Human Resource Management: Tesla's Strategic Approach and Challenges

This report provides a detailed analysis of Tesla's human resource management (HRM) strategies, focusing on their integration with broader corporate goals. It begins by outlining the rationale for embedding HR strategies within corporate frameworks, emphasizing the importance of aligning human capital with business objectives. The report then examines how Tesla incorporates HR strategies into its corporate strategy, highlighting key elements like attendance policies and employee satisfaction initiatives. A significant portion of the report is dedicated to discussing the implementation of HR strategies at the departmental level within Tesla, specifically in its car manufacturing operations. Furthermore, it identifies and discusses contemporary HR challenges faced by Tesla, such as changes in management and leadership development, offering potential solutions and emphasizing the need for continuous adaptation in HR strategies to meet evolving business needs. The report concludes by summarizing the key findings and reiterating the importance of effective HRM in achieving organizational success.

Running head: HUMAN RESOURCE MANAGEMENT
Human Resource Management: Tesla
Name of the Student
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Introduction
Human resource management or simply HRM is stated as a core strategic approach
that helps in proper employee management in a company and also helping out that respective
company to gain several distinctive competitive advantages (Al Ariss, Cascio & Paauwe,
2014). Any type of organizational change is needed for balancing organizational practices
after successful alignment with government rules and regulations. This essay will be
providing a detailed description on human resource strategies within the organization of Tesla
with relevant details.
Discussion
1. Outline of Rationale for Embedment of HR Strategies to broad Corporate Strategies
A company mainly considers regarding alignment of HR strategies towards respective
business goals and thus a subsequent assumption on human resource functionalities is made
that they get adjusted to respective business segments. A successful implementation of
corporate strategy is possible when all types of human capital implication of decision is being
estimated effectively (Shaw, Park & Kim, 2013). Thus, embedment of human resource
strategies into the respective business corporate strategy is quite vital for a company for
maintaining a proper balance. The most significant reason behind this embedment could be
that a human resource strategy is an important element of the total planning of business and
corporate strategies and HR strategies are required to be efficiently developed so that the
business becomes successful (Bratton & Gold, 2017).
The four significant and important areas, which are needed to get addressed by
organizational HR department are provided below:
i) To get involved to set Organizational Corporate Strategies: This is the first area
that is needed to be addressed (Dries, 2013). Any company must include several strategies of

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human resources for setting respective corporate strategy and thus to make the company
absolutely successful than others. Combination of every economic turbulence and
government requirement is needed to shift into proactive roles, although it is vital to achieve
the short term and long term goals and ensure that planned outcomes are being met. Several
significant functionalities of human resources, which are required to get aligned mainly
involve employee retention, performance management, training or development and talent
acquisition (Bamberger, Biron & Meshoulam, 2014).
ii) To Understand the HR’s wide role within Business: The second area, which is
needed to get addressed is to effectively understand the wide role of human resource in
business. Maximum HR related strategies emphasize on obtaining the most relevant solution
from the entire HR department and not on initiatives (Bakker & Demerouti, 2014). Moreover,
the staff should be hired and retained by performance management so that embedment of HR
strategy to corporate strategy is possible.
iii) Developing Several HR Strategies by Complementing Corporate Plans: This
type of development of HR strategies is needed to ensure that it is well complementing the
corporate plans. Integration of human resource strategy with corporate plan is required for
this purpose.
iv) Making the Planned Strategy turned into an Action: The final area is that the
planned strategy should be eventually turned into an action for making this embedment
successful within the company (Mitchell, 2013).
2. Proper Analyses of Embedment of HR Strategies in broad Corporate Strategies
within Tesla
Tesla Inc. comprises of few important and significant strategies of human resources in
the organization, which are properly embedded within broader corporate strategy (Brewster,

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Chung & Sparrow, 2016). Major drivers of Tesla’s innovation and industrial leadership
mainly involve organizational purpose, employees and HR managers. Furthermore, an active
involvement of all the organizational members is required so that they can easily and
effectively obtain competitive advantages and innovation. The first strategy of human
resource in Tesla is the Attendance Policy General Statement (Attendance Policy. 2018).
According to this particular statement, it is required for all employees to follow shift time for
maintaining effective operations in the business. It even ensures that these staff are eventually
working without disrupting the organizational shift times.
Furthermore, as Tesla Inc. they have planned to improve their productivity and gain
more success and for this purpose they need to align their strategies of human resources with
corporate planning (Cascio, 2015). Thus, they have focused on the system of attendance
management and even have deployed policy for Paid Time Off or PTO after gaining
subsequent approval from organizational management (Thunnissen, Boselie & Fruytier,
2013). As per the present HR strategy of Tesla, the responsibilities of staff such as approved
as well as scheduled leaves, using of resource and several others are needed to be retained
efficiently so that corporate strategies are also made possible. The sales of user car is required
to be incremented and thus few other policies are needed to be implemented so that
employees get job satisfaction (Shappell et al., 2017). All of these above mentioned strategies
ensure that they have been successful to align the HR strategies with corporate strategy.
3. Detailed Discussion of Implementation of HR Strategies at Departmental Level in
Tesla
As Tesla is responsible for manufacturing cars, they have to implement their HR
strategies within departmental level. Tesla have made several promising car models like
Model S sedan and hence obtaining success major success due to this. However, since they

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have taken the decision of implementing HR strategies, it is highly mandatory for them to
implement them at the level of department. Commitment to ensure that business is running
effectively is being made and also ensuring that all employees are treated with dignity as well
as respect. Ensuring that child labour, not being included in the business is also being done
here. A group of employees is being involved to make sure that there exists laws and
compliance within the business (Moden Slavery Act Statement. 2018). The major and the
most significant mission of Tesla includes accelerating world transition into sustainable
energy and for making this successful, the most talented people are to be hired by them.
The existing recruitment policy of Tesla is being complied with all local regulations
and standards and thus a fair and equitable approach gets adopted during their search of
talent. The organizational wages are also eventually compliant with local laws and rules. For
the core purpose of implementation of these human resource strategies, business changes are
being driven in an effective and efficient manner. For the core purpose of implementing HR
strategies, management of Tesla have at first made sure that all the strategies are eventually
driving the business changes (Wright, Coff & Moliterno, 2014). This management of Tesla
even has tried to motivate the respective staff to leap all subsequent hurdles regarding
organizational changes. As Tesla has decided to implement these strategies at departmental
level, an involvement of employees is needed that every single strategy is working properly
(Chauvin et al., 2013). Furthermore, poor collaboration and coordination in business
management is even removed for this type of deployment and goals and objectives of the
business are achieved.
4. Detailed Discussion of some HR Challenges faced within Tesla
Few important HR management functionalities majorly involve developing HR,
proper maintenance and procurement, inclusion of team spirit and team work and finally

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achieving individual, organizational and social goals and objectives (Annual Report. 2018).
Tesla also has overcome few significant as well as contemporary challenges of human
resource and all of these subsequent challenges are strongly responsible for bringing some of
the major ad the most important changes in the business. All of such challenges, which they
are overcoming require effective solutions to deal in future are provided below:
i) Changes in Management: This is the first as well as the most significant challenge,
which Tesla has overcome in their organization is the change within management. As a
business majorly grows with internal process, organization structure and HR strategies for
growing with them (Pierce & Aguinis, 2013). Since, Tesla has deployed some of the major
strategies of HR, it is vital to arrange solutions with management changes and even ensuring
that all employees are getting motivation. Thus, marketing, sales, morale and productivity are
being reduced and this business of Tesla has faced both HR and financial losses.
The most significant solution for this particular challenge could be that every business
owner should emphasize on change communication benefits to each and every employee or
staff. Regular meetings with these organizational staff is required for understanding reason of
Tesla opting these changes (Meyers, Van Woerkom & Dries, 2013).
ii) Development of Leadership: This is the next important challenge, which Tesla has
overcome in the business. Team leadership is extremely important and is required to be
followed effectively so that problems related to lack of leadership are eradicated. However,
this was absent in Tesla.
To resolve this particular HR issue, Tesla should have communicated with employees
in a timely manner (Shaw, Park & Kim, 2013). Better management is required and thus it
would ensure more opportunities and scope in the business.
Conclusion

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Hence, conclusion can be drawn that HR management is one of the core processes
that is needed for recruitment, selection and even induction of staff, providing subsequent
orientation, motivation of staff, deciding on compensation, appraisal of employee
performance, safety and security of staff and few others. A popular and significant energy an
automotive company in America, Tesla has been providing services to its customers for
several years. The main specialization of this organization is in electric car manufacturing by
involving SolarCity subsidiary as well as manufacturing of solar panel. This essay has clearly
described about challenges for human resource strategies and procedure to implement this
strategy in Tesla.

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