LVMH

LVMH1. TASK 011.1. INTRODUCTION TO LVMHFor this assignment, I ideally considered an organization named LVMH.LVMHLVMH Mot Hennessy Louis Vuitton S.A. (Euronext MC), usually shortened to LVMH, is a French holding company and the worlds largest graduate(prenominal)life goods conglomerate. It is the pargonnt of around 60 sub-companies that each pluck a small number of prestigious brands These daughter companies atomic number 18, to a large extent, run autonomously. The classify was organize after mergers brought together champagne producer Mot et Chandon and Hennessy, a leading manufacturer of cognac. In 1987, they merged with fashion ho aim Louis Vuitton to form the flow rate gatheringThe group is underwriteled by the Christian Dior group, which owns 42.4% of shares and has over 58% of voting rights. Bernard Arnault, majority shareholder of Dior, is Chairman of both companies and CEO of LVMH. His successful integration of sundry(a) famous aspiration brands into the group has inspired other luxury companies into doing the same. Thus Gucci (now part of the French conglomerate PPR) and Richemont realize also created extended portfolios of luxury brands. The oldest of the LVMH brands is vino producer Chtea dYquem, which dates its origins back to 1593.(http//en.wikipedia.org)Corporate structureLVMH is establish in Paris, France. The company is listed on the Euronext Paris exchange and isa constituent of the CAC 40 index. As of 2008, the group revenues of 17.2 billion with a net in mystify of 2.318 billion. The group currently employs 77,000 pile. 30% of LVMHs rung work in France. LVMH operates over 2,300 stores worldwide. Its current business plan take aways to tightly control the brands it executes in order to maintain and heighten the perception of luxury relating to their products. For example, Louis Vuitton products are sold only through Louis Vuitton b popiques found in upmarket locations in plastered cities or in concessions in other luxury good s shops (such as Harrods in London). This dress contrasts greatly with less exclusive brands which empennage be bought in obtain malls around the world(http//en.wikipedia.org)ShareholdersAt the end of 2008, the only declared major shareholder in LVMH was Groupe Arnault, the family holding company of BernardArnault. The groups control amounted to 47.42% of LVMHs stock (with 42.42% held through Christian Dior S.A. and 5.00% held directly) and 63.40% of its voting rights (58.02% by Dior and 5.38% directly). A further 3.4% of shares were declared as treasury stock, with the remainder being free float.(http//en.wikipedia.org)DEPARTMENTS OF LVMH* Wines Spirits* Fashion Leather Goods* Perfumes Cosmetics* Watches jewelry* Selective retailing(Annual report LVMH-2008)MISION AND VALUES OF LVMH* Be creative and enclose* Aim for product excellence* Bolstertheimageofourbrandswithpassionatedetermination* Act as entrepreneurs Strive to be the trump prohibited in all we do(Annual Report L VMH-2008)Definitions of Human Resource warinessHuman recourse worry is a strategic and coherent approach to the way of organizations most valued as dumbfounds the people working there who individually and collectively contri scarcelye to the achievement of its objectives.(Michael Armstrong, a Hand book of Human Resource Management 2003)The HRM poses are1. The Matching model of HRM 2. Harvard model of HRM3. Best practice model4. The contingency model5. Guest model of HRM6. Warwick model of HRM7. Storey model of HRMWe can use Matching Model for LVMHModels of HRM1. The matching modelThe Michigan model is also cognize as the matching model or best-fit approach to homophile choice management. In essence, it demands that human mental imagery strategies have a tight fit to the overall strategies of the business. As such, it limits the role of HR to a reactive, organizational kick the bucket and under-emphasizes the importance of societal and other external factors. For example, i t is difficult to see how the current concern for work life balance could be integrated into this model.Fombrun et al particularize four common HR executees performed in every organization* endurance matching people to jobs* Appraisal of executing* Rewards emphasizing the real importance of leave and other forms of compensation in achieving results* increment of skilled individualsThese performancees are linked in a human choice cycle.The matching model has attracted criticism. At a conceptual level, it is seen to depend on a rational, mechanical form of organizational decision-making. In reality, strategies are often determined and operational zed on a more(prenominal) intuitive, political and subjective level. Certainly, the decision-making is more complex than the model allows. It is also both prescriptive and normative, implying that the fit to business schema should determine HR outline(Bratton, J.,Gold, J., Human Resource Management p-18))Resource based StrategyT he mental imagery-based look of strategy is that the strategic cap energy of a firm depends on its resource based capability. Resource-based strategy theorists such as Barney (1991) argue that stained competitive advantage stems from the acquisitions and effective use of bundles of distinctive resources that competitors can non imitate. As Boxall (1996) comments competitive success does non come simply from making choices in the present it stems from building up distinctive capabilities over significant periods of time. Teece et al (1997) define dynamic capabilities as the capacity of a firm to re freshly, augment and adapt its core competencies over time.(Michael Armstrong,2000, Strategic Human Resource Management, p-33)Best PracticeThe best practice rubric has been attacked by a number of commentators. Cappeelli and Crocker-Hefter (1996) comment that the notion of single set of best practices has been over stated on that point are examples in virtually every industry of firms that have very distinctive management practices. We argue hat these distinctive human resource practices hlp to create unique competencies that differentiate products and services and, in turn, drive competencies that determine how firms complete.Purcell (1999) has also criticized the best practice or universalist view by pointing out the inconsistency between a belief in best practice and the resource based view, which focuses on the intangible assets including HR, that allow the firm to do better than its competitors. He asks how can the universalism of best practice be squared with the view that only some resources and routines are important and valuable by being rare and imperfectly imitable?. The danger, as Legge (1995) points out, is that of mchanistically matching strategy with HRM policies and practices. Accordance with contingency theory, it is difficult to accept that there is any such thing as universal best practice. What works well in one organization will not necessary work well in another because it whitethorn not fit its strategy, culture, management style, technology or working practices. As Becker et al (1997) input signal organizational high-performance work systems are highly idiosyncratic and must be tailored wieldfully to each firms individual situation to achieve best results.(Michael Armstrong, 2000, Strategic Human Resource Management, p-65)Best FitFor the reason given above, it is accepted by most commentators that best fitis more important than best practice. at that place can be no universal prescriptions for HRM policies and practices. It all depends. This is not easy to say that good practice, ie practice that does well in one environment, should be ignored. Benchmarking has its uses as a means of identifying areas for innovation or schooling that are practiced to good effect elsewhere. But having learned about what works and, ideally, what does not work in comparable organizations, it is up to the firm to decide what may be relevant in general terms and what lessons can be learnt and neutered to fit its particular strategic and operational requirements. The starting point should be an analysis of the business needs of the firm within its context (culture, structure, technology and processes). This may indicate clearly what has to be done. Thereafter, it may be useful to pick and mix various best practice ingredients and develop an approach that applies those that are clutch in a way that is aligned to the identified business needs. But there are problems with the best-fit approach, as pointed out by Purecell(1999) who, having rubbished the concept of best practice, proceeded to do the same for the notion of best fit Meanwhile, the search for a contingency or matching model of HRM is also limited by the impossibility of role model all the contigent variables, the difficulty of showing their interconnection, and the way in which changes in one variable have an impact on others.In Purcells view, organi zations should be less come to with best fit and best practice and much more sensitive to processes of organizational change so that they can avoid being trapped in the logic of rational choice.(Michael Armstrong, 2000, Strategic Human Resource Management, p-66 ) Human Resource Management VS Personal ManagementHuman resource management was first known as personnel management. However the present status of the field of human resource management has been achieved after years of evaluating principle.In personnel management people were manage stick administration but in human resource management people are consider resources, develop people and get them to manage them self. Organizations now consider the human resource as a resource that could be developed rather than just be managed.Personnel management is more administrative in nature, dealing with pay roll, compiling with employment law and handling pushd task. Human resources on the other hand are amenable for managing the work force as one of the primary recourses that contribute to the success of the organization.Personnel management manages people by strict administrative system but human resource management considers people as a resource that can be developed.eg Train and developed persons.Personnel management is less preoccupancy on employees future day potential and getting the best from employees through instruction, development and motivation. but other hand of human resource management identifies employees potential, areas for improvement, strength and weaknesses identifies procreation needs and trains them achieves result through motivation and job satisfaction.Human Resource Management from a strategic perspective and its implications for the role of the line managers and employeesHuman resource management is very important to build up relationship between line managers and employees. Below I mentioned area of covering strategic human resource activities.* indemnity making.* Designing and developing human resource strategies.* Contributing to the corporate plan of the organization.* Integrating human resource activities to the main purpose of the organization.* Job paygrade.* recompense administration.* Incentives and benefits.* Grievances handling.1.2. APPLY GUEST MODEL OF HUMAN RESORCE MANAGEMENT TO LVMHLVMH using human resource management functions for build up their business. Especially they apply guest model for following functions.They are using human resource strategy for innovation the company. Regularly they check other retailers of the market. After that they focus their business for current market. normally they evaluate the cost of product. Some time they control the unnecessary cost per product. eg they searching current market and stopping over productionHuman resource management practices LVMH specially using human resource practices for enlistings. They are choosing correct person for correct job category. They offered cultivation period for new e mployees. Always management evaluating employees and giving rewards for them. eg bonusHuman resource outcomes They endlessly get ideas from customers and offers range of options for flexible working. eg part time work, career breakBehaviour outcomes The management always evaluating workers and motivate them. It has good squad workers. Every time they corporate with others and helping them.Performance outcome LVMH evaluate everybody performance and using some human resource practices for increase productivity. Human resource department discuss with employees and this time reduce their absenteeism and labor turn over.Critically evaluate the Guest model of human resource managementHuman resource management is deferent from traditional personnel management. However, Guest has acknowledged that the concept of commitment is messy and that the relationship commitment and high performance is difficult to establish. The strength of the guest model is that it clearly maps out the field of h uman resource management and classifies the input and comes. The model is useful for examining the expose goals usually associated with the normative models of human resource management strategic integration, commitment, flexibility and quality.2. TASK 022.1. Aim/Purpose Why have a Strategy?To set the context for culture and development within the LVMH to answer the questions that staff, managers, and customers might have* Why is learning and development important?* How does learning fit in with staff roles, delivery of key services?* What does the LVMH mean by learning and development? How do staff and managers make sure they have the learning they need?The aim of this strategy is to provide a practical map and guide of how learning and development supports the work of the LVMH, at an individual, team and organizational level. The strategy aims to set out the current aims and objectives and also map the future so that there is a vision of how learning and development will support the LVMH both now and in the future across depictr and Commissioning.The purpose then is to provide a framework for learning for LVMH which will* Set out the LVMHs commitment to providing learning and development for all staff* delay that staff are equipped with appropriate skills, experience and support to enable them to continue to provide high quality care and services* pick up that processes are in place for staff to achieve their potential and that individual contributions are valued and acted upon* Ensure that staff identify training needs and undertake appropriate training as part of their role and that training needs are identified at an individual, team and organisational level* Ensure that high quality training and development is commissioned as needed* Effective learning and development processes and systems are in place that are social and clear.2.2. Supporting the LVMH to deliver its strategic aims and objectivesThe LVMHs key strategic aims are toEngage with the ta rget customers and their needs.Commission a full and equitable range of high quality, antiphonal and efficient services, within allocated resources, across all service sectors.Directly provide high quality responsive and efficient services where this gives best value.The achievements of the strategic aims are supported by a set of key values. LVMH values are the qualities, archetypes and principles that the LVMH believes will help it and its staff to succeed. The values are Be creative and innovate Aim for product excellence Bolstertheimageofourbrandswithpassionate determination Act as entrepreneurs Strive to be the best in all we do2.3. Core principles for tuition and outgrowth across the LVMH* To provide opportunities for learning, high value of skills about international marketing, personal development and skills enhancement at all levels. There is a need to discover participation to ensure lower band staff have the development they need* To encourage continuous learning and space for innovation and creating something new so that services are adapted and improved as a result of learning* To be more than fit for purpose but in out of bounds of excellence* Endorse the principles of becoming a Learning Organisation* Identify a systematic process and framework for identifying, planning, delivering and evaluating learning and development at an individual, team and organisational level* Support and develop a culture that encourages confidence, motivation and creativity in staff allowing them to be innovative, take risks and realise their full potential* will power of learning and development by individual members of staff so that they can see the value of learning and how it will support them* Staff are our customers. The learning and bumpment team need to ensure that effective feedback and quality government agency processes are in place* To be able to measure successThe strategy should* Mean something to staff and managing directors, be live and r eal and practical, mapping the current and future picture and progress* Be organic in that the Learning and Development team continually assess and change the strategy and vision through its own learning* The Learning and Development strategy should strengthen and be constitutional to the LVMH organisational objectives and performance management frameworks* Identify localised examples.2.4. Learning and Development Strategic Aims and ObjectivesTo Meet PCT Commissioner and Provider Strategic Aims, Values and VisionEnsure staffs are working safely and competently and have the skills and knowledge they need to deliver high quality services* Deliver first class Induction* Provide high quality marketing Training* Ensure all staff are attending Statutory /Mandatory training* Ensure store direction systems, training is in place* Develop IT skills of our staffSupport the LVMH to develop the workforce of the future* Work with Provider and Commissioning Directorates to support development of LVMH into the future* To work with HR and OD Director to embed values of the LVMH through education and training systems and processes* Support the development of new roles* Identify training and development for new services as they are developed* Support the workforce planning order of businessSupport the LVMH in the delivery of its Inequalities Agenda* To ensure integrated working with Public* Ensure Equality monitoring and performance targets are met* To provide an equality and diversity training programme for all staff* jazz an Equality Impact Assessment on the Learning and Development function* Develop systems to include staff feedback into improving learning and development within the LVMHDevelop first class leaders and managers within the Provider and Commissioning arms of the LVMH* Identify management and leadership strategy for all managers at appropriate bands* legal transfer of in house leadership programme* Develop a management skills programme, identify skills / com petencies for Managers* Develop and provide Team Leader Training* Support Managers to bother external management and leadership programmes as appropriate* Develop mentoring, coaching and shadowing for staff* Provide training and support for Managers in Skills Knowledge to manage change efficiency and confidentiallyDelivering high quality, innovative and creative learning opportunitiesSupport the LVMH to become a learning organisation and embed the philosophy of the teaching lvmh* Promote the principles and philosophy of the learning organisation and the teaching LVMH* Embed the learning culture* Encourage new ways of learning, training, e-learning* Support the organizational development agenda* Develop work with neighboring LVMHsEnsure accessible and excellent high quality training, learning and development provision is in place* Develop the LVMHeducation and training team and service* Commission training and development, both now and in the future* Development of self service tra ining administration system* Ensure effective systems and processes are in place* Development of Learning Centres and accessible ways of learningDevelop a Quality Assurance framework for Learning and Development* Demonstrate the value of learning within the organisation* Benchmark against competitors* Develop measurable standards for learning and development processes* Ensure robust data array and reporting* Develop a system for feedback from staff, followers customers* Quality assurance, monitoring, evaluation systems put in place eg.i. Train the trainer, standards of delivery for trainers ii. Contracts for external trainers iii Staff and partner organizations iv Staff questionnaire/feedbackUse existing resources creatively and plan resourcing for the future such as* LVMH training budget* Income generation* Sponsorship / grants2.5. StandardsService Standards will be included for each strategic objective and identified in the work programme.2.6. Responsibilities / accountability T raining GovernanceAll members of staff have a responsibleness for their own learning and development, supported by Managers and the Learning and Development Team. For detailed guidance on roles and responsibilities on identifying learning and development2.7. Success Criteria benchmarking, quality assurance processes How will we measure Progress and Achievement?* Through regular reviews of the Work Programme* On going consultation with staff* Evaluation and collation of feedback2.8. come off and Monitoring Quarterly review of strategy and work programme may monitor by Human Resources Committee.3. TASK 033.1. RECRUITMENTRecruitment refers to the process of attracting, screening, and selecting do people for a job at an organization or firm. For some components of the recruitment process, mid- and large-size organizations often retain professional recruiters or outsource some of the process to recruitment agencies.The recruitment industry has five main types of agencies employment ag encies, recruitment websites and job search engines, headhunters for executive and professional recruitment, niche agencies which specialize in a particular area of staffing and in-house recruitment. The stages in recruitment include sourcing candidates by advertising or other methods, and screening and selecting potential candidates using running plays or interviews.(Armstrong, Michael (2006). A handbook of Human Resource Management Practice)SELECTIONSelection is the process used to identify and hire individuals or groups of individuals to fill vacancies within an organization. Often based on an initial job analysis, the ultimate goal of personnel woof is to ensure an adequate return on investmentin other words, to make sure the productivity of the new hire warrants the costs spent on recruiting and training that hire.Several screening methods exist that may be used in personnel selection. Examples include the use of minimum or desired qualifications, resume/application review, oral interviews, work performance measures (e.g., writing samples), and traditional tests (e.g., of job knowledge).The field of personnel selection has a long history and is associated with several fields of research and application, including human resources and industrial psychology.Recruitment and Selection of LVMHThey are based on higher requirements for professionalism in the evaluation and selection methods, while offering candidates a unique experience that gives them useful feedback for their professional development. Not only are technical skills assessed, but also the ability to produce and communicate results, the ability to work in a group, the ability to have a strategic vision while knowing how to make a daily commitment and, finally, the potential to become an enterprising leader motivated by a desire for ongoing improvement. Assessment of these aspects is make by LVMH group managers through interviews as well as individual and group role plays. At the end of this int ensive day, whatever the result, each candidate receives several in-depth analyses to look him or her in understanding how he or she was perceived and the contents of the assessment.Essential of international recruitment of LVMHSustained development of all LVMH activities enabled multiple jobs to be created in 2008 across the Groups companies and brands Wines Spirits, Fashion Leather Goods, Perfumes Cosmetics, Watches Jewellery, and Selective Retailing. LVMH has 77,087 employees worldwide, with the average number of employees over the fiscal year up 9.5% compared to the previous year. Through its policy of selling products with the made in France label, LVMH ensures that industrial jobs are maintained in France. The breakdown of the Groups workforce by geographical region is stable and balanced. 74% of the workforce is sedulous abroad, essentially in the distribution networks of Europe, the Asia-Pacific region, and North and South America.Workforce of LVMH by geographic regio n26% France 19,73722% Rest of Europe 17,22622% unite States 16,7236% Japan 4,92919% Rest of Asia 14,8315% Other markets 3,641Total 77,087(Source LVMH Annual report-2008)There are 74% of employees working internationally. Therefore international recruitment is important to LVMH. They are expecting a personal development within a professional, responsible team in the organization. identifying with the values of a company is a major element in attracting and motivating the men and women who join LVMH and invest themselves in the Group. The Group presents its corporate responsibility policy during the initial contact with candidates, for example during recruitment forums. The explanation of this policy is part of the integration process. The prevention of psycho-social risks in their orientation manuals or employee manuals, like DFS Group, Fendi or Glenmorangie. However they have consider the expectations and motivation of the teams. coming and continued employment for older employees is also a constant concern, consistent both with the Groups policy on diversity and with itsInternational Recruitment at LVMHhither LVMH can find a step-by-step guide to recruitment. International Recruitment Deployment e follow the extensive International Recruitment process as follows pose 1Advertisement using print media and internet including job display on our Job portalStage 2 Screening of applications received in response to advertisement.Stage 3 Short listing, scrutinizing data according to the skills, knowledge and aptitude desired for the job.Stage 4 Test InterviewsStage 5SelectionStage 6Reference CheckStage 7Completing the Visa/Administrative Process following the acceptance of Job offer by the candidate.Stage 8Travel arrangement and deployment of the candidate to job location.(http//www.habsons.net)Selection Methods (Tests, Exercise, Presentations)The most popular selection method is Interviewing however the decision making process at Interviewing panel stage will be improved if data additional to that obtained from the application form, CVs, references (for academic and research posts) and interview is available. It is therefore desirable that the selection process includes an additional selection figure out/test. This should be designed to gather information about the ability of short-listed candidates to carry out the specific duties of the post by testing aspects of the Person Specification, which cannot easily be evaluated by an interview or reference.Some examples of selection exercises are given below, all of these would need to be carried out in accordance with good practice in Equal Opportunities In setting up and running selection exercises the following principles should be followedNature of patchSelection ExerciseResearch postsCandidates could be asked to deliver a seminar, give a departmental presentation or write a reportPosts that require supervisors skillsCandidates could be asked to take part in a supervisory role playGeneral The assessment of performance from selection tests must be made on a predetermined set of factors, rather than vague generalizations, using set criteria will enable an objective assessment of the test setThere should be a clear understanding of what is being tested and what status the test/exercise has within the overall selection processIf the test/exercise involves using a software package, experience of using that specific software package must have been included in the selection criteria for the postThe test/exercise must be designed to provide an equal opportunity for each candidate to demonstrate his/her abilities, in accordance with the Equal Opportunities Employment PolicyWhere appropriate, selection tests/exercises must be adapted for a candidate with a disability. For further guidance on this the Recruitment Manager or HR Manager should be contactedThe test/exercise must be properly planned in advance with each candidate given full information on what is involved and suffi cient time for any preparation requiredThe test/exercise must not be biased in favor of versed candidates, i.e. it should test basic principles in relation to the post, not knowledge of internal proceduresThe information gathered from a selection exercise will only relate to a limited number of the overall requirements of the post and the results must be judged in this context. However, if an essential criterion for the post is being tested e.g. numeracy and the required standard for the test is not met then the results must not be ignoredObjective criteria should be used to score the test that has been set and all information relating to the test should be reported in a standard and consistent format to Interviewing panel. If there are any factors which may have influenced a candidates performance e.g. inter