Strategic Human Resource Management

Running Head: STRATEGIC HUMAN RESOURCE MANAGEMENT 1
Strategic Human Resource Management
Name:
Institution

Strategic Human Resource Management 2
Introduction
Tesla Inc. is an automotive and Energy Company headquartered at California in the
United States of America. The company product mix includes electric cars, solar panels and
energy storage devices. Its main production however is of electric cars. The company was
founded in the year 2003 by Martin Eberhard and Marc Tarpenning. In 2018, Tesla was
recognized as the leading company in the world in selling electric plug-in vehicles, with over
245,000 electric cars units delivered under that period. The company has been experiencing
upward mobility with a global market increase of 138 percent in 2018. The organization culture
of Tesla creates a competency for human resource strategy that accommodates innovation as the
core function for the company. The company encourages its employees through the human
resource department to be creative and provide ideal solutions to the company, therefore,
supporting improvement in the overall operation of the company. Tesla recognizes its human
resource as the critical asset for the success of the organization.
For both large multinational corporations and small and medium business enterprises, the
human resource department is critical in the operations of the corporation. The human resource is
among the key function that the business has. Strategies for human resources include the plan
that an organization wants to implement for the corporation of the human resources activities
with the overall objectives of the organization. The overall advantages of aligning human
resource strategies are not only to gain a competitive advantage but to ensure overall operations
are in line with the culture of the organization (Jackson, Schuler & Jiang, 2014). Some of the key
reason for implementing human resource strategies include facilitating employee training and
development. The human resource department carries out functions such as performance
management and through their review, the company can gain an insight into the gaps that exist

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within the workforce (Kasemsap, 2013). This will provide the criteria for the corporation to
develop employee skills training to address the impending issue and increase overall corporate
productivity (Lengnick-Hall, M. Lengnick-Hall, C. & Rigsbee, 2013). This function of HR
lowers the cost for the corporation to hire more qualified staffs and it increases the motivation of
the employee as they view the corporation as critical in addressing their needs. Another reason
for the implementation is that human resource strategies determine employee satisfaction. The
human resource strategies can enable the corporation to identify the level of employee
motivation through carrying out an employee survey, focus group and interviews (Renwick,
Redman & Maguire, 2013). The corporation can, therefore, understand what underlies employee
dissatisfaction and address them for an efficient workforce. Additionally, strategic human
resource integration can help in boosting the performance of the employees. These ensures
individual employees land in roles that they are conversant with and their performance is
continuously monitored to ensure efficient delivery. Also, the strategic human resources can
enable the corporation to gain a good reputation by the way it is treating employees. One of the
main global concerns in relation to the organization is the issue of corporate sustainability
(Jamali, El Dirani & Harwood, 2015). Sustainability practices are not only limited to community
empowerment, environmental conservation or good corporate citizenship but also includes how
the company is managing its workforce by being an employer of choice (Messersmith & Wales,
2013). The contemporary workforce is not only attracted by huge salary but also they consider
the corporate culture of an organization, as self-actualization is becoming a critical needs for the
employees (Marler & Fisher, 2013). Lastly, strategic human resource is important for the
corporate strategy as they facilitate the success of the organization through transitioning potential

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employees into leadership roles within the organization. This guarantees the stability and future
success for the organization.
Tesla Inc. human resource strategy is based on the competency of human resource for the
creation of an innovative product in the automobile industry. The human resource strategy
outlines the customs and norms that define the behavior, attitudes, and decision of the workforce.
The human resource strategy of Tesla aims at empowering the workforce to lead in the
automobile and energy generation sector (Wright, Coff & Moliterno, 2014). The company uses
the hybrid of quality enhancement and innovation in their HR strategy. Tesla encourages its
employees to be innovative and facilitate continuous high quality production. For example, Tesla
maintains the human resource capabilities for the expansion of its global market for the 100
percent electric cars and other energy products such as solar panels and storage products like
batteries. The management of the company optimizes each employee to achieve creativity and
innovative predispositions through constant training and skills development. These practices are
fundamental for maintaining the innovation strategy that forms a critical part of the corporate
strategy of Tesla. The innovative human resource strategy adopted by Tesla encourages the
workforce to develop new ideas and solutions (Kehoe & Wright, 2013). The company uses this
strategy to acquire its overall corporate strategy of developing electric automobiles that provide a
solution for environmental issues caused by those vehicles that run on internal combustion
engines. The constant ability of Tesla to produce new and advanced electric cars, such as model
4, reflects the strategy of its corporate culture. Some of the ways in which this strategy has been
aligned with the overall corporate strategy include speedy innovation (Pozega, Crnkovic &
Udovicic, 2014). Tesla Company is highly affected by the ability of the employees to develop
products fast in the increasingly global competitive market (Paillé, Chen, Boiral & Jin, 2014).