Chapter 1:Introduction

1.1 Origin of the Report

The report on Management & Organizational Behaviour Practices of British American

Tobacco Bangladesh” was prepared as assigned by the Course Instructor Engr. Kamrul Hassan

in the course Organization & Management (EMBA 503) and submitted on 26th April 2013.

1.2 Background of the Study:

To be operating in a controversial and challenging industry like the cigarette industry

successfully, British American Tobacco Bangladesh has a strong Management & Organizational

Behaviour Practices within their company. Without a strong management & organizational

behaviour practices it’s perhaps impossible to operate a big multinational organization in

different continent.

1.3 Objective

To prepare a written report after conducting a study of Management & Organizational Behaviour

Practices of British American Tobacco Bangladesh.

1.4 Scope

This report will cover only the Management & Organizational Behaviour Practices of British

American Tobacco Bangladesh; it will not cover all the business organizations management &

organizational behaviour practices.

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1.5 Methodology

The report is based on primary data by conducting personal interviews with the management,

employees of British American Tobacco Bangladesh, and secondary data obtained from the

website of British American Tobacco Bangladesh and the Internet.

1.6 LimitationsThere were several limitations faced in the preparation of the report. Interviewee bias on the part

of management and employees of British American Tobacco Bangladesh was one of them.

Another was the reluctance of customers to spend time in filling up the questionnaire. A further

limitation was imprecision in interpreting obtained information due to inadequacy of technical

expertise. The information about planning, organizing, controlling, motivation, decision making

and other key activities of any private organization are considered as very confidential. So we

have faced some difficulties to collect the relevant information about management pattern of this

Bank. Duration to prepare this report is not enough.

1.7 Conceptual framework of the report:This study seeks to analyze the role played by “Management & Organizational Behaviour

Practices of British American Tobacco Bangladesh; how the management played role and how

effectively they are practicing positive behaviour throughout the organization.

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Chapter 2

2.1 History of the Organization

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British American Tobacco

Type PublicFounded 1902

Headquarters London, England, UK

Key people Jan du Plessis, ChairmanPaul Adams, Chief Executive

Industry TobaccoProducts TobaccoRevenue £26.234 billion (2012)

Operating income £2.905 billion (2012)Net income £2.287 billion (2012)Employees 55,000 (2012)

Website www.bat.com

British American Tobacco Bangladesh began its operations in the sub-continent in the year 1910

as Imperial Tobacco Company Ltd. Post 1947; Pakistan Tobacco Company (PTC) came into

existence with its head office in Karachi. During that time, PTC's East Pakistan office was in

Armanitola which was ultimately moved to Motijheel.

After independence, in 1972, Bangladesh Tobacco Company (BTC) was formed with British

American Tobacco holding majority of the shares. In March 1998, Bangladesh Tobacco

Company changed its corporate name into British American Tobacco Bangladesh proclaiming

its common identity with other operating companies in the British American Tobacco Group.

British American tobacco Bangladesh is one of the largest & oldest multinational companies

operating in Bangladesh. The UK based British American Tobacco Group holds 65.91 share in

the company. The Government of Bangladesh owns 28.7% through several of its agencies, while

5.39% is owned by other shareholders.

We are a leading business organization in the industrial sector employing more than 1,300

people directly and a further 40,000 indirectly as farmers, distributors and suppliers. We have

business contracts directly with around 21,000 registered farmers who produce high quality

tobacco leaf.

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2.2 Mission, Vision, Goal & Strategy of British American

Tobacco Bangladesh

2.2.1 Company mission and vision

The company’s mission and vision is to achieve leadership of the global tobacco industry in

order to create shareholder value. Quantitatively, we seek volume leadership among our

international competitors. Qualitatively, they aim to lead their industry as the preferred partner of

key stakeholders and in demonstrating responsibility. Their strategy is to deliver their vision is

based on Growth, Productivity, Responsibility and a Winning Organization. They are the world’s

second largest quoted tobacco group by global market share, with brands sold in more than 180

markets. They have four Global Drive Brands – Dunhill, Kent, Lucky Strike and Pall Mall – and

over 300 brands in our portfolio. They hold robust market positions in each of their regions and

have leadership in more than 50 markets. They employ over 53,000 people worldwide. Their 47

cigarette factories are based in 40 different countries and produced some 684 billion cigarettes in

2007.

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2.2.2 Goal People, products and processes are aligned to meet the demand of discerning customers. Achieve a distinction like the luminaries in the sky. Deliver a quality that demonstrates a true reflection.

2.3 Organization Structure & Size

Structure of the organization:

The structure is much decentralized with the parent company retaining aLlth0l-ity for overall

strategic direction of the Firm and financial control. BATB operates in the following functional

areas:

Operations (Production and Supply Chain)

Leaf

Finance

Human resource

Marketing (Brand and Trade Marketing- Demand Chain)

Legal & Company Secretarial

6

Information Technology

Corporate & Regulatory Affairs (CORA)

Overall activities of tile company arc governed by the “Board of Directors” and Executive. The

“Board of Directors” is composed of 10 members headed by a chairman. Chief Executive of

British American Tobacco Bangladesh is called the “Managing Director” who is normally

appointed by “BAT Holdings”. Managing Director of the company is the chairman of the

executive Committee. This committee includes the head of all the functional departments.

The decision making, infrastructure is participatory to a very high extent. All the plans and

decisions that are made are communicated from the top level of the organization and the

decisions are made after discussing the issue with the related authority and the grass root level.

Every possible input from every relevant level of workforce is taken before getting into any

decision.

2.3.1 Organ gram of British American Tobacco7

Fig 1: Organ gram of British American Tobacco 2.4 Products, Services, Customers, Markets of British American Tobacco Bangladesh

8

Head Of Operations

Manager(Marketing)

Manager(Accounts)

Manager(Finance)

Manager(Design)

Manager(HR)

Manager(IT)

Manager(Order)

Manager(Documentation)

Manager(Posting)

Manager(Logistics)

Executives

Executives Executives Executives Executives

Executives ExecutivesExecutivesExecutivesExecutives

OfficersOfficers Officers Officers Officers

Officer

Officers

Officers

Officers

Officers

Staff StaffStaff

StaffStaff

Staff

Staff Staff

Staff

Informed adult smokers are our consumers; it is their needs and wants for world-class cigarette

brands that we wish to cater for. All our marketing and manufacturing activities are geared

towards understanding and satisfying their diverse preferences. British American Tobacco

Bangladesh operates in the key segments of the cigarette market of Bangladesh with its drive

brands like Benson & Hedges, John Player Gold Leaf, Pall Mall and Star.

Benson & Hedges: cigarettes were created for the then Prince of Wales in 1873.   British

American Tobacco acquired the rights to the brand  in a large number of overseas markets in

1956. Today,   British American Tobacco Group companies sell  Benson & Hedges in more than

80 countries, including  Australia, New Zealand, Bangladesh, Nigeria, Malaysia and South

Africa. Launched in 1997, Benson & Hedges (B&H) maintains our dominance in premium

segment and drives the growth of premium price segment in Bangladesh market. BAT

Bangladesh was the first market to launch the new pack of B&H at the beginning of September

2005.

John Player Gold Leaf: is today sold in over 20 countries and is particularly popular in

Pakistan, Bangladesh, Sri Lanka and Saudi Arabia. The brand dates back to the 1890s. Launched

in 1980, John Player Gold Leaf is one of the highest selling brands of our Company - dominating

the medium price segment.

Pall Mall: was introduced in 1899 and, with a strong American heritage, is now sold in some 60

countries. Pall Mall is the first Global Drive Brand to be launched in Bangladesh on 19 March

2006 All three variants (Full Flavour, Lights & Menthol) of Pall Mall have created new

excitement and vibe in the Taka 2 segment.

Star: launched 40 years ago, is still a dominant brand in the low segment. Recently a new pack

of Star was launched and currently it is the highest volume generating brand for the Company.

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At British American Tobacco Bangladesh, we recognize that the key factor to our sustainable

growth is our human resource. Therefore, we have always been committed to good employment

practices and have set out the framework of our Employment Principles on workplace practices,

employee relations and employee human rights. We foster an open and confident culture that

encourages change & innovation which is shaped up by the guiding principles of strength from

diversity, enterprising spirit, open mind and freedom through responsibility. This inspires our

employees to perform & enjoy.

2.5 Future Plan of British American Tobacco Bangladesh

British American Tobacco's core business will remain in tobacco for many years to come.

However, they recognise that they also have a responsibility to seek to reduce the health risks

associated with their products. As part of their harm reduction approach we believe the key is to

offer different products that address different consumer needs. As such they are developing a

range of new products that will not necessarily replace cigarettes or cigars, but will provide

smokers with a choice - including smokeless tobacco products and pure nicotine alternatives

such as e-cigarettes.

Chapter 3

3.1 Organization Structure10

Structure of the organization:

The structure is much decentralized with the parent company retaining aLlth0l-ity for overall

strategic direction of the Firm and financial control. BATB operates in the following functional

areas:

Operations (Production and Supply Chain)

Leaf

Finance

Human resource

Marketing (Brand and Trade Marketing- Demand Chain)

Legal & Company Secretarial

Information Technology

Corporate & Regulatory Affairs (CORA)

Overall activities of tile company arc governed by the “Board of Directors” and Executive. The

“Board of Directors” is composed of 10 members headed by a chairman. Chief Executive of

British American Tobacco Bangladesh is called the “Managing Director” who is normally

appointed by “BAT Holdings”. Managing Director of the company is the chairman of the

executive Committee. This committee includes the head of all the functional departments.

The decision making, infrastructure is participatory to a very high extent. All the plans and

decisions that are made are communicated from the top level of the organization and the

decisions are made after discussing the issue with the related authority and the grass root level.

Every possible input from every relevant level of workforce is taken before getting into any

decision.

Organ gram of British American Tobacco

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Head Of Operations

Fig 1: Organ gram of British American Tobacco

3.2 Leadership Style of British American Tobacco Bangladesh

It is difficult to put a label on BAT’s leadership style or management practices. What describe

them most accurately are their four guiding principles:

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Manager(Marketing)

Manager

Manager(Finance)

Manager(Design)

Manager(HR)

Manager

Manager(Order)

Manager(Documentation)

Manager(Posting)

Manager(Logistics)

Executives

Executives Executives Executives Executives

Executives ExecutivesExecutivesExecutivesExecutives

OfficersOfficers Officers Officers Officers

Officer

Officers

Officers

Officers

Officers

Staff StaffStaff

StaffStaff

Staff

Staff Staff

Staff

1. Open mindedness,

2. Enterprising spirit,

3. Strength from diversity and

4. Freedom through responsibility.

These shape their organizational as well as individual styles and practices. Having the right set of

functional and leadership capabilities are the basics for them and it is given that everyone should

demonstrate the guiding principles that dictate who is a better leader.

Leadership, for these purposes, are not limited to how one interacts with and/or leads people

only, but also covers how one manages himself or herself, clarity of thinking and action,

creativity, commercial mindset and understanding. Language also plays an important role.

Working in a multinational company means a lot of regular interaction with colleagues sitting in

other countries. English language proficiency, both written and spoken, hence is critical.

3.3 Motivational Programs of British American Tobacco Bangladesh

The very first thing is British American Tobacco Bangladesh beliefs in theory Y of motivation.

Their employees like work, seek responsibility & they are very much capable of making instant

decisions, & exercise self direction & self control when committed to a goal. They aim to

develop and support the employee every step of the way to fulfill their potential and our

approach to rewards reflects this. Pay is clearly linked to performance, but there are other ways

to reward people too. That’s why they continue to examine the practices of other companies and

ask their employees what motivates them.

British American Tobacco’s reward strategy is simple and straightforward with the following

aims:

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Rewarding contribution and achievement rather than tenure

Freedom for managers to influence the pay increases of their teams

Performance judged against a small number of key areas and objectives

More flexible benefits packages

Regular feedback mechanisms for assessing views on reward.

3.4 Organizational Culture of British American Tobacco

Bangladesh

British American Tobacco Bangladesh’s marketplace is fast moving and ever changing. There

are responsibilities and challenges, but also great opportunities and to meet them they look for

people who are adaptable and forward thinking. We’ll find a culture that is supportive of our

ideas and will encourage us to achieve our goals.

Developing a winning organization is a key part of their strategy to achieve their vision of

leading the global tobacco industry.

While each of their Group companies must take account of local labor law and practice and their

local political, economic and cultural context, they are all committed to these Employment

Principles and are required to demonstrate that they are embedding them in the workplace.

Key to British American Tobacco Bangladesh’s culture is a set of consistent and fair minded

employment principles which apply to all their operations.

Equality of opportunity and a diverse and representative workforce

Internal communications and the free flow of ideas

Respect for both freedom of association and non-association

Fairness and dignity at work

They do not condone or employ child labour

Bonded or involuntary labour is unacceptable

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Responsibility for one's own performance

Mutual responsibility for environment, health and safety

Constructive contribution to the development of employees and communities

where their companies operate

Personal development and learning

Workplace well-being

Fair, clear and competitive remuneration and benefits

3.5 Socialization Process of British American Tobacco Bangladesh

1. Pre-arrival Stage: Pre-arrival means the period of learning in the socialization

process that occurs before a new employee joins the organization. Before joining an

organization employee set a scenario about the company.

2. Encounter Stage: The stage in the socialization process in which a new employee

sees what the organization is really like and confronts the possibility that expectations &

reality may diverge.

3. Metamorphosis Stage: The stage in the socialization process in which a new

employee changes & adjusts to the work, work group, & organization.

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The people who are proud member of British American Tobacco Bangladesh have the same

experience regarding socialization process. They always had the positive thinking about BATBC

& when they joined the organization nothing was called encounter stage for them because the

organization is same like they thought about & as a result they did not have any metamorphosis

stage because the organization represents self as the employees thought about. So the employees’

productivity, commitment & turnover are always high.

3.6 Power & Politics in British American Tobacco Bangladesh:

In British American Tobacco Bangladesh the word of politic is very rear. The power in the

organization divides according to employee’s position. The higher authority has the ultimate

power. They are actually very positive. They divide the reward power on the basis of position.

They basically use legitimate power & they know all the information about their organization so

they have information power as well. Everyone is very expert about their work, they have

referent power and charismatic power as well.

3.7 Change Management in British American Tobacco Bangladesh:

As the British American Tobacco Bangladesh has a very strong culture and positiveness toward

their work, changes don’t occur whatever the circumstances are. They have little bit changes in

their work process and sometimes they only change the technology because technology always

changes. If any changes occur they very much strong to unfreezing previous learning, Movement

& refreezing the new learning.

3.8 Stress Management in British American Tobacco Bangladesh:

Stress: Stress represents anything that poses a threat or challenge to our wellbeing. There are

four potential sources of stress:

1. Environmental Factors

2. Organizational Factors

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3. Individual Factors

4. Individual Differences

In British American Tobacco Bangladesh, they manage stress very positively. They always

monitor to their employees recovering from stress and for this reason they apply some process:

Training & Development Program:

Training and Development is an ongoing process in British American Tobacco Bangladesh with

the personal and professional development of their talent pool seen as a top priority in British

American Tobacco Bangladesh. They offer both on-the-job and off-the-job at both theoretical

and practical levels with training and development opportunities provided through a range of

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local, Regional and International Training programmers that include training and development

programmers at both functional and managerial levels.

It is important for a few simple reasons. First, the external world changes and you need

employees to be updated with new skills. Second, consumer preferences change and you need

employees to learn the skills to be able to continuously keep consumers delighted. Third, it is a

world of fierce competition in business, so you want employees to have unique skills that will

keep your business ahead of competition.

Finally, they all aspire to grow and hence, you need to help the employees grow personally and

professionally through development interventions & to overcome the stress.

In 2010, our training budget was approximately 1.5 percent of total operating expenses. Apart

from the financial costs, a lot of managerial time and resources are involved in the training and

development process. Except training & development program British American Tobacco try to

help their employees overcoming from stress by:

1. Creating very friendly atmosphere.

2. High reputation.

3. Giving high remuneration.

4. Giving very good extra facilities.

5. Job and employee security and safe support.

6. Employee happiness first.

7. Best team support.

8. Management and employee in one team. Etc.

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Chapter 4:

Conclusion & Recommendation

4.1Conclusion

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British American Tobacco Bangladesh is the largest multinational company in Bangladesh. The

group of British American Tobacco is very wide. They have a very well organized management

& they are also practicing organizational behavior in a positive manner. They are giving so much

facility to their employees so that the employees of British American Tobacco Bangladesh are

very happy with their job. They are also very transparent and accountable to the government and

general people. They know that the smoking is very bad for health after that they are exposing on

their product packet that smoking is bad for health and it’s the reason for stomach cancer.

Overall in Bangladesh there are so many organizations that are not accountable and transparent.

British American Tobacco is a very god example for a well organized organization. They have

very strong management, very strong culture, & have very good practicing of organizational

behavior.

4.2Recommendation

1. No need to give pressure to employee much.

2. Need to improve more the organizational culture.

3. Avoid the politics.

Bibliography

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http://207.56.111.185/batb/brand.htmlAnnual Report of BATB 2012

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