Workforce in LVMH at global level

Published: Last Edited:

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Q) What is the main purpose of workforce in LVMH at global level?


The main perspectives on international HRM in LVMH are:

In LVMH, the core/main objective of the international human resource management function is to ensure that the most effective use is made of its workforce (human resources). To achieve this objective, IHR professionals undertake a range of activities which is around researching, sourcing, developing, rewarding and performance management, international human resource management planning, motivation, employee's involvement and communications. Every organization has its own strategic human resource function, these activities supports and informs organizational strategies. Human resource professionals are also used extensively in the time of organizational change and development initiatives.

* The global approach is something which apply globally. In this approach we use analytic framework or broader thematic interpretation to understand human resource management issues on a global scale.
* The comparative approach help us to comparing and contrasting the different ways of human resource management is practiced in the focus of multicultural, history and other relevant factors.
*Employees/staff are recruited in one country or another and wherever the selection is happening there must be range of conventions and legal requirements must be met. In this case the employee which is recruited will usually have a contract of employment for that country and that will fit within the legal framework of that country but probably not for some other country.
* Five main themes of LVMH: the impact of national culture on employee behavior; comparative issues in rewards management; comparative patterns of human resource management; international recruitment, selection and assessment; and the impact of internationalization on the HRM process.

Effective IHR Strategy Implementation in LVMH

1. Ascertain the current and intended nature of international operations in the organization (multi-domestic, international, global or transnational?)

2. Determine the extent to which HR policies and practices should be standardized or localized in accordance with overall organizational strategy.

3. Assess the extent to which local cultural, social, political, economic and legal factors will impinge on any attempts to apply standard HR policies if integration is a key factor in organizational strategy.

4. Ensure a computerized database of global human resources is available if integration is desired.

5. Work with the senior management team to identify the competencies required to achieve global organizational objectives.

6. Work with national HR and line managers to formulate IHR policies and practices in the key areas of sourcing, development and reward which will embed a transnational mindset in the organization.

The Role of the International HR Manager

International HR Manager involves the worldwide management of people or human resources. Although International (IHR) managers perform the same tasks as their domestically based colleagues, however the scope and complexity of these activities will depend on the extension of globalization or internationalization of the company.
The IHR manager will also be working to the same objectives, however, the scope and complexity of their role is increased as a result of working across borders.

IHRM as having three dimensions:

1. The three broad human resource activities: procurement, allocation, and utilization.

2. The three national or country categories involved in international HRM activities: the host country where a subsidiary may be located, the home country where the firm is headquartered, and “other” countries that may be the source of labor or finance.

3. The three types of employees of an international firm are A)host-country nationals (HCNs), B)parent-country nationals (PCNs) and C) country nationals (TCNs).
Working in these different dimensions creates far more complicated scenarios for each of the main HR activities listed above than in the domestic context. For instance, managing careers in an international organization can involve multiple international moves for all three types of employees. Administration of expatriate management alone often necessitates the creation of a specialist department.

Several other factors will influence the degree to which international and domestic activities of the HR function differ (Dowling 1999). These include:

1. The cultural environment
2. Nature of international operations
3. Attitudes of senior managers to international operations