MGT201

Term Paper
On

British American Tobacco

Submitted To:
Tanzin Khan
Faculty, BBS.

Submitted By:
Moinul Hossain - 11204045
Samit Saif - 15104177
Fahim Zaman 14304150
Khaled Ibne Zaman - 13304100
Nour Hossain - 14104176

Date of submission: 24-11-2015

Chapters

Name of the theory

Page No

----------------

Introduction- about the

organization

01

01

Need Theory

02

02

Goal Setting Theory

10

03

Re-enforcement Theory

12

04

Equity Theory

14

05

Expectancy Theory

16

----------------

Conclusion

19

PROLOGUE ABOUT BRITISH AMERICAN TOBACCO (BAT)

Background:
The presence of British American Tobacco in this part of the world can be traced back to 1910.
Beginning the journey as Imperial Tobacco 100 years ago, the Company set up its first sales
depot at Armanitola in Dhaka. After the partition of India in 1947, the company was established
in 1949. It then became Bangladesh Tobacco Company Limited in 1972 immediately after
Bangladeshs independence. In 1998, the Company changed its name and identity to British
American Tobacco Bangladesh Company Ltd.
Their shareholders:
This was one of the first companies listed on Dhaka and Chittagong stock exchanges. The British
American Tobacco Group holds 65.91% of the shares in British American Tobacco Bangladesh.
Other shareholders are the Investment Corporation of Bangladesh, Shadharan Bima Corporation,
Bangladesh Shilpa Rin Shangstha, Government of Peoples Republic of Bangladesh, Sena
Kalyan Shangstha and other members of the public.
Their Contributions:
British American Tobacco Bangladesh is one of the largest multinational companies in
Bangladesh. Consequently, this is also the largest private sector tax payer in Bangladesh. In
2014, this contributed Tk 93.39 billion in the form of Supplementary Duty, Value Added Tax
(VAT) and other taxes to the national exchequer. Over time, it has successfully established itself
as the company contributing to economic, social and human resource development. It continues
to move forward to deliver higher promises.

Their Beliefs:
At British American Tobacco Bangladesh, they strive to be a responsible company wherever they
operate - that may be to their shareholders, employees, business partners or any other relevant
internal and external stakeholders. To them, responsibility is a way of life and that is why they
believe success and responsibility go together.

Their People:
At British American Tobacco Bangladesh, difference is its advantage and diversity is its strength.
It employs more than 1,809 people directly and about 50,000 people indirectly as farmers,
distributors and local suppliers. Moreover, around 900,000 retailers in the country sell its brands
to earn their living. They take great pride in saying that they are one of the most preferred
employers in the country. Having people from a wide variety of cultures and backgrounds who
support each others success makes them unique. It is their pool of talented people who give this
place the wonderful and pleasant working environment that takes them forward every day.

Chapter: 01
Need Theory:
Hierarchy of need theory:

As we are working on BATs employee motivation, so we would like to start our research from
the most popular and well known theory of motivation from Abraham Maslow (in the picture)

which is known as the Hierarchy of need theory. Abraham Maslow developed the Hierarchy of
Needs model in 1940-50s in USA, and the Hierarchy of Needs theory remain valid till today for
understanding human motivation, management training, and personal development. Indeed,
Maslow's ideas surrounding the Hierarchy of Needs concerning the responsibility of employers to
provide a workplace environment that encourages and enables employees to fulfill their own
unique potential (self-actualization) are today more relevant than ever. Abraham Maslow's book
Motivation and Personality, published in 1954 where he has showed the 5 criteria of need which
are Physiological, Safety, Social, Esteem and Self actualization.

He separated the 5 needs into higher and lower order. Physiological and Safety was classified as
lower order need as these satisfies externally (hunger, thirst, shelter etc.) and the other threeSocial, Esteem and Self actualization is classified as higher order need because they satisfies
internally (friendship, love, self respect, autonomy, self fulfillment etc.) Maslows took some
assumptions to prove his theory. Here, he said that as each of these needs becomes substantially
satisfied, the next need becomes dominant. So, he suggested for motivating an individual at first
we need to understand what level of hierarchy that person belong and focus on satisfying the
needs of the current level and above that level. In spite of getting wide range of recognition, it
has some drawbacks. Firstly, he provided no observation which can authenticate his theory.
Secondly, several studies that sought to validate the theory found no support. Lastly, he
suggested that when a need is significantly satisfied, the next need come to the driving seat.
Unfortunately, however, researches do not generally validate the theory. Therefore, we decided
to launch an investigation on this theory and we will try to find and relate things with this theory.

We have already summed up the theory in the previous paragraph and then according to the
assumptions of Maslows we went for the research. For our research we interviewed an employee
from BAT her name is Ishrat Jahan, 45(app), she has been working in BAT for such a long period
of time. As BAT is a big organization, so we assume that a middle rank employee has obviously
her physiological needs fulfilled and also being in her mid level she has not touch the selfactualization part yet. As because we will try to prove Maslows theory, we set some questions
from the safety, social and esteem. Although, our sample do not fit into all the 5 needs, but
someone elses sample might fit in all the criterias. Apart from that we find all the other
components very interesting in our sample. Meanwhile, we started our interview and initially
asked question about safety like where does she live in, where is her office and does she have any
car provided by the organization or personal? As first she smiled, and then replied that she lives in
Mirpur and her office is in Gulshan. Moreover, she does not have a car both way and the journey
she had to do every day it takes more than 3 hours. Secondly, we asked question from the social
part where we asked her whether she is popular among her peer group and is she married? She
answers the question as she is really happy with her social relationship like she is very popular
among peer group and she is married as well. Lastly, we wanted to know something from the
esteem part so carry on asking her. We ask her if she is happy with her achievement, current status
and if she is getting any positive attention from her boss? She just said yes every time, so
probably she is satisfied with these things. However, when we ask her whether she is actively
involved in any job of the organization other than her job description? She simply said no as if she
did not like the question. Therefore, we continued our investigation on her with our next part
which we will write with the corresponding theory.
Now, after having a proper consultation, it is time to analyze those answers. Firstly, we
remember about the assumption of Maslows about the theory that one need have to be
substantially satisfied, the next need become dominant. However, in our research we found out
that our samples safety need is not fulfilled where as she is very happy with her social need and
belongs in the middle stage of the esteem part. Though, the basic assumption of the theory failed
to prove our sample, nevertheless it can be proved by some other sample. The reason is highly
conflicting as this theory is intuitively logical and Maslows did not take the thing into account
that every individual is different. The second critic is that culture plays their vital role in an
organization where this hierarchy fails because they prefer their culture to the hierarchy of

Maslow. Unfortunately, this theory has a bad reputation regarding research and we also failed to
support the theory, however this theory is still widely recognized and popular among the active
managers for its positive portions. Thus, in the later stage many edition of the theory has come
which has lower its criticism to some extent.
McClellands Theory of Need:

In the early 1960, an American social psychologist, David Clarence McClelland (in the picture)
and his associates developed the McClelland theory of need. According to McClelland, these
motivators are learned (which is why this theory is sometimes called the Learned Needs Theory).
McClelland says that, regardless of our gender, culture, or age, we all have three motivating
drivers, and one of these will be our dominant motivating driver. This dominant motivator is
largely dependent on our culture and life experiences. The three motivators are achievement,
affiliation, and power. People will have different characteristics depending on their dominant
motivator. The three motivators are defined as follows:
Need for achievement

The drive to excel, to achieve in relation to a set of standard, to

strive to success

Need for power

The need to make others behave in a way that they would not have
behaved otherwise.

Need for affiliation

The desire for friendly and close interpersonal relationship

This is the combination of three factors which high achiever always prefer. Firstly, high achiever
always strives and seeks for personal responsibility. Secondly they prefer to have an amount of
feedback which can be either positive or negative. Lastly, high achiever do not like gambling
with high odd numbers and always favor having moderate risk. The people with high in need for
power want to influence other and take control of others. This type of persons prefer to be
placed into competitive and status oriented situation and tend to be more concern with prestige
and gaining influence over others than with effective performance. Last of all, the person with
high need for affiliation strives for friendship, prefer cooperative situation than competitive one
and preferred to be involved in a high degree of mutual understanding. Many researchers had
provided lots of evidence to prove the theory and some other failed. Therefore, we took our
sample and decided to take a look at it and we will try to prove the theory.

We have already summed up the theory in the previous paragraph and then according to the
assumptions of McClellands theory of need we went for the research. For our research we
choose a sample from BAT her name is Ishrat Jahan, 45, she has been working in BAT for such a
long period of time. Before going for any type of interview we set some sample question to ask
her. When we appeared for the interview, first of all we asked he does she prefer high

responsibility job or is she involved any kind of high responsibility job. She seemed very eager
to answer the question and in reply to that she said she loves doing high responsibility job.
Moreover, she considers herself as a lucky person to have some high responsibility job. Then, we
were supposed to ask her if her manager trust her. But, she answered that in the first question that
she is involved in high responsibility job which means her boss trusts her. Then, we ask her if she
get any feedback. She calmly answered that she gets a high degree of feedback. After that we
wanted to know is there any risk factor related to your job description. She said not absolutely,
there is very limited risk to my work. We move on the next part power and wanted to know
whether she can exercise power according to her post properly. At first she smiled and then said
some time disruption comes but those are very limited. Then we asked her whether her boss
interrupts her, she skipped the question. Lastly, we wanted to know if she has good relationship
with co-workers and the people working under her. While answering the question she said about
keeping good interpersonal relationship with people around her in the organization. Therefore,
we continued our investigation on her with our next part which we will write with the
corresponding theory.

This is the time to analyze the theory based on our finding from our sample. Before going into
any detail we can say that many researchers have proved the theory and it has got more support
from the researcher than the Maslows hierarchy of need theory. Now, analyzing the theory we
found that our sample is highly motivated as her high need for achievement is fulfilled. She got
high responsibilities, high feedback and moderate risk which clearly indicate to her high level of
motivation. Secondly, she possesses good interpersonal relationship with her co-worker
alongside the people working under her. She is also happy with her need for affiliation part.
Lastly, she is not having a complete freedom in the time of exercising power which we can
clearly see from her skipping of a question. The fulfillment of the assumption directs us to that
we have successfully prove the theory with our sample. Nevertheless, some people might
disagree with our research; still we were able to prove the theory. So, we think that McClelland's
Theory of Needs is the best theory, keeping in mind human need and the business perspective
because the employee will prefer those organizations where he can express his knowledge,
experiences and skills in a proper way and in a good environment so that he may achieve his
mission as well as vision. On the other hand the owners of the firms/organizations will prefer to
higher those employees whom they wished to work in their organization so that they may
achieve the vision and mission of the firm and generate the maximum profit for the organization.
Therefore, the manager needs to identify which type of motivation an employee needs.
Chapter: 02
Goal Setting Theory:

In 1960s, Edwin Locke (In the picture) put forward the Goal-setting theory of motivation and he
said the intention to work toward a goal are a major source of work motivation. Moreover, goal

tells an employee what needs to be done and how much effort needs to be given. In addition to
that, specific goals increase performance; that difficult goals, when accepted, result in higher
performance than do easy goals and that feedback leads to higher performance than does no
feedback. Goal setting is a powerful way of motivating people, and of motivating one self. The
value of goal setting is so well recognized that entire management systems, like Management by
objectives, have goal setting basics incorporated within them. Specific goals produce a higher
level of output than does the generalized goal of do your best. There are five contingencies
which has influence on feedback, goal commitment, adequate self efficacy, task characteristics
and nation culture.

Lets keep the theory in a side and take a look that what the real peoples thought. We take this
goal setting theory interview from a person who graduate from BRAC University. His name is
Afnan Akram Khan. He joined in BAT very recently. So, we choose him for this part because as
he is new in BAT obviously he gets some target from his management. Our first question to him
was does his manager specifics goals to him. He said that Yes. He gets specifies goal which he
has to complete with due time. Then we asked our next question that does his manager trust or
prefer to give him tough responsibility. He said his manager always kept believe in him so he
gets tough responsibility. After that we asked that when he attempts a goal does he give
feedback. He said that his manager always provides feedback and it is indeed motivating. Our
next question was slightly bitter. We asked that is he committed to his managers goal. He said its
his job to be committed to any cause of my manager. Then we asked a very important question.
The question was how does his manager motivate him when he is lacking in self confidence?
What type of feedback does he give for the people beaming with confidence? He said that in this
kind of circumstances his manager explains situations from experience and shows the way
forward. For those with confidence, he encourages to keep going forward. Our last and final
question to him was how does he (manager) cope with cultural diversity? He said that it is
expected and not seen differently. So there is no need to cope. Lastly we asked him if he is happy
by his organizations working process. He simply said very happy. Therefore, we continued our
investigation on the next parts.

Well, this time to analyze the theory and we will show how we supported the goal setting theory.
As we move on we found from our interview that the five contingencies are having impact. The
person we interviewed informed us that his manager gives him specific goals, gives him
feedback, he is self confident and the way the organization is working he is really happy. Here,
we support the theory that goal setting alongside its contingencies motivates employees. Thus,
under the proper condition these can lead to high motivation and job performance.
Chapter: 03
Reinforcement theory:

Frankly speaking reinforcement theory is not a theory of motivation but, it still provides some
powerful means of analysis which controls behavior and for that reason it is typically considered
in discussion of motivation. This theory of motivation was proposed by BF Skinner (in the
picture, source: internet) and his associates. It states that individuals behavior is conditioned by
reinforcement. Reinforcement theory ignores the inner state of the individual and concentrates
solely on what happens to a person when he or she takes some action. Although it is clear that socalled reinforces such as pay can motivate people. There are two major types in the schedule of
reinforcement which are really important in guiding behavior. The two types are continuous and
intermitted reinforcement and reinforcement can also be classified into fixed and variable. These
are given in the chart below:

We already got some ideas about Reinforcement theory. For this theory we take interview from
Ishrat Jahan. We already know that she has been working in BAT for such a long period of time.
So, we preferred her for this theory. Our first question was to her about her salary. But she did
not tell about this. We did not ask second time about her salary. We know many people do not
like to talk about their salary. But she said they she gets a good enough salary and she is happy
with that. Then, we asked her about the Bonus system of BAT. Again she did not give any answer
of this question. She said it is confidential and it is against the company policy. After that we
asked that is she happy with her bonuses. She said she get good amount of bonuses and its
fulfilling her expectation. Followed by we asked that when her boss wants to repeat a behavior,
does he gives her any bones, promotion or only performance appraisal. She laughed and then
said that she gets only performance appraisal for that. After that we wanted to know if she gets
bonus on a fixed interval or it varies on the performance. She said that she gets bonus on both the
occasion. At last we asked her if she find any change in her behavior now from the time when
she joined the company. She answered that she found out some major changes like used to ignore
team work but, now she is very eager for team work because there is bonus related. Therefore we
finished asking her and left her office.
After finding our necessary information from the interview we started analyzing the theory. In its
assumption the reinforcement theory ignores feeling, attitude, and other cognitive variable.
However, it still plays a big part on behavior. Although some researcher failed to support the
theory, but here we want to take a neutral position, because in one hand it is true that

reinforcement influence behavior (we found from our samples change in the behavior) on the
other hand cognitive variables can hinder reinforcement schedule. May be some other
investigator find some different solution we want to say being in the neutral position that
reinforcement can motivate people to some extent but, that is limited.
Chapter: 04
Equity Theory:

A theory says that individuals compare their job inputs and outcomes with those of others and
then respond to eliminate any inequities. This theory is provided by J. Stacy Adams (In the
picture). Equity plays role in motivation. Employees make comparison of their job inputs like
effort, experience, education etc and outcomes like salary level raises, reorganization relative to
those of others. We perceive what we get from a job situation (outcomes)in relation to what we
put into it (inputs)and then we compare our outcome input ratio with the outcome input ratios of
relevant others. When we see ourselves as under rewarded the tension creates anger and when we
see ourselves over rewarded the tension creates guilt.
So, we can say that
A<B: Inequity due to being under rewarded
A=B: Equity
A>B: Inequity due to being over rewarded

Here A represents the employee and B represents relevant others.

There are four referent comparisons that an employee can use:
1. Self-inside: Employees experience in current organization.
2. Self-outside: Employees experience outside the organization.
3. Other inside: Another individual inside the employees organization.
4. Other outside: Another individual outside the employees organization.
Employees might compare themselves to friends, neighbors, coworkers, colleagues in other
organizations or compare their present job with past one. They prefer same sex comparison.
Based on equity theory when employees perceive inequity they can make any one of following
choices:
*Change their input.
*Change their outcome.
*Distort perceptions of self.
*Distorts perceptions of others.
*Choose a different referent.
*Leave the field like quit the job.
Equity theory of motivation helps a employee or manager to make differentiate between equity
and inequity among the workers of an organization.
The theory establishes some propositions like

1. Given payment by time over rewarded employees will produce more than will equitably paid
employees.
2. Given payment by quantity of production over rewarded employees will produce fewer but
higher quality units than will equitably paid employees.
3. Given payment by time under rewarded employees will produce less quality of output.
4. Given payment by quantity of production under rewarded employees will produce a large
number of low quality units in comparison with equitably paid employees.
Equity theory based on distributive justice that means perceived fairness of the amount and
allocation of reward among individuals.

As I analyze the equity theory I asked some questions to Mr. Afnan Akram Khan from BAT
(British American Tobacco )related to this theory like Do you compare your inputs & Outputs
with others ?He answered Yes. Then do you prefer comparing with people from your org. or with
people from different org.?He prefers his own organization. I asked if you compare, have you
ever found any inequity. He replied positively wanted to know from him if you find any inequity
what step do you take? He said he will try to understand why there is inequity. Take steps to
reduce the gap depending on the situation. After that I asked if you think you are over rewarded
then how do you feel. He smiled and said I Initially confused as to why I was over rewarded.
Finally, have you ever thought of leaving the org as a result of inequity...? He replied he has not
faced any such incident.
From his answers I can understand that as an employee of BAT all his answer is relevant to
equity theory. He compare his inputs with outputs, he prefer to compare with people from his
own organization, if he find any inequity he will tries to reduce the gap depending on the
situation, try to find out the reason if he will over rewarded and finally he has not faced such an
incident so he never thought of leaving the organization as a result of inequity. So I can say that
equity theory plays a very important role of an employee of BAT and motivates him a lot.

Chapter: 05
Expectancy Theory:

Victor Vrooms expectancy theory argues that the strength of a tendency to act in a certain way
depends on the strength of an expectation that the act will be followed by a given outcome and
on the attractiveness of that outcome to the individuals. It is an expected and not the actual
satisfaction that an employee expects to receive after achieving the goals. Expectancy Theory of
motivation can help managers understand how individuals make decisions regarding various
behavioral alternatives.

Solely based on the theory we asked some chosen employees a few questions, their answers lead
us to believe BAT (British American Tobacco) follows expectancy theory with their workers. In
spite being an international company BAT motivates their worker through rewards, bonus and
high praise to the employee from their employer. Employees acts a certain way that is expected
of them by their employer and also because of the attractive result for their work.

To find out if BAT focuses on the three relationship of expectancy theory, we tried to narrow it
down by asking them some question.
Effort-performance relationship:
The probability perceived by individual that exerting given amount of effort will lead to
performance.
Individual work performance in each sector is efficient. Due to the fact that BAT monitors its
employees all the time they are expected to work their best and sufficient to succeed. Employees
are manifested on achieving good performance review which is also another reason for
employees to work hard. Employees feel the need to improve their work. So our finding from
this was that individuals effort is likewise to be recognized by BAT in his performance appraisal
as effort-performance relationship is on affect.
Performance-reward relationship:
The degree to which the individual believes that performing at a particular level will lead to the
attainment of a desired outcome.
As mentioned before employees are very hard working, keeping in mind their performance
review and work effort is monitored all the time. Also based on these employees are also
rewarded in various different way. So when employees perform they are focused on doing their
best. Not only during individual work but also during team work. As a result every employee
contributes effectively. As a result BAT employees get a good performance appraisal leading to
organizational rewards.

Rewards-personal goals relationship:

The degree to which organizational rewards satisfy an individuals personal goals or needs and
the attractiveness of those potential rewards for the individual.
Individual performance is rewarded by the company through bonus, reward or promotion.
Depending on the type of work they are involved with, employees are rewarded accordingly.
BAT emphasizes on rewards for the employees for their work as a result individuals are invested
on setting up personal goals and limitation for them to achieve in the organization.
From our questions and the gained answers from the employees of BAT we find that the
organization has expectancy theory on effect with their employees.
Conclusion:
To sum up, all the theories we can summaries them in different paragraphs as follows:
From the two need theories we could not support the Maslows hierarchy of need theory but we
supported the McClelland theory of need.
In the second part for the goal setting theory we share same thought as Edwin Locke. We were
able to support the theory.
On the third part we took a neutral position on reinforcement theory as it has its affect on both
ways.
Next, we could support J. Stacy Adams for his equity theory from our findings.
Lastly, we maintain Victor Vrooms expectancy theory which shows signs of similarities with our
findings.
To finish this assignment we want to make a reminder that these are our findings, we found these
from our samples and we wrote our thought or judgment. Some we could support, some we could
not. Nevertheless, these theories may give some different meaning with a different sample.

Reference:
http://www.batbangladesh.com/group/sites/BAT_85DJTR.nsf/vwPagesWebLive/DO85DK
EX? opendocument&SKN=1
Katz, Daniel, Robert Louis Kahn,, and J. Stacy Adams. The Study of Organizations. San
Francisco, Calif.: Jossey-Bass, 1980. Print.