DEVI AHILYA VISHWAVIDYALAYA INDORE INSTITUTE OF MANAGEMENT STUDIES Mg ASSIGNMENT ON- SHRM OF LOUIS VUITTON SUBJECT-DECISION MAKING ITTED TO- DR. C.S KATJU SUBMITTED BY- ANAM (SEC-B) 74617 \WHAT IS STRATEGIC HR MODEL? Strategic HRM focuses on how changes impact HR systems and their func- tions (staffing, developing, preserving), while strategic HRD focuses on equipping the people within those impacted HR systems with the skills nec- essary to respond to that change. The goal of creating HRM models is to help companies manage their workforce in the most efficient and effective manner possible, in order to achieve the established objectives. Human resource management is often defined as a concept that includes two possible approaches, or forms. A hard approach to HRM is characterised by its distinct focus on performance management and the emphasis it puts on the instrumental approach to the management of employees. A soft approach to HRM, on the other hand, focuses on empowerment, motivation, and trust in dealing with employees, considering individual contributors the most important resource an organisation can have.The goal of SHRM is to create policies and programs that align with the company's business strategy. The main difference between human resources and strategic human resources is that human resources focus on the day-to-day management of employees, while strategic human resources focus on how employees can achieve the company’s overall goals. This means that SHRM must first understand the company's business goals and then create programs and policies that support those goals. ‘Some common examples of SHRM programs and policies include: ¢ Performance management: Creating systems to track and improve employee performance+ Training and development: Identifying employees’ development needs and providing training and resources to help them improve + Compensation and benefits: Designing compensation and benefits programs that attract and retain employees Employee relations: Managing employee relations to create a positive work environment These are just a few examples of the types of programs and policies that can be part of SHRM. The specific programs and policies will vary depending on the company’s goals and the needs of its employees. WHY SHRM IMPORTANT? SHRM is important because it helps businesses achieve their goals. By aligning HR programs and policies with the company's business strategy, SHRM can help businesses improve employee performance, develop the workforce and SHRM can help businesses improve empioyee performance, develop the workforce andcreate a positive work environment SHRM can also help businesses save money by reducing turnover and improving productivity. + Improve employee performance: SHRM can help businesses improve employee performance by creating systems to track and improve performance. + Develop the workforce: SHRM can help businesses develop the workforce by identifying employees’ development needs and providing training and resources to help them improve. + Create a positive work environment: SHRM can help businesses create a positive work environment by managing employee relations. + Reduce turnover: SHRM can help businesses reduce turnover by designing compensation and benefits programs that attract and retain employees.+ Improve productivity: SHRM can help businesses improve productivity by improving employee performance and creating a positive work environment. ABOUT LOUIS VUITTON LVMH is a luxury brand that is famous around the world. It was created in 1987 and boasts 50 luxurious brands that have a unique history and culture. The main aim of the organization is to improve its profitability in the industry. It also ensures that the authenticity of its brands remains at the highest possible levels while meeting its goals. Although LVMH started as an international company, it lacked human resource managers with international expertise. This led to the company choosing to invest in ensuring that it is able to acquire these types of managers in order to ensure the development and growth of the organization. Most of the companies that comprise LVMH are located in France. The group is structured around five business groups where each consists of several strong brands. | iThe group has 50 companies which in turn have 450 subsidiaries. These companies run almost independently where each hasits own president and an executive committee which makes decisions about some of the activities of the company. LVMH is the world’s foremost luxury goods group. The Group is make in Wines and Spirits by a portfolio of brands that include, Dom Perpignan, Verve Aliquot Ponsardin, Krug, Ruin art, Chateau d'Yquem, Chandon Estates, Hennessy, Glenmorangie, Belvedere and Chopin. It's Fashion and Leather Goods division includes Louis Vuitton, the world’s leading luxury brand, as well as Celine, Loewe, Kenzo, Givenchy, Thomas Pink, Fendi, Emilio Pucci, Donna Karan, Marc Jacobs, Berluti, StefanoBi as well as eLUXURY, the authoritative online source for luxury goods on the Internet. LVMH is present in the Perfumes and Cosmetics sector with Perfumes Christian Dior, Guerlain, Perfumes Givenchy, Perfumes Kenzo, Perfumes Loewe as well as other promising cosmetic companies. LVMH is also active in selective retailing through DFS, Sephora in Europe and the United States, Le Bon Marche and La Samaritaine. LVMH’s Watches and Jewellery division comprises TAG Heuer, Chaumont, Christian Dior Watches, Zenith, Fred, the prestigious Italian writing instruments company of OMAS and De Beers Diamond Jewellers Limited, a joint venture created with the world’s top diamond group. OBJECTIVES OF STUDY * Tounderstand the hr strategies of Louis Vuitton. » Tounderstand various hr process and dynamics of louis vuitton. « Tounderstand the human resourse management process of louis vuitton.STRATEGIC HRM AT LOUIS V SERA TON Louis Vuitton is renowned for the premium service and experience it offers customers, but few people realise that the same standard of excellence extends to Louis Vuitton's employees, too. At Louis Vuitton, they treat our employees the same way our client advisors treat our clients. They treat our clients as VIPs in our retail shops, and we mimic this philosophy in HR and treat their employees as VIPs. This is the philosophy that all Louis Vuitton HR teams around the world have.” Store staff make up the biggest share of Louis Vuitton employees globally, and as the face of the most valuable luxury brand in the world, they play a crucial role in its success. So when it comes to HR matters, they expect the process to be smooth, efficient and professional. They try not to ask our employees to perform the same actions more than once, or collect the same information more than once, because they don't want to trouble them to do repeated actions. HR STRATEGIES AT LOUIS VUITTON LVMH INTERNATIONAL MOBILITY PROGRAMME The company believed that the development of its managers was not through subjecting them to formal training but by increasing their mobility.This means that the managers moved to different countries and interacted with new environments to aid in their development. They were alsosubjected to new challenges and experiences which enabled them to be able to cope with the current changing needs of the business environment. The company believed that staying in the same geographical region and being subjected to the same challenges and environment does not result in the development of the managerial skills of an individual. The company also did not support the development of experts from outside their areas of expertise in regions that are outside their home areas. This is because the company believed that allowing this to happen will not be beneficial to the company and instead it will only benefit the person involved. CAREER PATHS AND DEVELOPMENT The company also ensured that it offered exciting career development prospects as opposed to economic incentives. The company was in a position to offer economic incentives and also the package that they offered was amongst the best in the market. However, the development of the managers was their primary objective, and offering the chance to develop in their field of work as they gain more experience proved to be a very important part of their development. fered its training managers more challenging freedom to work and make important decisions. ant since they encourage the involvement of the ctual processes of the company decision making very important part of their learning curve. The company also o1 opportunities and the These factors were import training managers in the a and consequently acting as aEXPATRIATES Another feature is the use of expatriates. This did not mean that local talent was not available but ensured that the mix between the local people and these expatriates ensured that the sharing of experiences and information was two ways. The local people got the chance to learn a lot from the expatriate and at the same time, the expatriate learned from the local people. This relationship was therefore symbiotic since the development of the training manager also resulted in the development of the local talent that is available in the area where the expatriate is placed. The expatriate, therefore, was able to develop his/her skills and also gain exposure as a result of being in a new environment. Sometimes the expatriate was posted in a given place to ensure that he/she protects the interests of the group. GLOBALIZATION OF ITS TOP MANAGEMENT HRM also focused on ensuring the globalization of its top management. This was by ensuring that they recruit highly promising managers in their fields and aiding them in their development. This results in the group department that has representation from most efore globalizing it .This is important in the growth of an international business since the diversity of the cultures and thoughts of all these managers may Prove important when it comes to making important business decisions for the company. is Vuitton implemented a new HR management was able to digitise many of these backend Louis Vuitton installed FlexSystem's BridgeBuilder North Asia division. having a human resource Parts of the world and ther But it wasn't until Loui system in 2018 that it Processes. That is when HRMS (BBHRMS) in itsEXPERTS IN DIGITAL TRANSFORMATION PERFORMANCE APPRAISAL SYSTEM. The whole nature of the performance appraisal system is also another feature of the LVMH international mobility program. It ensured that the system was not only result-oriented but also focused on the implementation and coming up with new ideas. This is important since the development of acompany cannot only be measured by the returns from its investments. The ability to cope with the changing business environment and introducing new products to the market also ensures the growth of a business entity (Cathy 86). The company, therefore, focused also on the ability of its Managers to come up with new ideas that would help them in their : development and at the same time ensuring the growth and profitability of the company. UPPORT TO SPOUSE ort for the spouse of the person who chooses Lv aloof SU becuse arp who Nave arena responsibilities are found to not consider Being MELTS. Tt’ nN the izati sider the young graduates who do not have these Srganization to only Con pport to the spouse, the number of the older Tesponaiiies. a i 3 part of the mobile team is increasing, oup that is acceSCURITY BENEFITS So she ae benefits are also another important feature of ‘the LVMH erent Mobility program. The expatriates are subjected to security tenefits that compare to those that are available in their home countries. They are not subjected to penalties that may make their benefits different from that they would have been subjected to had they been working in their home country. Benefits such as retirement benefits need to be extended even when the expatriates are in a foreign country. CAREER MOBILITY Career mobility is an important factor when considering the nature of the business environment and the changes that this. environment faces. There | ate measures that need to be taken in order to ensure that this important i intained. This is because it results in Part of the employment world is main! influencing fhe pa positively and also coe eee pid Xposed and are ready to lead the company to greater heights. SUGGESTIONS suGoc*:———— i that the company tices, but there are areas (Mn i ing best prac! is already using “an improve on. ify their target demographics because the younger ~LVMH iversify MH needs to di the most buying foe demands equality and prefers Seneration, which has em relatable. lointeraet with companies ""°Y [-LVMH has to diversify their product offering because the majority of products are targeted towards the very wealthy, so diversifying will help LVMH thrive in a globalized world. -LVMH must confront ethical problems regarding sustainability because as a conglomerate it affects every major retail market in the world. CONCLUSION There is a lot of improvement in the companies’ policy regarding international mobility and learning English language that gives strength to the LVMH's goal to sustain in global competition and achieve company's goal through knowledge base HRM. As student I can not give the exact idea about reading just few papers for the company which is running successfully since 1593. Company has history of more then 400 years they have created their name and fame through their working pattern and workforce who works for them. | am little bit small to evaluated and give the recommendation to the company's board of directors they are the genius in their planning and implementation of their HR policies. The emerging technologies can be considered as either opportunities or threats, depending on the approach one takes to handle them. The external environment has a number of threats that Louis Vuitton has to find a way of dealing with to avoid the negative consequences. The threat of new firms coming into current market is expected to be high as firms struggle to capitalise on opportunities It should have a clear succession system from the top managers to the junior supervisors.REFERENCES https://www.bartleby.com/essay/Human-Resource- Management-Louis-Vuitton-Moet-Hennessy- FC8JSZMMBF6#google vignette https://)www.businessgo. -hsbe.comlen/article/how-digitising- the-hr-department-helps-drive-louis-vuittons-success https://ivypanda.com/essays/mot-hennessy-louis-vuittons- human-resource-management! https://www.ukessays.com/essays/business/human-resource- management-at-Ivmh-group-business-essay.php