Values and HRM Strategies at L'Oreal S.A.

HUMAN RESOURCE
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
A. Examining how values are created by L'Oreal S. A by using HRM strategies......................3
B Analysing impact of regional and national culture of China on the practice of HRM ...........4
C Defining the HR value chain model of employment and organizational levers for creating
value............................................................................................................................................5
D Analysing Stoney's 27 point of difference between HRM & personnel management and
practised adopted by China.........................................................................................................6
E Explaining importance of local culture in hiring & firing and HRM practices need to be
carry out in general and international subsidiaries......................................................................8
F Differences in terms of employment laws when international HRM changes local business
systems......................................................................................................................................10
G Corporate examples...............................................................................................................10
H Recommendations to achieve higher productivity by HR practices.....................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Human Resource Management (HRM) is an activity of managing people in organization
to attain better performance. HRM is an important part of any organization is helps company to
get better contribution of workers in terms of potential efforts. The Chosen company in the
present report is L'Oreal S.A is international company from European Union (EU) that operates
in Asian market as well. The firm deals in personal care that includes hair colour, make-up,
perfume skin and sun protection. Current report will give emphasis on values of company
created through HRM strategies. Additionally, the case study will show the impact of regional
and national cultural impact on company's HR practices. The current report will display how
organization's model of employment used to create value by L'Oreal S.A. With help of Stoney's
27 point of difference between HRM and personnel management case study will represent
practice by firm in Asian country. Importance of local culture and HRM practice in hiring &
firing carry out by HRM in international or transitional subsidiary. Further, report will examine
deviation in employment laws when international HRM changes to domestic business practice.
The case study will as well give focus on good HRM activity along with recommendations to
achieve higher performance.
TASK 1
A. Examining how values are created by L'Oreal S.A by using HRM strategies
Strategic Human Resource management refers to relation between L'Oreal S.A's HR and
its strategies, goals, objectives. The aim of this concept is to obtain flexibility and competitive
advantages. It is a large multinational company that focuses on higher performance of its
subordinates. To achieve higher performance and quality result firm has step up 6 basic values
for organization. This believes include entrepreneurial spirit, passion, innovation, quest for
excellence, responsibility and open mildness (Aust, Matthews and Muller-Camen, 2020).
Organization believes that company is not machines but made up of humans. Workplace quality
of life has always been precedence for company.
The HRM strategies of firm is made up on three aspects which includes enjoy the
environment, work and positive mindset. To achieve its firm's objective the 6 values are given
priority by all levels of employees so that company can attain higher sustainability in both
internal and domestic market.

Passion through training and development
The value of passion is created by HR through making an approach to listen customers
needs and being intrinsically linked to culture and humanity (Stahl and et.al., 2020). For this
purpose firm has focused on making employees passionate about their job.
Entrepreneurial spirit through motivational sessions
In specific management style the organization has embodied and encouraged for
autonomy, challenges and adventures. HRM of enterprise makes workforce believe that their
individual talent is important for firm. To establish the value of creativity among workers the
L'Oreal is paid attention on motivating its subordinates so that customers interest can be gained
for longer duration.
Open Mindness by making positive working environment
It refers to understanding differentiation in consumers culture and valuing them creating
company's preference. Personnel management of L'Oreal has established strategies for obtaining
targeted customers orientation.
Quest for excellence by evaluating performance
The above four values are linked with desire for excellence as business main purpose is
to create enthusiasm among its personnels in sharing their best efforts. This worth is expected by
L'Oreal to see in state of mind of employees regarding all country in which it operates. Being
responsible for each assigned task and area is one of the major company concept. Innovation and
excellence all should be done in corrective form by keeping yourself responsible.
B Analysing impact of regional and national culture of China on the practice of HRM
China is considered to be land of change. There are various opportunities for emerging
into the Chinese market. L'Oreal has emerged into country to strengthen its portfolio market
share, expand company's footprint in industry, taking benefits of low cost of labour and
materials, etc. External and internal environment plays important role in making up any country's
culture (Lopez-Cabrales and Valle-Cabrera, 2020). To establish effective HR practices company
need to analyse both factors that can impact functioning of organization. Whenever company
operates globally it requires to formulate some effectual strategies to cope up with different
scenarios.
To identify impact of territorial and national culture firm can conduct analysis of
controllable and unmanageable elements. It can be exerted by PESTLE and SWOT strategies.