LVMH_Career Development through International Mobility

LVMH_Career Development through world-wide MobilityIntroductionTask 1 Work Force PlanningWorkforce send offning is a unconscious offshoot designed to anticipate and integrate the human resources response to an ecesiss strategic plan. Strategic Workforce Planning PDF. The plan is projected to help in supplying in terms of sententious as well as long term. Through Workforce Planning organisations gain insight into what people the organisation will need, and what people will be available to meet those needs. In creating this understanding of the gaps between an organic laws necessitate and the available custody supply, organizations will be able to create and target programmes, approaches and develop strategies to completion the gaps. The plan should Depend on the staffing and the competencies predicted for the future. Asses the present work force Identify gaps which exist between the present workforce and the future requirements Develop strategies to acquire the workforce n eeded in the future Evaluate from time to time the effectiveness of the plan. Work Force Planning in LVMHIn a global organization like LVMH, work force planning faces a lot of constraints. The plan has to topic into consideration the beating number of 71000 staff who are spread crosswise 2000 of the companies stores. Displaying an organic ontogeny of 7% per annum it is essential that LVMH has the right and sufficient genius to compensate its future requirements. Another constraint would be the facts that the plan should incorporate liter different autonomously run companies which are everlastingly growing alongside the addition of newer companies. The main aim here would be to develop the workforce in delimitate with the business strategy. The plan should be constantly evolving taking into account the various changes affecting the organization. From the outset LVMH was an international business and had drawbacks in its work force plan which is evident from the fact that the hu man resource department lacked international experience and many managers were not fluent in English. The skills required were not predicted well sufficient to ensure the competency levels of the employees was in co-ordination with the organizations needs at that point of time. The group is channelizequartered in France but has to be multicultural due to the scale of its international operations. later an effective work force plan changed LVMH to identify the competency levels it needed from its employees in line with its business strategy. This run away LVMH to develop global managers with international expertise through International Mobility. Looking towards the future, the importance of work force planning at LVMH back be related to the following global trends Change in market trends Scarcity of skilled workforce in certain countries Changes in legislations which may collide across operating countries Older population Changes in the privacy age of the younger generation of employees Advancement in technology to change the HR functionAn effective work force plan which takes into consideration the growth and the staffing constraints in the operating as well as prospective business zones would equip LVMH to maximize its growth opportunities.Task 2RecruitmentRecruitment refers to the process of attracting competent prospective employees for va ignorecies at an organization or firm. Recruitment may be done internally or externally. External recruitment is the process of attracting employees from impertinent the organization whereas internal recruitment is where internal labor is used for filling vacancies. The rapid globalization of the markets combined with a constant shortage of skilled staff and advances in technology have resulted in large scale changes to recruitment practices throughout the world. A survey spanning more than 2000 companies conducted by Intelligence Group in association with StepStone, revealed that 42% prefer to recruit internat ionally for their operations. International Recruitment from the Perspective of LVMHThere are many advantages associated with LVMH recruiting internationally to cater to its workforce needs, some(prenominal) of which have been outlined below Moving from Ethnocentric to Geocentric50% of the Senior Executives and 40% of the managerial staff are French even though they only account for 37% of the employees in LVMH. These figures portray an ethnocentric orientation of the firm. An ethnocentric orientation in a global organization can lead to a lack of understanding of the host countries differences that may require a different approach to marketing and management. Here a common belief is that the head quarters way of managing is better or more preferred than any other way of managing practiced outside. As a global organization aiming to grow internationally an ideal approach would be a geocentric orientation as cited by Levitt(1983). This would be achievable by recruiting talent inter nationally which would gradually reduce the ethnocentric influence and develop a pool of global managers needed by LVMH. Reduced Influence of Labor Market Conditions in special CountriesLVMH would have a larger people base to recruit from and it will not be limited by work force scarcity in any particular country. The influence of changes in any particular countries labor market conditions would be reduced. Larger Talent PoolRecruiting employees from the countries where LVMH has presence would add to the talent pool within the organization. These new recruits would have local knowledge of the culture and fashion trends in the country of their origin. At the international level they would bring into the organization a fresh set of skills which may benefit LVMH. For example A designer recruited in India may create an ethnic accessory which can be marketed and sold not only in the country of origin but may have a huge potential internationally. Cost SavingRecruiting internationall y would reduce the need for expatriation to fill a vacancy. This would naturally lead to saving the expenditure involved. It would also reduce the work load on the International transfer team. The internationally recruited employees could be taken through intensive training to understand the expectations from management. Less Dependence on ExpatriatesMany expatriates are unwilling to take on certain international assignments due to various reasons. Recruiting internationally would therefore reduce dependence on Expatriates. Government LegislationLVMH operates through more than 50 stores which are spread worldwide. Recent trends have shown that governments require companies who conduct business in their country to develop the talent of the local workforce so that they ensure key management positions over a period of time. Certain countries also have legislations which require a certain percentage of the staff to be locally recruited.Task 3International MobilityInternational Mobilit y has grown with the increase in globalization of companies and the opportunities of operating in markets across the world. This expansion in business created a need for leaders and employees with global expertise to manage operations across national borders. Human resource departments are facing a growing demand on their resources in order to manage the mobility of this new type of work force. LVMH has the advantage of developing this form of work force early and now it can reap the benefits of the pool of Global Managers.Benefits of International MobilityLVMH stands to gain from the following benefits of International Mobility Availability of skilled laborChanges in technology have created a flip-flop in the labor market. There is a noticeable shift towards the demand for skilled labor. Shortage of labor caused in certain countries due to this demand can be counteracted with the help of mobility. Distribution of knowledgeIn this age, technology progresses at a very rapid pace. I n the face of eminent competition it is great for LVMH to be technologically ahead and implement development in a very short span of time. International mobility of competent work force would enable the rapid distribution of knowledge within the organization. Global CompetenceSince the expatriates in LVMH are travelling extensively and engaged in international assignments they develop a knowledge base and skill sets. They may include an understanding of different countries market trends, culture differences, local languages, management of multi cultural teams. More globalized managers would lead to a globalized top management who will guide its international operations. This global competence of the workforce gives LVMH an advantage over its competitors. AdaptabilityRecent trends show that products need to be constantly evolving and be customer specific. Mobility develops an adaptive and flexible culture in LVMH and thus it can benefit by keeping in pace with the customer requirem ents.