Application Case: Tesla’s HR Strategy

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Summary

Tesla is one of the largest vehicle production companies in the world. Tesla’s strategy is to develop high-performance, energy-efficient vehicles that reduce greenhouse gas emissions. Based on the technology they are using and the nature of the vehicles they produce, their value is higher than that of General Motors (Dessler, 2018). In addition to producing high-tech luxury vehicles, the company produces less expensive family cars to attract middle-class families. The overall production utilizes battery charging that solar devices will power.

Tesla’s Human Resource Strategy

Tesla applies numerous strategies to ensure it remains uncompromised from its goals. To attain the set objective, the firm promotes continued production and provides employment to talented workers. Due to this reason, the company utilizes strict measures to ensure that it has total control of the workers so that it can effectively manage them (Alaimo, 2022). Among the measures implemented include signing confidentiality agreements, which enable the organization to keep secrets of the various activities undertaken for them to remain relevant. Such factors keep human resources in control, enabling the business to remain uncompromised (Dessler, 2018). Keeping information about the organization’s internal affairs enables the company to remain competitive, as the competitors barely know the internal controls maintained by Tesla (Alaimo, 2022). Such issues keep the corporation competitive as other motor vehicle companies cannot use their strategies to gain a competitive advantage over Tesla.

Need for Engagement Programs

Based on the case study, Tesla experiences numerous human resource issues that require the development of engagement programs. As stated in the case study, the business maintains total control of its staff, which is linked to the development of numerous employee issues and layoffs (Alaimo, 2022). The development of an engagement program can enable the organization to increase workers’ motivation and satisfaction. In addition, the company can reduce the conflicts experienced between the enterprise and the workforce (Dessler, 2018). Through such practices, the venture can enhance its reputation as it will be able to foster activities related to staff health and safety measures.

Steps and Initiatives to Undertake

Considering the nature of events outlined in the case study, Tesla needs to implement different strategies that would enable it to eliminate any issues that would lead to production disruption. The lack of a worker’s union plays a critical role in the conflict experienced between the company and the employees (Bhardwaj et al., 2020). Due to this reason, the unionization of workers would support employee motivation and satisfaction. In addition, engaging the employees in the decision-making process would make them feel as part of the organization and play a critical role in promoting health and safety measures (Bhardwaj et al., 2020). Tesla can provide incentives for the employees to solve the various issues that make them complain about the working conditions in the organization.

Strategic Organizational Outcomes

Using strategic management can be highly beneficial to Tesla as the lack of employee involvement in organizational management. Implementing a strategic plan would enable the organization to enhance the employees’ satisfaction level, which is a motivating factor (Bhardwaj et al., 2020). In addition, strategic management provides a strong plan that can be used to structure organizational activities leading to increased operational efficiency. Strategic plans enable organizations to develop an effective flow of activities directed to the overall organizational goal. Such mechanisms are essential in the attainment of proposed production goals and capacity. Effective strategic planning processes enable the elimination of errors in the production process that can eliminate errors that would lead to the development of health and safety issues (Bhardwaj et al., 2020). Minimizing errors would ensure that the workforce operates in a safe environment where they experience fewer distractions, enhancing their confidence in the workplace.

Workforce Competencies and Behaviors

Based on the issues experienced by Tesla, there is a need for the workforce to develop various competencies and behaviors to deal with the various issues experienced in the company. Among the main competencies required are problem-solving and complex thinking, which are critical in developing behaviors that would enable them to deal with the issues experienced in the organization. The workforce should take responsibility for their actions since Tesla’s management is focused on maintaining strong control of the workforce (Bhardwaj et al., 2020). Being responsible for their actions ensures they are consistent with the management. In addition, the workforce should learn that Tesla is result-oriented and develop such skills to enable the organization to attain its goals. Such competencies will ensure they promote organizational goals, leading to a healthy working environment (Bhardwaj et al., 2020). The workers should develop communication competencies to engage the management productively.

Strategy Map for Tesla

Tesla is aimed at improving its product offering with minimum human capital. This aspect is based on the organization’s aim to maximize profits through the various products they produce (Bhardwaj et al., 2020). The organization utilizes strict measures to ensure that it can improve the internal efficiency of the workforce within the organization. While the organization aims to maximize profits, the management aims to optimize human capital by hiring talented staff for the minimum costs. It is for this reason that human resource management uses all the necessary measures to ensure that the staff is not unionized.

Overall Tesla Goals

Tesla’s main goal is to maximize profits by using sustainable practices in the automotive industry. This aspect is among the main goals as Tesla develops automobiles that use sustainable energy. Tesla aims to enhance the effective transition from using carbon combustion engines to electric-powered ones, which enable the attainment of safe energy (Bhardwaj et al., 2020). In addition, the company focuses on remaining a global brand known for its environmentally conservative strategy. Tesla has attained a positive reputation as a global force in using technology to promote environmental conservation and reduce global warming as the push for the adoption of safe energies continues, and Tesla continues to be a global leader in the development of electric automobiles.

Measures to Operationally Attain Organizational Goals

Since Tesla experiences issues with its staff due to the various work relationships maintained, there is a need for the organization to engage workers in the decision-making process (Bhardwaj et al., 2020). Such practices will ensure that the employees are considered and that the issues they experience are solved. The organization should develop a healthy and safe working environment as the cases of staff injuries are reported to be many, leading to employee complaints. Creating a safe working environment would ensure smooth operations, enhancing the organization’s performance (Ashikali et al., 2021). Tesla should invest in advanced solar and electric energies to develop batteries with high energy storage capacity, enabling its automobiles to cover a longer mileage before recharging.

Required Employee Attitudes and Behaviors

For Tesla to attain its goals, the employees need to develop positive attitudes toward the organization and its work. Such an attitude would enable them to become motivated in executing their tasks. The workforce should also be loyal to the organizational leadership to ensure they do not engage in conflicts that would interrupt the business’s operations (Bhardwaj et al., 2020). In addition, they need to develop job satisfaction behaviors and commit themselves to the attainment of the organizational goals. With such behavior, the workforce can undertake the work assigned to them and commit themselves to ensure that they meet the set goals (Ashikali et al., 2021). Lastly, the workforce should be task-oriented and learn to work in teams to attain organizational goals.

References

Alaimo, K. (2022). Opinion: Elon Musk’s work policy is bad for employees, but it’s even worse for Tesla. CNN Business. Web.

Ashikali, T., Groeneveld, S., and Ritz A. (2021). Managing a diverse workforce. In L. Peter et al (Eds.), Managing for public service performance: how people and values make a difference (pp. 182-198). Oxford University Press.

Bhardwaj, S., Pandey, R., Sharma, S., Sejal, S., Iyer, G., Sharma, S. & Kulkarni, S. (2020). Problems faced by Automobile Industries: Case study on Tesla. International Journal of Tourism and hospitality in Asia Pasific (IJTHAP), 3(2), 78-88. Web.

Dessler, G. (2018). Tesla’s Strategy

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