The Basic Functions of Human Resources

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Recruitment is a process which is aims to attract appropriately qualified candidate for a particular position from which it is possible and practical to select and appoint a compenent person or persons.

Three Phase of recruitment:

1 Generating application

2 Maintaining application status

3 influencing job choice

Selection : it's a process which involves the application of appropriate techniques and methods with the aim of selecting ,appointing and inducting a ompentent person or persons.

Professionalism and Ethics main facor of selection .

LVMH must be able to have a worldwide recruiting process and to send its wmployees on global assignment.

LVMH is a very attractive company for French prospectus ,however it is not as successful on international labor market .

Due to international recruitment ,this factor is support in business growth , the number of employers involved in international transfer is increasing ,however this does not mean that a rise in the number of French expertites will drive this trend .Rather LVMH'S poll of global mangers will grow through third -country nationals and most multi cultural profiles.

Due to this key factor ideal candidate is a person who has been immersed in several cultures,so its benefits for the company objectives in future .

Expectations of the Human Resources Department Have Changed

These three emerging concepts in the practice of HR bear examination for LVMH

What value does the HR department bring to the organization? Many HR teams lack a vision that includes their value to the organization. Do the HR department's activities directly help the company achieve its broad business objectives? Are the HR team's arguments for or against a business strategy credible to the other department heads at the decision making table? How are the HR department strategies that benefit the employees, the shareholders, the customers, and all other stakeholders in the organization, selected and implemented?

What value does the HR department generate for the customer - the end user of the company's product or service? Sales and quality are no longer restricted to the sales and quality assurance teams. Edwards Deming taught organizations that quality and value must be built into every step of the process. The HR department doesn't just hire a salesperson based upon a manager's request. The end result of HR's recruiting and hiring efforts is that the customer who interacts with the new sales person receives continuing world class service from the company. HR shares the quality of the new hire with the other departmental silos to insure that the company is, or becomes, the vendor of choice for that customer.

Efficient and effective Human Resource management is a challenge to all HR professionals. Staffing, training and helping to manage people so that the organization is likely to increase the performance level is imperative to work in a productive manner. Normally, human resource functions are tracking data points on each employee. These might include experiences, capabilities, skills, data, personal histories and payroll records. In the most general sense businesses carry out different activities dealing with managing their approaches to employee benefits and compensation, as well as employee records and personnel policies.

Among the core HR activities there are payroll, time and labor management, benefit administration and HR management. These activities correlate with the HR objectives which are largely the responsibility of Human Resources.

The foremost objectives of Personnel services are an efficient and effective personnel and payroll system responsive to staff needs together with the flexible remuneration system. These objectives can be attained by implementation of different modules, such as budgets and commencements module, applicant tracking module, occupational health and safety module, etc.

None the less important HR objective is the industrial relations services implying establishing effective relationships between the employer and the staff. Complete and comprehensive policy framework should be established for risk management, safety and health issues. Staff should be well informed about safety and health issues in the workplace. What is required to gain this objective is the staff's participation in a wide range of training and awareness programs in the area of safety and health. Staff development objective can be realized through different skills development courses designed to encourage further skills development necessary to carry out their responsibilities.

Some organizations consider equity and diversity services as their objective and provide information about the procedures for sexual harassment, racial harassment and equity grievances, thus making the staff well aware of the policies. The initiatives include awareness programs in relation to equity and diversity. In the long run it leads to an increase in the number of staff who has attended the training sessions and know the issues.

Human Resource services provision is closely connected with strategic policies, planning and coordination of an organization. A wide range of human resource strategies aimed at more flexible planning can include improved links between performance and remuneration, improved performance measurement procedures for all staff, improved recruitment and retention strategies, and encouragement of skills development. One more objective result in consultancy support provided on the basis of improved information about both the employer and HR staff needs and working requirements.

HR objectives stimulate the development of people to be their best in order to meet the needs of an organization. A successful performance management system including department, team and individual business objectives, personal development plans, performance appraisal, career planning, etc., aims at enhancing the personnel's commitment to developing the business long-term and can give challenges which will enhance the staff personal growth. Moreover, if an organization can assess the workforce changes needed by business, implement the necessary optimization and measure the results using up-to-date technology systems, it will get data having a critical role in monitoring and controlling overall performance.

Example of KPI Sets for the Human Resources Department

The personnel department or commonly known as the Human Resources department is an essential part of the company as this is the area where the employees and the applicants are being taken care of. This is why it is also important that the management has provided key performance indicators for the HR. The indicators will help the company determine how well they said department is improving, performing and working in terms of the goals that have been set here. Therefore, before you choose the KPIs for this area, there is a need to specify first the objective of the HR. When this is done, it is time to look for the best example of KPI.

You can go to the Internet and you will find that there are numerous sets of KPIs online. To make things a lot easier, you can specify the department that you are working in so that you will have lesser results. You can jot them down and then reduce them to few numbers so that you will be able to really measure the efficiency of your HR department. When this is done, you start exploiting the KPIs into the human resources department.

Before you select and finalize your choices for the indicators, you should first know the qualities of the KPIs that will work for your company. You see, there is a big difference between the KPIs of another company from yours even if you are in the same industry. This is because of the goals that you have set and they should be aligned with the objectives so that they will help you target the real purpose of the organization.

Now, a good KPI is specific, reliable, measurable, effective, relevant and functional. Remember that they should be connected with the strategic objectives of your company; otherwise, they will only mislead you. There are a lot of KPI samples that you can find today and there are even books that contain several pages for the indicators. Just ensure that you will utilize the right one for your company. An example of KPI for the HR department will often be divided into different categories and they would be about the activities in the HR department. These can include the employee recruitment, worker growth, record keeping, career development, performance appraisal, rewarding of employees and many others.

For recruitment, you can choose from the example of KPI which may include the satisfaction rate of newly hired employees, acceptance rates for job offers, cost of recruiting employees for different positions and the average time required to conduct an interview and recruit employees. When it comes to the growth of the employees or their development you can choose from the KPIs samples such as the average time of the workers that are in the same function or job, the return on investment for the training programs and the average training costs and hours for every employee.

When selecting the HR KPIs, you have to make sure that you will measure the things that really matter for the department. This way, you can easily gauge the performance of the HR.

Argument of HRM model for LVMH:

Three main approaches for Models of HRM

Best fit (European model)

Resources based view of the firm

Best practice (US model)

From above model bestfit (European model) is the deploys to lvmh because of its natural labour markets is france ,today 70% of early career rofessional at LVMH are recruited in france.

This model limitation is

1 ignores employee interests in reality

2 it's a top down approach

3 Assumes one best fit solution and makes little room for adaptability.

Task 2


Training and development -- or "learning and development" as many refer to it now -- is one of the most important aspects to our lives and our work. In our culture, we highly value learning. Yet, despite our having attended many years of schooling, many of us have no idea how to carefully design an approach to training and development.


Amit Patel

Managerial HR Consultant,



Board of Directors,


Sub: Recommendation for training and development



The LVMH Training Management System:

tracks training requirements at the employee, job title, work group, division, and location level;

automates the process of assigning training requirements;

sends automated alerts to employees required to complete training;

sends alerts for pending and overdue training requirements to employees and supervisors;

reports training costs by course, employee, job title, work group, division, location, year, etc.;

streamlines training management workflow, thereby reducing duplication of employee efforts;

archives training histories for year-round internal and external audit preparedness; and

Meets ISO 9001, ISO 14001, ISO 19011, and OHSAS 18001 training management requirements.

In lvmh Training Management System is designed to enable organizations to effectively implement best-in-class employee training practices. By tracking employee skill levels, streamlining training administrative workflow, and accurately reporting training costs, organizations consistently record an increase in overall organizational performance.

Implementing the In telex Training Management System will enable your organization to begin accurately tracking employee skill levels and certifications; schedule and assign training; send automated training email notifications; define corporate-wide training workflow; monitor training progress in real-time; track costs associated with training; and create ad hoc, boardroom quality training reports.




Employee Development

What Is Employee Development?

Employee development is a joint, on-going effort on the part of an employee and the organization for which he or she works to upgrade the employee's knowledge, skills, and abilities. Successful employee development requires a balance between an individual's career needs and goals and the organization's need to get work done.

Employee development programs make positive contributions to organizational performance. A more highly-skilled workforce can accomplish more and a supervisor's group can accomplish more as employees gain in experience and knowledge.

Why Should Employee Skills and Abilities Be Developed?

A review of research literature in 2003 supported the commonly held belief that employee development programs make positive contributions to organizational performance. A more highly skilled workforce can accomplish more as the individuals gain in experience and knowledge.

In addition, retaining an employee saves the organization a great deal of money. One method of retention is to provide opportunities to develop new skills. In research conducted to assess what retained employees, development was one of the top three retention items.

Stages of Employee Development

Everyone goes through several stages of development as they move from being a career "beginner" to a full expert in their field. Each stage has specific needs and tasks to consider. As you work with employees on development, it can be helpful to look at their stage in order to find the best kind of activities for them. Keep in mind that the stages do not relate to age. If an employee has recently completed a career change, he or she is probably in the "exploration and trial" stage. If, on the other hand, he or she has burned out on his or her career, he or she might be in "disengagement" even though chronologically he or she might be in his or her early thirties in age.





Exploration and trial

·Work with regular guidance.

·Work is routine detail has own area of responsibility

·Work independently

·learn to ask for help

·learns to take initiative

·Build a reputation

Develop self image in the job

Establishment and Advancement

·Independence and specialization

·Learn to work independently

·Produce significant results

·Learn how to cope

·Deal with change or lack of it

·Learn how to get ahead

Mid Career: Growth, Maintenance, Decline

·Responsible for guiding others

·Use great breadth of technical skill to support organization

·Feel disappointment if goals are not achieved

·Learn to help others

·Develop others through knowledge

·Serve as mentor


·Use experience to provide direction for the organization

·Influence decisions

·Prepare psychologically for retirement

·Learn to accept a different role

·Learn to let go

·Achieve balance in life

Task 3


LVMH. Has been recognized for its world-class expertise in the design and implementation of Balanced Scorecards. Many companies have heard of the concept of the Balanced Scorecard, yet few understand how to implement it and get the full benefit of business metrics.  Also known as a digital dashboard, the Balanced Scorecard system provides managers and executives performance feedback on each of the organization's key business processes using precise performance metrics.

The Balanced Scorecard consists of a set of Key Performance Indicators, which represent predictors of Customer Satisfaction, Operational Performance, Financial Results, and Organizational/Leadership Effectiveness.

LVMH has helped both Fortune 500 and small companies alike reach breakthrough levels of performance.  We have hundreds of balanced scorecard examples that can be drawn upon.  Each of our individual examples of key performance indicators is supported by formulas and proven methods to collect and report performance.  Developing key performance indicators for your business can be a challenge. 

Key Performance Indicators (KPIs)

Key Performance Indicators represent Predictors of Customer Satisfaction, Operational Performance, Organizational Development, and Financial Results. KPIs are typically presented in graphical form so as to provide trends, comparative information and make it easy for people with limited backgrounds in statistics or financial management to interpret the results.

KPIs provide a means to connect departments and functions with common goals and objectives that support overall business success. KPIs are always integrated into the objectives outlined in the business / operating plan. KPIs facilitate effective review of business performance by focusing on key issues as well as balancing short and longer term objectives of the business and its key stakeholders.


Measure the predictors of customer satisfaction / loyalty

Measure operational performance

Highlight the overall corporate vision

Integrate KPIs into your business plan

Facilitate in the development of a balanced scorecard

Way for improve the HR performance:

Following a detailed assessment of your business, we will help you develop the following:

·Executive Performance Indicators and Balanced Scorecard

·Key Performance Indicators for all levels of the organization

·Identification of goals and appropriate benchmark metrics

Utilizing our customized approaches to Customer Satisfaction and Competitive Analysis, we can validate the effectiveness of your predictive indicators of customer satisfaction and customer loyalty.

Integrated Performance Management Systems capture the voice of the customer through Customer Satisfaction Surveys but also provide on-going feedback to management on the voice of the key business processes.  KPIs are the ideal tool to link the voice of the customer with the voice of the process.

Using Balanced Scorecard in HR Management

Business Reactions from the Recession

Each time I read my morning paper or turn on the evening news, the headlines contain stories on how the economic pandemic has been wreaking financial havoc on the lives of businesses and employees alike. And lately, the popular phrases that I often hear from CEOs and business owners that I do business with are cost-cutting measures, retrenchment, downsizing or streamlining, imminent bankruptcy, deferment of suppliers' payment, and avoid foreclosure. These are but natural reactions. A financial crisis with a magnitude like this, any business owner would worry. When a business is threatened by circumstances beyond its control, the most practical thing to do is preserve its viability or profitability at all costs.

However, if we take these knee-jerk reactions, are we not simply allowing this crisis to hasten the demise of our businesses, and let our employees take the brunt of it all? It is lamentable to think that each time the business suffer losses, employees find themselves jobless. This could be prevented.

Employees' compensation and benefits does not account for the majority of the operational expenses (as most finance managers would present in corporate meetings). Competent and loyal employees are assets that needed to be protected and nurtured because they help the bottom line.

Have you even considered looking at your recession scorecard? There is a better remedy to this crisis without necessarily laying-off employees. Use better and accurate performance management systems that will monitor and manage your business KPIs (Key Performance Indicators) by using Balanced Scorecard or BSC. This way, you can better formulate corporate strategies that will shelter you from the effects of the economic downturn.

Balanced Scorecard: A Performance Management Alternative

The Balanced Scorecard gives CEOs, business owners, and managers an indication of the performance of a business organization based on the degree to which various stakeholder needs are satisfied; it presents the organization from the perspective of internal and external customers, employees,andshareholders.

Robert S. Kaplan and David P. Norton, among the proponents of these strategic concepts, give a better definition:

Balanced scorecard provides managers with the instrumentation they need to navigate to future competitive success. Today, organizations are competing in complex environments so that an accurate understanding of their goals and the methods for attaining those goals is vital. Balance scorecard translates an organization's mission and strategy into a comprehensive set of performance measures that provides the framework for a strategic measurement and management system. It retains an emphasis on achieving financial objective but also includes the performance drivers of these financial objectives. The scorecard measures organizational performance across four balanced perspectives: financial, customers, internal business processes, and learning and growth. It enables companies to track financial results while simultaneously monitoring progress in building the capabilities and acquiring the intangible assets they need for future growth." (The Balanced Score Card: Translating Strategy into Action, pp. 1-3)

Why is Balanced Scorecard Important for Businesses, especially during a financial crisis?

The Balanced Scorecard is important because it brings together most of the features that a company needs to focus on to be competitive. These include being customer-focused, improving quality, emphasizing teamwork, reducing new product and service development times, and managingforthelongterm.

The Balanced Scorecard differs from the traditional measures of company performance by emphasizing that the critical indicators chosen are based on the organization's business strategy and competitive demands. Organizations need to customize their balanced scorecards based on different market situations, products, competitive environments, including the current state of the global economy. In this respect, recession KPI should have been formulated and established with the aid of downturn metrics provided by AKS-Labs (Developer of Balanced Scorecard Designer).

Balanced Scorecard is also an excellent crisis management tool for organizations that have EMS (Environmental Management Systems) and OSHAS (Occupational Health and Safety Administration Standards) certifications. BSC is an excellent tool for monitoring and auditing compliance to those standards.

Balanced Scorecard in HR Management

Effective roll out and implementation of Balanced Scorecard can only be made if the organization is able to cascade its mechanics, importance, and objectives to the employees. Therefore, doing, this will give them a concrete framework that helps them see the goals and strategies of the organizations, how these goals and strategies are measured,

Moreover, the Balanced Scorecard should be used to link HRM activities with the organization's strategy and evaluate the extent to which its functions add value to business strategies and goals. Measure of HRM practices primarily relate to productivity, people, and process. Productivity measures involve determining output per employee (such as revenue per employee). Measuring people includes assessing employees' behavior, attitudes, skills, and/or knowledge. While process measures focus on assessing employees' satisfaction with how the organization compensate, reward, and develop them so that they continue to add value to organizational competitiveness as a whole.

Conclusion: Benefits of Balanced Scorecard in HRM

Using BSC or Balanced Scorecard in performance management is actually a holistic approach; because it does not leave any key functional area in the organization unturned. Also, because it focuses on the most essential things needed to produce the maximum results. It actually follows closely the Pareto Principle, where 80% of productive organizational performance comes from focusing on the 20% most important KPIs.

BSC links organizational units into a more cohesive entity towards a common goal while they continue to strive to meet their own personal and departmental goals. More so, with BSC, individual performance is tied-up with departmental performance. Each member's goals and performance is integrated with that of the unit or department. This is where the principle of the sum of the parts is greater than the whole. In short, BSC impels employees to synergize.

Lastly, the best part of implementing BSC is you get the results of what you measure; because Balanced Scorecard enables the organization to link its performance measures with its business strategies and goals.

Conclusion and Recommendation:

This study shows that strategic planning is not foreign to LVMHs.  Professional and lay leaders in every LVMH in this study were reviewing external and internal changes that were currently confronting the LVMH and that it might face in the future and deciding how to deal with these problems.  The study also showed that human resource management suffers from a lack of professional trained staff and that it frequently falls into the portfolio of a busy rabbi or executive director who lacks specific training in this area.  The strategic human resource management functions of recruitment, evaluation, career development and succession planning had not been fully explored or utilized at most of the LVMHs in this study.


LVMH need to develop and implement the following strategic human resources management functions:

Review and re-evaluate the human resource management role, and determine if this role should be assigned to someone other than the rabbi or executive director.

If the decision is made to reassign the human resource management role, determine whether it will be beneficial to train a current staff member or volunteer, or recruit a new person who already has the skills and knowledge to step into the role.

Prior to beginning the process of recruiting a new rabbi or executive director, review the current qualifications and skills needed for the job, and determine how the changing needs of the might require a change in the job duties and skills.

Prior to beginning the process of recruiting a new rabbi or executive director, review the qualities and characteristics that the congregation is looking for in such a person.

Establish a performance evaluation process for the senior rabbi as well as the assistant rabbi and the executive director, and make performance evaluation a process that brings the rabbi or executive director and the congregation closer toward the accomplishment of mutual goals.

Review options for succession of the rabbi and executive director.

In LVMHs where there is a large staff, work toward the viability of succession options by providing career development and training for staff members who may move up in the organization.

In LVMHs where there is a minimal staff, work toward the viability of succession options by putting into place plans that will allow for a smooth transition.