Hrm Models Of Best Fit And Best Practice Management Essay

Report on LVMH (Moet Hennessy Louis Vuitton), the world’s leading luxury products group propose of making a report is to pass out edexcel program with a important subject of human resource planning and developments task assignment on lvmh company for find out difference in hrm modeles and how they worked on lvmh. Another task is on learning and development in multinational company as well as provide a recommendation for lvmh director for improve their strategy towards the staff for archive globally. And the last task for find out difference between recruitment and selection and hr function of international recruitment for lvmh. My approach for report is more practical and theoretical.


LVMH (Moet Hennessy Louis Vuitton), the world’s leading luxury products group, including prestigious champagnes, wines, cognacs and spirits, as well as luxury goods, luggage and leather goods, fragrance and cosmetics products, watches and jewelry. The Company is also occupied in the haute fashion design and fashion businesses. LVMH’s business consists of five principal business groups: Wines and Spirits, Fashion and Leather Goods, Perfumes and Cosmetics, Watches and Jewelry and Selective Retailing. In adding, LVMH has interests in financial media companies and in sale art sales, included under other performance. A vital part of the Company’s production is situated in France, but sold through supplementary worldwide, in five major physical zones: France, Europe, the United States, Japan and the Far East.

Louis Vuitton, a trunk-maker in Paris since 1854, became a star in the art of travel by creating baggage, bags and accessories as inventive as they were elegant and practical. A century and a half later, the legend lives on. Strengthened by its global renown, the Louis Vuitton legend is embodied by the Louis Vuitton Monogram Canvas, which has enjoyed unequalled victory since 1896 and played a starring role in the growth of modern luxury. Modernism form the story of Louis Vuitton.



Best practise vs Best fit

It considers strategic human resource management approaches in conditions of the leadership that they offer for reward practices. There are difficulties in the sense that different writers from each perspective have different opinions about what comprise ‘best fit’ or ‘best practice’. In spite of this, there are a few areas of conformity and as well as a number of points of difference.

In the most common sense, both approaches view HR as having an significant role in following organisational strategy and objectives. Both approaches agree that payment practices should be consistent with other HR practices. There is a mutual view that an externally competitive reward system has an important role in attracting appropriate candidates and keeping employees. Both see rewards as a way of reinforcing organisational culture and structure.

However, there are several significant difference. At the most broad level, best fit is a possibility approach while best practice is a universal approach. For best fit, organisational strategy comes first and all organisation systems and practices, together with reward. Just as organisational strategy is unique to the organisation, so is the reward system that will reinforce that strategy. For best fit, a narrow set of practices, including reward, precede strategy but provide the human resources needed to fulfil the organisation’s objectives, whatever they are.

At a more specific level, best fit advocates display great self-reliance in the ability of the reward system to inspire specific individual behaviours. They support this view with hope Theory, a theory of motivation that advise that people with act in particular ways if they believe that their performance will lead to valued rewards. They suggest the use of variable incentives that are not combine into base pay to promote particular behaviours that are significant to achieving organisational objectives. inducement also provide financial flexibility because they are joined to an organisation’s ability to pay. Best fit proponents see rewards as the attach and the incentive. Since pay varies with performance, poor performers ‘vote with their feet’. outstanding performers are attracted to the large pay differentials that reward their performance.

The Resource-Based Model

The Resource-Based model approve an internal standpoint to explain how a company’s exclusive bundle or collected works of internal resources and capabilities signify the foundation upon which value-creating strategies should be construct.Resources are inputs into a company’s production process, such as brand names, individual employee’s skills, capital equipment, finance and talented managers and employee These resources can be tangible or intangible. Ability is the capacity for a set of resources to interactively or in combination achieve a task or activity. 

Thus, according to the Resource-Based model, a company’s resources and capabilities are more significant to formative the suitability of strategic actions than are the circumstances and characteristics of the external environment.  Thus, strategies should be selected that enable the company to best exploit its core competencies, relative to opportunities in the external environment.

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According to my thinking lvmh deploys their workforce planning and development in resourced best models because of following reasons

The Resource-Based model of average returns is grounded in the uniqueness of a lvmh internal resources and capabilities. 

Lvmh is identify the set of resources that provide the company with capabilities that are unique to the lvmh, relative to their competitors. Lvmh also identify those capabilities that enable the company to perform a task or activity better than its competitors. Lvmh assess or determine the potential for their unique sets of resources and capabilities to outperform its competitors in terms of returns. And also determine how a company’s resources and capabilities can be used to gain competitive advantage.

Lvmh is having with Locate and compete in an attractive industry. It is determine the industry that provides the best fit between the characteristics of the industry and the company’s resources and capabilities.lvmh formulate and implement strategies that enable them to better exploit their resources and capabilities to take advantage of opportunities in the external environment than can their competitors.        

However, taking advantage of or exploiting resources and capabilities in the new competitive landscape may always result in a lvmh achieving a sustainable competitive advantage and above-average returns.  The potential to achieve a sustainable competitive advantage will be realised when lvmh resources and capabilities are valuable, rare, costly imitate, and no n substitutable


Key Approaches Of Mnc For Learning And Development Of Their Staff Are Following

Employee skills

Review of Skills ,Prosperity for all in the global economy world class skills consider as implementing initiatives such as Train to Gain and signing the Employer Skills in mnc More organisations raise educational standards among young people before they enter the workforce rather than employers’ responsibility to raise literacy/numeracy standards within the workforce Mnc are requiring a broader range of skills and a higher level of skills . The key skills that employers class as very important include interpersonal and communication skills. However organisations feel that new employees currently lack communication/ interpersonal skills and management/leadership skill that organisations feel will be required to meet business objectives in the future.


Nonetheless, over half (57%) of MNC organisations use e-learning, while nearly half tend to agree that e-learning is the most important development in training in the past few decades. There is some indication that e-learning will be increasingly used as a training tool in MNC. that e-learning demands a new attitude to learning on the part of learners for achieving a goal MNC make e-learning more effective by combined with other forms of learning.


MNC undertake coaching activities, with a similar proportion finding coaching to be an effective tool.However, the purpose of coaching would appear to vary according to whom coaching is offered. Thus, within organisations that offer coaching to all of their employees, the purpose of this coaching is evidently used for general personal development and to remedy poor performance , whereas within organisations that offer coaching only to managers, the emphasis for the purpose of coaching shifts towards its position as part of a wider management and leadership development programme.

The bulk of the responsibility for delivering coaching lies with line managers coaching those who report to them and to HR and learning, training and development specialists in MNC The main methods used for evaluating the effectiveness of coaching in MNC include through observation of changes and reviews of objectives conducted with line managers, coach and coachee.

Expectations of new employees

MNC required greater demand for learning and development among new employees (joining from school, college or university) compared with five years ago. More than half also feel that these new employees also require more structured career development, while two in five have seen greater demands for professional qualifications and greater feedback on performance

Future skill requirements

Reflecting the current need for both a diverse range of skills and an increased competency within those broader skill bases, MNC will require a broader range of skills. In terms of the types of skill that organisations feel need to be specifically developed to meet business needs over the years, most feel that management or leadership skills , communication or interpersonal skills , customer service skills and business skills are the highest priorities. Literacy and numeracy skills

Training spends and budgets

MNC organisations have a training budget and continue to spend more per employee per year on training, compared with the private sector and with the public sector.

Learning and development for the future goal

The majority of MNCS have experienced change over the last few years in delivering learning and development, with the most significant change concerning management development in the form of new programmes to develop the role of line managers Indeed, the crucial role of line managers highlighted in previous surveys is resistant this year, with the widely held being involved in determining learning and development needs and half predicting line managers will have greater responsibility for learning and development over the next five years

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On the whole, learning and development managers in MNC have accurately forecast changes in learning and development practices; e-learning, coaching, mentoring and in-house development programmes were all previously highlighted as growth areas. In-house development programmes and coaching by line managers are both now used more than previously.

Lvmh face the problem of international development of its staff. There some recommendation for learning and development of its staff globally

LVMH has required to create a pool of global managers with a working knowledge of international markets. A global manager should be defined as a person with the training or experience needed to manage a global business. He or she can perform from any place in the world thanks to a global vision and skills in managing multicultural and multilingual teams. To have such abilities, an individual must have worked in a number of countries so that his or her potential can be realised and perceived.

LVMH’s performance appraisal system should not only based on results but also on the ability to propose and implement new ideas. LVMH has a career management process called organisational and management review (OMR) . This annual process aims at reviewing HR objectives and results. The OMR is an essential tool for the organisation’s HR planning, taking into deliberation organisational needs for the next three years. It defines sequence planning and high-potential and ‘ready to move’ lists. Employees identified on these lists are should be given development experiences, including international assignments, in order to arrange them for top management place. The OMR particularly seem back on the previous year’s objectives for high-potentials and those ‘ready to move’ and assesses their current development. LVMH should manages to staff internally two in every three executive positions.

To develop the skills and capacity of LVMH staff to ensure that flexibly and effectively to changing demands for service delivery, now and in the future, and strategic aims are achieved.their should be create an environment which encourages and supports excellence.

For example LVMH should spends approximately ¾ of its budget, £11m, on employing staff. It is therefore important we have a robust strategy to ensure that they have staff with the right skills to deliver strategic aims. 1.4% of the £11m budget is spent on staff learning and development and it is important that this investment is maximised. This sum keeps out on the job learning and development activities and support.

All staff of LVMH are expected to develop the skills, knowledge and attributes required in their job through all learning and development processes not only training courses. Every year each member of staff should have the opportunity to engage in learning and development activities .LVMH should invest in staff development in order to make a direct impact on service delivery


Selection is different from recruitment, where recruitment technically lead selection. Recruitment involves recognize the sources of manpower and stimulating them to apply for jobs in the organizations. On the other hand, selection is the p rocess of decideing the best out of those recruited. Recruitment is positive as aims at rising the number of applications for wider choices or for increasing the selection ratio. Selection is an significant function as no organization can get its goals without selecting the correct people, where defective in selection leads to wastage of time, money and plunder the environment of an organization. In this regard, scientific selection and placement of personnel can go a long way in structure up a steady work force, where it helps to decrease absence and labour turnover at the same time very helpful inside increasing the efficiency and productivity of the enterprise

The ultimate objectives of both recruitment and selection are to acquire suitable candidates but their instant objectives be different, where the basic objective of recruitment is to attract maximum number of candidates so that more options are offered .The basic purpose of recruitments is to create a talent pool of applicant to enable the selection of best applicant for the organization, by attracting more and more workforce to apply in the organization whereas The basic purpose of selection process is to choose the correct candidate to fill the Selection involves the sequence of steps by which the candidates are screened for various positions in the organization. Recruitment is a positive process i.e. encourage more and more employees to apply whereas Selection is a negative process as it involves refusal of the unsuitable candidates. Recruitment is troubled with tapping the sources of human resources whereas Selection is troubled with selecting the most suitable candidate through various interviews and examination. .

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There is no agreement of recruitment recognized in recruitment whereas Selection results in a agreement of service between the employer and the selected employee. Recruitment is the process of probing the candidates for employment and inspiring them to apply for jobs in the organization Whereas Selection involves the sequence of steps by which the candidates are screened for choosing the most suitable persons for empty posts. the ultimate objectives of both recruitment and selection are to obtain appropriate candidates but their instant objectives differ, where the vital objective of recruitment is to draw maximum number of candidates so that more options are available; the basic purpose of selection is to choose most excellent out of the available candidates. recruitment be different from selection in terms of process, where it take on the process of making application pool as large as possible; while selection take on the process through which more and more candidates are discarded and less candidates are selected or for a moment not even a single candidate is selected. in respect to techniques concerned, recruitment techniques are not very intensive, requiring high skills, as next to this,

In selection process, highly dedicated techniques are required. Therefore, in the selection process, only personnel with exact skills like expertise in using selection tests, conducting interviews and the like are concerned. since recruitment and selection are two inter-linked steps in the process of manpower gaining, they be different in term of outcome; where the outcome for recruitment is application pool which becomes input for selection process, on the other hand, the outcome of selection process is in the form of finalizing candidates who will be offered jobs.

Argument for lvmh international recruitment HR function

The busy global organizations and the rapid changing companies do not find time to perform various functions of recruitment. Therefore LVMH should advise the candidates to be present for an interview directly and without a prior application on a specified date, time and at a specified place.

The busy and dynamic global LVMH should encourage the possible job seekers to move towards them personally and consult them regarding the jobs. And select the suitable candidates from among such candidates though the selection process.

LVMH should request the professional organizations to search for the best candidates particularly for the senior executive positions. The professional organizations search for the most suitable candidates and advice to company regarding the filling up of the positions.

LVMH should develop the pool of human resources for possible employment. The prospective employers contact these organizations to recruit the candidates. The body shoppers appoint people for their association and give the required/specific employees to various organization on request. In fact, body shoppers collect fee/commission from the organizations and pay the salary/benefits to the employees.

It is like acquisitions, mergers, and takeovers help in getting human resources. In addition, LVMH do also have alliances in sharing their human resources on ad-hoc basis.

The technological revolutions in telecommunication helped LVMH to use internet as source of recruitment. lvmh advertise the job vacancies though the World Wide Web internet. The job seekers send their application though e-mails or internet websites.



The luxury goods are very receptive to the fluctuation of economy; any economic wave could influence its sales. LVMH is business mainly depends on the economic condition, if economy was depressed, its sales growth slow down sharply like it did in 2002, since demand for luxury goods declines markedly when recession or depression happens. Broad gaining makes no sense and could bring load, such as it acquired Pury & Luxembourg, which is criticized since there was no room for art auction market.

The mission of the LVMH group is to represent the most refined qualities of Western “Art de Vivre” around the world. LVMH must continue to equal to elegance and creativity.

lvmh should take young graduates , mostly single for their international assignment and should give support neede to ensure smooth relocation. there should be some insurance schemes available and also international insurance.

Lvmh should recruit more individuals who’s having international knowledge and know at least four language and also immersed in several cultural and tradition.

LVMH should have clear and and simple principal that can be applied to all countries with having harmozinious practise to allow for more global workforce between both countries and employee. the employee should be pay higher than his colleagues.

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