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Working With and Leading People

Working With and Leading People

Executive Summary:

This research report explores the recruitment, selection and retention methods used currently and the potential effectiveness and performance management of working with and leading people at the L’Oreal Company. The Recruitment, selection and retention analysis involves the different recruitment strategies used at L’Oreal as well as the ethical stand of the company while the recruitment process. It further explains the job analysis constituted by job description and job specification. The leadership and management approaches adopted by L’Oreal and the importance they give to empowerment and effective communication.

The team building and management at L’Oreal is also discussed in this report by highlighting the motivational strategies and other factors affecting the team performance followed by the diversity, conflict and organizational culture of L’Oreal. Moreover, the concept and importance of professional Management and individual assessment in business productivity is also discussed.

Acknowledgement:

I would like to thank my instructor for this whose support and informative lectures have helped me out in organizing this research report. Without her help this report would not have been possible.

Introduction:

Recruitment and retention are critical factors in determining whether an organization is able to meet its performance goals. Regardless of how much is invested in the other factors of production, money, materials and machines, competitors outdo a company if it overlooks the importance of effective recruitment and retention strategies. Managing recruitment and effective retention help avoid costly mistakes that come from someone where no meter is set and lose good employees because of the psychological separation, poor performance or voluntary separation (Avolio et al: 2009). This can be achieved through a combination of strategic human resource activities, including forecasting, planning and evaluation. This research report aims to

2 Recruitment, Selection and Retention:

2.1. Recruitment and Selection:

Recruitment refers to the identification of jobs that must be filled and building a pool of candidates for these jobs by recruiting internal or external candidates. Since the objective of the contract is to quickly find applicants who meet specific job requirements, the first thing to decide is where one wants to take their organization to and what kind of employees will take it there. Effective strategic planning helps to create medium term a clear picture of the priorities, analyze the human resource needs and measure the current workforce against these needs. Recruiters can then determine the best strategies for identifying appropriate sources of candidates (Brown: 2011).

Selecting an ideal candidate for a job is in the hands of the contractors, who typically work with recruiters to ensure they are making a wise decision. Participants in the panel of interviewers use their notes, personal observation and understanding of the individual criteria work to reach a decision by consensus. The recruiter is then responsible for providing the details of the selection, such as sending labor supply and coordination of a post offer test and the background check (Brown: 2011).

2.2. Recruitment and Selection Process in L’Oreal:

In 2009, more than 3,100 students took an internship at L’Oreal worldwide. As highlighted Geoff Skingsley, Executive Vice President of Human Resources L’Oréal:

“We create our own leaders and train them to develop professionally.” If you’re interested, join us!” (Gangjee & Burrell: 2010)

Their practices are aimed at university students and business and engineering schools. They open selection process throughout the year, as well as places to practice in almost all departments: Research, Operations, Finance, Information Systems, Marketing, Sales, Communication and Human Resources, with duration of three months to one year. The search for talent goes beyond the expertise and experience and they seek talented young people who demonstrate their skills and are able to tackle new projects and challenges. In L’Oréal, understand diversity as a source of enrichment and the secret to success. Therefore they are interested in meeting students with different backgrounds, nationalities and experiences. L’Oréal has mostly personality. Not just hired brilliant careers and large files (Gangjee & Burrell: 2010).

A Different and fun tool is created by L’Oréal to select the best young talents. Under the name of Reveal, and through a web (www.reveal-thegame.com) student between 22 and 25 years become manager trainees who began working in the company and boss comes around the world to develop a new product. They choose an avatar that accompanies other characters as the Marketing Director or the Commercial Director of the market in which they will work. Almost 100,000 young people from 160 different countries have participated in the game since its launch in 2010. Of these, 185 are already part of the company. Winners are asked a personal interview to access an internship or a full-time position (Gangjee & Burrell: 2010). For L’Oreal, it is a solid source of recruitment of diverse. Brandstorm marketing is another game in which university teams (three people) must present the best branding campaign for a product of the cosmetics firm: a process that lasts eight months, in which the finalists end up having an interview with the Recruitment Department (Ehnert: 2009).

2.3. Job Analysis: Job Description and Person Specification

The analysis of a job is the procedure for determining the duties and skill requirements of a job, and the profile of the person who should be hired to cover it.

The description of a job is the list of tasks, implementation responsibilities, and reporting relationships, working conditions and supervisory responsibilities over other employees of a post. It is the result of the job analysis (Brown: 2011). The information provided by job analysis is used to:

  • Recruitment and selection of staff to hire
  • The calculation of salary and other compensation
  • The assignment of organizational responsibilities
  • The schedule of training and development for the post
  • Establishing criteria for performance evaluation (Brown: 2011)

2.4. A Sample Job Description and person Specification for a Vacancy:

Title: Production Manager Supervisor

Revision date: March 30, 2014

Salary: 13000-15000

Job Summary: Develop and maintain production standards, monitor compliance of production processes and the means of production.

Key Responsibilities:

  1. Develop and maintain production standards
  2. Monitor compliance of production processes and safety,
  3. Plan and coordinate activities to optimize the performance of machinery, labor, raw materials

Moreover, must have previous experience in people management, availability of time, sense of urgency, leadership.

2.5. Legislation, Policies and Ethical Stands

Recruitment at L’Oreal is absolutely strategic. They search the best talent to help their national development and worldwide. L’Oreal has a very strategic training policy for all employees based on an interactive platform called “My learning” that allows direct access to all their training programs. They also have training programs for international talents taught in UK and in other places like Paris or New York(Gangjee & Burrell: 2010).

Ethics Program L’Oréal is voluntary and proactive, and has been developed in direct relation to the growth of the Group. Under the supervision of the Director of Ethics, the program focuses on:

  • Policy and Consulting
  • Communication
  • Training
  • Conversation Hour
  • Monitoring (Kumar: 2005)

2.6. Retention Strategies: L’Oreal

Retention refers to everything that makes an organization to keep the right employees. Retention therefore includes the full range of human resources, management philosophies and practices involved in the selection, induction, appraisal, training, compensation and development. Poor practices in any or all of these functions can lead to the inability to retain employees (Brown: 2011).

In L’Oreal UK, an induction program for new employees is benefiting retaining talent. The multinational takes this matter very seriously and has developed an extensive plan reception and introduction to the company (Gangjee & Burrell: 2010).

The cosmetics giant L’Oréal quickly gets the commitment of its employees by encouraging them to develop their career within the company. HR teams in the UK led by Richard Humphrey, consists of 25 people. It is divided into a corporate team that handles tasks such as compensation, benefits, training and development and other operational managers for different divisions. Last year the company took over The Body Shop for £ 652 million, although the two companies continue to operate separately (Ehnert: 2009).

To ensure rapid engagement of its employees, L’Oreal decided to create a formal induction program and reception for new workers. The summer of 2005, L’Oreal launched the Program Monitoring and Integration (FIT) in some of its international branches. The idea came to the UK in February 2006 (Ehnert: 2009).

3 Leadership

3.1. Leader:

Leadership is the ability to communicate with a group of people, influence their emotions to gain a lead, group share ideas, stay in it, and run the necessary for the fulfillment of the core objectives. Leadership is the function that takes a person apart from the rest who is able to make sound decisions for the group, team or organization that precede, inspiring the rest of those involved in that group to achieve a common goal (Avolio et al: 2009).

3.2. Theories and Styles of Leadership: L’Oreal

In general the main leadership theories can be grouped in relation to a number of elements such as depending on the characteristics of the leader (The Trait Leader and behavioral Theory) and depending on the situation (the contingency or situational theories). These leadership theories are not followed in L’Oreal. The leadership approaches followed at L’Oreal is the current theories of holistic approach such as the theory of charisma or transformational leader and participative leadership theory (Barchiesi & La Bella: 2007).

Leadership styles can influence every action and every area of an organization, from the nature of the breaks for a cup of coffee to the overall effectiveness of a community initiative. L’Oreal’s leadership strategy is based on continuous investment in their research and development that allows their brands to deliver innovative, highly effective, practical and enjoyable to use, in accordance with standards of quality and highest safety (Avolio et al: 2009).

Collaboration in L’Oreal holds its leaders in the development of business opportunities in collaboration with colleagues from other units. Additionally, best practices for leadership development are collected its subsidiaries and then shared across the organization. Jean-Paul Agon was appointed as the President and CEO of L’Oréal on March 17, 2011. Since 2006, he was Executive Director of L’Oréal. Being a man of action, energy instilled Group, and rigor necessary to carry out successfully the challenges of the third millennium vision, man of conviction channel that passion to promote the ethical values of L’Oréal, making the company a model of corporate responsibility (Barchiesi & La Bella: 2007).

3.3. Empowerment, Engagement, Delegation and Communication

Empowerment is creating a work environment where every employee feels that is able to make some key decisions that make his job without having the need or dependency check his movements all the time with boss. Empowerment is creating a work environment that allows each individual to work according to their maximum capabilities (Avolio et al: 2009).

The delegation has to do basically with the authority to distribute at various levels of the organizational hierarchy. The delegation has its origins in the traditional market dynamics where stability was the norm. Today’s empowerment is a duty that exists more and more in businesses operating in highly competitive markets where fast response and customization are basic needs. That is the key ingredient in L’Oreal success worldwide (Barchiesi & La Bella: 2007).

For L’Oréal, internal communication is one of the pillars of business development and essential tool available human resources. Its primary role is to strengthen the links between the company and its employees through the various issues that affect the life of the enterprise (organization, change, launch marketing campaigns, social activities). It is also a tool for development and motivation in its own employees. It tends to anchor a spirit of pride in belonging to the company. Mobility at L’Oréal is encouraged. All candidates have to work in Casablanca, Paris or Dubai must return to the same state of mind elsewhere. The involvement of all employees through information is paramount at the risk of falling into a mechanical communication, without any added value (Barchiesi & La Bella: 2007).

It must also be said that the channels and tools of internal communication are many and varied, ranging from regular meetings, newsletters, notes view to the new information technologies that give the L’Oreal company an effective means of communication as intranet or digital platforms that relay all good deeds or achievements of the group. For example, the marketing department is divided into several divisions, each with specific actions to be taken. It is important that all these actions are known by the whole group (Gangjee & Burrell: 2010).

In addition, with the proliferation of sources and channels of information, media relations, public relations and events are no longer one facet of business communication at L’Oréal. It is time for multichannel strategies (incorporating 2.0/social communication media) and multiple target (journalists, bloggers, influencers, celebrities, consumers, the scientific community, employees and other influencers) that use the full range of communication tools, partnerships events, sponsorship, media relations, CSR, crisis management, public affairs etc, to develop awareness of the group and its brands (Barchiesi & La Bella: 2007).

4 Team Building:

4.1. Team:

The team involves human group itself, whose skills and abilities will achieve the ultimate goal. Its members should be well organized, have an open and dynamic alignment with the mission and vision of the company mindset (Galegher et al: 2014).

4.2. Motivation and its Effects on Employees:

The success or failure of a company is based on the performance of the employees. Therefore it is important to find various methods to motivate employees. Motivation is the desire to do something. It is affected by the ability of these actions to satisfy some needs of the person. Today, the dissatisfaction of employees directly affects the income statement; therefore businesses cannot afford to have people dissatisfied in their work. It is proven that a motivated employee with a positive attitude in their work and committed to what he does, he is less inclined to leave the company (Galegher et al: 2014).

4.3. Motivational Theory adopted by L’Oreal:

L’Oreal’s goal is to make their company a great place to work. They recognize their employees as their best guarantee. They are entitled to have the highest levels of safety and health in the workplace: where both the talent and personal merit is recognized, diversity is valued; privacy is respected, and is mindful life reconciling work and personal. They offer their employees a good working environment, good personal opportunities and provide the opportunity to make different. They foster an open, courageous, generous and respectful environment for all their employees, through their questions, contributing ideas and exposure concerns to make them feel part of the group (Hong & Doz: 2013).

4.4. Teamwork at L’Oreal:

The analysis compiled on the last 6 years data shows that the most admired companies have a greater ability than others to select, develop and reward talent. They know encourage teamwork and the spirit of collaboration, especially in team management. Finally and most importantly, they refuse to sacrifice their strategic objectives to short-term considerations (Galegher et al: 2014).

L’Oreal encourages teamwork and employees are motivated and encouraged to work as a team. The role of the supervisor is to stimulate and motivate his team to perform quality work that L’Oréal expects all. Thus, it is entirely appropriate that evaluates the performance of team members or do comments about this. However, L’Oreal believes that a manager must also address his team with respect and act appropriate. In case of any conflict or concerns, the employees are encouraged to speak openly (Hong & Doz: 2013).

4.5. Diversity, Conflict Resolution and Organizational Culture affecting Teamwork:

The company believes in the value of the difference and considers it an important asset for L’Oréal. Various origins their contributors stimulate creativity and allow them to better understand the consumers. L’Oréal is committed to facilitating the professional integration that needs special attention: young adults, disadvantaged and those with specific physical needs (Galegher et al: 2014).

This applies not only when hiring decisions but also for training, promotion, job retention and conditions work in general. L’Oreal support and promote the diversity commitment and ensure that their suppliers, customers and business partners know the L’OREAL policy on diversity.

They all need to avoid situations where their personal interests may conflict with those of L’Oréal. The mere appearance of conflict of interest could damage the reputation of L’Oréal and than that of its Employees. In terms of potential conflict of interest, golden rule is to disclose to enable a thorough analysis of the situation and is required to disclose all facts (Hong & Doz: 2013).

L’Oréal has been honored by the creation of a corporate culture that embraces and promotes diversity throughout the company. Lindsay Owen-Jones has been awarded the first prize for Best Practices in Global Diversity. L’Oréal efforts to make diversity an imperative both business and social nature are not only worthy of recognition, but an extraordinary example for other companies. The Group’s policy on diversity is a multi-objective to promote and facilitate the inclusion program at three different levels: employees, customers and suppliers. The diversity program in the U.K., L’Oréal includes important measurement tools to track, monitor and benchmark the progress of the company, all under the supervision of a Vice-President of Diversity. This program evaluates various aspects of diversity in the recruitment, retention and promotion, procurement of goods and services minority owned businesses and women (Hong & Doz: 2013).

5 Performance Management and Individual Assessment:

5.1. Performance Management:

The evolution of business is not an exact science. Most successful companies achieve great results because they have the right people. Suitable teams maintain their performance because they understand the business strategy and their role in it. Performance management is a continuous process that aligns individuals with strategy. An organization can measure and manage the performance of its employees in order to strengthen the competitiveness through performance management.

5.2. Individual Assessment:

In a context of change (mutation, promotion, personal growth, career mobility, reorganization) or hiring: it is to measure the adequacy of an employee with a target profile, help the company to take a decision and propose a plan of action (training / support). The notion of individual performance appraisal today tends to prevail in companies in both the private and the public. This approach is generally advocated by its proponents on the basis of two arguments: the importance of recognition results reported in the individual commitment of each employee, the need to implement individual incentive schemes to support the subjective mobilization of employees in order to advance the objectives of the organization (Kandula: 2003).

5.3. Performance Management at L’Oreal:

Ensuring a high level of financial performance, Finance and Controlling teams of L’Oréal make an essential contribution to the development of the group. Their goal: to support the growth of L’Oréal in ensuring compliance with the standards and rules of sound financial management, protecting the group’s assets and by providing advice and expertise on the best use of financial resources. Worldwide, more than 2,000 employees are working within the control of management teams, accounting, tax, treasury and internal audit. They have access to a diverse range of positions and invest alongside branches, as an advisory partner, with an advisory role with high added value. They face daily challenges while developing long-term strategies to ensure the best results. Finance and management control are functions of field: teams working directly with business units that need good operational information to appropriately feed their forecasts and recommendations (Kumar: 2005).

5.3.1. SWOT Analysis:

SWOT means: Strengths, Weaknesses, Opportunities and threats. A SWOT analysis helps to find the positive and negative aspects that are within organization (Strengths and weaknesses) while those found in the surrounding environment (Risks and opportunities). Developing a full awareness of their situation may benefit both the strategic planning and decision making. Possibly, the SWOT analysis is not the only technique that you could use, however, has a long history of effectiveness (Kumar: 2005).

Strengths Weaknesses
·         Constant research and innovation in beauty products·         Good mood of employees.

·         Increase in market share

·         Strong Environmental Concern; Stopped animal testing in 1989

·         The decentralized organizational structure makes it difficult to control many subdivisions.·         Profit margin is lower than the competitors

·         They have o rely on third party retailers.

Opportunities Threats
·         Market that grows by hour and attracts more and more customers·         Further innovation and product and service expansion

·         Rise in demand for organic and natural cosmetics

·         The appearance of new global crisis and an economic downfall·         New markets and new competitors

·         Change in market demand and consumer preferences

5.3.2. SMART Objectives

The process of Strategic Business planning is the art of drawing long term goals and to make them achievable. A simple rule to know whether the objectives are well prepared is to assess whether they comply with the rule to be “SMART” (Kumar: 2005).

They should be:

  • Specific: Clear about what, where, when and how it will change the situation;
  • Measurable: able to quantify the targets and benefits;
  • Achievable: able to achieve the objectives (knowing the resources and capabilities available to the community);
  • Realistic: able to obtain the level of change reflected in the objective;
  • Limited time: setting the time period in which to complete each of them (Kumar: 2005).

5.3.3. Phases of Professional development

  • Planning HR needs of the company in the medium term. It is conducting a needs assessment and analysis template, especially for those positions and critical skills that will be key strategy of the company in the coming years.
  • Identification and classification of talent. Defined what the organization wants, the next step is to know what is the potential that people have. These different techniques to detect and classify talent that will be used.
  • Individualized professional development: Defined what the organization wants and what you have, the next step is to apply the de-sign of general plans and individualized way but to each person’s needs or detecting deficiencies that may arise and providing the means to address the opportunities for improvement.
  • Track: The whole process will end with a monitoring and evaluation used to determine the results of implantation of the plan (Kandula: 2003)

5.3.4. Individual Development Plan:

The main tasks to be performed are:

  1. a) HR
  • Provide technical support for the system, providing tools, knowledge and technology to ensure that the system works as defined.
  • Sensitize, educate and train the command line involved.
  1. b) COMMAND LINE
  • Implement the plan to be determined for each employee in support.
  • Act as effective coaches.
  • Train and develop the elect in the workplace, delegate tasks and assigning responsibilities.
  1. c) EMPLOYEES
  • Attend scheduled training activities.
  • To develop the new post abilities, skills and knowledge required (Kandula: 2003)

References

Avolio, B. J., Walumbwa, F. O., & Weber, T. J. (2009). Leadership: Current theories, research, and future directions. Annual review of psychology, 60, 421-449.

Barchiesi, M. A., & La Bella, A. (2007). Leadership Styles of World’s most Admired Companies A Holistic Approach to Measuring Leadership Effectiveness. In Management Science and Engineering, 2007. ICMSE 2007. International Conference on (pp. 1437-1447). IEEE.

Brown, J. N. (2011). The Complete Guide to Recruitment: A Step-by-step Approach to Selecting, Assessing and Hiring the Right People. Kogan Page Publishers.

Ehnert, I. (2009). Sustainability and Human Resource Management: Reasoning and applications on corporate websites. European Journal of International Management, 3(4), 419-438.

Galegher, J., Kraut, R. E., & Egido, C. (Eds.). (2014). Intellectual teamwork: Social and technological foundations of cooperative work. Psychology Press.

Gangjee, D., & Burrell, R. (2010). Because you’re worth it: L’Oreal and the prohibition on free riding. The Modern Law Review, 73(2), 282-295.

Hong, H. J., & Doz, Y. (2013). L’Oreal Masters Multiculturalism. Harvard Business Review, 91(6), 114-118.

Kandula, S. R. (2003). HUMAR RESOURCE MANAGEMENT IN PRACTICE: WITH 300 MODELS, TECHNIQUES AND TOOLS. PHI Learning Pvt. Ltd.

Kumar, S. (2005). Exploratory analysis of global cosmetic industry: major players, technology and market trends. Technovation, 25(11), 1263-1272.

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