Human Resource Management in L'Oreal: A Task 1 Report and Analysis

This report analyzes the Human Resource Management (HRM) practices of L'Oreal S.A., an international company operating in the Asian market, with a specific focus on China. The report examines how L'Oreal creates values through its HRM strategies, considering aspects like entrepreneurial spirit, passion, and open-mindedness. It then explores the impact of regional and national culture in China on HRM practices, emphasizing the importance of understanding the local context. The report defines the HR value chain model of employment used by L'Oreal to create value and analyzes the organizational levers the company employs. It also provides an analysis using Stoney's 27-point difference between HRM and personnel management, highlighting practices adopted by L'Oreal in China. Furthermore, it explains the importance of local culture in hiring and firing, as well as general HRM practices in international subsidiaries. The report also addresses differences in employment laws when international HRM changes local business systems. Finally, it provides recommendations for achieving higher productivity through HR practices, incorporating examples and concluding with key findings.

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.

With help of analysing social environment business can assessed consequences and implications
involved to solve their products in Chinese market. Demographic factor of country is positive
sign and to be successful in industry business must embraced Guanxi meaning relationships. The
extent to which company will have connections decide the level of growth in the market. The
nation's culture has made the view of customer to do not lose their original value. Most important
constituent is there serving security to consumer. In addition to this, the respective company
should not view it a single market but consider religious differences.
HR practices must comply with cultural values of country as growth is dependent on
employees (Top 10 HR Best Practices, 2020). To make the process of organization smooth
L'Oreal must consider all these components so that it can cope up with workers mindset. The
effective strategy can be adopted by HRM is to formulate positive working place that motivates
human resource to give their best contribution and make them able to creative ideas. It should
also provide importance to emotional sensitivity of its customers and workers for avoiding
political and social conflicts. Offering better career growth opportunities by HR of company to
workforce can also create reputation in foreign market. It may also concentrate on levelling up
standards of is potential customers which attract and retain more clients. L'Oreal should bring up
value of company in life, strong connections, encourage and empower, listen problems of
workers, etc.
C Defining the HR value chain model of employment and organizational levers for creating
value
It is best model of HR which states that everything company's human resource does can
be divided into two parts. In addition to this, these two parts are HR activities and outcome. The
L'Oreal company uses this approach of employment in which segregates its outcomes and
practices conducted. Human resource practices include recruitment, compensation, training, etc.
which is measured through metrics. Basic concept of this model is that the cheaper company
hires, the faster it can train.
It includes HR efficiency metrics in which L'Oreal focuses on different procedures. These
process comprises workforce planning recruitment, selection, compensation, training, relations,
coaching, organization design, talent management, etc. In addition to this, these give outcome in
form of employees motivation, satisfaction, retention and presence (Njoku and et.al., 2019). It's
all results are included in effectiveness metric will further lead to company impact metrical. It

comprises profit, market value & share, turnover, productivity and quality, customer satisfaction,
etc. With respect to this company can also attain morale value, legitimacy and fairness. This
model of human resource is adopted by company to retain effective and efficient employees and
higher growth of company.
Organization Levers used by L'Oreal to create value
There are various values of company that are established through using these levers as
there is no single structure to achieve success but combing multi channel approach to optimize
company performance.
Strategic Hiring
Improved efficiency, reduce workers turnover, minimization of recruitment cost, better
efficiency, etc. can be gained by making strategic hiring policy. To make sure that company is
having right type of candidate at appropriate position is essential (Garmendia and et.al., 2021). It
also refers to being assured about characteristics that recruited employee occurs or that which
can improve performance of L'Oreal.
Relationship trust
Company's management have levered of making faithful atmosphere in all department. It
not only helps employees to achieve their personal goals along with firm growth but also allow
workers to speak their concerns. With help of this, encouraged and innovative employees can be
attained and retains.
Strategic communication and purposeful environment
Once the L'Oreal defines its strategic direction effective communication channel should
also be built. Business need to give importance on communication because it can make
employees understandable that what is expected from them. It is also considered in business that
two-way interactions are the best policy-maker. To achieve meaningful environment vision and
mission of enterprise also need to be known by workers.
D Analysing Stoney's 27 point of difference between HRM & personnel management and
practised adopted by China
The mention theory has given 27 areas in which HRM and personnel management differs
from each other (Gurmu and Ongkowijoyo, 2020). The function has become important part of
business which is core of employees engagement, performance, efficiency, etc. The company

utilizes both HRM policies and personnel management practice in China for achieving its
organizational goals
HRM Personnel Management
Contract It aims to go beyond and
shares efforts
It limits employees to be in
contracts dimension only
Rules It can be impatient with rules Clear regulations are made
Guidelines According to business need It follows a systematic
procedure
Behaviour significance To achieve value and mission
need practice is expected
Here custom behaviour is
expected
Nature of Connection It follows unitarist Here it is divine
Managerial way Company nurtures employees Workers are monitored by
management
Initiatives Integrated steps are taken Piecemeal is desirable
Conflicts De stressed conflicts occur Grievances are
institutionalized
Important relationship HRM focuses on customers It concentrates on monitoring
workers.
Speed of decision-making
process
Firm takes very fast decision
in case of HRM
They follow slow process
Business framework HRM has central plan Marginal Program is adopted
here
Role of management Transformational leader is
used
It has role of transactional
Communication Direct method for
communication is adopted
Indirect interaction is given
preference
Central managers General decision maker are In PM personnel specialists are

key managers considered to be main person
Prized skills Company facilitate such
accomplishment
Negotiation is acquired
Standardization Low condition is in HRM In PM, it is high
Selection This is based on key task
which are integrated
Here marginal task that are
separated
pay L'Oreal provide on the basis
of performance
Fixed scale is used to pay for
efforts.
Invention Wide ranging cultural,
personal strategies are used
Personnel process is utilized in
this company
Training and development New companies which are at
initial stage
Full controlled access is here
Conflict handling It pays attention on managing
culture
This reaches temporary
armistice
Job arrangement Team work is mostly designed Division of workforce is
arranged
Communication Smooth flow of connection is
given priority
Barriers for interactions are
created
Thrust of relationships It excepts some allowances
for changing model
It is maintained through
facilities and training
Job segregation Few grades are made Many categories are
formulated.
These are the differences between HRM and personnel management as China is country
whose rules and regulations are very strict. Its culture and customers are also very different from
other parts of world. With respect to this, to meet its requirement so that success can be obtained
L'Oreal uses both managing its workforce effectively.

E Explaining importance of local culture in hiring & firing and HRM practices need to be carry
out in general and international subsidiaries
The local culture system is made up with values, collective programs of mind, beliefs,
attitude of customers, etc. Every organization's operation gets influence from cultural change in
the country. In addition to this, it is also made up of political, social, economical, technological,
etc. which also impact process of firm to some extent. Furthermore, it is crucial to consider while
hiring and firing employees. It is considered to be essential because these factors are needed for
fitting up in local culture:
Diversity
It is an important attribute that help a person to get fit in any new environment. The
employee who have this skill is able to perform different types of task in effectual manner
(Engelsberger and et.al., 2021). Additionally, surroundings play vital role in influencing morale
of employees.
Communication skills
There are various languages that differ from each other so it as need to be pay attention
while hiring and firing workers. Inefficiency in speaking can lead to low seals and profit, bad
reputation, etc.
Leadership
Another attribute that contributes in company success is initiation of employees cope up
with local culture employees should be comfortable taking decision for leading the task.
HRM Practices
Training and development
Most crucial activity that L'Oreal need to undertake for making its workforce get suitable
in different international and general environment is providing coaching (Yong-jin, 2020).
Every country ha ssome different way of working, communication, paying, etc. so all should be
make understandable by company to its workforce.
Security of Job '
The best practice an HR can conduct for employees is to make them assure about stability
of their job. It will motivate and give satisfaction to subordinates that results in positive working
culture and higher productivity.
Fair and performance based compensation

Not being biased in providing pay for efforts encourages workers to be loyal and
productivity. Appropriate performance based policies help the company to achieve suitable type
staff for attaining firm's objective.
Making information easily accessible
Two way interaction process enables workers to share their views, problems, ideas that
eventually in turn provide satisfied employees. The major component of success is to provide
information easily.
F Differences in terms of employment laws when international HRM changes local business
systems
Loral as one of the best brand globally aims to keep international HRM laws intact in
terms with employment laws while expanding in new business systems. International HRM
comes in as main aspect where hiring, workforce monitoring plays profound role to bring on
accurate employee rights and efficiencies in staff development. Employment laws heading on
advanced focus towards workforce performance training, has high level connectivity towards
productive efficacy and enlarged commitment. There are employer obligations compliance check
parameters adhered on international regulations and business policies, where employment
contracts should be focused on. Loral has been accurately heading on employment laws while
expanding in China, based on employee’s engagement laws for reaching higher scale threshold
actively. There is also competent focus developed towards training laws, where employees are
being trained in international languages for professional expertise and connectivity. International
HRM changes local business systems operatives actively on diverse domains, where brand aims
to keep informative efficacy among keeping stringent focus towards harnessing commitment.
Workforce within employment laws are adhered towards ensuring compliance with international
human resource management practices (2020 global HR trends, 2019).
HR needs to also adhere to immigration and global mobility support aspects, where
performance management brings on fundamental scale growth goals informatively. It can be also
analyses that arboreal aims for wide laws contentment of disciplinary aspects for keeping up
benchmarks adhered on international goodwill fundamentally, where competitive parameters are
focused actively. International labour laws and social aspects in activities of multinational
enterprises head on focus on employment, training and advanced scale operative parameters
where multinational market brings on varied scope.
G Corporate examples
There are various corporate examples within global parameters where international HRM
has been successfully used in enriching new scale competent innovation, best employee
engagement aspects and also to yield on diverse focus towards new scenarios.
Revlon as one of the widely recognized cosmetic company has huge international expansion
where best scale professional expertise is practiced, to harness the best talented skilled
workforce and also to upgrade dynamic competence horizons. The brand aims to keep best
training, functional skills enhancement parameters worked on among workforce which
boosts motivation and stronger diverse commitment actively. There has been promising

growth acknowledged in competent scale operatives towards HRM engagement, which
keenly enriches professional commercial excellence on varied horizons.
Channel is another global brand, where international expansion at global domains have been
shaping profound value and wider scale commercial professional growth towards bringing on
new range of efficacy. The company follows best HRM practices, employment laws and diverse
horizons for strengthening larger scale dynamic competitive strength which also fuels up
motivation scenarios actively. It can be also analysed that HRM objectives to bring on best
skilled expertise among varied company platforms, gives on keen push yielding towards active
fundamental operative role to harness diverse scope actively. Company also significantly uses
best strategies to shape up competent ideas actively by bringing on training sessions for
workforce (12 HR Trends for 2020, 2019).
H Recommendations to achieve higher productivity by HR practices
 It is suggested to company for using HR practice of Updating technology and tools. It is
useful for company to ensure that its way of working is accordance with market trends or
not. This will outcome in higher productivity of employees as they will be encouraged to
utilize some other method to perform they day to day activities.
 Supporting innovation and creativity is also recommended to employer for attaining
quality performance (7 best human resource practice, 2020). This type of strategies allow
workforce to contribute their skills, knowledge, experience for betterment of business
growth. Employees gain enthusiasm for giving their full potential as their personal
growth is attached with company's development.
 This is advised to firm for making fair evaluation system for analysing individual
performance. It can give assurance to workforce that they are paid equivalent with their
efforts which results in superior performance of workers.
 Another suggestion for HR practice that can be useful for organization is giving 360
degree feedback management system (Hameed and et.al., 2020). It is appropriator way
for collecting feedback for employees. The performance can be improved by reviewing
this as mistakes area are known which gives workers' chance to built required skills.
 Rewarding for achievement is one of effective strategy for motivating employees. It will
lead to give high performance when efforts of workers are praised it gives belongingness
sense to workforce.

CONCLUSION
From the above report it can be concluded that training, development, motivational
sessions, etc. can be used practised by L'Oreal to create values like innovation, open mindness,
excellence. The culture of China identified in report is competitive in which success is based on
level of connections. In addition to this, the report has also analysed culture affect of China in
HR practice which includes motivating employees, understanding sensitivity of emotions,
levelling up standards, etc. The present report has used HR value chain model of employment
and organizational levers are strategic hiring, directing, effective communication, channel, etc.
By analysing 27 Stoney's point of difference it is evaluated that L'Oreal uses both HR and
Personnel management practices. Additionally, case study has shown that it is important to
consider culture factor in hiring and firing. The report has represented various differences that
employment laws along with recommendation for better HR practices for high performance are
feedback mechanism, fair evaluation of efforts, etc.