quickly so that there
would be higher functioning.
 Uncertainty avoidance index
The company will have to make sure that they are taking in all the social changes which are
coming in the market to be able to have higher well maintained value in the market and
satisfaction of the clients. The company needs to invest more in the company to be able to
expand themselves and make the sales of the organization increase in the market. The company
will also have to follow the behaviour, laws, guidelines, etc which have been put out by the
government so that there are going to be lesser risks which would be present in the company
which is good for the smooth functioning.
 Short term Vs long term orientation

Better action plans in the present is going to reduce the challenges and actions which are
present for the company in the future which is a great factor. All the decisions which are being
taken by the company are going to be effective for the growth of the company in the market
which is made sure by Jack who is the CEO of the company.
 Femininity Vs Masculinity
There is no kind of discrimination which Jack tolerates in BAT on the bases of gender and
physical working capabilities which is making the best results be obtained by the company in the
market and that is good for the brand value and image in the market.
 Restraint Vs indulgence
There has to be freedom as well as professionalism which has to be present in the company
to be able to operate effectively in the market so that there is going to be a higher competitive
advantage (Blackman, Moscardo and Gray, 2016).
Jack makes sure that the culture of the organization is well maintained and the organization
will be able to operate effectively. There must be strong internal environment of the business to
be able to compete with the competitors in the market so that there is going to be smoother
functioning. Fair chances and opportunities are being provided to the workforce of BAT by Jack
so that everyone is going to give in their best in the company so that the brand value of the
company can be increased.
TASK C
Leadership style
It is important for the organization to make sure that the company is having the trust and
loyalty of the employees present in the organization. To understand and connect with the
employees of the organization Jack is using transformation and leadership style. That is a sense
of uncertainty in nature of tobacco industry because the market share is reducing worldwide and
the government is also not supporting this industry. The customers of the organisation are getting
aware of the health damage which the products of this organisation are providing them. Jack is
therefore using motivational theories for the employees so that there is going to be higher
productivity and operations which is going to be present. The sales of the organisation have to
increase making the profit margins higher and they need to promote themselves effectively

which requires good investment. It has to be good plans for and see which has to be present and
locations have to be decided to be able to influence the client easily (Burnes, Hughes and By,
2018). The quality and product of the services have to be well maintained by the employees
which are the main concern of Jack as the CEO of The business. business it is very important for
the leader to address all the problems and issues which are being failed by the employees on time
which will make the employees comfortable and the performance of the organisation is going to
be higher an effective.
There are a lot of changes which are taking place in the industry but Jack makes sure that
there is no forcing these changes upon the employees. That is good interaction which is present
in the company helping Jack be able to take the right measures according to the employees.
There is the requirement of innovation and challenges will develop around it but the company
needs to adapt these factors in order to be able to have higher functioning and performance in the
market (Bernhard-Skala, 2019). Communication is going to help in this organisation to a proper
one direction goal and achieving the target is going to be way easier. The company will have to
make sure that there are good sales and profit margins in order to be able to operate in the market
effectively which is going to be a good factor for the reputation and functioning of the company
as well.
TASK D
Effects of power, its influence and conflicts
Influence of power is present in all businesses but placing it well and giving it to the right
individual is going to make the performance and functioning of the business increase. Experience
and knowledge of BAT in the market has made sure that there is going to be lesser conflicts and
higher functioning which is going to be a great functioning for the business in the market.
 Legitimate
The power is in the hands of few therefore it is important for the company to make sure that
they are taking the right decisions. Jack makes sure that there is good decisions as well as good
communication which is present.
 Referent

There are employees who look charming, right looks and attitude which can make them get
promotions but that is going to be discriminating and unfair with other employees. Training is
provided to all the employees and the best gets the promotions by Jack in BAT.
 Coercive
Even after all the training and development the workforce does not improve then Jack and
managers of BAT have the right to fire and take other strict actions for the employee as well.
 Rewards
The candidates participating in the task have to be rewarded and deserve this appreciation so
that they continue to do so for the company even in the future. Politics can spoil this functioning
which is not a good factor.
 Expert
Sharing of experience and knowledge of the older employees is very must present in BAT so
that there is going to be good sense of motivation which is going to be present in the company.
Power in the hands of all the employees is not good but use of power has to be done
effectively by the people who have it (Okwechime, 2018). Motivating the employees and making
sure that the workforce is working as one is important so that there are going to be lesser
conflicts and the best is going to come out of this factor.
TASK E
Types of motivation
The employees of the company have to be motivated from time to time so that the
company is going to have smoother functioning and the achievement of goals and objectives is
going to be higher. Jack is using Maslow’s hierarchy needs of theory to make sure that his
employees are being motivated so that the standards and reputation of BAT is going to be present
in the company. There is certain kind of expectations which the employees and the clients have
from the company and they need to be fulfilled so that the company can have higher loyalty.
 Physiological needs
The needs which are the most basic which are food, rest, shelter, water, etc are being
provided to the employees of the company. There are also accommodations which are being

provided to the employees in the boundary of the organization and there are extra provisions as
well which are present being health and safety for themselves and family (Smith, 2020).
 Safety needs
There has to be good security and safety which the organization needs to have for the
business in the market and for the workforce as well. Employees of BAT are being provided with
this medical privilege so that there is going to be higher performance which the business will be
able to have for themselves.
 Belongingness & love needs
There has to be good balance between personal and professional life of the workforce which
is going to be present and that is going to make the performance of the company higher.
Interaction is going to be higher with the team working and the environment is also going to be
higher so that there are going to be lesser conflicts which are going to be present in the company
which is improve for Jack to maintain in the company.
 Esteem needs
The employees start to feel like they can achieve all the targets and goals of the organization
and that is going to make the company have a negative environment which is not good for the
future functioning. It is important for the company to have positivity in the company to be able to
operate effectively (Holbeche, 2018).
 Self- actualization
The needs of human beings never end therefore they need to plan for the achievement they
need in life so that there is going to be higher satisfaction. This is a great advantage for BAT and
the company can have retention level of the employees in the business as well.
To have a good relationship with the employees, Jacks makes sure that all these factors
are being provided to the employees so that there is going to be higher functioning. Training is
being provided to the employees as well so that there is going to be higher standards and
motivation which is going to be present in the organization.

TASK G
Recommendations to British Tobacco Company for increasing its performance
 By providing more autonomy to employees, employees develop the sense that the
company have trust and value them, this also increases the chances of job satisfaction,
they become more productive and also learn how to take crucial decisions if they have to
make in any decision (Gonçalves and et.al., 2016).
 Use of employee feedback, employees are the greatest asset for the company, as they
follow all the rules and regulations at the workplace, it is the responsibility of company to
ensure that they have portal through which the employees can also provide their valuable
feedback and suggestions which they give with their name or anonymously. This will
help BAT in knowing their area of improvement and by improving that they are can
improve their overall of performance.
 BAT by encouraging the co-worker relationship in its company can also increase its
performance, as it helps in makes the working environment positive and employees feel
better, it is suggested that managers or supervisor should also have good relationship with
employees, when the employees engage with each other, help each other, enjoy working
with each and are comfortable in talking with their boss, gives them reason to work to
more productively and stay (retain) in the company for longer period (Crawford, 2020).
 By creating the reward and accountability program encourage the employees to try hard
for excellence. Company should acknowledgement mails to all its employees about the
employee or team has achieved the goal, this ensures that their efforts are valuable for the
company and makes them feel motivated.
 Company should also focus on personalising work environment, by providing budget to
employees to for decorating their own workspace by bringing their own stuff. Company
should create such environment where the people are motivated, engaged and become
high-performance to benefit the company and improve its performance.
CONCLUSION
The following report above discuss about the various topics in an elaborated manner. The report
discusses the management style used by the British Tobacco company and the functions of
management that are used by company in their day-to-day business activities. Report states the

structure and culture of the company and what steps can be taken attain high performance at
workplace. Further, this report talks about the leadership style that the CEO of the BAT uses to
enhance effectiveness of organisation, examine the effects power, conflicts and influence and
discuss the types of motivation used in company. Last but not the least, it uses the example and
provides recommendations improve company’s performance.

REFERENCES
Books and journals
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continuing education: A literature review from a German-speaking perspective. Journal
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satisfaction. International business research, 5(2), p.192.
Blackman, A., Moscardo, G. and Gray, D.E., 2016. Challenges for the theory and practice of
business coaching: A systematic review of empirical evidence. Human Resource
Development Review. 15(4). pp.459-486.
Burnes, B., Hughes, M. and By, R.T., 2018. Reimagining organisational change
leadership. Leadership. 14(2). pp.141-158.
Crawford, A.M.,2020 Basic concepts of business, business functions, business environment,
types of organizations, principles of management, management functions, planning,
organizing, directing and controlling. The management code of ethics.
Gonçalves, G., and et.al., 2016. Cultural intelligence and conflict management
styles. International Journal of Organizational Analysis.
Haji, A.A. and Hossain, D.M., 2016. Exploring the implications of integrated reporting on
organisational reporting practice. Qualitative Research in Accounting & Management.
Holbeche, L.S., 2018. Organisational effectiveness and agility. Journal of Organizational
Effectiveness: People and Performance.
Kumar, R., 2020. Principles of management (Vol. 2). Jyothis Publishers.
Okwechime, E., 2018. The impact of big data on organisational problem solving: evidence from
two UK smart cities initiatives (Doctoral dissertation, Glasgow Caledonian University).
Raduški, D., 2017. Basic management functions in culture and arts organisations. Management:
Journal of Sustainable Business and Management Solutions in Emerging
Economies, 21(81), pp.59-66.
Smith, J.T., 2020. Transforming organisations into entrepreneurial communities: how can
understanding the constructions of organisational agents and their experiences of
human resource management enable SMEs to sustain strategic
entrepreneurship? (Doctoral dissertation, University of Plymouth).
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