Review of Work and Organisation at Tesla

This report provides a review of the work and organization at Tesla, including the impact of globalization, power and politics, organizational culture, and leadership.

Review of work and
organisation at Tesla

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES ...............................................................................................................................6

INTRODUCTION
In an organisation, the culture, power and politics exist that influence its operations and
working. Review of these on time will helps in performing activities appropriately and gain
success (Barbaranelli and et. al, 2019). In this report, the chosen organisation is Tesla Inc. which
is an automotive and energy firm based on California, United States. The company was
established in year 2003 and is specialized in electric car manufacturing. This report covers
effectiveness of work and organisation at Tesla by considering impact of globalization on
company. It also includes information about power and politics within Tesla and its governance,
organisational culture and leadership. Apart from these, groups and teams within organisation
and motivation and job design are included in the report.
MAIN BODY
Tesla Inc. is one of the leading American automotive energy firm which was founded in
year 2003. It design, create, manufacture and sells energy storage systems and fully electric
vehicles. Apart from this, it also installs, directs and maintain solar as well as energy storage
products (Coccia, 2015). The firm operates in two segments: the automotive division involves
design, creation, production and sales of vehicles and the energy creation and storage division
involves design, production, installation and lease or sale of stationary energy storage goods and
systems of solar energy to commercial and residential customers. Today, Tesla develops not only
electric vehicles, but it also builds infinitely ascendable clean energy generation and storage
goods (About Tesla, 2019). The company was founded by group of engineers including Martin
Eberhard, Elon Musk, Mark Tarpenning, Ian Wright and J.B. Straubel. The operating income of
company is US$-0.388 billion and its net income is US$−0.976 billion in year 2018.
Tesla works at global level and globalization helps company in expanding its market and
attaining large market share. As per Myles Edwin Mangram, 2012, the company is only vehicle
manufacturer who is selling zero emission sports car in consecutive production. The company
then expanding its technological advantage to luxury vehicle market. In spite of global pace
made by company in context of market adoption, global marketing and technological
developments, it stays a relatively young firm in automotive industry (The globalization of Tesla
Motors, 2012). Globalization helps company in improving its productivity and profit ratios and
maximizing its market share. However, Tesla facing some challenges related to balancing

production with demand, legal problems and leadership concerns. In year 2019, the company
hopes to produce 7000 Model 3's per week but it only produced 5300 vehicles. Keeping up the
pace and balancing with demand will constantly serves as critical risk elements for investors of
Tesla. Apart from this, the entanglement of Tesla with SEC, the justice criminal investigation
department is afoot exploring fraudulent claims related to production of Model 3 in year 2018
(Tesla's 4 Biggest Challenges, 2019).
There exist different forms of power which are being utilised firms depending upon their
requirements. Tesla can opt for French and Raven form of power among employees for ensuring
that services are carried out in an appropriate manner. They comprises of coercive power
(depends on idea of coercion), reward power (involves ability to delegate matters), legitimate
power (comprises of ability for linking notion of responsibilities to management of Tesla),
referent power (based on ability for administering sense of personal approval & acceptance) and
expert power (renders the in-depth knowledge as well as expertise). These powers are being
allotted to employees of Tesla depending upon their knowledge and responsibilities they have to
carry out (Ruck, Welch and Menara, 2017). But this also leads to creation of politics within the
working environment as if someone is at higher position and have some knowns in lower post
then they will give leverage to them. This will create a negative impact on other employees and
the way in which deliver their services. Apart from this, motivational levels will be declined due
to the reason that they are not being valued for activities which are being carried out by them and
credit is given them. Therefore, it is important that these kind of activities must be avoided by
management of Tesla to ensure that employees can work till their potential. For this, it is
important that appropriate strategies are formulated by them.
Tesla Inc. follow such organisational structure that assists in its continuous business
growth.
The effectiveness of Elon Musk's leadership is rely on the ability of corporate structure to
support and disseminate the execution of new strategies for improvement and growth of
business (Selamat, Nordin and Fook, 2017). Tesla follows functional organisational structure
which involves functional teams that supervise local and international operations. This structure
provides benefits to company of effective managerial control of operations at multinational
level. Functional structure makes it easy for Tesla to execute new strategies all over the
organisation. It enables firm to centrally control the competitive advantages development.

However, there are some disadvantages also for company as its structure is rigid in nature that
limits quick adjustment in company (Tesla Inc.’s Organizational Structure & Its Characteristics,
2018).
Organisational structure can be described as the behaviours and values that contribute in
maintaining unique psychological and social business environment. Which organisation follow
different culture that governs the behaviour of people at workplace. Shared values strongly
influence the people and depicts the way they act, behave and perform their roles. In context of
Tesla, it follows innovative problem solving culture which helps in motivating employees to
create profitable solutions to issues that are existing currently and emerging issues (Tesla Inc.’s
Organizational Culture, 2019). This culture enables company to develop high end technological
products that attracts more customers. However, this organisational culture makes a pressure on
employees to innovate constantly. According to Handy's Culture Typologies, two types of
cultures can be exist within organisation including role, power, task and person culture. among
all task culture is the most appropriate for Tesla as in this tasks are performed by team to address
specific problem that helps complain resolving them appropriately (Zaghini and et. al, 2017).
The CEO of Tesla Motor Company utilize his power to influence people and organisations
as well as government to alter their perception on space travel (Power and Influence – Elon
Musk, 2014). the leader of company uses transformational leadership style in which they work
with team in order to determine needed change, developing a vision to direct change and execute
it in tendem with group members. Tesla perform its business activities as per the set standards
and brings transparency in its policies and procedures which help company in maintaining
sustainability in market and attaining long term success. It forms teams and encourage
employees to work collectively by improving their motivation level so that they are able to attain
goals and objectives of company (Wong, Mahmud and Omar, 2015).
CONCLUSION
As per the above mentioned report, it has been concluded thatthe culture of organisation
plays crucial role in its success. Organisations required to follow appropriate culture as it helps in
motivating employees and guides them towards attainment of goals and objectives of company.
Use of transformational leadership style helps in determining and managing change

appropriately with the help of team. Bringing transparency in policy and ensuring ethical
working within firm helps in maintaining its long term sustainability in market.

REFERENCES
Books and Journals
Barbaranelli and et.al, 2019. Positivity and behaviour: the mediating role of self-efficacy in
organisational and educational settings. Journal of Happiness Studies. 20(3). pp.707-
727.
Coccia, M., 2015. Structure and organisational behaviour of public research institutions under
unstable growth of human resources. Coccia, M.(2014)‘Structure and organisational
behaviour of public research institutions under unstable growth of human resources’,
Int. J. Services Technology and Management. 20(4/5). p.6.
Ruck, K., Welch, M. and Menara, B., 2017. Employee voice: An antecedent to organisational
engagement?. Public Relations Review. 43(5), pp.904-914.
Selamat, N., Nordin, N. and Fook, C.Y., 2017. Organisational Justice and Organisational
Citizenship Behaviour: Evidence from A Developing Country. Global Business &
Management Research. 9.
Wong, S.C., Mahmud, M.M. and Omar, F., 2015. Spiritual leadership values and organisational
behaviour in Malaysian private institutions of higher education. Pertanika Journal
Social Sciences & Humanities. 23(2). pp.495-507.
Zaghini and et.al, 2017. The ethical leadership of the nursing ward managers as a key
determinant of nurses' organisational behaviours in the healthcare settings. Professioni
infermieristiche. 69(1). pp.31-40.
Online
About Tesla, 2019. [Online]. Available through: <https://www.tesla.com/about>
The globalization of Tesla Motors, 2012. [Online]. Available through:
<https://www.researchgate.net/publication/254322834_The_globalization_of_Tesla_M
otors_A_strategic_marketing_plan_analysis>
Tesla's 4 Biggest Challenges, 2019. [Online]. Available through:
<https://www.thestreet.com/world/tesla-biggest-challenges-2019-14813474>
Tesla Inc.’s Organizational Structure & Its Characteristics, 2018. [Online]. Available through:
<http://panmore.com/tesla-motors-inc-organizational-structure-characteristics-analysis>
Tesla Inc.’s Organizational Culture, 2019. [Online]. Available through:
<http://panmore.com/tesla-motors-inc-organizational-culture-characteristics-analysis>
Power and Influence – Elon Musk, 2014. [Online]. Available through:
<https://sites.psu.edu/leadership/2014/11/30/power-and-influence-elon-musk/>