L'Oreal Paris Performance Management Practice

L'Oreal Paris Performance Management Practice

                                                                                                                                    

In 1909, Sculler, a young French chemist of German descent, developed a hair dye formula called Oréale. Schiller formulated and manufactured his own products, which he then decided to sell to Parisian hairdressers. On 31 July 1919, Schueller registered his company,^] the Société Française de Teintures Inoffensives pour Cheveux (Safe Hair Dye Company of France). The guiding principles of the company, which eventually became L'Oréal, were research and innovation in the field of beauty. In 1920, the company employed three chemists. By 1950, the team was 100 strong; by 1984 was 1,000 and is nearly 82,000 today.

Sculler provided financial support and held meetings for La Cagoule at L'Oréal headquarters. La Cagoule was a violent French fascist-leaning and anti-communist group whose leader formed a political party Mouvement Social Révolutionnaire (MSR, Social Revolutionary Movement) which in Occupied France supported the Vichy collaboration with the Germans. L'Oréal hired several members of the group as executives after World War II. The vision statement of L'Oreal represents the motto as “Because I’m worth it”. Keeping the motto in mind, the company is advancing to attain predetermined objectives and goals. Basing on this vision statement L'Oreal sets its marketing and target policy to ensure better performance and to capture more market share. The  vision statement it creates the value of its products to its customer. The vision statement gives an indication that L’Oréal sells its products to those who really deserve the products through their beauty and acts. Sometimes this vision statement may cause racism because of highly arrogance .Although it targets only the posh consumers and shows negligence to the other market segments, the visions of L’Oreal group are quite straightforward.

“At L’Oréal it is  believed that everyone aspire beauty. Our mission is to help men and women realize their aspiration, and express their individual personalities to the full. This is what gives meaning and value to our business, and to the working lives of our employee.”The mission statement of L’Oréal clearly provides its aims and objectives how they accomplish their goals. They believe in the beauty and try to help the consumers believe in their natural beauty which enable them to express their personalities and to gain self-confidence. Through the realization of the organizational mission; L’Oréal creates its importance and value to their customers and employees, provides best cosmetics in terms of quality, efficacy and safety. One more point should be appreciated in the mission statement of L’Oréal is that it does not only adds value to its business but also it improves the lives of its employees of the organization. Diversifying the teams and products, L’Oréal has made the universalization of beauty for all. In line with its mission and its values, L’Oréal recognises and rewards the contribution of each employee to the company’s development by offering attractive compensation and a worldwide profit-sharing program, alongside key benefits. This policy applies to all employees. However, it is implemented in varying ways according to local regulations, culture and practice.
Compensation is regularly adjusted in line with the market, individual performance and efficiency in the post, qualifications and experience. Local salary structures are regularly assessed in terms of the outside market but also in terms of internal salary levels for equal responsibility, skills and experience.
L’Oréal has a performance-oriented culture. Our compensation policy reflects this very culture, including bonuses to reward high levels of personal performance and involvement as well as team and business unit performances. This system is currently being deployed in every country in which L’Oréal operates. The Group has also set up a program known as the Worldwide Profit Sharing (WPS) program which gives employees a share in the fruits of successes in their country. Finally, L’Oréal is investing in the long-term security of its employees by committing to offer benefit programs (which may include retirement, health care, death and disability plans) and other fringe benefits in line with the regulations and practice in each country, which will complement the compulsory schemes.