Strategic Human Resource Management

This report discusses the importance of embedding HR strategies in the overall corporate strategy at Tesla and explores the challenges faced by the company. It provides insights into how Tesla can implement HR strategies at the departmental level and addresses contemporary HR challenges.

Strategic Human Resource Management
NAME OF STUDENT
NAME OF COLLEGE
AUTHORS NOTE
STRATEGIC HUMAN RESOURCE MANAGEMENT

STRATEGIC HUMAN RESOURCE MANAGEMENT
Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Conclusion...................................................................................................................................6
References........................................................................................................................................7
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Introduction
It is very essential for a business organization to embed the human resource strategy of their
organization with the overall corporate strategies as it ensures proper alignment of business goals
and objectives with HR strategies of the company. In order to ensure effectiveness of HR
strategy of an organization it is very essential, to develop HR strategies based on overall goals
and objectives and on the individual requirements of various departments of an organization. The
current report helps in analysing importance of embedding human resource strategies in overall
corporate strategy at Tesla and discusses various HR challenges which are faced by them.
Discussion
The rationales of embedding HR strategies into broader corporate strategies are as follows:
Strategic alignment of HR- As stated by Bagga & Srivastava (2014) Human Resource
Departments of organizations is left to manage and co-ordinate various administrative functions
such as recruitment, performance management, training and compensation only in the
organization. As opined by Sarvaiya, Eweje & Arrowsmith (2018) the above mentioned
functions are considered to be important but on individual basis they do not play any part
regarding the way organization plans for the correct human resources level for delivering to its
plans and objectives. The embedding of HR strategies into broader corporate strategies of Tesla
makes sure that HR takes over its functional activities in a manner which supports growth and
success of the organization.
Delivering the strategy- According to Defelix, Mazzilli & Gosselin (2015) an effective HR
strategy which is clear with broader corporate strategies enables an organization like Tesla to
align their activities in a systematic way with their human resource activities. An HR department
which has idea regarding the business strategy demands helps in ensuring that it has the correct
people in correct place so as to deliver to the objectives of the company and to support their
growth. As stated by Harrison & Bazzy (2017) the HR strategies which are embedded with
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broader corporate strategies can be implemented in Tesla for ensuring that the HR requirements
are perceived as equal to other investments of the company.
Effective training and development- As stated by Karami, Sahebalzamani & Sarabi (2015)
business organizations are influenced by a large number of internal and external factors which
combined has the ability to change the nature of job roles of individuals or generate new
demands on skill sets of individuals. As opined by Stríteský & Quigley (2014) if the HR
strategies of an organization like Tesla are embedded into broader organizational corporate
strategies then it helps in anticipating various changes and internal and external factors
responsible for changes. Tesla can accordingly implement a training and development plan in
order to aid human resources to cope up with such circumstances.
Improved recruitment and retention- As stated by Malik & Yasmin (2016) employees of an
organization like Tesla who perceive as better supported regarding their job roles and positions
tends to be more happier and productive in nature and this ensures good reputation in
employment market regarding taking care of their workers who face very limited problems.
Therefore these factors helps in illustrating why it is important to link HR strategies of an
organization to the broader corporate strategies. As stated by Sandoff & Widell (2015) as
recruitment and retention of employees are two of the most vital areas where values which are
monetary can be assigned, therefore more stable and better trained workforce helps in improving
operating profits.
The HR strategy is embedded in broader corporate strategy of Tesla by following below
mentioned steps:
Understanding challenges faced and their current state- As opined by Chaudhuri (2014) in order
to embed the HR strategy in broader corporate strategy, Tesla considers goals and expected
outcomes of the company such as by determining whether they are pursuing a growth strategy or
a turnaround strategy for underperforming business lines.
Identifying how human resources must contribute to growth and success - According to Lakshmi
& Kennedy (2017) in order to embed HR strategy in broader corporate strategy, Tesla seeks to
understand what they are asking their workforce to do in service of goals. Tesla also conducts an
audit in order to identify what different skills, competences and behaviours are required from
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their employees so as to achieve goals of company and also analyse what positions and functions
are required by Tesla to deliver on their expectations.
Designing and implementing HR talent strategy - As opined by Garcia-Carbonell, Martin-
Alcazar & Sanchez-Gardey (2015) in order to embed HR strategy in broader corporate strategy,
Tesla must identify gaps between current workforce skills and skills which are required to
accomplish goals and objective in future and then accordingly must design and implement
strategies for acquiring, training, developing, performance management. Also Tesla must reward
their high performing human resources who can contribute towards accomplishment of
organizational goals in future.
Measuring HR strategy - As opined by Nguyen & Teo (2018) in order to embed HR strategy in
broader corporate strategy, Tesla uses HR scorecard and various other metrics which helps in
indicating that their HR strategy is successful and also helps in identifying any mis-alignment of
HR strategies with their overall corporate strategy.
Tesla can implement their HR strategy at departmental level by following below mentioned
steps:
 As stated by Ghinea & Moroianu (2016) Tesla should ensure that their HR strategy is
aligned with their business goals of the company and must make sure that values of
company, philosophy followed in company, mission of company and ethics followed in
company are distinctly reflected in to their strategic plan. As stated by Spahic (2015) as
one of the main business goals of Tesla is to facilitate top quality customer service
therefore a part of their HR strategy should be dedicated towards training in workplace
and development for improving interpersonal skills and resolution of conflict skills
among various departments.
 As stated by Ngo, Jiang& Loi (2014) Tesla should ensure that their HR strategy has
capability of resolving all human resources issues and concerns that are faced by each
departments so as to ensure buy in of human resource strategy by all their departments.
 As stated by Oppong (2017) Tesla should also ensure that each of their department
demonstrate high level of support towards human resources strategy of company as
creation of sense of dissent among specific department regarding human resources
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strategy will tend to create dissent among other departments, which may lead to in-
effectiveness of human resource strategy of Tesla.
 As opined by Lakshman, Lakshman & Estay (2017) Tesla should also put performance
indicators in place for reviewing effectiveness of their human resource strategy across
various departments in order to gain idea regarding success of implementation of strategy
and also to identify various issues among departments which can create problems during
implementation of human resource strategies across various departments.
There are various contemporary HR challenges which are faced by Tesla which have prompted
development of changes into their current HR strategy which are as follows:
 There have been various reporting’s in the media regarding workplace condition of Tesla
which has raised various concerns regarding their image in market. Also different media
reports have stated that Tesla has falsely reported injuries in their workplace and failed to
adopt safety measures at the factory of the company in California. The report also stated
that there were no appropriate safety levels and safety markings in their factory due to
various aesthetic reasons. Moreover various media also reports of insufficiently trained
workers of the company for different works which raises concerns about their workplace
practices. According to Diskienė, Stankevičienė & Jurgaitytė (2017) reports also state
that California’s occupational-safety agency had registered 40 violations against Tesla
from 2013 onwards regarding workplace health and safety violations. Though the
reporting in media have been termed as false by Tesla, but still it has impacted their
image in market and therefore Tesla has initiated changes in their workplace-health and
safety policy and have made modifications regarding their training and development
policy.
 Asstated by Nagendra (2015) the turnover of top executives of Tesla is also major
challenge as the company struggles to find ideal replacement for their outgoing
executives. For instance it can be stated that Head of Human Resources of Tesla Mr.
Gabrielle Toledano, resigned following the departure of Chief Accountant, Mr. Dave
Morton. Tesla has often encountered an increased level of top executive turnover. Last
year, Tesla has faced departure from its Head of Sales and Finance and several other
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senior engineers which have forced them to necessitate changes in their recruitment and
retention policy of employees for preventing turnover of senior employees of Tesla.
 As stated by Saengchot, Wattana, Wiriyapinit & Thanawastien (2017) the involvement
and interference of employee unions in operations of Tesla is another major challenge
which is being faced as the employee union has filed various complaints regarding their
working conditions which has resulted into legal proceedings. As the employees of Tesla
tend to join various types of unions for gaining additional benefits so this creates conflicts
in day to day operations of the company.
Conclusion
From the above report it can be stated that embedding of the HR strategies with overall business
strategy of a company not only helps in ensuring effectiveness of the HR strategy but also helps
in accomplishing goals and objectives of the company in a systematic way. It can be also stated
that Tesla must initiate changes in their existing HR policy for addressing the HR challenges
faced by the company.
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