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).
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 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 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).
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 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).
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).
There are various reasons behind the implementation of global strategy. Some of the effective and valid reasons have been drawn below.
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.
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.
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 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.
References
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