Human Resource Management at Tesla: A Strategic Analysis

This report provides a comprehensive analysis of Human Resource Management (HRM) at Tesla, examining the company's strategic approach and the challenges it faces. It begins by highlighting the importance of HRM in aligning with Tesla's mission of sustainable energy transition and achieving its business goals. The report explores how Tesla implements HRM strategies at the departmental level, particularly in research and development, value chain management, and promotional activities. Key challenges discussed include employee training, value chain disruptions, and ethical issues with suppliers, such as child labor. The report also outlines Tesla's efforts to address these challenges, including strict attendance policies and supplier compliance measures. Ultimately, the report emphasizes the critical role of HRM in Tesla's success, while acknowledging the need to address ongoing challenges to maintain ethical practices and operational efficiency. The report also references several research papers and academic sources to support its claims and analysis of the company's HRM strategies. The report concludes by summarizing the key findings and reiterating the importance of effective HRM for Tesla's future.

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Human Resource Management - Tesla
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1HUMAN RESOURCE MANAGEMENT - TESLA
Tesla Inc. is an American based automotive company that is headquartered in the
region of Palo Alto, California (Vugec, Spremic & Bach, (2018). The concerned company is
known to specialise in the manufacture of electric car products with the help of its solar city
subsidiary as well as the solar panel manufacturing units. Studies show that the primary
mission of Tesla remains to accelerate the transitional ideology of the world to the most
sustainable form of energy (Li, 2018). To work accordingly with the planned mission and
achieve the same, the potential team of Human Resource Management of the concerned
automotive industry is termed to be accountable. In this connection, the given study tends to
state the different variables of the importance of the Human Resource implementation in
the business organisation of Tesla.
Several researchers examined the rationale behind the embedding of HR strategies
into the ideology of aligning the corporate strategy concerning any business organisation. In
this regard, it was opined by Benn, Edwards & Williams, (2018), the human resource
strategies are set up in a productive organisation to integrate their business plans and
processes with the compliance of incorporating productive CSR in its business firm. This is
because the man force of the HRM is recognised to be recruited from the world’s best and
brightest people that help the company to achieve its mission and vision. As also stated by
Bratton & Gold, (2017), the Human Resource Management is known to procure all the
necessary business activities that help in the growth of the business paradigm and several
complex managerial activities. The strategic processes implemented by Human Resource
Management assists in the achievement of higher competency in the market of the business
world. Moreover, the HR strategies help a business entity to manage its healthy relationship
with its connected potential stakeholders (Crane & Matten, 2016). This would help the
company to earn better brand and customer loyalty and therefore increase its sales and
revenue.

2HUMAN RESOURCE MANAGEMENT - TESLA
Based on the above examination of the reasons for implementing the HR strategies in
a business organisation, the reasons behind embedding the same in the CSR of Tesla is
studied with the consideration of several past pieces of research. As implied by Hitt, Ireland
& Hoskisson, (2016), the HR strategies articulate the intentions of Tesla on what the same is
desiring to perform and achieve. The HRM helps in the examination of the effectiveness of
the policies and practices that are to be processed in the long term business of Tesla Inc. It
was stated according to the viewpoint of Shermon & Sheermon (2016), the HRM ensures that
all the employees, another level of managers and the organisation of Tesla as a whole work
together with their greatest zeal and enthusiasm. The strategies implemented by the HR
concerning the company of Tesla focuses on meeting both the needs of the individuals
working in the concerned automotive company as well as the company altogether as a group.
According to the viewpoint of Nascimento, (2017), the HR strategies also fosters other co-
workers of the Tesla organisation to adhere to a sense of vision and direction for the long
term. This, in turn, not only helps in improving the performance level of the employees but
also in the retention of the potential employees. Based on the examination of the above-given
shreds of evidence, the study tends to investigate the factors that would help the Tesla
Company to embed the strategies of HR in their departmental level.
In this connection, as implied by Schaltegger & Wagner, (2017), the departmental
level of an organisation is that part which deals with the operating division relating with the
business processes of producing the required goods and services and the value chain
management. The concerned company of Tesla Inc. in this connection can implement the
strategies of HR at its departmental level by planning to use the HR resources in the research
and development activities that would help in the study of the market structure and the
changes in the same. As implied by Buckley & Casson, (2016), the practical research of the
current condition of the market helps in the efficient production of the goods and services

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with the help of the technological innovations of the business market. Thus, the concerned
automotive company can implement its HR strategies to investigate the market structure and
produce its furnished vehicles with the most advanced technological up gradation and satisfy
the demand of the market. Not only this, the automotive industry Tesla can use the HR
strategies in the department level for the use of maintaining effective value chain
management. As stated by Cook (2017), value chain management is a crucial part of an
effective business organisation. The failure of the same will result in failure in the sales and
revenue earning of the business. Thus, the study tends to suggest that the Tesla Inc. should
foster the strategical implementations of the Human Resource into scheduling the
management of the value chain sector that helps in the distribution of the automotive products
manufactured by the company from its position of origin to its destination of procurement.
Effectiveness in the value chain creates efficiency in the manufacturing of the products as
well as the implementation of the newest types of equipment in order to manufacture the
required product (Hugos, 2018). The smooth the management of the value chain, the higher
the rate of sales and loyalty earned from the target market. Last but not the least, the HR
strategies can be implemented by the automotive industry of Tesla in the promotional sector
of the goods and services offered by the same (Akgun et al., 2017).
However, the given study also analysed that the concerned organisation of Tesla
automotive company is facing some immediate challenges in the implementation of HR.
The same is recognised as the procurement of the training program to the employees and
make them knowledgeable about how the tasks allocated to them (Hess & Andiola, 2017).
Moreover, it was also analysed the value chain management of the concerned company is
disturbed to some extent in case that the strategies of the HR are not executed in an effective
and efficient manner (Kalaitzi, Matopoulos & Clegg, 2019). The same has been recorded to
affect the sales of the concerned automotive industry. Studies also examined that Tesla Inc. is

4HUMAN RESOURCE MANAGEMENT - TESLA
facing challenges of implementing HRM strategies towards the discipline and ethics of the
employees which also results to the termination of the contract with the employees (Athota &
Malik, (2019). This, in turn, not only leads to a considerable challenge for the HRM to
manage the man force but also loss in the employees on which the company has put an ample
amount of time and resources. Studies also showed that Tesla faces an issue with the
suppliers of its raw materials since it is noted that the suppliers of Tesla are indulged into
forcing child labour who are recorded to be the workers at the supplier houses and carries the
heavy weighted raw materials (Bendig, Brettel & Downar, 2018). Thus, the HRM of the
concerned company has to face challenges regarding the supply of the raw materials and the
conflicts that arises between the suppliers and the organisation.
Furthermore, it was analysed that the management system at Tesla automotive
industry are implementing some strategic decisions in order to reduce the influence of the
challenges they are facing and overcome the same. In this regard, it was examined that the
Tesla Inc. has implemented strict rules for the employees to enter the premises of the
organisation on a timely basis and remain present on each scheduled day of work (Hisrich &
Ramadani, 2018). Undue absenteeism from the employees had been recorded in the
intolerable policy of Tesla Company. This was done with the purpose of establishing a
uniform and recognisable procedure for the employees of the concerned organisation. Not
only this, to evaluate the compliance of the suppliers, the company was recorded to adopt the
Human Rights and Conflict Minerals Policy to keep the suppliers in the eyes of the law
(Hadfield, 2017).
In this context, to bring to a conclusion, the study tends to state that Human
Resource Management is a vital source of power and resource for any productive business
organisation. As analysed by the help of the study, it was investigated that Tesla Inc. follows
a considerable range of legal authorities and orders to maintain its stakeholders in a legalised

5HUMAN RESOURCE MANAGEMENT - TESLA
manner and avoid conflicts. However, it was examined that troubles regarding the ethical
behaviour of employees and working procedure of suppliers were recorded to affect the
business considerations of Tesla automotive industry. It was critically examined that the
suppliers engage several unethical means of doing business with Tesla. They were recorded
to participate in the process of slavery, child labour, human trafficking and conflicting the
raw materials with duplicity and providing the same to Tesla. In this connection, the study
tends to state that the Human Resource Management is not only a vital part for the future of
the business of Tesla but also has to face many challenges to keep up with the plans and
processes of the company. This is because they are accountable to meet every direct and
indirect risk and uncertainties that occur in Tesla and change their strategic decisions as and
whenever required.

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