Embedding HR Strategies into Corporate Strategy: A Case Study of Tesla
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This paper discusses the importance of embedding HR strategies into corporate strategy, using Tesla as a case study. It explores the role of HR in managing organizational operations and achieving strategic goals.
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Tesla company “TESLA HR STRATEGIES” HR Strategies has a connection with the different strategies of the organization which can also be known as the corporate strategies. It can be stated that human resource has a significant role in managing the organizational operations in the competitive market. In this paper, the discussion is on the importance of embedding the HR strategy into the corporate strategy and in relation to this the Tesla Company will be taken into consideration. By analyzing the current business world, it can be stated that the HR strategies are embedded with the corporate strategies as it will help in enhancing the success ratio. The HR has an important role in maintaining the strategic goals which assist in accomplishing the set organizational functions of the company. The HR strategies have an essential role in the overall strategic planning process. There are various strategies that focus on considering the best results from the HR team and it can be possible to now the corporate objective of the company. By considering the factors it can be stated that it is a good idea that emphasizes on the corporate objective that helps the employees to give training to the employees if the HR strategy is connected with the overall corporate objective (Noe, Hollenbeck, Gerhart & Wright, 2017). It can also be easy for the company to compare the HR strategy with the corporate strategy as it will help in offering support to the goals of the business. If the corporate strategy is embedded then it can be easy to maintain the strategic response that will assist in meeting the requirements of the employees in relation to the compensation benefits. One of the strategies is retrenchment strategy that is considered as the best approach that assists the companies when the other activities of the company are not effective or useful. It can be analyzed that layout, retrenchment can be the important HR response that can assist in managing the routine activities of thecompany (Esmaeilzadeh et al., 2013). It is also important for the HR managers to provide the motivation to the employees so that they can have positive mindset towards the operational functions. It is necessary for the HR managers to focus on enhancing the process of transition that offers the outplacement counseling. The other corporate strategy is also can be focus strategy that emphasizes on targeting the specific segment of the market in relation to the services and products offered in the market. The focus is also given towards the particular specific geographic area that 1
Tesla company maintains ethnicity. By taking into consideration this strategy the company can easily maintain differentiation of the services and the items they are offering in the market. The appropriate example can of the Fiesta Mart that focuses on the huge audience who are living in the South West Houston. In relation to this the aim of the organization is to select the employees who can have in-depth understanding of the different languages that are used by the companies (Dundon & Rafferty, 2018). It is necessary for the HR managers to focus on analyzing the company mission so that formulation and integration of the strategies can be done effective in relation to the corporate strategies. It is important to focus on formulating the HR strategies that can help in staffing, employee development and also in the process of compensation (Túry, 2018).The human resource strategies are implemented so that it could be easy to have effective knowledge of the people who are managing the operations. It is the necessity for the managers to focus on considering the set goals and to train the employees according to that so that set goals can be attained effectively. This can be known as the important reasons in context to the organizations that want to embed their HR strategy into the broader level of corporate strategy (Brooks, Chen & Zeng, 2018). In relation to the Tesla Company it has been examined that the company considered the HR strategies and embedded into the broader corporate strategy. Training is also known as the best HR strategy that helps the company in enhancing the employee’s skills. It is examined that it is important for the organization to aware the workers of the problems that are surrounded with the different acts such as Modern Slavery Act (Rimmer, 2018). It can be stated that training is important factor that assist the employees who are managing the work with the suppliers and also it can take into consideration the issue such as Human trafficking, slavery and also child labor (Vogt, 2016).By giving training the company can focus on implementing the sect action which should also consists the termination of the individuals who does not emphasizes on complying with the Human Right and Conflict mineral policy. Therefore, it can be said that HR strategy has embedded with the corporate strategy through which the company has maintained the high end marketing strategy in the highly competitive market (Cascio, 2015). 2
Tesla company Tesla embedded with the HR strategy into the corporate strategy by emphasizing on managing the employees. There are more than 13,000 employees who are managing the operations of the company. In each sector there are different strategies that can help the company in innovative ideas and also focused on inspiring the management skills. The HR strategy of the company has focused on maintaining the corporate objective (Teece, 2018). The tesla company also considers the high engagement level of workers in relation to the corporate strategy. This has also helped the company to be one of the innovative companies. Tesla focuses on maintaining leadership in which workplace in which clarify the engagement of the people in the workplace. By focusing on the corporate plans it is identified that best and capable employees should be attracted (Brexendorf & Keller, 2017). Training is known as the best strategy which is considered by the company so that capable employees can be hired. The different internship programs are provided to the candidates of the different colleges so that if they possess the basic skills then they can retained in the workplace for managing the activities of the company. The company also emphasizes on appointing the right employee at the right place so that the interest towards the work can be generated of the employees towards the work. So, this is one of the best strategies that has helped the company in maintaining its competitive advantage and also boosted the brand image such as innovative company (Paauwe & Boon, 2018). The HR strategy of the company is implemented for the each department in which it has been analyzed that overall structure of the company is considered. The framework of the company also focuses on the different divisions such as there is production department, sales department and also energy department (Weissenberger-Eibl, Almeida & Seus, 2019).It can be stated that the engineering and production team is offered training by the expert as they teach them to control or manage the routine activities of the company. Training is also given to the sales executive in relation to the process of interaction. The techniques are conveyed to the employees that how they should talk with the customers at the time of solving the queries (Bruijl, 2017). It is analyzed that there are different challenges that are faced by the company in the present business environment. But one of the challenges is related with enhancement in the demand of skills employees so that supply chain process can be maintained. Just because of 3
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Tesla company this company emphasizes on paying high to the employees who are capable enough in managing the operational work. Tesla is now focusing on thinking that how it will be going to fill the jobs in relation to competent personnel. There are many employees who are facing the issues such as dizziness, chest pains and abnormal breathing. So, this has also enhanced the retention issue of the company (Sparrow, Hird & Cooper, 2015). The next challenge is Tesla misses the Model 3 production targets. It has been observed that in April the company has decided to make 9,766 Model 3 Vehicles in the first quarter but the company was not able to attain the clean hit of 2,500 Model 3s per week in context to the first quarter. The challenge relate with electric car makers who missed the overall goal of 4, 3000 units. So, it can be stated that this is one of the major challenge that is faced by the company and it is important to be resolved by considering the technique of motivation (Shaukat, Qiu & Trojanowski, 2016). By evaluating the paper, it can be stated that Tesla has embedded the HR strategies in relation to the corporate strategies. The strategies has helped in attaining the set goals and targets and also enhanced the market share. There are different acts such as Modern Slavery Act that has also helped the company in boosting the diversification of the services. The challenge that is faced by the company was concerned with Tesla Model 3 production. It can be said that these challenges should be minimized so that success can be attained. 4
Tesla company References Brexendorf, T. O., & Keller, K. L. (2017). Leveraging the corporate brand: the importance of corporate brand innovativeness and brand architecture.European Journal of Marketing,51(9/10), 1530-1551. Brooks, C., Chen, Z., & Zeng, Y. (2018). Institutional cross-ownership and corporate strategy: The case of mergers and acquisitions.Journal of Corporate Finance,48, 187-216. Bruijl, G. H. T. (2017). Tesla Motors, Inc.: Driving Digital Transformation and the Digital Ecosystem.Inc.: Driving Digital Transformation and the Digital Ecosystem (October 14, 2017). Cascio, W. F. (2015). Strategic HRM: Too important for an insular approach.Human Resource Management,54(3), 423-426. Dundon, T., & Rafferty, A. (2018). The (potential) demise of HRM?.Human Resource Management Journal,28(3), 377-391. Esmaeilzadeh, H., Blem, E., Amant, R. S., Sankaralingam, K., & Burger, D. (2013). Power challenges may end the multicore era.Communications of the ACM,56(2), 93-102. Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017).Human resource management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education. Paauwe, J., & Boon, C. (2018). Strategic HRM: A critical review. InHuman Resource Management(pp. 49-73). Routledge. Rimmer, M. (2018). Elon Musk’s Open Innovation: Tesla, Intellectual Property, and Climate Change. InIntellectual Property and Clean Energy(pp. 515-551). Springer, Singapore. Shaukat, A., Qiu, Y., & Trojanowski, G. (2016). Board attributes, corporate social responsibility strategy, and corporate environmental and social performance.Journal of Business Ethics,135(3), 569-585. Sparrow, P., Hird, M., & Cooper, C. L. (2015). Strategic talent management. InDo We Need HR?(pp. 177-212). Palgrave Macmillan, London. 5
Tesla company Teece,D.J.(2018).TeslaandtheReshapingoftheAutoIndustry.Managementand Organization Review,14(3), 501-512. Túry, G. (2018). Consequences of Technological Changes in the Automotive Industry.GLOBAL ECONOMIC OBSERVER,2(6), 89-94. Vogt, M. (2016). Electromobility in daily life–Are you still exploring or riding already?. In16. Internationales Stuttgarter Symposium(pp. 629-642). Springer, Wiesbaden. Weissenberger-Eibl, M. A., Almeida, A., & Seus, F. (2019). A Systems Thinking Approach to Corporate Strategy Development.Systems,7(1), 16. 6