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Môn: Marketing (MAR2023)
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ASSIGNMENT 2 FRONT SHEET Qualification
BTEC Level 4 HND Diploma in Business Unit number and title
Unit 12: Organizational Behavior Submission date 12/4/2023
Date received (1st submission) 13/4/2023 Re-submission date
Date received (2nd submission) Student name BH00323 Student ID BH00323 Class BA0501 Assessor name Nguyen Thu Hien Student declaration
I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that
making a false declaration is a form of malpractice.
Student’s signature: huyen trang Grading grid P4 P5 P6 M3 M4 D2 D3
Summative Feedbacks: Resubmission Feedbacks: Grade: Assessor Signature: Date:
Internal Verifier’s Comments: Signature & Date: Table of Contents
I. Introduction .............................................................................................................................................. 4
PART 1 .......................................................................................................................................................... 4
1. About the group (P4) ....................................................................................................................... 4
2. Group behavior and relevant group development theories (Tuckman’s theory) (P4) 6
3. The factors make your group effective (P5) ............................................................................. 7
4. The factors make your group ineffective (P5) .......................................................................... 8
5. Individual team members to contribution and skills for effective group. (M3) ........... 8
5.1 .............................................................................................................................. Str
ength ................................................................................................................................................ 8
5.2 .............................................................................................................................. We
akness ............................................................................................................................................. 9
5.3 .............................................................................................................................. Re
vise personal contribution and skills and recommendations for own improvement
(D2) ................................................................................................................................................. 10
PART 2 ........................................................................................................................................................ 13
6. Introduction the L’Oreal company ........................................................................................... 13
7. L’Oreal company’s corporate culture (P6) ............................................................................. 14
7.1 .............................................................................................................................. Cor
porate culture influences employee behavior and performance in the workplace16
8. Chairman L'Oréal - Jean-Paul Agon (P6) .................................................................................. 17
8.1 .............................................................................................................................. For
mal power ..................................................................................................................................... 20
8.2 .............................................................................................................................. Inf
ormal power ............................................................................................................................... 23
9. The relationship between culture, politics, power, and motivation (M4) ................... 24
10.............................................................................................................................. Co
nclusion + Evaluation .................................................................................................................... 25
REFERENCE .............................................................................................................................................. 26 I. Introduction
In this report, I have the opportunity to demonstrate your ability to work with others in a contextualized
businesss situation, based upon the understanding of group behavior and group dynamics. In addition,
you are required to examine how power, politics, and culture can be used to influence employee behavior
and complete organisational goals. PART 1
1. About the group (P4)
The EQ presentation group consists of 5 team members who have been assigned various tasks for the
presentation. With the agreement of the subject faculty, the groups can make suggestions for presentation
content, not necessarily according to the format of the content. Since then, I am Do Huyen Trang, a person
with a slightly higher position, but not a manager but able to coordinate the team. Working on content to
introduce members, theoretically giving emotional terms, classifications and popular models of EQ. Dinh
Khai Tue is the second member of the group working on the functional content of emotions, the origin of
emotions, and moods. Working on content, what is emotional intelligence structure, is the content of the
3rd member Nguyen Thi Ha Tam. Le Son, the 4th member working on the application of emotions and
moods. And finally Duong Kieu Trang, the 5th member works on how to bring positive thinking into the
subconscious and how managers can influence the mood of the team.
The group is of moderate size, allowing for effective communication and collaboration among its members
yet large enough to bring a variety of perspectives to the table. We are a relatively new team, having come
together for a specific project, but we share a common goal of producing high−quality work within the
given timeline. The membership characteristics of the group include a diverse set of personalities, which
has both advantages and disadvantages. Le Son is outgoing and confident, which makes him great at
presenting and communicating with others. However, he can sometimes be impulsive and struggle with
attention to detail. Duong Kieu Trang is very creative and innovative, which makes her great at coming up
with new ideas and approaches to problems. However, she can sometimes struggle with deadlines and
may need more guidance on how to execute his ideas effectively. Nguyen Thi Ha Tam is very empathetic
and understanding, which makes her great at listening to others and building relationships. However, she
can sometimes struggle with being assertive and standing up for her own ideas and opinions. Dinh Khai
Tue is very analytical and logical, which makes him great at problem−solving and decision−making.
However, he can sometimes struggle with expressing his ideas in a clear and concise manner, which can
lead to misunderstandings. The last, I’am very detail−oriented and organized, which makes her great at
managing tasks and keeping the team on track. However, she can sometimes struggle with adapting to
change and may have difficulty seeing the big picture. By recognizing these strengths and weaknesses, the
team members can work together to leverage each other's strengths and mitigate their weaknesses,
ultimately leading to a more effective team. Our group diversity in terms of personality, skills, and
knowledge is both an advantage and a challenge, as we need to learn how to work together effectively
despite our differences. From that, can lead to a wider range of perspectives and ideas, but can also lead
to conflicts due to differences in communication and problem−solving styles. Despite this, the group has
fostered cooperation among its members through effective communication and delegation of tasks. In the
event of a missed deadline, the group has decided on a penalty, which can be handled through reviewing
the timeline, reallocating resources, and seeking additional support if necessary.
2. Group behavior and relevant group development theories (Tuckman’s theory) (P4)
Figure 1: Team Development stages (Okpalad, Managing diverse teams 2015)
Tuckman’s theory explains that it is necessary for a team to pass through the first four stages to get to
maturity (Reading and Webster, 2014). As a team grows in maturity and ability, relationships begin to form
and develop. Here, the leader’s style of leadership (According to Mullins, 2013:375, is a way in which a
leader/manager behaves toward the members of a team as he carries out the leadership functions)
commences with direction through coaching, participation, delegation, and task completion. At this stage,
the team can produce a new leader (Okpalad, 2015).
According to this theory, the Tuckman Model is applied to the group formation process, which includes
the formation, saturation, norm, performance and adjourn stages. But when applied to my group, there are only 4 stages:
Step 1: Forming − In this stage, the group members are brought together, and they get to know each other.
They may feel anxious or unsure about the task assigned to them. During this stage, they will need me
(manager) clear instructions on what they need to do, and the goals of the should be clearly defined to
avoid Storming as well as errors while working. So, the team doesn't have a Storming phase
Step 2: Norming − In this stage, the group begins to establish cohesion more cohesive than usual in class
and a sense of teamwork. The group members will begin to work together more smoothly and efficiently,
with a clear understanding of their roles and responsibilities. They will start to establish norms and rules
for communication, decision−making. Only after the first meeting on gg meet, the whole group had set up
the outline for the presentation and allocated the work properly.
Step 3: Performing − In this stage, the group has achieved a high level of collaboration, trust, and efficiency.
The members are focused on achieving the goals of the project and working together to accomplish them.
The group members are highly motivated and invested in the success of the project. After preparing the
presentation, it took place on the morning of March 30 and was a great success.
Step 4: Adjourning − In this final stage, the group has accomplished its goals, and the project is complete.
Group members do not leave the group or return to their usual roles, but remain in the group to perform
group work if any. It is essential to celebrate the group's success and acknowledge the contributions of each member to the project.
Understanding these stages can help teams realize where they are in the development process and what
they need to do to move to the next stage. This can aid the development of team collaboration by helping
team members understand that conflicts and disagreements are a natural part of team development and
that by working through them, they can establish rules and work together effectively to achieve their goals.
3. The factors make your group effective (P5)
Effective teamwork is crucial for the success of any project or goal. There are several factors that can make
a group effective, and these can vary depending on the group's specific goals and objectives. Firstly, one
important factor is having clear goals and objectives. A group with a shared understanding of what need
to achieve is more likely to work cohesively towards a common goal. When goals are ambiguous or not
clearly defined, it can lead to confusion, misunderstandings, and a lack of direction. Secondly, effective
communication is also a key factor in creating an effective group. This includes not only the ability to
convey ideas clearly but also active listening, open and honest feedback, and the ability to adapt
communication styles to suit different group members. When communication is poor or ineffective, it can
lead to misunderstandings, frustration, and a lack of trust within the group. Thirdly, trust is another
important factor in creating an effective group. When group members trust each other, they are more
likely to collaborate, take risks, and support each other. Building trust takes time, but it can be fostered by
creating a supportive and respectful group culture. Moreover, diversity is also an essential factor in
creating an effective group. Having a group with a variety of backgrounds, experiences, and perspectives
can lead to more creative solutions and better decision−making. It is important to recognize and value the
diversity of each group member and create an environment where everyone feels heard and included.
Another, erffective leadership is also crucial in guiding and motivating the group towards success. To be a
good leader, I must be able to communicate effectively, provide clear direction and support, and foster a
positive team culture. I am also able to identify and leverage the strengths of each group member to
maximize the group's potential. Finally, the ability to resolve conflicts in a constructive and respectful
manner is important for any effective group. Conflicts and disagreements are inevitable, but when they
are addressed openly and resolved quickly, it can strengthen the group's relationships and lead to better outcomes.
4. The factors make your group ineffective (P5)
Lack of communication: Team members don't communicate effectively, which leads to misunderstandings
and mistakes that can ruin a presentation. For example, Nguyen Thi Ha Tam on a team is working on an
important task and needs input or resources from another member, but can't get a timely response, which
causes delays and frustration. Similarly, team members don't share progress updates or regular feedback,
which can make it difficult to track progress and address issues before they become bigger problems.
→ In conclusion, effective teamwork requires a combination of factors, including clear goals and
objectives, effective communication, trust, diversity, effective leadership, and conflict resolution. When
any of these factors are lacking, it can lead to an ineffective group and hinder the achievement of the
group's goals. In the above paragraph, the lack of communication was identified as one factor that could
make a group ineffective. To improve communication, the group could establish clear communication
channels, provide regular progress updates, and foster a culture of open and honest feedback.
Additionally, they could identify and address any communication barriers, such as language or cultural
differences. By addressing these areas of improvement, the group can work towards becoming a more effective and cohesive team.
5. Individual team members to contribution and skills for effective group. (M3) 5.1 Strength
To work effectively in a team and create impressive work results, each member of the team must fully
converge all the necessary professional competencies and working skills, especially the two Skills:
communication and organization. I chose my group with 5 members because I think that in a group there
should be at least 5 personalities to become the most complete team including: Group moderators, The
researcher, The writer, The designer, The presenter. Duong Kieu Trang is a skilled researcher who is
passionate about EQ. She conducts thorough research on the subject, gathering information from a variety
of sources, such as academic journals, books, and reputable websites. She also analyzes and synthesizes
the information, identifying the most important and relevant points. For example, Kieu Trang creates a
comprehensive list of key concepts related to EQ and provides supporting evidence for each point. Next is
Dinh Khai Tue, is an excellent writer who can craft compelling arguments and communicate ideas
effectively. He takes Duong Kieu Trang’s research and turns it into a clear, concise script that is easy to
understand. He also pays attention to the tone and language, ensuring that it is engaging and informative.
For example, Dinh Khai Tue creates a script that is well−structured, using storytelling techniques to
illustrate the importance of EQ in our daily lives. Another, Nguyen Thi Ha Tam is a talented designer
who can create visually appealing presentations. She uses her creativity to design slides that are
aesthetically pleasing and that complement Dinh Khai Tue’s script. She also uses a variety of multimedia
elements, such as images, videos, and animations, to keep the audience engaged. For example, Nguyen Thi
Ha Tam creates slides with colorful infographics that help to illustrate complex concepts related to EQ.
Last but not least, Le Son is a confident presenter who can communicate effectively with the audience.
He practices the presentation and provides feedback to the group, ensuring that everyone is
well−prepared. He also suggests ways to make the presentation more engaging, such as using humor or
interactive elements. For example, John uses storytelling techniques to connect with the audience, using
personal anecdotes to illustrate the importance of EQ in his own life.
Together, the group creates a successful EQ presentation that is informative, engaging, and visually
appealing. They receive positive feedback from the audience, demonstrating the effectiveness of their teamwork. 5.2 Weakness
Although there are many strengths that the group members have seen, there are a few weaknesses that I
have assessed through the process of working together as follows: For Dinh Khai Tue, poor time
management, tendency to dominate discussions. John may struggle with managing his time effectively,
which can lead to delays in completing tasks. He may also have a tendency to dominate discussions, which
can make other team members feel ignored or undervalued. Next is Nguyen Thi Ha Tam, Poor
communication skills, may struggle with presenting ideas effectively. Tam may struggle with
communicating his ideas effectively, which can lead to misunderstandings and delays in completing tasks.
She may also struggle with presenting his ideas in a way that is engaging and easy to understand, which
can make it difficult for others to follow along. The next person in my group is Duong Kieu Trang, She
is tendency to procrastinate, may struggle with staying focused. Trang may have a tendency to
procrastinate, which can cause delays in completing tasks. She may also struggle with staying focused on
the task at hand, which can lead to distractions and lack of progress. Regarding Le Son, tendency to be
indecisive, may struggle with adapting to changing circumstances. Le Son may have a tendency to
overthink and second− guess decisions, which can cause delays in completing tasks. He may also
struggle with adapting to changing circumstances, which can cause stress and anxiety.
→ A collection of individuals can be classified as a "Group" when each member has distinct objectives, yet
they collaborate towards a common objective. On the other hand, when the individuals have a shared
purpose, work diligently, and operate in harmony, they are known as a "Team." While every team is a
group, not every group is necessarily a team. Our team, albeit small, is formed solely for a specific project
and dissolves after its completion. Nevertheless, we operate as a cohesive unit to accomplish our goals. 5.3
Revise personal contribution and skills and recommendations for own
improvement (D2)
In the end, I am a member that can be said to be quite important in the group because it is indispensable
for any piece of the puzzle. I self−evaluate my role as a Group moderators.
Looking back on my own contribution to the group, I believe that my ability to effectively communicate
and collaborate with my teammates was a significant asset. From the beginning, I made a conscious effort
to establish open communication with my teammates and actively listen to their ideas and feedback. I also
made sure to provide constructive criticism when necessary and encouraged my teammates to do the
same. By fostering a culture of openness and collaboration, I believe we were able to develop a strong
sense of trust and respect for one another. I was able to build positive relationships with my teammates
and facilitate open and constructive discussions that helped us to generate creative ideas and problem− solve together.
In terms of skills for effective group, I think it is crucial to be adaptable and flexible. Inevitably, challenges
and roadblocks will arise during a project, and it is important to be able to pivot and adjust accordingly. It
is also essential to be able to communicate effectively and to actively listen to others. By doing so, group
members can build trust and respect, and work together more effectively towards shared goals. In
addition, I made sure to take responsibility for my assigned tasks and deadlines, ensuring that I met them
in a timely and efficient manner. I also offered my assistance to my teammates when needed and made
sure to communicate any challenges or roadblocks I encountered in completing my tasks. By doing so, I
believe I was able to contribute to the overall success of the team and the achievement of our goals.
Moving forward, I have identified a few areas where I can improve my contribution to the team and help
us work together more effectively. Firstly, I plan to focus on collaboration by building stronger
relationships with my team members and actively seeking out opportunities to work together. This will
involve regularly checking in with them, attending team−building events, and offering to help with tasks
outside my immediate responsibilities.
Secondly, I want to work on developing my problem−solving skills. I recognize the importance of being able
to tackle complex issues efficiently and effectively, so I plan to seek out training and resources on problem−
solving methodologies and techniques. This could include attending workshops or online courses, reading
books or articles, or seeking mentorship or guidance from experienced team members.
Thirdly, I believe it is essential to develop leadership skills even if I do not currently hold a formal leadership
position. I aim to take ownership of tasks and projects, demonstrate initiative and creativity, and support
my team members in achieving their goals. By focusing on these skills, I am confident that I can make a
more significant contribution to the team, ensuring we work together effectively and achieve our goals.
Moreover, I also plan to work on my communication skills. Effective communication is a crucial factor in
team success, and I recognize that I can improve in this area. I aim to develop my active listening skills and
ensure that I am communicating my ideas clearly and concisely. Additionally, I plan to seek out feedback
from my team members on my communication style and adjust accordingly.
Finally, I recognize the importance of adaptability and flexibility in a team environment. I plan to be more
open−minded and receptive to feedback and suggestions from my team members. I understand that
everyone has unique skills and experiences, and being open to learning from others can help us work more
efficiently and effectively as a team.
For example, during our last group project, I noticed that I struggled with time management and
prioritization. I tended to get easily overwhelmed by the workload and found myself frequently
procrastinating. As a result, I wasn't able to contribute as much as I would have liked to the team.
To improve in this area, I plan to develop better time management strategies, such as breaking down larger
tasks into smaller, more manageable ones and setting specific deadlines for each task. I also plan to
communicate more effectively with my team members about my progress and any potential obstacles that may arise.
Additionally, I recognize that I could have been more proactive in seeking out feedback and suggestions
from my team members during the project. Moving forward, I plan to be more open to constructive
criticism and to actively seek out input from my team members to help improve our overall performance.
Overall, I believe that each group member's unique contribution was essential to the success of our
project, and I am grateful for the opportunity to have worked with such a talented and dedicated group of
individuals. And I believe my contributions to the group's behavior and dynamics were positive, but there
is always room for improvement. By continuing to communicate openly, take responsibility for my tasks,
and work on being more assertive, I hope to contribute even more effectively to future group projects. PART 2
6. Introduction the L’Oreal company
L'Oreal is a global beauty company that specializes in producing and marketing a wide range of beauty and
personal care products. The company was founded in 1909 by Eugene Schueller, a French chemist who
developed an innovative hair dye formula. Since then, L'Oreal has grown to become the world's largest
cosmetics company, operating in more than 150 countries and offering a diverse portfolio of beauty
products, including hair care, skin care, makeup, fragrances, and more.
The company's mission is to provide innovative, high−quality products that meet the evolving needs of
consumers around the world. L'Oreal's portfolio includes several well−known brands, including Maybelline
New York, Lancome, Garnier, Kiehl's, and Redken, among others. The company has a strong commitment
to research and development, investing heavily in new product development and testing to ensure that
its products meet the highest standards of safety, efficacy, and sustainability.
L'Oreal has also made a significant commitment to sustainability, with a goal to reduce its environmental
footprint and promote responsible sourcing and production practices. The company has set ambitious
targets to reduce greenhouse gas emissions, water usage, and waste generation, and has also
implemented several initiatives to promote diversity, equity, and inclusion within its workforce and supply
chain. Overall, L'Oreal is a leading beauty company that is dedicated to delivering high−quality, innovative
products while also being a responsible and sustainable corporate citizen.
7. L’Oreal company’s corporate culture (P6)
Corporate culture is formed and developed in parallel with the development of the business, not only a
communication culture but also includes core values, rules, management styles, methods business and
the behavior and attitude of all members of the enterprise. If facilities and equipment are the "body" of
the business, and the corporate culture is the "soul" of the business. Corporate culture is an intangible
asset of the enterprise, contributing to the great strength of the enterprise. Corporate culture is deeply
rooted in trust, so it plays an important role in implementing the goals and tasks of the organization.
The slogan of the L’Oréal Group is “We’re Worth It”. This is not just a slogan, but a brand mission. Taking
your beauty into your hands is your strength. Believing in your own beauty is something that no one else
can control. That is your strength. L’Oréal Paris is working towards the day when you hear “we deserve it”,
and women everywhere will answer: “we never doubted it”.
• Ethical Rules
L’Oréal has developed a code of ethics that applies to all employees of the L’ORÉAL Group and its
subsidiaries worldwide. This is a Code of Ethics document which is a shared document covering topics
essential to the Company's culture of loyalty, trust and solidarity. This brochure is intended to help
understand what is expected of L’ORÉAL employees, by setting general principles and through many
practical everyday examples. Every employee in L’Oréal must carefully read this Code, adhere to it, pass it
on to others, and ensure it is respected around you. The content of the code of ethics is the commitment
of each individual as well as the company with each different role:
o Role as a business: aim for excellence and continuously challenge yourself and the methods of the business
o Role as an employer: Employees are the biggest asset of the business, we want to make L’ORÉAL a great place to work.
o Role as a responsible corporate citizen: contributing to the creation of a fair and beautiful world.
o Role as a manager: model and encourage ethical behavior, make decisions to face more complex
and difficult problems, advise and help your team.
• Encourage a culture of openness
L’Oréal encourages all employees to express their views, defend their opinions and point out unacceptable
behaviors and demands. Employees may have concerns about specific practices that require counseling
and guidance to help resolve them. It is the policy of the Company that all reports of misconduct by persons
associated with the Company, whether one of the Company's employees or even a third party with whom
the Company has contact, will be thoroughly investigate and take appropriate action, regardless of who is involved.
• Work together
L’Oréal expects all employees and organizations to work together in a respectful and open manner.
Teamwork is encouraged and successes and failures are shared. All employees should aim to recognize the
ideas and contributions of others, listen with generosity and share information when needed, subject to
the Group's code of confidentiality. Disrespect, especially through abusive words or inappropriate gestures
or racist, discriminatory or sexual comments is not acceptable. Discrediting colleagues is also against
L'Oréal's ethics. In this way, we will maintain a culture of loyalty, trust, solidarity and respect for cultural
differences throughout our work.
• Working space
At L’Oréal, it is extremely important to have an engaging and motivating workspace. The company believes
that working in a beautiful space is not frivolous but makes employees happy and healthy. At L'Oréal, this
is one of the company's top priorities. They believe that creating elevated spaces for our employees will
foster collaboration, inspire creativity and bring ; give everyone the freedom to live authentically. In each
office, L'Oréal will design in different styles to suit the environment of each country. But in general, still
keep the open spaces, full of style and color, to bring more inspiration to employees. L'Oréal office in Portugal
L'Oréal office in New York (USA) 7.1
Corporate culture influences employee behavior and performance in the workplace
L'Oréal is a global beauty and personal care company that has a strong corporate culture. The company's
culture is centered around innovation, diversity, and sustainability. L'Oréal's corporate culture is known
to influence employee behavior and performance in the workplace in several ways.
Firstly, L'Oréal's culture of innovation encourages employees to think outside the box and come up with
new and creative ideas. This culture promotes a sense of experimentation and risk−taking, which can lead
to the development of groundbreaking products and services. As a result, employees feel empowered to
take ownership of their work and strive for excellence in their performance.
Secondly, L'Oréal's commitment to diversity and inclusion ensures that all employees feel valued and
respected in the workplace. This culture of inclusivity creates a sense of belonging and encourages
employees to collaborate and share ideas with one another. This, in turn, leads to higher levels of
employee engagement, productivity, and job satisfaction.
Finally, L'Oréal's emphasis on sustainability drives employees to adopt more responsible and
environmentally friendly practices. This culture promotes a sense of social responsibility and encourages
employees to work towards reducing the company's environmental footprint. As a result, employees are
more motivated to work towards achieving the company's sustainability goals, which can have a positive impact on their performance.
In summary, L'Oréal's corporate culture influences employee behavior and performance in the workplace
by promoting innovation, diversity and inclusion, and sustainability. These values foster a sense of pride
and ownership in employees and lead to higher levels of engagement, productivity, and job satisfaction.
8. Chairman L'Oréal - Jean-Paul Agon (P6)
First, I will introduce concepts to understand better the definition of organizational culture, politics, power, and motivation.
Organizational culture is the collection of values, expectations, and practices that guide and inform the
actions of all team members. Think of it as the collection of traits that make your company what it is. A
great culture exemplifies positive traits that lead to improved performance, while a dysfunctional company
culture brings out qualities that can hinder even the most successful organizations. (Wong, K. 2023)
\Organisational politics is referred to the self−interest and agenda of an individual in an organisation
without any concern about its impact on the objective of the company to achieve its goals. It is a process
that is related to the self−serving human behaviour and his interactions involving authority and power. (Bhasin, H. 2021)
Organizational power is the ability that you have to influence the behavior of another stakeholder in your
organization. Your power is measured by the extent that you can use your influence to get that stakeholder
to do something that he or she would otherwise prefer not to do. (Tanner, R. 2022)
Organizational motivation benefits from a systemic effort focused on a well−articulated culture that
supports a unified business strategy. Culture implicitly sets boundaries for intra−organizational normative
behavior, including which behaviors are recognized and rewarded by the organization. ( West & Sacramento, 2022)
Jean−Paul Agon (born 6 July 1956) is the chairman and former CEO of the international cosmetic company,
L'Oréal. Because of the age limit of 65 set by the company, he was replaced in his role of CEO by Nicolas
Hieronimus on May 1, 2021, while remaining chairman of the board. He graduated from HEC Paris in 1978.
As Jean−Paul Agon prepared to step down as chief executive of L’Oréal after 15 years, he knew he wanted
the search for his successor to be “exemplary, transparent, and rigorous”. However, the decision in
October to appoint Nicolas Hieronimus, the deputy chief executive, to the top slot has disappointed some
observers, who ask why the world’s biggest cosmetics company — one that caters to women in more than
150 countries — will not have a woman as CEO. Mr Agon, 64, is eager to explain the thinking behind the
selection process. It is simplistic, he says, to think that just because L’Oréal’s brands such as Lancôme,
Maybelline, and Garnier make women’s products that women are better at marketing them. He then
comes to his real argument: L’Oréal’s board was guided in its choice of successor by “the principle of
meritocracy”. “Today, women make up half of our board, more than one−third of top management, and
more than half of the heads of brands,” says Mr Agon. “Their rise is irresistible. One day or another, a woman will run L’Oréal.”
Mr Agon’s approach to leadership is patient yet demanding. Under his tenure the company nearly doubled
its global revenue to nearly 30 billion euros driven largely by expanding in Asia. These qualities underpin
L’Oréal’s corporate culture. Behind the chic image of brands represented by celebrities such as Penélope
Cruz and Beyoncé, L’Oréal is known for having a tough workplace culture. In the company’s internal jargon,
managers should cultivate saine inquietude, or “healthy disquiet”, among their teams, so as to see who
rises to the occasion — and who sinks. The approach can lead some to burnout and exits — the company
has earned the sobriquet “L’Orehell” — but others flourish under the competition. “We have a saying at
L’Oréal that people either stay three months, three years or 30 years,” he says. “L’Oreal has a very
distinctive culture that is not to everyone’s liking, but those who do like it will really invest and thrive here.”
L’Oréal’s culture has helped it cope with the shock of the pandemic. Although sales and profits are forecast
to contract this year for the first time since the 2008 financial crisis, the group has limited the damage with
its strong ecommerce operation. Its shares are up 16 per cent this year, lagging a 19 per cent rise for rival
Estée Lauder. Mr Agon certainly took to L’Oréal’s ways. Growing up in Paris, his father worked in
pharmaceuticals while his mother was an architect. But the young Mr Agon wanted to travel, and that
partly drove his decision to join L’Oréal as a salesman in 1978 straight out of HEC, one of France’s top
business schools. The other factor was his affinity for marketing.
Living and working in different countries meant Mr Agon never got bored despite spending more than 40
years at the same company. Before Covid−19, he spent one−third of the year travelling. Aggressive
promotion of the most promising employees is a key part of the company’s culture. “Unlike many
companies, L’Oréal does not give people jobs based on their past experience but rather with a view to
helping them uncover and express new talents,” he says. “It can be risky but for me it was a great way to
keep my enthusiasm going.” Mr Agon sees employees as part of a “tribe” who share specific customs and
codes regardless of where they are located in the world. They are “l’Oréalien” — a term that is not overtly
defined but rather picked up on the job through talking and working with managers and teams.
Mr Agon’s final big assignment at the company is letting go of power — though he wil stay on as chairman
after Mr Hieronimus steps up. Mr Agon has vowed not to micromanage his successor, explaining that when
he took over he followed the company’s handover governance model and so has experience. “I’m actually
quite happy about passing the baton to someone who I respect and who will do this job very, very well,” he says. 8.1 Formal power
Formal Power − power often tied to a formal position where the responsibilities of that position includes
the ability to influence or make decisions affecting a community. (Special olympics unified champion schools, 2020)
According to Max Weber (1947),”Power is the probability that one actor within a social relationship will
be in a position to carry out his own will despite resistance.” The acquisition and maintenance of power is
one of the most socially motivating processes that occur in modern organizations. Three categories of
people are always involved in the powergame of an organization (especially in small and medium
enterprises): the owner(s) of the businesses can influence the decision−making process in their favor and
also influence promotions of workers. The top level management are also involved in the power−play as
they oversee daily activities and have high influence on the decision making of the organization. The third
category are the ‘top performers.’ The company can actually not do without them due to the high
productive input they bring into the organization, and that enable them to wield some decision making
powers in the organization. According to John French and Bertram Raven (1959), there are five (5) different
types of power in businesses; they are as listed and explained below:
Legitimate power: This power comes from having a position of power in an organization; example is being
a boss in the organization or a key member of a leadership team. It exists when subordinates of someone
in authority obeys orders given to them because they have the believe that the person is in a position of
power to be able to give them such orders. For example, it is the CEO who decides on the overall direction
of the company and also determines the resource needs of the organization.
Reward power: subordinates are rewarded and given incentives for carrying out tasks and orders given by
a superior. Example of reward power includes promotion, bonuses, increase in salaries, extra−time off from
work, public praise, and so on. The main aim of reward power is spurring up subordinates for effectiveness and productivity.
Referent power: this power comes from being respected and trusted. Leaders in the business industry
have gained referent power by entrusting their employees with so much tasks and responsibilities in
performing their jobs. This type of power is best achieved in the organization when the turnover of the
employee is low and also in a work environment where a personal relationship exists.
Expert power: this is a type of power that comes from one’s skills, knowledge and experience. People
naturally respect and follow those who are experts in a certain field. Subordinates who know that their
superior has an expert power feel so relaxed because they believe that he will guide them correctly due to his many experiences.
Jean−Paul Agon apply formal power in L’Oréal:
• The average salary of employees working at L'Oréal ranges from 8−12 million VND + bonus % of revenue
when employees complete the set KPI targets can be up to 13−18 million VND. With the salary that
L'Oréal pays for employees, they can ensure a full life and can save for the future based on the salary
and bonus for employees, having a salary that meets the needs of the employees. The staff will help
the staff to always be wholehearted when going to work. Regarding the salary and bonus for
employees, the first is to reward employees who work overtime with the corresponding amount of
100.000VND/hour, also known as "hard core money". The second is to reward employees who work
with the company's project of 5%/revenue when that project is completed on time and well
completed. In addition, L'Oréal also has preferential policies such as: Social insurance when employees
come to work for 2 months and receive professional assessment, in addition, employees can also
choose an additional insurance package such as maternity, car, etc. facilities at work are supported up
to 35% of the value of that insurance package. Training programs, developing soft skills and expertise.
And especially "loyal employees" who have worked at the company for 5 years, 8 years, 10 years, ...
with each milestone will be rewarded with a trip or a free lunch with the CEO. All the bonuses achieved
by employees will be given a certificate and there will be honoring sessions to show that L'Oréal always
recognizes their dedication efforts in their work.
• Applying this theory, L'Oréal has brought an effective working time solution for employees: “Working
hours are from 8:00 am − 8:00 pm (Monday − Saturday) only Sunday from 9 am to 9 pm. Working hours
of the day are flexible in 4−hour shifts: 8 am − 12 pm, 12 pm − 4 pm and 4 pm − 8 pm, 9 pm and are
supported by the company with food costs only 10,000 VND. Young people can choose to go to work
late, leave late, parents can choose to go to work early to pick up their children early… Married people
will have time to pick up their children, young people can leave work early to have more time in the
evening rest or hang out with friends.
• Compensation policy rewards % of revenue when employees complete the set KPI targets, which can
be up to 13−18 million VND. Specifically, the first is to reward employees who work overtime with the
corresponding amount of 100.000 VND/hour, also known as "hard core money". The second is to
reward employees who work with the company's project of 5% / revenue when that project is
completed on time and well completed. In addition, there is also 1 free L'Oréal product whenever the
sales revenue is higher than the previous month.
• Training programs, soft skills development, professional. And especially "loyal employees" who have
worked at the company for 5 years, 8 years, 10 years, ... with each milestone will be rewarded with a
trip or a free lunch with the management. All the bonuses achieved by employees will be given a
certificate and there will be honoring sessions to show that RICONS always recognizes their dedication efforts in their work.
• L'Oréal can also use expert power by providing opportunities for employees to develop their skills and
knowledge through training and professional development programs. By investing in their employees'
growth and development, L'Oréal can demonstrate its commitment to their long−term success and
help them acquire the expertise and knowledge necessary to excel in their jobs. This can include
providing access to conferences, workshops, online courses, and other resources that will help
employees stay current with the latest industry trends and best practices. By doing so, employees will
feel valued, empowered, and motivated to continue growing and contributing to the company's success.
• Unique policy: Saturday “odd week”. Understanding the common psychology of all employees, L'Oréal
released a special policy on Saturday, employees only need to work in the morning and the rest of the
time is allowed to work online from home combining time to take care of family but still work for the
company. Half a day going to the store but still receiving a full hard salary will be a special highlight to
help employees have more weekend time. 8.2 Informal power
Informal Power − power that is not tied to any position, often resulting from personal characteristics. This
power allows the person/group to influence and/or represent a community without formal decision
making. (Special olympics unified champion schools, 2020)
The adventure of Beauty on L’Oréal and Jean-Paul Agon: 1909−1956: The first step,
constructing a model. In 1909, Eugène Schueller, a young chemist with an entrepreneurial spirit, founded
the company that was to become the L’Oréal Group. It all began with one of the first hair dyes that he
formulated, manufactured and sold to Parisian hairdressers. With this, the founder of the Group forged
the first link in what is still the DNA of L'Oréal: research and innovation in the service of Beauty.
1957−1983: On the road to the Grand L’Oréal. These are the formative years of “Le Grand L’Oréal”. At
the instigation of Chairman François Dal e, the Group starts to expand internationally. Strategic brand
acquisitions mark the beginning of a period of spectacular growth for the company and emblematic
products come into being. Our motto becomes “Savoir saisir ce qui commence” (seize new
opportunities). 1984−1987: Beauty is a scientific adventure. Charles Zviak, a research and development
pioneer succeeds François Dalle. These years are marked by a great period of growth for us, mainly
driven by the significant investments made by our group in the field of research. Alongside these efforts
are strategic product launches that not only make history, but also succeed in strengthening our
Group’s brand image. 1988−2005: Become number one in the beauty industry. Under the
management of Lindsey Owen−Jones, our Group would completely change in scope to become the world
leader in cosmetics through the worldwide presence of our brands and strategic acquisitions. 2006-
Today: Diversity of Beauty worldwide. With Jean−Paul Agon as its Chief Executive Officer, L'Oréal
commits itself to the path of universalization with a clear mission statement: Beauty for All. With our
portfolio of powerful international brands, we enter the 21st century by embracing diversity and
inclusion in our global growth agenda. In addition to the business dimension, the new L’Oréal is
characterized by new ethical and socially responsible initiatives. We continue to make new acquisitions to
cover the world’s varied cosmetic needs, and to carry out initiatives that are socially, environmentally and
digitally responsible, underlying the interests of sustainable development for all. In addition, Jean−Paul
Agon said: " In the 21st century, only companies that have incorporated ethics into their culture, strategies
and daily practices will thrive. A strong ethical culture. Ours is one of the pillars of the New L'ORÉAL This
is why we must articulate our commitment as a business, an employer and a public citizen. Our Ethical
Principles − Integrity, Respect, Courage and Transparency − will enable us to continue to be a Corporation
that inspires trust. all of us, no matter where we work and what our job is − whether we are a new
employee, a member of the Management Board and ultimately the Board of Directors. This rule. Follow
it. Pass it on to others. Respect it and make sure it is respected around you. L'ORÉAL needs everyone's role model to be exemplary.”
9. The relationship between culture, politics, power, and motivation (M4)
Over ages, mankind has struggled when they had to balance in between culture, politics, power and
motivation. The organizational culture, politics, power and motivation have an effect on the day to day
functioning and helps to create a perfect ambience in the organization (Senge, 2014). Power when
executed positively, helps the employees to perform well which in turn uplifts the positive name of the
organisation. The teams should be recognised and united within an organization so that each individual
has a feel good factor regarding being a part of the organization. An organisation needs to have a proper
culture in place in order to inspire other individuals to work.For instance if a manager behaves properly
with his subordinates and does not indulge in any politics within the organization then the organization is bound to succeed.
L'Oréal is a multinational cosmetics company headquartered in France. The company was founded in 1909
and is currently the world's largest cosmetics company. L'Oréal operates in over 150 countries and has
more than 82,000 employees worldwide. Corporate culture, politics, and power also play a significant role
in the performance of L'Oréal employees. L'Oréal has a reputation for promoting diversity and inclusion,
and the company has established a strong corporate culture that values creativity, innovation, and
teamwork. This culture has helped to foster a sense of loyalty and dedication among L'Oréal employees,
which has translated into improved performance and profitability for the company. In recent years, L'Oréal
has made significant investments in research and development, which has helped to drive innovation and
product development. The company has also focused on expanding its presence in emerging markets,
which has helped to drive growth and profitability. In 2021, L'Oréal reported revenues of €29.87 billion
and a net profit of €4.39 billion. The company's management has set ambitious targets for the future,
including a goal to reduce its carbon footprint by 50% by 2030. In summary, L'Oréal is a global leader in
the cosmetics industry, and the company's success can be attributed in part to its strong corporate culture,
commitment to diversity and inclusion, and investments in research and development.
→ It can be seen that employees have helped L'Oréal achieve certain achievements for this organization.
Therefore, Mr.Agon needs to make more efforts to bring company culture and use her power to help
employees feel comfortable and comfortable achieve better results at work. 10.
Conclusion + Evaluation
In this article, I have evaluated and commented on team members and myself in the process of teamwork,
thereby helping me better understand how to work effectively in groups. At the same time, shaping the
leadership style at L'Oréal. Thereby, I can improve the behaviors in my organization for best performance.
OB has been very helpful as it has helped me understand the importance of this research paper, as well as
improve my research, analysis and evaluation abilities. I finished the exercise in 5 days. Before going into
the results analysis I outlined a specific schedule and deadlines for each step. So I gathered information,
metrics and aggregated the results within 3 days. The next days I focused on making recommendations for
the report. I think this research paper can be used as a reference for researchers at this time is very good.
Because they can rely on it to have an overview as well as more objective about their point of view. Since
then, I deserve the Merit criterion because of my dedication of time and effort in the past few day. REFERENCE
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