ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 3 Human resource management

Submission date 27/10/2022 Date Received 1st submission

Date Received 2nd

Re-submission Date
submission

Student Name Duong Ky Duyen Student ID GBD210344

Class GBD1008A Assessor name Nguyen Minh Nhat

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I certify that the assignment submission is entirely my own work and I fully understand the consequences of
plagiarism. I understand that making a false declaration is a form of malpractice.

Student’s signature Duyen

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P4 P5 M4 M5 D2 D3

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Table of Contents
1. INTRODUCTION ........................................................................................................................................................... 4
1.1. Purpose of the report: ........................................................................................................................................ 4
1.2. The main content of the report: ....................................................................................................................... 4
1.3. Re-introduction of Digital Business Transformation plan .......................................................................... 5
2. HOW EXTERNAL AND INTERNAL FACTORS CAN AFFECT HRM DECISION-MAKING IN RELATION TO
ORGANIZATIONAL DEVELOPMENT. ................................................................................................................................ 6
2.1. External factors: ................................................................................................................................................... 6
2.2. Internal factors: ................................................................................................................................................... 6
3. MOTIVATION PLAN TO ENGAGE EMPLOYEES ........................................................................................................ 7
3.1. Learning & Development: .................................................................................................................................. 7
3.2. Rewarding: .......................................................................................................................................................... 10
4. CONCLUSION ............................................................................................................................................................. 11
References ........................................................................................................................................................................ 12

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1. INTRODUCTION

1.1. Purpose of the report:

As Estée Lauder's HR manager, with a mission to strategize to attract more outstanding talent to maximize the
results of Digital Business Transformation. By proposing a plan to train quality human resources and reward
employees to build a team that helps the company succeed with its goals of digital transformation and generate
profits for Estée Lauder.

1.2. The main content of the report:

The report below is from the company Estée Lauder - a company specializing in providing cosmetics, perfumery,
makeup, and hair care products. As an employee of the company's Human Resources department, with a mission
to strategize to attract more talent to maximize the results of Digital Business Transformation. Specifically, the first
will analyze the internal and external factors that directly affect the preparation of resources to support the digital
transformation plan. Then, by proposing a quality human resource training plan and employee reward system to
build a team that helps the company succeed and generate profits with the goal of digital transformation.

Figure 1: Logo of Estée Lauder Company. (Estée Lauder ANNUAL REPORT, 2021)

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 1.3. Re-introduction of Digital Business Transformation plan

During the time of the Covid-19 pandemic, it had a strong impact on the economic situation in general and
business activities in particular, negatively changing the world economy and affecting the revenue of businesses
including Estee Lauder. Besides, in the era of development of modernization and industry 4.0, the digital struggle
for innovation and growth, Estée Lauder has offered a number of digital application options in the field of
transformation for employees, and customer experience.

Estée Lauder completely changed the way by applying technology to sales via social networks and web
conferencing platforms (“Virtual Sales”), shifting to a model from face-to-face to online. , customers can experience
makeup and advice from virtual experts through websites or virtual applications created by the company. Besides,
Estée Lauder also applies remote working methods to ensure health and safety. Employee health and safety
during a complicated epidemic situation Applying cloud IT systems to automated information technology
processes to collect and store confidential, proprietary, or sensitive information, including personal information
about customers, consumers, and staff. (Estée Lauder ANNUAL REPORT, 2021)

Figure 2: Clinique’s Clinical Reality™ ( Estée Lauder Companies, 2022)

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2. HOW EXTERNAL AND INTERNAL FACTORS CAN AFFECT HRM DECISION-MAKING IN RELATION TO
ORGANIZATIONAL DEVELOPMENT.

2.1. External factors:

The prolonged situation of the Covid 19 pandemic has brought many difficulties to the world economy, a number
of businesses closed stores, and losses resulted in bankruptcy. During the Covid epidemic season, Estée Lauder
employees had to take time off work and switch to working remotely from home to ensure the safety of the
company and their own health. In addition, the change of technological revolutions, which leads to a change in
business, affects not only customer service but also the perspective of costs, labor, and even technology employee
work. If before 3 or 4 people could do the same job, now only 1 person with technology application can solve it.
Because of that problem, the human resources department had to find a way to cut down the human resources
department to save costs for the company. At the same time, these employees understand the basic knowledge
and must meet the related technology. Selling online will definitely have to have automatic payments on the
machine. According to statistics, currently, the number of smartphone users worldwide is 6.648 billion, accounting
for 83.32%. From there, it shows that everyone can easily make automatic payments on their phones flexibly and
conveniently. This will be an opportunity to contribute to Estée Lauder's digital transformation goals. Therefore, it
is required that employees have knowledge of professional qualifications as well as skills in using computers and
payment methods competently. If it is difficult to lay off all employees, the Human Resources department must
plan and be responsible for human resource training. Allocate human resources and reasonable time to carry out
training for the company plan. (english-mic-gov-vn, 2022)
2.2. Internal factors:

Estée Lauder's vision is "to be a globally trusted beauty service provider by driving change in digital, social, and
omnichannel experiences". Namely promoting, increasing profits, expanding the brand worldwide, and recruiting
new consumers for the brand. For the brand to thrive, Estée Lauder needs to open more branches across the
country, regularly launching new collections. But to do that, the human resources department will have the task
of recruiting more employees, be it full-time or part-time, a good sales team to sell in-store, or a person in charge
of the department, R&D department to develop ideas to launch many new product sets. In addition, the people

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responsible for training new people to meet the company's needs are experts in beauty services, inspiring
generations of customers, and promoting the brand's values, and developing skills related to digital
transformation. (Estée Lauder Companies , 2022)
Due to the impact of the epidemic, in 2021, net revenue will increase by about 357 million USD in foreign currency.
The financial impact of 2021 on profits related to restructuring and other operations of approximately $14 million.
As a result, digital transformation can be significantly supported, in addition, it also supports the building of human
resources including issues such as training time, salary, and rewards, ..(Estée Lauder ANNUAL REPORT, 2021)
The financial position of an organization dramatically affects human resource management activities, especially
those with financial implications. The salary, bonus fund, human resource retraining fund, and insurance fund,..
greatly affect the economic situation and cash flow of the organization. In particular, the digital transformation will
cost the company a large amount of money, not only in recruiting personnel, but also training, training, getting
acquainted, or preparing for those plans. HR is not only responsible for recruiting, training, and managing
personnel, but also for calculating salaries for employees, planning costs, or technology equipment for digital
transformation. Expenses used to train new employees and rewards for long-term employees are also carefully
responsible by HR.
3. MOTIVATION PLAN TO ENGAGE EMPLOYEES

3.1. Learning & Development:

In order to maintain the position of a reputable and trusted beauty service company, during the past 75 years,
Estée Lauder has constantly been learning and developing. William P. Lauder, Executive Chairman says that “We
want employees to feel like they’re allowed to push the envelope and think differently". Estée Lauder says a strong
focus on learning ensures construction The next generation of leaders for the company is also about creating
trends and adapting changes to the needs and requirements of customers, so from the newest employee to the
CEO. Experienced and continuously learning and developing. (Estée Lauder Companies , 2022)
Specifically, Estée Lauder uses a combination of virtual instructor-led training and e-learning and can experience
tailored classrooms and projects. Thereby helping employees build core competencies and enhance, and create
value, and long-term development for the company. The key areas Estée Lauder believes are key to employee

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 Figure 3: Estée Lauder Company partners with LinkedIn Learning (Estée Lauder Companies , 2022)

success are data and analytics, skills and digital, marketability, retail, and more. In order to "fit in" with the
pandemic Covid-19 situation, and work from home, Estée Lauder implements the experience of distance learning,
raising awareness about health and resilience. In 2018, beauty company Estée Lauder partnered with LinkedIn
Learning to expand employee learning services. As of 2021, more than 13,000 employees have activated their
accounts and are continuously engaged in digital learning initiatives on the platform. In November 2020, Estée
Lauder launched its Beauty program "BEAUTY INSPIRED, VALUES DRIVEN INTERACTIVE LEARNING GUIDE" inspired,
promoting value learning guidance, and is globally accessible to employees. The ELC Learning Center is Estée
Lauder's internal platform for corporate learning that fosters professional growth. In addition, Estée Lauder also
has "Learning by Numbers" First ACUMEN DIGITAL’s 30,000 employees receive digital skills training globally to
respond to COVID-19 and the need for digital transformation. (Estée Lauder Companies , 2021)

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In addition, in order for employees to achieve the highest efficiency at work, Estée Lauder's human resources
department needs to conduct training courses on soft skills and essential skills for new employees to equip them
with basic knowledge. About the company's senior staff will be trained in more knowledge before they are
transferred to another department. These employees have all worked for the company for many years and made
significant contributions to sales. Therefore, when switching to the online sales model, they will have more
advantages than new employees. They will know how to handle situations, become proficient, and even
communicate more confidently. As for the better employees, Estée Lauder can offer qualification tests based on
assigning them to higher, more suitable positions. The total training time will be wrapped up in 1-2 months, and
employees will be fully equipped with skills from communication, presentation, and consulting to sales.

On-the-Job Training: Estée Lauder can use the OJT method which stands for On-the-Job Training. It is the method
of tutoring and on-site instruction. Directly, the sales department will train employees on sales skills, and
communication skills,...The customer care department will be trained to respond to customer feedback and get
help from the side. IT staff to help them master the tools. As for the company's talents, the department heads will
be directly trained to become people who dedicate themselves to the company. After the end of the training
instruction period, employees will have to practice on their own to demonstrate the learning results. It is done at
the company itself when starting to work, the time can be 1 or 2 months depending on the capacity of each person.
(valamis, 2022)

Off-the-job: However, the human resources department should incorporate Off-the-job training for senior
employees who contribute both to the company and get nominated. Employees are given computer and business
courses related to payment automation elements. After completing your studies, you will be upgraded to your
degree and go back to your company to work and of course, the company will support you with study expenses.
Professional staff will receive a course to improve communication and presentation skills and learn another
language, be it a third or fourth language. Then, the human resources managers will be the ones to check those
employees. It may take 1 to 2 months depending on the amount of knowledge that the worker is learning. This
helps employees increase satisfaction and gives them the motivation to work. (Nasrudin, 2022)

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This will be done at the company itself at the beginning of the working process, usually 1 month depending on the
capacity of each person. In addition, the human resources department will combine Off job training for senior
employees who contribute to the company and are sent to the sales department, specifically the use of computers
for payment Online. Employees will be sent to take a laptop and business course related to payment automation
elements. After completing your studies, you will be granted a degree and return to the company to work and the
company will take care of the study costs. Professional staff will be required to take a course in communication,
presentation, and third language skills. Then the head of the human resources department will check the
appropriate test forms for the employee. And it will take 1-2 months depending on the amount of knowledge the
worker learns. This will increase employee satisfaction and motivation. In addition, when trained directly, learning
will be managed in a secure manner. In addition, incorporating exit training offers benefits such as helping
employees feel more valued, learning from others, and being less annoying to co-workers or superiors.
3.2. Rewarding:

Currently, in order to motivate employees to stay and work, participate in training activities and retain talents,
companies must implement reward and preferential policies for employees. According to the theory of
motivational justice, employees always want to receive justice to deserve their contribution and reduce their
pressure and boredom at work. Since then, rewards always contribute an important part of the company to help
satisfy and motivate employees. (Juneja, 2022)
The company's current strategy is to transform its business model to catch up with current trends and bring in
revenue for the company. Because this will be a long-term strategy, employees must try and work hard. That will
be one of the reasons for a lot of pressure on employees. Therefore, the company will actively propose worthy
rewards to encourage employees to work effectively and successfully complete the strategy. Specifically, Estée
Lauder very favorably offers good remuneration policies to employees. Estée Lauder is equally committed to
providing attractive and competitive compensation packages with goals, motivation, and talent. Employee salaries
are assessed based on levels such as background, role, experience, geographic location, and performance. In
addition to employees will receive the basic salary as prescribed, the company will annually provide incentives and
fair rewards for employees in certain categories. In addition, Estée Lauder also has health and well-being support
packages including pensions, post-retirement benefits plans, health benefits, work arrangements, leave, and even

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support adoption and education-related benefits. Even during the recent Covid 19 pandemic, the company has
provided a number of physical, emotional, and financial support to employees on a global, regional and local level.
(Estée Lauder ANNUAL REPORT, 2021)
Proposal of Rewarding:
Although Estée Lauder did a great job in rewarding employees differently from financial, and moral to healthy.
However, besides that, Estée Lauder can build a better working environment so that employees are more
motivated to go to work and stick with the company for a long time. Specifically, Estée Lauder is known as a
company that produces "vegan" cosmetics, which are safe for the environment. So the company can choose a
terrain location towards the green forest or simply plant a lot of flowers and trees in the company instead of just
a simple building. That not only helps trees regulate the air, and protect the environment but also helps employees
feel comfortable and relaxed when working in a "green-clean" environment. Because it's a fiercely competitive
environment, it's normal for employees to go to work for long periods of time leading to stress. Not just meeting
rooms, normal working. Estée Lauder should build more entertainment rooms such as libraries, gyms, yoga, spas,
cinemas, and even swimming pools. Estée Lauder has always been known as a company that "favors" women, so
it is possible to build more restrooms for pregnant mothers or even a play area for children in case mothers
increase shifts, their children will have a place to wait and they also don't have to worry about who will pick up
their children. This is definitely one of the things that every employee wants his company to do. Thereby, it can
help the company's employees to avoid some pressure and motivate them to go to work more often and be more
productive.
4. CONCLUSION

After analyzing the internal and external factors that can affect the preparation of personnel for digital
transformation. In that context, employees must be equipped with knowledge and skills to serve the inevitable
employee transition under pressure. So Estée Lauder has come up with plans to motivate employees through
learning, reward methods to retain talent, and train employees to accelerate digital transformation. All of the
above aims to motivate and create engagement for employees and the company.

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References

Estée Lauder Companies, 2022. Estée Lauder Companies. [Online]

Available at: https://www.elcompanies.com/en/careers/technology-jobs#innovation
[Accessed 27 October 2022].

english-mic-gov-vn, 2022. Vietnam targets 85% smartphone usage by end of 2022. 4 April.

Estée Lauder ANNUAL REPORT, 2021. Estée Lauder ANNUAL REPORT, s.l.: 2022.

Estée Lauder Companies , 2021. SOCIAL IMPACT AND SUSTAINABILITY REPORT, s.l.: 2021.

Estée Lauder Companies , 2022. [Online]

Available at: https://www.elcompanies.com/en/careers/why-work-here/learning-and-development
[Accessed 27 October 2022].

Estée Lauder Companies , 2022. [Online]

Available at: https://www.elcompanies.com/en/news-and-media/newsroom/company-features/2018/elc-
becomes-first-beauty-company-to-partner-with-linkedin-learning
[Accessed 27 October 2022].

Estée Lauder Companies , 2022. Estée Lauder Companies. [Online]

Available at: https://www.elcompanies.com/en/who-we-are/retail-channels/travel-retail
[Accessed 27 October 2022].

Juneja, P., 2022. Equity Theory of Motivation.

Nasrudin, A., 2022. Off-the-job Training: Types, Advantages, and Disadvantages, s.l.: 2022.

valamis, 2022. valamis. [Online]

Available at: https://www-valamis-com.translate.goog/hub/on-the-job-

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training?_x_tr_sl=en&_x_tr_tl=vi&_x_tr_hl=vi&_x_tr_pto=sc
[Accessed 27 October 2022].

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