Human Resource Management: Tesla

This report discusses the HR strategies implemented by Tesla and the challenges faced in their implementation. It also explores the importance of embedding HR strategies into broader corporate strategies.

Running head: HUMAN RESOURCE MANAGEMENT
Human Resource Management: Tesla
Name of the Student
Name of the University
Author’s Note:

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Table of Contents
1. Introduction............................................................................................................................3
2. Discussion..............................................................................................................................3
2.1 Outlining Rationale of Embedding HR Strategies into broader Corporate Strategies.....3
2.2 Analysis of HR Strategy being embedded in the Broader Corporate Strategy in Tesla. .4
2.3 Discussion of Tesla Implementing their HR Strategy at the Departmental Level...........5
2.4 Discussion of few Contemporary HR Challenges that are being faced in Tesla.............6
3. Conclusion..............................................................................................................................8
References..................................................................................................................................9

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1. Introduction
HRM or human resource management can be referred to as a strategic approach for an
effective management of people within an organization, so that they are able to help the
business for gaining competitive advantages (Attendance Policy. 2018). The organizational
changes are required to balance every organizational practice with requirement from
governmental laws. The following report outlines a brief discussion on HR strategies in Tesla
with major challenges faced.
2. Discussion
2.1 Outlining Rationale of Embedding HR Strategies into broader Corporate Strategies
An organization considers about alignment of human resource strategies to their
business objectives and hence there is an assumption that HR functionality will be adjusting
to the entire segment of business (Moden Slavery Act Statement. 2018). A proper execution
of corporate strategies is possible with the successful estimation of human capital
implications of decisions. Embedding of HR strategies is extremely important for an
organization into broad corporate strategies. The main reason for this type of alignment is
that an HR strategy is one of the core component of entire business planning and for being
effective, both of these require to be developed efficiently.
There are four distinctive areas that are required to be addressed by the human
resources and these areas are as follows:
i) Getting Involved for Setting Corporate Strategy: An organization should involve
their HR strategies to set several corporate strategies and hence making the organization
extremely successful (Annual Report. 2018). A proper combination of government
requirements and economic turbulence for shifting into a proactive role, however it is
important to execute the long term and short term objectives for establishment of goals that

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are required to be achieved. The various HR functions that are needed to be aligned include
talent acquisition, performance management, employee retention, training and development.
ii) Understanding Wide Role of HR in Business: Most of the HR strategies
eventually focus on getting the best solution from HR team and not broad HR related
initiatives (Noe et al., 2017). The acquisition as well as retention of key staff and succession
planning or even performance management is required for embedding HR strategies with
corporate strategies.
iii) Development of HR Strategies Complementing Corporate Planning:
Development of a proper HR strategy is also required for ensuring that it majorly
complements corporate planning. This is only possible if planning is being done effectively
and avoiding excess details so that integration of HR strategies with corporate planning is
done.
iv) Turning the Strategy to Action: The respective strategy should be turned into
action after reflecting on business objectives and goals and defining that every measurement
is becoming an important requirement for linking strategy to operations in any business
(Cascio, 2015).
2.2 Analysis of HR Strategy being embedded in the Broader Corporate Strategy in
Tesla
Tesla has some of the most unique HR strategies in their business that are being
embedded in the broad corporate strategy. The key drivers of this particular organization’s
industry leadership and innovation majorly include HR managers, employees and purpose
(Bratton & Gold, 2017). Moreover, there is an active engagement of every individual or
organizational member within the company and hence innovation and competitive advantages
are obtained by them easily and promptly. The first and the foremost HR strategy of this

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particular organization is Attendance Policy General Statement (Attendance Policy. 2018).
As per this statement, for maintenance of an efficient operation, it is extremely important to
be punctual on the scheduled day. They ensure that all the employees are working in a timely
manner.
Moreover, since Tesla wants to enhance their productivity, it is extremely important
to embed to the respective HR strategies with corporate strategies. Hence, they focus on
attendance management system and also have implemented PTO or Paid Time Off policy in
their business after obtaining approval from the management. According to their current HR
strategy, employee responsibilities like scheduled and approved leaves, usage of resources
and many more are required to be maintained effective so that they are able to maintain
significance in the corporate strategies (Moden Slavery Act Statement. 2018). They want to
increase their sales in user car sales and for this purpose, they have included few new policies
for the employees and staff working in their organization, they also ensure that the employees
are also satisfied with the work. Thus, Tesla has been successful in embedding their existing
human resources strategies with the corporate strategies.
2.3 Discussion of Tesla Implementing their HR Strategy at the Departmental Level
Since Tesla is a car manufacturing company, it is extremely important and significant
to implement the existing human resources strategies at the respective departmental level.
They have making Model S sedan from June 2012 and all the customers are satisfied with
their products (Annual Report. 2018). However, as they have decided to implement the
strategy of human resources, it is required to deploy it at their departmental level. They are
committed for ensuring that the method, which they are conducting their business as well as
dealings with every supplier after reflecting on values and beliefs that all the employees
should be eventually treated with outmost respect and dignity. They have ensured that child
labour is not involved in their business (DeCenzo, Robbins & Verhulst, 2016). Being a major

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part of organizational human resource department, it is their responsibility to not to tolerate
the utilization of child labour or slave for better manufacturing of products and do not accept
services and products from the suppliers, which engage in any form of human trafficking.
Human resource management is being designed for maximizing employee
performances in respect to strategic objectives of employee (Brewster, Chung & Sparrow,
2016). It is mainly concerned with people management in an organization after focusing on
systems and policies. These human resource departments within organization are mainly
responsible to oversee employee benefits design, reward management, performance appraisal,
training and development, employee recruitment and many more. The main mission of this
organization is to subsequently accelerate the transition of the world into respective
sustainable energy (Budhwar & Debrah, 2013). For this purpose, Tesla always hire the
world’s best and the brightest people for helping them in achieving their mission and they
always focus on their employees and staff.
Every recruitment policy is complied with standards and local regulations and hence
an equitable and fair approach is being adopted while searching for talent and the wages are
complaint with the regulations and local laws. To implement their HR strategies, they have at
first ensured that these strategies are driving business changes. They have also motivated
their employees for leaping every significant hurdle for change (Storey, 2014). Since, Tesla is
implementing in the departmental level, employee involvement is highly required to be sure
that all the strategies are working efficiently (Paillé et al., 2014). Moreover, poor
coordination within organizational management is also eradicated due to such
implementation and various organizational policies and goals are fulfilled.

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2.4 Discussion of few Contemporary HR Challenges that are being faced in Tesla
Some of the core management functions of HR include involving procurement,
maintenance and development of human resources, involvement of team work and team
spirit, achievement of social, organizational and individual objectives and goals
(Aswathappa, 2013). Tesla has even faced some of the major and the most significant
contemporary HR challenges and these challenges have brought subsequent changes within
the organization. These challenges that they faced with proper solutions that they should
undertake these solutions for such challenges in future. The challenges and solutions are as
follows:
i) Management Changes: The first and the foremost challenge that Tesla has faced in
their business is management changes. Since a business grows with the help of internal
processes, structure and respective strategies to grow with it. As they have implemented new
human resource strategies, it is extremely important to deal with the respective changes in
management and also to ensure that the employees are motivated (Jackson, Schuler & Jiang,
2014). As a result, productivity, morale and sales and marketing are extremely decreased and
the organization has faced losses.
One of the most significant solution to this issue can be that the business owners must
focus on communication of change advantages for all the employees (Brewster et al., 2016).
A regular meeting with the staff is needed so that they can understand that why Tesla is
opting for such changes.
ii) Leadership Development: The second important and significant challenge that
Tesla has faced in their business for HR strategy is leadership development (Kramar, 2014).
They did not have set a leader during meeting to the staff and thus issue with leadership
development is extremely vulnerable for the organization.

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Tesla, regarding car manufacturing, should communicate with their staffs
periodically. The management should make them understand that leadership development is
required to keep the management team extremely managed and hence opportunities for them.
3. Conclusion
Therefore, from the above discussion, it can be concluded that human resource
management is a procedure to recruit, select, induct employees, providing orientation,
motivating employees, deciding compensation, appraising employee performances, ensuring
safety of employees and many more. Tesla Inc. is an automotive and energy organization of
America that has headquarters in Palo Alto, California. They specializes in manufacturing of
electric car by SolarCity subsidiary and solar panel manufacturing. Various challenges to HR
strategies and process of implementation of HR strategy are described here.

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References
Annual Report. (2018). [online]. Accessed from
http://www.annualreports.com/HostedData/AnnualReports/PDF/NASDAQ_TSLA_20
17.pdf Accessed on 02 Apr. 2019.
Aswathappa, K. (2013). Human resource management: Text and cases. Tata McGraw-Hill
Education.
Attendance Policy. (2018). [online]. Accessed from
https://www.scribd.com/document/383800265/TSLA-July-2018-attendance?
secret_password=5fJAnvJMfQw1MRKwkoTJ#from_embed Accessed on 02 Apr.
2019.
Bratton, J., & Gold, J. (2017). Human resource management: theory and practice. Palgrave.
Brewster, C., Chung, C., & Sparrow, P. (2016). Globalizing human resource management.
Routledge.
Brewster, C., Vernon, G., Sparrow, P., & Houldsworth, E. (2016). International human
resource management. Kogan Page Publishers.
Budhwar, P. S., & Debrah, Y. A. (Eds.). (2013). Human resource management in developing
countries. Routledge.
Cascio, W. F. (2015). Managing human resources. McGraw-Hill.
DeCenzo, D. A., Robbins, S. P., & Verhulst, S. L. (2016). Fundamentals of Human Resource
Management, Binder Ready Version. John Wiley & Sons.
Jackson, S. E., Schuler, R. S., & Jiang, K. (2014). An aspirational framework for strategic
human resource management. The Academy of Management Annals, 8(1), 1-56.

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Kramar, R. (2014). Beyond strategic human resource management: is sustainable human
resource management the next approach?. The International Journal of Human
Resource Management, 25(8), 1069-1089.
Moden Slavery Act Statement. (2018). [online]. Accessed from
https://www.tesla.com/sites/default/files/about/legal/2017-uk-modern-slavery-act-
transparency-statement.pdf Accessed on 02 Apr. 2019.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource
management: Gaining a competitive advantage. New York, NY: McGraw-Hill
Education.
Paillé, P., Chen, Y., Boiral, O., & Jin, J. (2014). The impact of human resource management
on environmental performance: An employee-level study. Journal of Business
Ethics, 121(3), 451-466.
Storey, J. (2014). New Perspectives on Human Resource Management (Routledge Revivals).
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