L'Oreal Case Study: Addressing Multicultural Issues & HRM Strategies

This case study delves into the diversity management issues faced by L'Oreal, a global beauty company, as it navigates multicultural challenges in its international operations. The study identifies key issues such as employee reluctance, lack of company support, poor communication, harassment, disabilities and consistency concerns, and retention problems. It proposes several solutions, including improved recruitment and integration processes, comprehensive training and development programs, inclusive management practices, strategic career management and rewards systems, and enhanced communication strategies. The importance of implementing a global diversity strategy is highlighted, emphasizing its potential to increase productivity, foster innovation, improve communication, and strengthen the company's financial position and brand image. The study concludes with recommendations for L'Oreal to effectively address these diversity challenges and foster a more inclusive and productive work environment. Desklib provides access to similar case studies and solved assignments for students.

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L’OREAL Issues in managing multinationals

Issues in managing multicultural
Executive summary
Diversity plays a major role in every company to uplift the business internationally. In
today’s globalization world, L’Oreal Company tremendous diversity issues due to lack of
awareness and sustainable HRM. All these issues are being encountered by the company while
conducting business functions effectively. L’Oreal is a beauty care company that provides high
quality and attractive products to the key target audience in a hassle free manner. L’Oreal is one
of the biggest beauty brands that helping every women to render unique beauty products to the
customers across the globe. The diversity issues, strategies to overcome these issues and
implementation plan for diversity issues also have been elaborated in the task.
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Table of Contents
Executive summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Diversity issues at L’Oreal..........................................................................................................................4
Possible solutions to handle the issues.........................................................................................................6
Reasons to implement the global strategy....................................................................................................8
Implementation plan....................................................................................................................................9
Recommendations.....................................................................................................................................10
Conclusion.................................................................................................................................................11
References.................................................................................................................................................11
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Introduction
L’Oreal is a French personal care Corporation which was formed in 1909 with its
headquartered is situated in Clichy, France. The company offers ample of beauty products, hair
color, skin , perfume, make up kit and sun protection products (Lorealparisusa, 2018). The
primary aim of this research is to explain the diversity issues which are undergone in the
company. The diversity issues affect overall profitability and success of L’Oreal Corporation.
Along with this, the paper also discusses that how the company mitigates and minimizes the
diversity issues by initiating various HR approaches and strategies. At the end, some
recommendations have been shown to avert these issues and risks (Linkedin, 2018).
Diversity issues at L’Oreal
It is observed that diversity plays a major role in each and every firm to carry on the
business activities internationally. The organizational diversity refers to the total make up of the
workers at the workplace. Along with this, diversity refers to various differences in various
explaining traits and aspects such as race, gender, age, marital status, education, religion and
ethnic origin. Diversity plays a fundamental role in L’Oreal to increase and enhance the sale of
beauty and cosmetic products globally. It also ensures gender equality and focuses on the
external factors to make a dynamic and effective working environment (Jackson, 2013). In
today’s era, the company is facing tremendous diversity issues while selling cosmetics products
internationally.
Reluctance of employees: After the various studies, it is noted that reluctance of employees in
one of major issues that is being entertained by the company while working in the international
market. The different views and concepts of the workers create complexities in the
organizational culture which may further affect the long term profitability and success of the firm
and employees as well. Due to poor communication and unwillingness, the workers could not be
able to understand and know the English. Reluctance of employees also creates various cultural
barriers in the organization which may further impact on the day to day activities. Due to
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communication issue, the opinion, feedback and reviews are not shared or exchanged by workers
who failed to see view and struggled with analyzing and understanding the larger relevance and
implication of the policy. Reluctance of workers also affects the diversity of the organization to a
large extent. The employees who come from different countries in L’Oreal Company to perform
work, they could fail to understand the culture and values of the firm effectively. As a result, it
influences the working environment and culture of the company adversely (Chingamuka &
Glenwright, 2012).
Lack of company’s support: It is analyzed that support and motivation from top management
and managers are seen very complex and less that directly affects the financial position and
brand image of L’Oreal adversely. Although, the company provides a wide range of resources
but they do not render various level of language proficiency among the workers. Along with this,
managers or leaders are failed to embrace the change at the workplace. Low level awareness also
brings challenges and issues in the workplace that affect diversity of L’Oreal Corporation. Due
to lack of organizational support, the employees are unable to perform roles and responsibilities
effectively and smoothly (Personneltoday, 2018).
Poor communication issue: Due to lack of communication, the workers could not maintain
strong relationship with followers or subordinates in the organization while implementing the
business in the foreign market. The workers are given limited time to learn new languages
globally and had to cope with handling their maximized workload apart from this change. This
further creates a great deal of stress among the workers at the workplace. High stress also
decreases performance and productivity of the workers in the workplace. It is ongoing challenge
in L’Oreal that could affect the effectiveness and efficiency in the competitive market. Due to
lack of cross cultural training, the employees are unable to draft mail in English, resulting in a
maximized investment and time taken to accomplish a task in the firm, while also minimizing the
productivity levels. These reasons have direct impact on the moral, confidence and loyalty of the
workers (Renee, 2018).
Harassment issue: It can sometimes be a major concern in a diversified work environment, but
must absolutely never be tolerated. Identifying and analyzing harassment is a key in eliminating
and reducing discrimination from the workplace. Due to harassment issues, the female
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employees could not able to focus on their performance and effectiveness successfully (Daft,
Murphy & Willmott, 2010).
Disabilities and consistency: Unfortunately, the employees who are physically or mentally
handicapped sometimes entertain unfair actions, nature and behavior from unfeeling employees.
Diversity practices and training are not just an exam or course that worker take. The firm
discriminates between male and female that further affect objectives and targets of L’Oreal
Corporation. The discrimination issue also impacts on the moral, self respect and capabilities of
the subordinates. The company needs to take care of these issues to reach at top level in the
international market (Riccò & Guerci, 2014).
Retention issues: In today’s fast moving environment, retention of talent and management
issues is further being entertained by the company. Retention of potential and capable employees
is quite complex as it also affect the set objectives and mission. It is a major issue in China and
Japanese market which is influencing the overall productivity of L’Oreal (L’Oreal, 2018).
Possible solutions to handle the issues
There are various steps can be taken to handle and resolve the above mentioned issues at
L’Oreal. Some of the solutions have been elaborated below.
Recruitment and integration: To reduce the diversity issues, the company needs to focus on
the recruitment and selection effectively. The HRM team should have the capability to detect,
convince, attract, and retain the best talents who have the abilities to run the business activities
successfully. It is one of the major solutions that help in preventing diversity issues at the
workplace. Along with this, to reduce the diversity issue, the company should set up an original
and effective recruitment policy based on a key perception (Lengnick-Hall, Lengnick-Hall, A.,
Andrade & Drake, 2009).
Training and development: Training and development requirements shall be kept in mind when
hiring the new candidates for job or employment. In order to pass on professionals and ensure
that all the workers have access to training programs and sessions, the company should set some
training and learning institutions in overall the countries. It has been further stated that creativity
and innovation are significant for L’Oreal and a comprehensive development and sustainable
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program shall be set for its research and marketing people (Cherrier, 2009). Training and
development is an effective method that helps to minimize the diversity and cross cultural issues
within the organization. Training and development method and programs have been initiated for
detecting cross cultural and languages issues. Training and development further enhance and
boost productivity, effectiveness and efficiency of the employees to perform tasks, roles and
performance effectively (Greene & Kirton, 2015).
Inclusion and management: One of the on-going strategies is management and inclusion that
helps to manage diversity at the workplace. By implementing this strategy, the company can
reduce various issues related to diversity such as retention, harassment, and discrimination
issues. By initiating this strategy, the company can make effective and dynamic decisions related
to productivity and efficiency. L’Oreal can uplift and improve profitability and outcomes and it
also helps in ensuring that activities and operations of the company are going good way. The top
management should maintain strong and dynamic relationship with subordinates to build their
confidence internationally. They should include subordinates while making decisions in the
workplace. Managers need to identify and analyze the causes of dissatisfaction and stress of the
workers so that they can feel happy at the workplace while contributing and performing tasks
and duties at the workplace. Strong and unique management shall be built to reduce diversity
issues such as communication and reluctance of the workers. Innovative and sustainable
management also should be able to provide equal opportunities to the workers. There must not be
any discrimination between men and women (Greene & Kirton, 2015).
Career management and rewards: The main aim of L’Oreal is to render collective and
individual remuneration and rewards to attract and retain the individuals. Each individual
contribution must be assessed on the basis of her or his abilities, performance and productivity.
Collective remuneration schemes shall be implemented to develop loyalty among the workers
and it also leads to global targets and objectives. Along with this, career management is an
effective strategy to overcome the diversity issues within the organization. By implementing this
strategy, L’Oreal can build and improve the skills, talents and capabilities of potential candidates
at the workplace. Apart from this, this option is effective and dynamic for determining higher
level of employee engagement and commitment towards the attainment of objectives and goals
(L’Oreal, 2018).
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Communication: It has been analyzed from the various literature that strong and dynamic
communication lead higher profitability and revenue. Social relations and strong communication
help in gaining mutual trust, respect and loyalty of the workers. Without well built
communication, the company could fail to detect diversity issues at the workplace. It states that
communication is one of the biggest options to mitigate and avert the diversity issues at L’Oreal.
Upper management at L’Oreal must maintain open communication to make a strong relationship
with subordinates, as it also makes happy those employees who get disappointed while
functioning. In this way, the organization can minimize the diversity issues and enhance the
capabilities of them (L’Oreal, 2018).
Reasons to implement the global strategy
There are various reasons behind the implementation of global strategy. Some of the
effective and valid reasons have been drawn below.
 It is noted that diversity increases the productivity and performance of the followers and
organization as well. Thus, it is needed for L’Oreal to identify and analyzes the issues
and challenges related to diversity. By implementing global strategy, the workers can
deliver more outcomes and enhance performance with minimizing the threats of the
market (Schalk, Timmerman & van den Heuvel, 2013).
 It is investigated that diversity also boosts up higher creativity and innovation at the
workplace. Therefore, various strategies and approaches have been used to detect and
avert these diversity issues within the organization. Diversity is further needed to achieve
the desired objectives and goals at lesser time period.
 It is noted that L’Oreal Company is planning to gain international benefits by reducing
the language and cross cultural issues. By detecting the communication issues, the
corporation is able to improve and enhance the skills, capabilities and communication of
the workers (Kaufman & Miller, 2011).
 To make a strong financial position and build a strong image, the company initiates the
various global strategies including recruitment, selection and career management at the
workplace.
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 By implementing the various strategies related to diversity, L’Oreal could able to become
a leader in beauty and cosmetic industry as it also helps in leading sell and profitability in
the competitive market.
 To make employee happy and motivated, L’Oreal implements diversity strategies in the
organization. It will further help to overcome the rivals in the international market.
 Diversity issues also influences the potential, skills, self respect and confidence of the
workers. Therefore, the company has found innovative and unique source to implement
diversity issues within the organization (Den Hartog, Boon, Verburg. & Croon, 2013).
Implementation plan
Implementation plan is needed to boost and enhance the diversity at the workplace.
Without implementing the plan, the company cannot attain success and targets in the competitive
market. Following steps are involved in implementation of diversity plan.
Involve the entire top management team: The top management must be involved and visible
throughout the entire diversity project. It is one of the significant steps that indicate the way to
initiate the diversity at upper management. The CEO and top management must be visible at
workshops, career management and training and development programs. The main objective of
the diversity plan is to maximize the experience, knowledge and talents of the workers towards
the attainment of set mission and vision. The innovative diversity plan helps in promoting
teamwork, collaboration and detecting violation at the workplace. These plans and programs are
significant to get ample of opportunities for expanding and flourishing the business functions and
operations internationally. Diversity programs and sessions also are helpful to build a good
image in the minds of the customers and workers as well (Metaxas & Tsavdaridou, 2010).
Adapt the organizational structure: It is further stated that the organizational structure should
support the diversity efforts and initiatives. This could be done by creating a diversity office and
hiring a chief diversity officer. If L’Oreal supports the diversity efforts, it is more likely to get
success and progress across the globe. Dynamic organizational structure helps in identifying and
analyzing the diversity issues at the workplace. If L’Oreal maintains a strong and effective
structure then it will help to attract and retain maximum applicants for conducting the business
functions and activities in a hassle free manner.
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Communicate about the activities and initiatives on continuous basis: Communicating and
collaborating about why diversity is effective and vital for success and progress of L’Oreal is
highly unique and important. The communication and collaboration should be plentiful and
adequate and include a variety of channels including intranet, seminars, meetings, social media
and posters. With unique and dynamic initiatives, L’Oreal can augment returns and outputs with
minimizing the risks, challenges and issues of the market (Riccò & Guerci, 2014).
Create a formal project plan: Implement a formal and unique project plan to support the
diversity policy with effective and measurable objectives and goals that is associated with the
rest of the organization’s strategic operations and goals. The various research indicate that if
such project is not effectively and carefully planned in advance utilizing tested and robust
procedure, critical factors will not attain the proper attention. The project shall be made after
considering the various diversity issues and risks in the competitive market. The project must
also take into the consideration the length of time taken to grow a mindset that acknowledges
that diversity is also part of the entire strategy. The project must include a performance
evaluation program that functions as a responsible mechanism (Servicefutures, 2018).
Change all HR initiatives to include diversity: L’Oreal should change all HR initiatives such
as communicating, encouraging, rewarding, establishing, advertising, interviewing, pay special
attention, retention programs and development strategy. All these initiatives help in achieving the
desired mission and vision in the international market. Further, HR initiatives support to mitigate
the diversity issues and concerns that are being entertained by L’Oreal Company.
Recommendations
It is recommended that L’Oreal must focus on the effective communication approaches,
strategies and policies to cope up the diversity issues in the workplace as it also will help in
boosting efficiency and quality of work. L’Oreal further must provide equal opportunities to the
workers for growing in the global market. Along with this, equal employment opportunities shall
be provided through a number of concrete activities and initiatives. L’Oreal must rely on the self
respect and confidence to explore the business globally. An audit committee should be hired to
enhance professional development and employee engagement at the workplace. The firm should
welcome new potential and capable subordinates to provide satisfaction to them. Disability
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initiatives must be held to avert and reduce diversity issues along with this, top management
should focus on the talent management to identify the talent and abilities of potential workers.
Employee engagement and commitment need to be considered for attaining rival benefits and
achieve higher profitability. In this way, diversity issues or concerns can be mitigated by top
management and leaders at L’Oreal.
Conclusion
To conclude, L’Oreal is a biggest and leading cosmetics Corporation that provides
innovative beauty and cosmetics products to the customers across the globe. It is concluded from
the above mentioned study that ample of diversity issues or challenges are being faced by the
company while operating the business internationally. L’Oreal develops and improves the
innovative strategies and approaches to manage and handle the diversity issues at the workplace.
To mitigate the diversity issues, an implementation plan has been presented briefly.
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