MGMT3702 Case Study: Rolling Out L'Oreal's Diversity Strategy

This case study delves into the human resource management challenges faced by L'Oreal in rolling out its global diversity strategy. The core problem identified is the difficulty in effectively communicating and implementing the diversity strategy across different regions, leading to resistance and lack of engagement from local stakeholders. Root causes include communication gaps, conflicting opinions, lack of stakeholder involvement, and cultural differences. The analysis suggests recommendations such as signing the Charter of Diversity, improving communication channels, revising recruitment policies, and engaging in group discussions to foster compatibility between employees and locals. The study emphasizes the importance of a strategic approach to preserving workplace culture and effectively managing diversity to retain clients and customers. This document is available on Desklib, a platform offering a wealth of academic resources, including past papers and solved assignments, to support students in their studies.

Running head: HUMAN RESOURCE MANAGEMENT
Human resource management of L’Oreal
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Table of contents
Introduction................................................................................................................................2
Core problem..............................................................................................................................2
Root causes of the problem........................................................................................................2
Possible recommendations.........................................................................................................4
Conclusion..................................................................................................................................7
References..................................................................................................................................8
Bibliography...............................................................................................................................9

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Introduction
Human resource management is one of an important parameter of a company or
organization. Effective managerial strategies helps the personnel in governing the human
resources that is the employees, who are the agent in terms of achieving the identified and the
specified targets. This is through the means of perseverance, dedication and commitment
towards executing the allocated tasks and responsibilities. This assignment attempt to shed
light on the human resource management of Loreal in terms of exercising risk assessment for
achieving large scale customer satisfaction.
Core problem
L’Oreal is one of the largest cosmetics and Beauty Company across the world. In the
case, Balustre D’Erneville, the Diversity Director of Europe wonders how to attach proper
direction to the communication efforts regarding implementing the Diversity strategy
(Loreal.com 2019). She was concerned about this issue, as diversity was keystone for the
company in terms of respecting the socio-cultural backgrounds of the employees. Diversity
was identified as one of the important parameters of strategic management (Guillaume et al.
2017). Even goals were identified, which broadened the scope and arena of the business in
terms of eliminating any form of discrimination. The focus here was on expanding the
diversity of the multinational corporations. Along with this, intervention from the locals has
compelled Balustre D’Erneville to encounter difficulties in implementing the global diversity
plan.
Root causes of the problem
The issue of lack of communication attains commonality within the workplace. One
of the major causes of this is the differentiation in the opinions proposed by the personnel.

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Opposition to these opinions generates conflicts between the employees and the managers.
This might be one of the reasons why Balustre D’Erneville was facing difficulties in rolling
the diversity strategy. Her concerns are evident from every kind of preparations, which needs
to be done for venturing into the process of implementation. According to Riccucci (2018),
goals reflect much advanced stage, as to mapping the outcomes, which she estimates to
achieve upon implementation of the diversity strategy.
From the other perspectives, it might be the case that the members were not getting
the time from their busy schedules to respond to the meeting. This issue reflects the
discrepancies in the business operations in the form of delays in undertaking decisions. It
might also be that Balustre D’Erneville was not getting the appropriate channels through
which the notice of the implementation plan can be communicated to the clients and the
customers. However, Barak (2016) is of the view that lack of stakeholders and shareholders
did not add momentum to the diversity strategy, which was ready to be implemented with the
goals. Viewing it from the other perspective this absence adversely affected the workplace
culture of L’Oreal.
Incapability towards rolling out the diversity strategy might be due to the inadequate
responses from the clients and the customers. This reflects an absence of the systems in terms
of communicating the essential information to the clients. On the contrary, Sposato et al.
(2015) argues that the situation might have been that the plan had to be modified at some
parameters before it is implemented finally. This is a parameter, which needs quality time.
During this stage, the other works need to be kept on hold, with the permission of the
Directors. This has no mention in the case study, which might have stalled the productivity.
In some cases, the managers take time to present their approvals regarding a particular
plan. This might have been the case with Balustre D’Erneville at L’Oreal. This reflects the

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busy schedule of the managers. Negligence in this direction reflects interplay with the
culture, customs and traditions of the employees belonging to the other cultures. Typical
evidence of this lies in the acceptance of the global diversity strategy by the locals and the
natives. Mershon and Walsh (2016) think that this is impossible, as the locals prefer to
oppose the external influences in terms of their traditional culture, customs and norms. This
aggravates the complexities for Balustre D’Erneville in terms of implementing the diversity
strategy.
Possible recommendations
 Signing the Charter of Diversity is one of an appropriate step in terms of upgrading
the standards and quality of the workplace diversity in L’Oreal. Within this, setting
principles improves the focus of the personnel in terms of executing the tasks
according to the principles and the requirements. If these principles are verified in
terms of the identified business requirements, it would develop best practices.
 Consulting with the Directors before the creation of the Diversity team would have
been beneficial in terms of strategizing the activities. However, the performance of
the team was monitored by the Director himself, which was apt in terms of the
aligning with the business requirements.
 The corporate diversity manager of L’Oreal has rightly pointed out that diversity is
something beyond politics. This is in terms of catering to the mutual interest of the
clients and the customers. Infusion of Ethical Code of Conduct would be a wise step
in assuring the stakeholders and shareholders that their viewpoints would be valued.
Rationality in this direction would be an agent in terms of gaining assurance, trust and
dependence.

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 Diversification is also related to the talents of the workforce. For this, Balustre
D’Erneville needs to incorporate latest and modern machines, which would act
assistance in digitalizing the business. Moreover, it woiuld enhance the virtual skills
of the employees. This would an active support for the employees in terms of
unleashing their creativity through the proposition of innovative solutions. One of the
important points in this direction is that the managers need to ensure that the
employees have proper access to the systems.
 Disproportionate ratio in the regions contradicts the aspect of cultural diversity. In
this, mention can be made of the global diversity strategy, which can be adopted by
the locals. Here, tactful approach by Balustre D’Erneville is assistance in terms of
influencing the mindset of locals, who cling to the preservation of their respective
culture, customs and traditions. Here, resistance power would be more than involving
in the change management. Therefore, alternative backup plans are needed for
handling the situation in a proper manner.
 Group discussions and open forums can be an effective option for Balustre
D’Erneville in terms o improving the compatibility between the employees and the
locals. Within this, one of the necessary aspects is the means of negotiations, which
needs to be kept handy, in case conflicts, discriminations and harassments arise.
 Adopting problem solving cycle would be an effective option for Balustre D’Erneville
regarding diversifying the business processes. Within this, adopting reflective
exercises would help Balustre D’Erneville in assessing her role in terms of rolling the
diversity strategy.
 Adopting proper communication channels is vital in terms of increasing the speed in
executing the operations. Typical example of this can be the social media, which
would help Balustre D’Erneville in establishing contact with large number of clients

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at the same time. Conducting offshore marketing would be beneficial in terms of
enhancing her awareness about the prospective clients who would help in rolling the
strategy. This process would be one of the other means for expanding the scope and
arena of the L’Oreal business. Mention can also be made of email marketing, which
would deliver the message of the implementation plan to the clients and the customers
once it is approved. Website notification can be one of the other means for making the
personnel aware of the important processes announcements, which would take place
in the near future.
 Evaluation of the plans is vital in terms of detecting the areas in which modification is
needed. For this, adequate time is needed in terms of maintaining the balance between
the other business operations. Consideration of tables, charts and graphs would be
effective in mapping the outcomes of implementing the plan. Involving the Directors
in the evaluation process would be beneficial for Balustre D’Erneville in terms of
estimating the future courses of actions. Maintaining consistency in the execution of
evaluation would be effective in terms of upgrading the standards and quality of the
products and services.
 Revising the selection and recruitment policies would be effective in terms of
involving the employees from the other culture in the workplace of L’Oreal.
However, the rules need to be same for all of the employees, so that conflicts can be
averted. For example, special language classes can be organized for the members
from other socio-cultural backgrounds. This is only after conducting the need analysis
of the members. Specialized technological training services can be beneficial in terms
of upgrading the preconceived skills, expertise and knowledge of the employees up to
the native employees. This would be a good step towards improving the compatibility
between the employees.

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 Security policies need to be installed in the website and social networking would be
effective in terms of securing the data of the diversified customers.
 Organizing lectures and seminars after the implementation of the diversity strategy
would enhance the stability in the relationship with the clients and the customers. For
this, communication needs to be established with the Relationship Manager, who
would look after seeking effective channels for strengthening the customer base.
 Supporting the locals by ensuring that investing in the services of the company would
be helpful for them, might convince them about the prospect of the plan. For this, full
support in the form of proper access to the services is needed. Tactfulness is crucial in
terms of averting the instances of conflicts. This tactfulness would enhance the
corporate social responsibility of L’Oreal.
Conclusion
Diversity enhances the culture of workplaces like Loreal. Strategic approach towards
preserving the workplace culture is helpful in terms of retaining the prospective clients and
the customers. However, difficulties in rolling out the strategies reflects the lack of effective
communication channels through which the essential information can be levied to the
stakeholders and shareholders. This situation delays the business processes, compelling the
personnel to encounter complaints from the clients and the customers. Social media
marketing can be one of an effective communication channels for Loreal in terms of
disseminating the exact information to the stakeholder and shareholders. Moreover, it reduces
the instances of communication gaps.

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References
Barak, M.E.M., 2016. Managing diversity: Toward a globally inclusive workplace. Sage
Publications.
Guillaume, Y.R., Dawson, J.F., Otaye‐Ebede, L., Woods, S.A. and West, M.A., 2017.
Harnessing demographic differences in organizations: What moderates the effects of
workplace diversity?. Journal of Organizational Behavior, 38(2), pp.276-303.
Loreal.com 2019. About us. Available at: https://www.loreal.com/ [Accessed on 4th April
2019]
Riccucci, N., 2018. Managing Diversity In Public Sector Workforces: Essentials Of Public
Policy And Administration Series. Routledge.
Sposato, M., Feeke, S., Anderson-Walsh, P. and Spencer, L., 2015. Diversity, inclusion and
the workplace-equality index: the ingredients for organizational success. Human Resource
Management International Digest, 23(5), pp.16-17.

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Bibliography
Ellemers, N. and Rink, F., 2016. Diversity in work groups. Current Opinion in
Psychology, 11, pp.49-53.
Harvey, C.P. and Allard, M., 2015. Understanding and managing diversity: Readings, cases,
and exercises. Pearson.
Lambert, J., 2016. Cultural diversity as a mechanism for innovation: Workplace diversity and
the absorptive capacity framework. Journal of Organizational Culture, Communications and
Conflict, 20(1), p.68.
Mershon, C. and Walsh, D., 2016. Diversity in political science: why it matters and how to
get it. Politics, Groups, and Identities, 4(3), pp.462-466.
Roberson, Q., Ryan, A.M. and Ragins, B.R., 2017. The evolution and future of diversity at
work. Journal of Applied Psychology, 102(3), p.483.
Schaffer, B., 2016. Dissimilarity-Attraction in Teams: New Ideas for Workplace Diversity
Research. In Academy of Management Proceedings (Vol. 2016, No. 1, p. 12344). Briarcliff
Manor, NY 10510: Academy of Management.
Thornton, P.H., Hwang, H., Brymer, R.A. and Bierman, L., 2017. When and Where Does
Workplace Diversity Pay? Institutional and Resource-Based Views. In Academy of
Management Proceedings (Vol. 2017, No. 1, p. 13096). Briarcliff Manor, NY 10510:
Academy of Management.

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