Organisational Theory and Practice: CEO Leadership Style and Impact

This report analyzes the leadership style, management principles, and functions of the CEO of British American Tobacco (BAT), Jack Marie Henry David Bowles. It examines his use of a consultative management style, implementation of Henri Fayol's management principles, and application of management functions like planning, organizing, leading, and controlling. The report further explores BAT's hierarchical organizational structure and its impact on staff, along with an analysis of the company's task-oriented organizational culture. The CEO's democratic leadership style is evaluated, highlighting its influence on employee motivation, productivity, and the company's overall performance. Finally, the report investigates the impact of power, conflict, and influence within the organization, discussing different types of power and their effects on the workplace environment and decision-making processes, thereby offering a comprehensive overview of leadership and organizational dynamics at BAT.

Organisational Theory and
practice
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INTRODUCTION
Organization theory refers to set of interrelated concepts or models, that explains
behaviour of groups, or individuals or subgroups, which interacts with each other to work
functions intended towards accomplishment of a common aim. It is the study of companies for
benefits of determining common themes for purpose of solving issues, increasing productivity,
efficiency and meeting needs or requirements of stakeholders. Organization theory can be
conceptualized as reading three subtopic; group procedures, individual process and
organizational process. It also studies social relations impact between companies and individuals
along with their activities on the firms as a whole. In addition to this organization theory studies
influence of external and internal business environment such as cultural, legal, technological,
political etc., on growth and success of venture.
While organization practices describe as actions and behaviours of workers, they are one
of the five Ps of a company such as purpose, priorities, philosophy and projections. It can be
external or internal that affects overall business performance and productivity. Good and
appropriate practices of a firm drive its management and workers toward gaining a lot of benefits
in term of increasing productivity and profitability level even better. Engage employees, be
vulnerable, seek clarity, focus team efforts, rewards attempt, create cultural cohesiveness etc., are
the examples of common practices in business companies. All there practices are beneficial,
important and useful in context of workplace as well as business.
The current study will base Mr. Jack Marie Henry David Bowles; the Chief executive
officer of well known brand is British American Tobacco Plc. This organization operates as a
holding firm for a group of organizations that manufactures, sell and markets cigarettes and other
tobacco items including cigars etc. This report will explain functions, management and principles
used by CEO of company, analyse action taken in context of business structure and culture
within British American Tobacco firm. This assignment will justify leadership style of Mr. Jack
Marie Henry David Bowles and influence, conflict and power impact at organization. The
current report will further provide a deep understanding of different types of motivation used by
the quoted firm.
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TASKS
A) Management style, principles and functions of management utilized by CEO in chosen
company
Jack Marie Henry David Bowless is member of management board and director and CEO
at British American Tobacco Plc. He is a French entrepreneur and a business man who
effectively manages and handles business functions as well as organization activities by using
effective and appropriate management style that suits him.
Management style-
There are different forms of styles in regard to administration available in the business
world such as authoritative, consultative, collaboration, transformational, participative,
persuasive management style etc. The CEO of chosen company can use consultative
management style which is quite beneficial and helpful for him as it makes Jack Marie able to
build positive working environment at workplace where number of workers are performing and
completing their day to day activities in systematic as well as ethical manner. It helps him to
promote a deeper relation between applicants and top authority and builds trust within groups.
According to this style, chief executive officer of British American Tobacco PLC ask for
suggestions and opinions and innovative thoughts of his team members, consulting view points
of every person that develop a good bond between them (Shirvani and et.al., 2019).
Management principle-
Jack Marie Henry David Bowless previously held at position of chairman for company in
France SAS, and managing director at British American Tobacco Malaysia Bhd. By following
and implementing principles of management he gets a lot of success in his career. Henri Fayol
model is the best concept which define effective and the most 14 beneficial principles of
managements (Godwin and et.al., 2017). For example, CEO with first principle of management
that is division of work, he can leads to specialization and aid to increase effectiveness and
efficiency which outcomes in improvements in profitability and productivity of British American
Tobacco Plc. Second principle of Fayol model is balancing accountability and authority. Mr,
Marie effectively making balance between duties and power, he never considers orders without
reference to accountability. Henri Fayol model include more principles such as castigation and
many more which in turn assist to improve the overall performance of the managers within an
organization.
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Functions of management-
Mr, Jack Marie by using management functions such as planning, organizing, leading and
controlling, operates their business activities in systematic manner. According to first function,
he always set clear aim and objective of business which is really very important. During this
stage, he makes strategic decisions to set path for company. For example before, taking any
action for business growth he always evaluates external and internal factors that may impact
execution of plan.
B) Stages taken with regard to organizational structure and state organizational culture at British
American Tobacco and its impact on staff
An organization structure is a system that clearly outlines how all activities and function
are directed in a company to achieve their aims. These activities can include roles,
accountabilities and rules. There are varied kinds of organizational structure such as hierarchical,
horizontal, flat, functional, team based and matrix organizational structure, are accessible in the
world of business, which can be use by management according to size and scope of companies.
British American Tobacco, administration and CEO take essential steps towards making
organizational structure more effective. It has been analysed that British American Tobacco has
hierarchal organization structure where, each workers know from which has to take order and
to whom he or she is responsible (Saiti and Stefou, 2018). Company is known as the second
biggest global tobacco holding firm in the whole world. They have 20 subsidiaries and more than
182 executives. With hierarchal organization structure, management effectively manage their
staff performance, as they can clearly define roles and accountabilities of each applicant which
makes them able to work much better than before and help to achieve high performance that is
the main of firm.
Organization culture is defined as underlying assumptions, notion, habits and standards
of communicating that support to exceptional psychological and social environment of a
company. Handy’s model of organizational culture is best suited in this context because it helps
to define varied kinds of culture that companies can use and work accordingly. It defined four
different types of culture, that are;
Power culture As per this, power is held with few individuals who influence other
employees. Through this company’s manager make decision quickly for the
welfare of a business.
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Role culture Firm who follows the same culture are based on rules and every employee
knows their own roles and responsibilities.
Task culture This type of culture follows when company has to address the specific
problem or complete the project. So with the help of specific skills and
leadership style, company meet the define task.
Person culture In this, people believe that they are superior to business and they treat
themselves up from a company.
In regard to British American Tobacco Plc, management follow task culture in which
specific teams are made which in turn assist to develop team working abilities among employees.
Therefore, with the help of this culture, company’s profitability and productivity will be
increases along with maintaining brand image at international level (Kwakye, 2018).
C) Leadership style of CEO of company
A leadership style is a leader’s approach of providing guidance, directions, motivating
workers and implementing plans (Saad, Sudin and Shamsuddin, 2018). Several authors have
proposed determining many different leadership forms as exhibited by a leader in business,
political and other fields. Autocratic, authoritative, coaching, democratic, affiliative and Laissez
fair are the best examples of leadership styles that any leader can use and act accordingly. It can
be said that CEO of chosen organization that is British American Tobacco has democratic
leadership styles, which make him capable to enhance performance of business and allow
increasing operational as well as organizational effectiveness even better than its competitors in
marketplace or sector where they operates, since for so long. Throughout his career at company,
Mr, Marie has demonstrated excellent strategic leadership; driving productivity, progressing
business and developing strong management teams, all it happen because of using democratic
leadership form which is quite beneficial for him.
He ask suggestions from workers and share key data or business related information with
applicants that influence motivational and productivity level of employees, it also affects their
work accountabilities as well. He seeks staff thoughts before approving a final judgment which is
really very important for them. There are several benefits he gain because of this leadership
form, he can engender trust and promote group members spirit & cooperation from workers in
ethical manner. With style permit him for creativity and aids candidates develop and grow year
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by year. He also has been driving elements for company attempts to push business forward with
smokeless tobacco items, heat not burn traditional cigarettes and electronic cigarettes. With this
leadership style, he can motivate staff and also drive them towards achieving objectives and aims
of company, which is also quite important and beneficial in term of gaining competitive
advantages.
Chairman of BAT’s said that CEO promotion represents culmination of what he known a
far reaching succession procedure with strong internal and external candidates. With democratic
leadership style he can permit people to do what they want to do in term of company benefits and
in way that they want to do it. He always ready to accept challenge and encourage team to do
which make a strong and positive work culture. He displays exceptional leadership and delivery
desire outcomes during their working career. He builds strong and skilled teams who are ready to
take any kind of risk in order to grow even better.
D) Impact of power, conflict and influence at chosen organization
Impact of power-
Power is the position and authority which can be influence people in both positive and
negative manner (Kovach, 2020). There are different types of power which is introduced by
French and Raven’s. Hence, these five type of power are as mention below:
Legitimate power-
This power comes from the authority and with the help of this an individual have a right
to make demand and expect others to complete the same as well.
Reward power-
It is based upon the right which are offer to other and in return they get rewards so that
employees perform well in near future. In the same way quoted firm also applies the same in
order to let the employees understand about their power.
Expert power-
It is based upon an individual’s high level of skills as well as knowledge. Hence company
should hire experts who control their employees in order to generate best outcome.
Referent power-
It is the power of a person over its team and based upon the level of identification which
in turn provide advantage to the company.
Coercive power-
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It means a person have a power in which they can use of their power in order to punish
others for non- compliance any law.
As discussed above all the types of power impact on business growth and workplace
environment. For example, when CEO and other members use their reward power without
making any type of differences by providing rewards or incentives based on abilities and work
efforts of staff. It will assist to improve the performance of an employee in order to perform
better in near future.
Conflict affect-
It is the internal factor which direct affect the overall business. Such that it decrease the
motivational level of employees and this in turn lower down the profitability as well as
productivity of a business. Increase in conflict will lead to decrease the positive working
environment such that it decrease work disruptions, lead to project failure and turnover. In the
context of British American Tobacco, it is also analysed that conflict impacts how the employees
are best managed as per their values and priorities such that it affect the decision making of a
company as well. Therefore, it is advised to the company that they should take better decision or
develop management strategy which in turn leads to affect performance in positive manner.
Influence-
With support and collaborative practices, management put positive impact upon staff;
they help candidates by providing effective and advanced suggestions which is actually
important for development of organization. This factor also have its direct impact upon business
such that HR of the firm needs to perform the wok accordingly and this in turn assist to improve
the performance level, along with retaining them. So it is stated that by applying collaborative
strategy, most of the company tries to retain the employees for a longer tenure.
E) Several types of motivation utilized in firm
Motivation is key element of development and achievement of any company or
organization; it includes emotional, cognitive, social and biological forces that activate behaviour
(Kuznetsova and et.al, 2017). Hence, it is consider an important elements to attain objective of
business. So, it is stated that motivation is consider an internal process that leads to attain the aim
and objectives. In the same way, different theories are applied to different companies with an
aim to increase the performance of an employees along with retaining best individuals as well.
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Maslow’s Hierarchy of needs-
Physiological needs-
It is consider the basic need of a human being which needs to be satisfied. This need
stated that food, air and water are consider some common need for every individual. That is why,
Maslow also stated that physiological needs are consider an important need among all and if
these are fulfilled then secondary needs are met.
Safety and security needs-
Once the physiological needs are satisfied then comes safety needs which become salient.
Hence these type of needs are mainly fulfilled by family as well as society. Moreover, this type
of needs are provide a sense of satisfaction to an individual such that emotional security,
financial security and social stability. So, it is also necessary for an individual to meet the same
in order to be motivated.
Figure 1Maslow’s Hierarchy of needs
(Source: The 5 Levels of Maslow's Hierarchy of Needs, 2020)
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Social needs-
It is the third need which comes after safety concern, also an individual wants to be
recognized and accepted by others. For instance, an entrepreneur is motivated within a company
with their employees if this need are fulfilled.
Esteem needs-
The fourth level in which needs indicate self- confidence and knowledge. Therefore,
Maslow also indicate that a need for respect is consider an important factor that precedes real
self- esteem. Therefore, this need must be fulfilled by the leader of a company in order to keep
their employee motivated.
Self actualization needs-
The last stage in which personal growth of the employees are consider and every
candidate is looking for their own growth in order to attain their set target. This is fulfilled by
this need and assist to keep motivated employees.
Therefore, from the above it has been clearly reflected that British American Tobacco
uses this motivation theory in order to keep their employees motivated. Also, through this
motivation technique, employees increase their productivity level and in return they expect
reward and incentive that assist to create positive working environment at workplace.
F) Appropriate corporate examples
According to Cugova and Cug, (2020) there are range of organizations who using
different types of motivation techniques and take few steps towards managing their
organizational culture. For instance, the managers and HR of Imperial Brand uses continuous
professional development in order to encourage the staff members to improve their current skills.
Also, the vision of a firm also stated that quoted brand wants to create positive working
environment in which all employees perform well at any point. Thus to fulfil the same, managers
and leader of a company uses this strategy which in turn improve the personal attributes and
improve the overall working environment so that customers enjoy the offered services.
Peters and et.al., (2020) share their opinion and explains that an organization caters wide
importance to workers and their workplace condition. Scandinavian Tobacco Group agree that
staff members are core foundations of business because they support to take a business at further
level of success. Company also make sure that all the candidate comply with ethical concern and
behave properly at workplace. In addition to this, it is also analysed that by having transparent
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working culture with employees also motivate them to engage within company for a long term.
This in turn consider the best strategy for the firm to raise the brand image at international level.
G) Discussion and debate what recommendation or suggestions would make to increase
performance of British American Tobacco
Conclusion-
From above analysis, it has been concluded by using effective motivation techniques and
democratic leadership style CEO at British American Tobacco Plc, performing even better. He
attempts to form inclusive work culture which influence efficiency of firm and aid to increase it
more than competitors. Also, to increase the productivity level of their employees, CEO also
develops many strategies. There are few methods accessible in corporate world which company
and its management can use to increase organizational performance even better.
Recommendation-
 Manager in order to improve situation of company in the future will consider range of
suggestions and chose one of the best among them. Organization should concentrate on
growth and education of workers, they must identify needs of skills development and
then develop an effective training programme which assist to raise the performance. It is
so because with the help of effective training session, company’s leader improve the
overall performance and examine the capabilities which the employees possesses and
suggest ways to improve the weakness as well.
 Technological tools play an important role in effectiveness and efficiency of BAT and
other as well. By complying advance technology within the selected premises will help to
stay ahead in the competition. This in turn assist to improve the overall performance of a
business and keep attracted range of customers as well. With this information manager
can develop plan through which company can work even better and handle every
situation in the future.
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REFERENCES
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