Dealing with Strategic Human Resource Management: Analysis of Tesla Company
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This article analyzes how Tesla Company embeds HR strategies into broader corporate strategies, implements HR strategies at the departmental level, and faces contemporary HR challenges.
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1 Running head: HUMAN RESOURCE MANAGEMENT Dealing with Strategic Human Resource Management Name Institution Author’s Note
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2 HUMAN RESOURCE MANAGMENT ANALYSIS OF TESLA COMPANY Introduction Tesla is one of the most reputable organizations that have gained popularity across many regions in the world. Moreover, it is a company that fully concentrates in the designing, developing together with manufacturing of various electric products with the major ones being with the major ones being electric vehicles together with a wide range of energy generation and storage systems. At the same time, it is known to have the capability of installing and maintaining such energy systems. Tesla appears to be the world’s first organization that is vertically integrated in terms of the operations that it carries out across many boundaries. Its major goal has mainly been geared towards the direction of offering end to end clean energy products that are capable of taking care of the future generation. Moreover, Tesla is currently involved in the production and selling of three different types of electric vehicles with the major ones being the model S sedan, model X sports utility vehicle together with the model 3 that is also sedan. One interesting thing about the four different types of vehicles is that they have the capability of offering high performance together with an attractive functionality that is fully related to their mode of operation. As far as the future goals of Tesla Company are concerned, it mainly aims towards implementing a wide variety of electric vehicles in the entire market platform thus addressing various issues that are related to environmental protection. All the vehicles are sold through the use of their own sales and service network that they are currently trying to implement at the global level.
3 HUMAN RESOURCE MANAGMENT Outline the rational of embedding HR strategies into broader corporate strategies Quite a number of various companies are known to be interested in embedding their HR strategies into a broader corporate strategy in order to ensure that various goals are met within the stipulated time frame. Moreover, embedding HR strategies into corporate strategy is a good idea for most of the organizations since the corporate strategy has the capability of naming a good number of outcomes that a given company intends to achieve within a stipulated time frame and at the same time, the entire strategy will be able to adequately device one of the best ways for doing so. Additionally, when an organization comes on board with an intention of embedding most of their HR strategies into broader corporate strategies, they are capable of adequately evaluating the scope of most of their activities and the manner in which all the business processes within the whole company are capable of fully supporting most of the business goals that have been brought on board (Birdi et al., 2016). On the other hand, implementation of corporate strategy will be able to facilitate an adequate allocation of various resources that are known to be attached to the organizations. The organizations will be able to use corporate strategies as one of the most fundamental tools that various organizations are capable of using with an intention of limiting the allocation of their resources to some of the best available types of business opportunities within their operating boundaries. At the same time, embedding HR strategies into corporate strategies is also a good idea since it leads to the establishment of quite a number of expectations within various organizations (Chuang & Liao, 2010). Various companies have been able to clearly come on board with an intention of conveying quite a number of corporate strategies to individual business units with an intention of fully driving the performance and establishing some of the expectations of both the internal and external stakeholders or even various personalities who tend to have a lot of interest in the
4 HUMAN RESOURCE MANAGMENT success of the whole organization. At the same time, corporate strategies tend to put much focus on a good number of key areas with the major ones being market standing, profitability together with productivity for which a good number of measurable objectives are set. On the other hand, implementing quite a number of corporate helps in coming up with a more competitive position where the whole strategy will be fully concerned with the growth of various organizations together with the profits that they are capable of making as far as all their operations are concerned. At the same time the entire strategy has the capability of fully deciding the entire businesses in which various organizations are capable of completing. Finally, it is known to have the capability of adding more value to the shareholder sector within various respective organizations thus providing one of the most adequate opportunities for the organizations for them to fully scale up their investor value to something that is beyond the sum of all their relevant physical intellectual assets. How HR strategy is fully embedded in the broader corporate strategy of Tesla Company Apple Company carries out quite a number of activities in order to embed different forms of HR strategies into broader corporate strategies. In order to ensure that these HR strategies are fully embedded into various aspects of required corporate strategies, the entire HR department is capable of adequately understand how a good number of operations are handled thus being able to adequately evaluate some of the benefits that are likely to be brought on board as a result of implementing quite a number of corporate strategies. Moreover, the HR strategy is also embedded into corporate strategy by fully understanding and listening to a good number of issues that are raised by both the employees together with various customers who tend to be situated in various locations. Moreover, it is also embedded into a broader corporate strategy within the organization through an adequate and reliable implementation of a good number of
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5 HUMAN RESOURCE MANAGMENT ethical considerations that are capable of providing an appropriate and reliable direction regarding some of the things that should be done together with those that should be avoided as much as possible this further brings on board an adequate understanding of some of the things that should always be carried out in relation to various issues pertaining corporate strategies. On the other hand, the HR strategy is also embedded into broader corporate strategy within the organization by fully engaging the top management team thus providing them with an adequate opportunity to come up with a reasonable explanation on what should be done in order to ensure that various goals are attained within the stipulated time frame thus enabling the entire organization to step up to greater levels (Hobfoll, 2016). How the organization may implement their human resource strategies at the departmental level The entire organization is capable of coming with quite a number of decisions that are geared towards implementing some of the HR strategies at the departmental level. Moreover, this kind of implementation is likely to take place through a variety of procedures in order to adequately come up with one of the most suitable and reliable results that is required by the top management team (Hitt, Bierman, Shimizu & Kochhar, 2016). One of the first steps towards implementing the human resource strategies at the departmental level is to make sure that the entire human resource strategy is adequately aligned with nearly all the goals that are attached to the whole organizations, there is the need to ensure that all the values together with the ethical considerations that are known to belong to the whole company are adequately woven into the correct strategic plan that belongs to the entire company (Terziovski 2015). Additionally, implementing various aspects of human resource strategies at the departmental level within the organization will require an appropriate measurement of the existing support level most so the
6 HUMAN RESOURCE MANAGMENT ones that are attached to the human resource strategies. As the organization works hard towards unveiling certain elements of strategic changes, it will be appropriate to determine what level of support it is capable of receiving from various types of supervisors and managers (Pitts, 2017). The company needs to fully convince various managers that successful implementation of various aspects related to human resource strategies, fully rests in their hands. As a result of this, they also need to hold managers’ who are associated with change management within various respective areas across their boundaries (Furrer, Thomas & Goussevskaia, 2016). The organization may also implement their human resource strategies at the departmental level by observing a number of human resources strategies in action within the departments. All the relevant departments should be able to adequately demonstrate advanced level of support for all the strategic goals associated with the human resources (Wright & McMahan, 2011). If employees in a specific department adequately embrace change while another set of employees in another department tries to resist change, this will lead to the emergence of dissension thus making nearly all the cross departmental functions to suffer (Ogunyomi & Bruning, 2016). Due to this, there is the need to fully implement collaboration in most of the operations that are associated with the entire company in order to scale up the entire situation of human resources strategy. Contemporary HR challenges that is capable of facing the Tesla There are quite a number of human resource challenges that are known to have the potential of greatly affecting the entire organization thus altering the way it carries out various functions. One of the major contemporary human resource challenge that is capable of affecting the entire organization is compliance with various types of rules and regulations (Delery & Doty, 2016).
7 HUMAN RESOURCE MANAGMENT Keeping up with various changing employment laws has proved to be a struggle for a variety of business owners. Many of them are known to have the capability of ignoring a wide range of employment laws with a belief that they don’t apply to the operations of their organizations. On the other hand, management changes also appear to be another major challenge (Hess & Rothaermel, 2011). Normally as businesses grow, their strategies, structures together with a wide variety of internal processes are known to be capable of growing within it. Due to this, some of the employees normally find it very hard to cop up with these changes thereby leading to a decreased rate of productivity within their respective companies together with a decrease of morale among the employees during certain periods of change (Guest, 2011). As far as the challenges are concerned, the organization needs to carry out various operations for it to remain successful and avoid encountering the challenges (Kang & Snell, 2017). One of the first things that should be done by the organization is to make sure that it is capable of fully complying with both the local, state together with the federal labor laws thus making it easier to carry out most of the operations without any difficulties (Renwick, Redman & Maguire, 2013). At the same time, the entire organization should put much focus in fully communicating the benefits of any change that is likely to take place within the organization by appropriately implementing various aspects of regular staff meetings thus bringing on board an adequate understanding of what is taking place within the organization (Hodgkinson & Healey,2011).
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8 HUMAN RESOURCE MANAGMENT References Birdi, K., Clegg, C., Patterson, M., Robinson, A., Stride, C. B., Wall, T. D., & Wood, S. J. (2016). The impact of human resource and operational management practices on company productivity: A longitudinal study.Personnel Psychology,61(3), 467-501. Chuang, C. H., & Liao, H. U. I. (2010). Strategic human resource management in service context: Taking care of business by taking care of employees and customers.Personnel psychology,63(1), 153-196. Delery, J. E., & Doty, D. H. (2016). Modes of theorizing in strategic human resource management: Tests of universalistic, contingency, and configurational performance predictions.Academy of management Journal,39(4), 802-835. Furrer, O., Thomas, H., & Goussevskaia, A. (2016). The structure and evolution of the strategic management field: A content analysis of 26 years of strategic management research. International Journal of Management Reviews,10(1), 1-23. Guest, D. E. (2011). Human resource management and performance: still searching for some answers.Human resource management journal,21(1), 3-13. Hess, A. M., & Rothaermel, F. T. (2011). When are assets complementary? Star scientists, strategic alliances, and innovation in the pharmaceutical industry.Strategic Management Journal,32(8), 895-909. Hitt, M. A., Bierman, L., Shimizu, K., & Kochhar, R. (2016). Direct and moderating effects of human capital on strategy and performance in professional service firms: A resource- based perspective.Academy of Management journal,44(1), 13-28.
9 HUMAN RESOURCE MANAGMENT Hobfoll, S. E. (2016). Conservation of resource caravans and engaged settings.Journal of occupational and organizational psychology,84(1), 116-122. Hodgkinson, G. P., & Healey, M. P. (2011). Psychological foundations of dynamic capabilities: Reflexion and reflection in strategic management.Strategic Management Journal, 32(13), 1500-1516. Kang, S. C., & Snell, S. A. (2017). Intellectual capital architectures and ambidextrous learning: a framework for human resource management.Journal of Management Studies,46(1), 65- 92. Ogunyomi, P., & Bruning, N. S. (2016). Human resource management and organizational performance of small and medium enterprises (SMEs) in Nigeria.The International Journal of Human Resource Management,27(6), 612-634. Pitts, D. (2017). Diversity management, job satisfaction, and performance: Evidence from US federal agencies.Public Administration Review,69(2), 328-338. Renwick, D. W., Redman, T., & Maguire, S. (2013). Green human resource management: A review and research agenda.International Journal of Management Reviews,15(1), 1-14. Terziovski, M. (2015). Innovation practice and its performance implications in small and medium enterprises (SMEs) in the manufacturing sector: a resource‐based view.Strategic Management Journal,31(8), 892-902. Wright, P. M., & McMahan, G. C. (2011). Exploring human capital: putting ‘human’back into strategic human resource management.Human Resource Management Journal,21(2), 93-104.