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Organizational Norms

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Organizational Norms

LOreal is the worlds top total beauty care brand based in Paris. The company was founded by Eugene Schueller in 1907, and today it has expanded to 130 countries. It has 32 brands and launches more than 150 major initiatives every year. Behind its glitter and glamour, there are innovative scientists, savvy marketing team, and talent employees. The company is setting pace when it comes to organizational values of innovations, entrepreneurial talent and diversity.

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Informal Rules within LOreal, Their Application by Organizational Members and Influence on the Organizations Culture

Entrepreneurial Orientation

One of the informal rules within LOreal forming its ethical climate is the promotion of an entrepreneurial spirit that is motivated by its style of management. It encourages employees to be daring and to take initiative (Campbell & Goritz, 2014). This spirit is seen to have stemmed from some of its previous managers who made a great contribution to companys success. Former manager Francois Dalle said that his aim was to become a great man for LOreal with the aim to change a small business into a big one and to beat foreign competition. He is perceived as a source of inspiration, and everyone is expected to behave entrepreneurially. The entrepreneurial spirit of employees acts as a driving force for the company. LOreal values every individual and believes in his or her talents. There are slogans relayed inside and outside the company that reflect this common culture. Examples of such are Doing and undoing to do better next time and You only find in the market what you have put there (Brandon, 2015). Members learn this core value by adaptation. They face challenges that require this skill. It also promotes individual responsibility and initiative. The former has impacted LOreals organizational culture as shown by a low level of formalities and procedures among employees.


Bearing in mind that the founder of LOreal was a scientist, the company fosters innovativeness as essential part of the ethical climate because beauty is an infinite quest that continuously requires higher performance. The latter means the constant discovery of new surprisingly different products. Innovativeness helps the company always to stay a step ahead of competition and develop a culture that engages employees and supports creativity. Members of LOreal apply innovativeness in generating ideas and developing opportunities. It often leads to the production of new products, technologies or services. Through research, development, and good knowledge of a wide array of existing and changing customers needs, the company can make products that meet the ones. Innovativeness helps to discover consumers unsatisfied demands and identify new ones (Christensen & Gregerson, 2011). Previously, LOreal has had multiple product lines, most of which are revolutionary innovations that have ended up being leaders in the market. The companys innovation policy promotes constant refining of its products (Brandon, 2015). This kind of strategy requires it to invest heavily in development. The research conducted by the British Department of Business shows that LOreal ranks first in research and development investment in the cosmetics industry. It does not show innovativeness in product development alone, but also in taking positions in unfamiliar markets. The company has moved beyond its boundaries to dominate new markets. It has also invested in its human resource policies by going against common recruitment practices typical of large organizations.

Responsibility/Consumer Relations

LOreal encourages its members to do everything with the sense of responsibility. As seen from its first invention called a safe hair dye, the name was an expression of its concern about effective and harmless products. The company feels it has a duty to protect the beauty of the world and contribute to the welfare of its employees and the community at large. This rule ensures that companys innovators ensure product safety and quality all the time. Therefore, its organizational culture demonstrates respect for customers and earns LOreal consumer trust. The latter promotes the reputation of the company ensuring that it remains a leader in the cosmetic industry. LOreal ensures that all customer complaints of adverse effects are recorded and promptly responded to. It also heeds to legislations on product development and labeling.


Leaders in LOreal rely on communication to convey organizations goals and objectives. The company has done this effectively through familiarizing all members with the organizations vision and the sense of purpose. Managers use communication to manage activities such as team building, market analysis, and public relations. The bottom-up communication allows employees to convey their ideas to the management and therefore take part in decision-making and changing the company. Leaders also use communication to deliver a negative feedback in case of undesirable behavior; this is important for the learning of the individual and the performance of the company (Marler, McKee, Cox, Simmering, & Allen, 2012). Such informal rules creates an organizational culture of openness and employees contribution to the common goal.

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The company emphasizes the importance of people willingly working together towards the achievement of its objectives. In LOreal, members go out of their way to assist colleagues in achieving targets. They do not engage in unnecessary competition. A positive relationship and cooperative behavior also exist between the senior management and junior members of the company. Cooperation has developed a culture where everyone is working towards the accomplishment of common goals. It results in every member achieving more, while boosting companys performance.

Organizational Capacity and Organizational Structure as a Hindrance or Support to It

Capacity building involves improving the ability of the company to create sustainable results. Organizational practices discussed above are essential for its capacity. However, for them to be sound, they should be supported and encouraged by actions, structures, policies and systems. Espedal, Kvitastein, and Gr?nhaug (2012) state that it is possible to increase the entrepreneurship ability of an individual through education. As a leader, I would organize regular workshops and provide my members with entrepreneurial programs and seminars to equip them with better entrepreneurial mindsets. I would also advise the human resource department to put emphasis on entrepreneurial talent during the hiring process. Following statements by Hampton-Farmer (2015), I would give employees freedom to work in labs and explore new products, but it is necessary to find a balance between this freedom and financial objectives of the company.

I would promote innovations by subjecting my employees to challenges that match their expertise and make them apply creative thinking. However, Christensen and Gregerson (2011) warn that it is important to set the right level of challenges because simple ones can leave people feeling disengaged, and difficult tasks can make employees overwhelmed. For innovations, it is also important to foster autonomy and goal setting. Encouragement from leaders also promotes creativity. I would form an organizational structure valuing and rewarding innovation and creativity. Scholars have established that co-operative behavior between companys leadership and members is critical for organizational success. I would foster this cooperation by always informing my employees of all choices I make for the company and their justification. The study by Espedal, Kvitastein, and Gronhaug (2012) has provided evidence that such structure improves companys performance. As a leader, I would use this to improve organizational capacity.

Some evidence shows that effective communication has resulted in tangible rewards. In the research carried out by Hampton-Farmer (2015) in an organization where the leadership rewarded employees for ideas submitted through bottom-top communication, the researcher discovered that after the submitted ideas had been implemented, they generated the organization thousands of dollars of profits and savings. I would implement proper and effective communication channels to enable all members to submit ideas. Moreover, I would publicly recognize and give incentives to such employees.


LOreal has strong organization norms, which are deeply rooted in its culture. They are expressed by members of the group in their daily operations around the world. The norms related to performance and consumer relations have worked to the advantage of the company. Consumers have developed trust in its cosmetic products. Good norms have promoted companys reputation ensuring that it remains a global leader in the cosmetic industry.

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