Organizational Theory and Practice Assignment (GC01943)

Table of Contents

1.0        Introduction.

2.0        Examine the management style and state the principle and functions of management used by the CEO of British American Tobacco.

3.0 Analyze the steps taken with regard to organizational structure in order to achieve high performance and state the organization culture at British American Tobacco and its impact on the employees.

4.0        Describe the leadership style of the CEO of British American Tobacco to enhance organizational effectiveness.

5.0        Analyze the effects of power, influence and conflict at the British American Tobacco.

6.0        Discuss the various types of motivation used at British American Tobacco.

7.0        Use appropriate corporate examples and literature to justify your stand.

8.0 Suggestions / recommendations (strategies) to increase organizational performance.

Conclusion.

References.

1.0    Introduction

Effective leadership and management play a significant role in the way of increasing business efficiency and achieving organizational goals (Mullins, 2016). Good leadership and management contribute to a business by initiating action, motivating employees in the workplace, providing training and development to the employees, creating confidence and providing guidance, building morale and a friendly work environment, and doing co-operation and co-ordination (Torrington et al., 2017).  This paper examines and analyzes different functions and factors related to the leadership and management of a particular company called British American Tobacco (BAT). BAT is one of the biggest British multinational companies in the tobacco sector. The main products of this company are different kinds of tobacco, cigarettes and nicotine products. This company is founded in London in 1902 and is now a world-recognized brand. It has gained huge success along with its revenue and profits. In 2019, it gained £25.88 billion of revenue, £9.02 billion of operating income, and £5.85 billion of net income (British American Tobacco, 2020). It now serves thousands of customers every week with its over 55000 dedicated and devoted staff. It is now operating in over 180 countries with its several brands including Pall Mall, Vype and Vuse, Lucky Strike, Kent, Dunhill, and Glo. This company is now listed on FTSE 100 Index, London Stock Exchange, New York Stock Exchange, and Johannesburg Stock Exchange (British American Tobacco Annual Report, 2019).

In this paper, first of all, management styles along with functions and principles of management are examined in the case of BAT. Then, it is examined that what kind of strategies are developed by BAT to develop its organizational structure and gain expected organizational performance. Additionally, the organizational culture of BAT and its impact on its employees are examined. Next, the leadership styles practices in BAT and their effectiveness in gaining organizational goals are described. Following this, it is examined that how power, influence and conflicts at BAT affect its business activities and performance. Then, this paper discusses what kind of motivational tools and techniques are used by BAT to influence and motivate its staff and improve their performance and productivity. In this case, appropriate corporate examples and literature are used to justify the effectiveness of BAT’s leadership, management, organizational culture and structure, and motivational tools and techniques. Finally, this paper provides recommendations and develops strategies for BAT to improve its organizational performance.

2.0    Examine the management style and state the principle and functions of management used by the CEO of British American Tobacco

According to Mullins (2016), management styles are mainly classified as human relation approach, behavioral approach, scientific approach, and bureaucratic approach. Human relations approach is considered as the most modern and effective approach because its focuses on employee relation and their performance and productivity in the workplace. Although BAT is using a hierarchical organizational structure, it gives priority to its employees’ individual performance and productivity. Thus, it works on building stronger relationships between staff and line managers and engages employees in the decision-making. Torrington et al. (2017) scientific management style are effective to increase staff skills and bring creative ideas in business. BAT is bringing changes in its business with new and creative ideas. This means it is applying a scientific management style effectively. Bureaucratic and administrative focus on setting roles and responsibilities of employees and managers in a business. As the managers need to have huge ideas and knowledge about business and their followers, bureaucratic and administrative approach for gaining knowledge and understanding in BAT. The behavioral approach of management focus on the attitudes and behavior of managers with their employees in the workplace. BAT trains its managers to be friendly and behave well with its employees in the workplace.

In a word, the CEO of BAT applies combine of human relations, scientific, behavioral, bureaucratic and administrative approaches.  CEO of BAT follows seven key principles. First, he aims to shape the external environment to support the business mission, vision and strategies by increasing brand image, building up stronger relationships with customers, shaping government regulations, managing crises, and defining potential candidates for acquisitions. Secondly, he thinks of himself as a business diplomat. Thirdly, he builds two overlapping but separate teams. Forth, he develops a budget for his time and sticks to it. Fifth, he organizes and calibrates his funnel. Six, he always shares his works and load with his followers and line managers. Finally, he creates a robust system for helping works that are forced by the external environment and factors. On the other hand, the main roles and responsibilities of BAT’s CEO are to support and administrate the board, to deliver programs, products and services, to manage risk and financial issues with tax, to manage its people, and to build up relations with stakeholders. Finally, the CEO of BAT works as a leader, information/visionary bearer, decision-maker, manager, and board developer (British American Tobacco Annual Report, 2019)

3.0 Analyze the steps taken with regard to organizational structure in order to achieve high performance and state the organizational culture at British American Tobacco and its impact on the employees

According to Mullins (2016), the organizational structure is mainly classified as flat organizational structure, hierarchical organizational structure, and matrix organizational structure.  However, Torrington et al. (2017) classified organizational structure as a functional structure, divisional structure, flat structure, matrix structure, decentralized structure, and team-based structure. The business case of BAT, it is using a hierarchal organizational structure.

The name of the Chairman is Richard Burrows, the name of the CEO is Jack Bowles in BAT. There are other 9 directors on its board of directors. On the other hand, it has 11 directors on its management board. BAT divides its activities into five key regions that are EU, US, Asia, Middle East, and Africa.  Its headquarter is in London, UK.  This means the CEO of BAT manages its business from London.  Although BAT is applying a hierarchical structure, it is giving priority to its staff’s relation, staff opinions and voice of freedom. It motivates its staff by applying several performance appraisals and incentives to share their ideas in business. Thus, BAT has been able to bring major changes in its business with new ideas and innovation and gained huge success in the both domestic and international marketplace (BAT Annual Report, 2019)…………………..

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