BBA/19/0017

BBA 1202- Principles of

Management

Graded Assignment 3 – Case

Study
 1) Why would you invest leadership development if you are the CEO of L’Oreal?

Leadership is about doing new thing with people in the complex and fast changing world,
leadership is achieving specific goals by assisting people.

L’Oreal is the largest leading cosmetic company globally, and it has achieved success this far
because of the great leadership. If I were the CEO of the company I would invest more on
leadership development to generate further success.

I would invest on leadership development because I believe that greater leadership conceive
more exceptional teams, going from its normal activities but much larger than usual as
almost 650 graduates joining the L’Oreal training program each year, where it trains them to
overcome different missions in the organization to learn the business. Each trainee learns
about the organization, gets an idea about the business models, and builds relationship
throughout the organization so that will make them feel more comfortable

I would invest on leadership development because it is crucial for each and every employee
in the company to have leadership skills, namely effective communication skills, as the
overall success of L’Oreal is the cross cultural awareness of the managers who leads diverse
teams developing customized products for different region of the world, so they must
develop a relationship between the organization and the other regions which is boosted by
effective communication skills.

I would invest on leadership development as leadership development can lead to ethical

leadership which is highly required when doing business globally.

And I would invest on leadership development as it motivates and guide employers and
employees, where it creates an opportunity for the managers to develop their own teams, and
the managers are responsible for the development of their employees to meet business
outcomes.

2) According to your viewpoint, what type of leadership does L’Oreal prefer to

develop? Is it transactional leader or transformational leader?

From my side of view I think L’Oreal prefer to develop the transformational leadership

Transformation leadership can be define as “Leaders who inspires followers to transcend their
own self-interest and who are capable of having a profound and extraordinary effect on
followers” - Robbins et al (2013)
 L’Oreal has greatly inspired more than 80000 employees around the world, giving them the
opportunity of leadership skill development, on personal development plan. Most trainees are
connected to the mentor to answer questions and provide guidance. Developing relationship
throughout the organization which leads to the self- interest of employees.

Managers at all levels have been inspired to create their own teams, managers are responsible for
the development of their employees to meet the business outcomes

According to the above reasons, my opinion is L’Oreal prefer to develop transformational

leadership.

3) What leadership model / theory you suggest L’Oreal build productive leaders
through their management trainee program?

Trait theory of leadership

I think L’Oreal has build productive leaders through their management training program as they
have used the above mention theory, according to the theory leadership capabilities are rooted to
the characteristics possessed by individuals. For instants the training program seeks out for
graduates who are curious and able to adapt to other cultures.

Trait theory shows the positive relationship between effective leadership and personality. For
instants the CEO of L’Oreal is a university graduate who has an experience more than 40 years
has made an effective leadership and Relationship among employees has become the advantage
for the organization to be the success cosmetic company globally.

The theory also shows that individuals emerge as leaders across a variety of situation and task.
For instance the training program conducted by L’Oreal give different task/ mission on a
personal developed plan and also the organization has given the opportunity for the managers to
make their own teams. In addition L’Oreal expects the individual awareness of managers about
the diverse regions.

As mention above according to researches trait theory commonly connected with effective and
great leadership and also this theory includes adaptability and flexibility, assertiveness,
creativity,decisiveness,emotional stability, need for achievement, people skill, perseverance ,
trustworthiness and understanding followers and their needs.

I think that this theory has influence the productive leaders in L’Oreal throughout the
management trainee program