Strategic Human Resource Management: Case Study of Tesla

This essay explores the human resource management strategies of Tesla, focusing on their embedding into broader business strategies. It analyzes the implementation of HR strategies at the departmental level and discusses the current HR challenges faced by Tesla. The essay concludes by highlighting the importance of leadership in achieving organizational goals.

Strategic Human Resource Management
Case study of Tesla
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Table of Contents
Introduction....................................................................................................................................3
Q1. Justification of embedding strategies of HR into broader business strategies...............3
Q2. Analysis of embedding HR strategy into Tesla’s corporate strategy..............................4
Q3. Implementation of Tesla’s HR strategy at the departmental level.................................5
Q4. Discussion of current HR challenges of Tesla and its role in changing or developing
the strategies...............................................................................................................................5
Conclusion......................................................................................................................................6
References.......................................................................................................................................8
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Introduction
This essay gives a detailed explanation of the human resource management of the
organization named Tesla. It is the American automotive and Energy Company
headquartered in California. The company mainly deals with the manufacturing of electronic
cars. The company was founded in the year 2003 by Elon Musk. The main motive of the
company is to manufacture vehicles with the latest technology. The company hires people
with brilliant knowledge and abilities so that they can help the organization in achieving its
targets. The company commits to creating a healthy and safe working place for the
employees. In this essay, there is a description of the Human resources strategies of the
organization. There is a detailed description of the organizational structure along with the
HR strategies of Tesla. The organization always tries to adopt the policies related to human
rights, supplier code of conduct and conflict mineral policy.
Q1. Justification of embedding strategies of HR into broader business strategies
In every organization, there are various kinds of strategies that are being practised. Human
resource is the department that helps the organization in finding and training the employees.
Human resource is very important for each and every organization. It helps the company in
resolving the conflict and employees benefits. It helps the company in achieving its goals
and detecting the future needs of the organization. An HR strategy generally follows the
global strategies that embrace specific goals in human resources. The HR department is the
main and very important department for each and every organization. When any
organization creates HR strategies there are various techniques and methods kept in minds
such as PESTEL, SWOT, and VRIO analysis (Pinto et. al., 2017)
There is a various function that is performed by the HR department such as management of
risk in the organization, training, and development of the employees, formulation of the
policies, strategic management, selection and recruitment of the employees, etc. All such
functions are carefully performed by the Hr department in all types of organization (Dalton,
2017). Human resource planning in the organization plays a very important role in
achieving the targets of the company. The overall success of the organization depends on
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Human resource strategies. There are various things that are important while making the HR
strategies such as legal requirements, engagement of employees, various programs related to
the career advancement, corporate image of the organization and performance management
system. The organization puts more emphasis on the innovation and updating of the
products. The employees of the organization are well trained and have the capacity to
respond to changes and trends. The organizational culture of Tesla is an innovative problem-
solving. The company treats employees in a good manner as no employee is forced to work
against their will (Efron, 2018).
Q2. Analysis of embedding HR strategy into Tesla’s corporate strategy
Embedding the HR strategy in the corporate strategy within the organization is very
important. Human resource strategy mainly focuses on the employees and meeting the goals
for the company (Cheong, et. al., 2016). As corporate strategy mainly focuses on the
management of resources, return and risk across the organization, competitive advantage,
etc. Human resource strategy is the part of a corporate strategy that helps the organization in
achieving the targets.
HR strategy mainly focuses on the employees and in corporate strategy, all things are
performed. The main motive of the corporate strategy is to utilize the resource effectively
and improve the organization's competitive image in the market. There are four pillars of the
corporate strategy namely organizational design, strategic tradeoffs, allocation of resources
and portfolio management (Schreiber, 2019).
HR strategy is implemented in the corporate strategy as the main motive of the organization
is achieving the targets as both strategies work for it only. HR strategies are implemented in
the organization with the prevailing corporate strategy with proper planning. Both help in
managing the risk within the organization. Decision making is more concerned with the
corporate strategy as it is an important task for the organization. Both the strategies are
required to run the organization effectively without on the other can't perform well (Chen,
et. al., 2018).
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Q3. Implementation of Tesla’s HR strategy at the departmental level
Before implementing any HR strategy proper planning is required to be done. Planning is
the main function of management as without planning anything is not possible in the
organization. Strategic planning is required to be done as the human resource department is
the personnel department. The first step to implement the HR strategy is strategic planning.
After planning is done process is evaluated (Bakermans et. al., 2017).
The entire legal requirements are completed and then staffing is done. After that comes
staffing as proper staffing is also required because the right candidate at the right place will
work with full efforts. After staffing plans are implemented with the help of organization
staff. The last thing that comes is measuring the success as while measuring the success the
company is more specific (Faiena et. al., 2018).
The success of the organization should be measured and evaluated constantly. While it is
evaluated constantly if there is any requirement for the change it can be seen and altered
accordingly (Klein-Wiele et. al., 2015). Diligence is also required in the implementation of
the HR strategy at the departmental level. An effective HR strategy can provide benefits to
the company in various ways and if it is used uncorrectable it can badly affect the overall
health of the company. Human resource strategies are very helpful in the development of the
initiatives and goals of the organization. It is very important to include the goals of the
organization in the development of the human resource strategy. If there is an establishment
of a proper workforce plan organization can handle the hurdles easily and objectives of the
department along with the Tesla can also be achieved (Wech, et. al., 2016).
Q4. Discussion of current HR challenges of Tesla and its role in changing or developing
the strategies
There are various kinds of contemporary HR issues that are faced by Tesla such as
mismanagement, adoption of government rules and laws, changes in management. All these
are types of issues faced by Tesla. If there is any kind of change in the organization all
prevailing strategies and actions are disturbed. Sometimes it is very difficult to cope up with
the situation (Reuter, et. al., 2016). The organizational structure is disturbed with the change
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in management. At this issue, there is a requirement of proper communication within the
organization so that issues can be handled easily. Communication is base of every good and
successful organization as without proper communication task can’t be performed
effectively nor can it be completed within stipulated time period (Karanfil, et. al., 2016).
Training and development are also very necessary for Tesla as it is automotive organization
so employees working their needs more skills and talent. Regular changes are done in these
types of the industry so for adapting changes employees should be properly trained.
Employee’s laws are the major struggle for the business owners. But Tesla follows all rules
and regulation strictly (Griffith, et. al., 2017). The attendance system in the organization is
quite good as no employee can leave the organization without serving the prior notice.
Leadership development is the main issue organizations are facing these days all over the
world. In every organization, various training programs are held for the development of
leadership. Development of leadership is most important for keeping the management or the
organization effective. Leadership helps the organization in motivating the employees to
perform the particular task effectively within a specified time period (Brisse, et. al., 2015).
Compensation is also the huge HR challenge for the organization because employees want
more compensation and the company does not agree to pays such higher compensation. A
company should create a reward system for the excellent performances of the employees. It
is the way that candidate will work effectively for receiving the reward and they will be
self-motivated also without any higher pays (Fraum, et. al., 2016).
Conclusion
It is concluded from the above essay that Tesla is an automotive company and its HR
strategies are very effective for achieving its targets. The working environment of the
company is very healthy and peaceful. The company mainly focuses on the innovation and
advancement of technology. The organization implements various kinds of HR strategies
department wise so that goals can be achieved effectively. There are various kinds of
challenges faced by each and every organization for achieving its targets. Challenges faced
by the organization change in management, adopting innovations, changes in government
policies and laws, etc. It is also concluded that leadership is also very important for the
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organization to achieve tasks effectively. Needless to say, a good leader for the organization
is truly a blessing as a leader motivates the employees to deliver their best in their
respective field of operation.
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