Embedding HR Strategies in Tesla's Corporate Strategy

This report provides a comprehensive analysis of human resource management (HRM) strategies within Tesla, examining how these strategies are embedded within the broader corporate framework. The report begins with an overview of Tesla and the rationale behind integrating HR strategies with corporate objectives, followed by an in-depth analysis of how Tesla implements its HR strategies. It delves into the implementation of HR strategies at the department level, highlighting key aspects such as employee training, promotional opportunities, workplace diversity, and employee well-being. The report then addresses contemporary HR challenges faced by Tesla, including employee turnover, lack of decision-making opportunities, lack of trust, and communication issues. Finally, the report offers actionable recommendations to address these challenges, such as rewarding employees, fostering continuous learning, and prioritizing employee health and safety. The conclusion summarizes the key findings, emphasizing the importance of effective HRM in achieving Tesla's corporate goals and ensuring a productive and engaged workforce.

Running head: HUMAN RESOURCE MANAGEMENT
Human Resource Management
Name of the Student
Name of the University
Author note

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Table of Contents
Introduction................................................................................................................................2
Overview of Tesla......................................................................................................................2
The rationale of Embedding HR Strategies in Broader Corporate Strategies............................2
Analysis of Embedding HR Strategies in Corporate Strategies at Tesla...................................3
Implementation of HR Strategy at Department Level...............................................................4
Contemporary HR Challenges Faced by Tesla..........................................................................5
Recommendations......................................................................................................................6
Conclusion..................................................................................................................................7
References..................................................................................................................................8

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Introduction
The essay throws light on analysing the rationale of embedding the different human
resource management strategies in broader corporate strategy. Proper analysis is required to
be done which will help investigate the embedding of the HR strategy in broader corporate
strategy of the company. The company which has been considered in the essay is Tesla, and
proper discussion is required to analyse the process of implementing the HR strategy which
will be followed by Tesla at the department level. Lastly, the adequate discussion is necessary
to investigate current HR challenges faced by the company and the role of HR strategy in
solving the same.
Overview of Tesla
Tesla is one of the American automotive along with energy organizations which is
based in California. The organization specialises in the manufacturing of electric car through
the solar panel subsidiary. The company was founded in the year 2003, and the areas served
by the company is worldwide (Tesla.com, 2019). There has been increasing in the revenue of
the company of US$21.461 billion until the year 2018, and the number of employees working
at Tesla is 45000 until the year 2018.
The rationale of Embedding HR Strategies in Broader Corporate Strategies
The corporate strategies of the organization are closely related to the procedures
related to human resource management within the organization, and they can attain a higher
level of corporate performance. The three essential strategies which the firms compete in the
single market are Growth Strategy, Cost Leadershipand Focus Strategy.

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In the case of the Growth Strategy, the key challenge which is faced by companies is
recruiting along with qualified training employees who will assist in operating the growing
operations. In such a scenario, the top management team will be consulting with the HRM
team which ensures that it had the proper capability to train the new employees appropriately.
During mergers and acquisitions, the major challenge faced by HR managers is to determine
how to merge the two organizations into a single one (Wright, 2018). In both organizations,
there are different HR strategies which are followed, it is the responsibility of the HR
managers to decide which are the practices which should be retained and it will be sufficient
for the growth of the company.
In the case of Cost-Leadership Strategy, wherein the primary emphasis is on
reducing costs as much as possible, and it allows the firms in charging minimum pricing for
products. In such scenario, the HR of the companies need to focus on recruiting and retaining
those employees who work efficiently and the training mainly emphasizes on efficient
production methods along with the system of reward depends on the quantity and not quality
of products delivered. The different fast food restaurants follow the respective strategy to
control the cost of labour.
In the case of focus strategy, the central aspect is targeting a specific group of
customers in the market for selling products and services. The critical goal of HR is recruiting
as well as retaining employees who have an understanding regarding the local market and
analyse the language of most of the customers.
Analysis of Embedding HR Strategies in Corporate Strategies at Tesla
In the case of Tesla Motors Company, the strategies related to Human Resource can
be embedded in the corporate strategy in the following manner:

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In Tesla, the HR officials need to retain and recruit the employees who can perform
high quality work and provide exemplary services to the customers. To apply the corporate
differentiation strategy, it will be required by Tesla to differentiate the different products as
well as services that sets them apart from the other competitors present in the market. Both
Volkswagen and Tesla are two main organisations that have used differentiation strategy; in
such cases, Tesla needs to train the different employees for providing exemplary customer
service (Brewster& Hegewisch, 2017). In such cases, the training of employees will be
focusing on quality improvement, as well as the reward system will be based on the
performance of employees.
Moreover, Tesla needs to implement the different training policies for the employees
working in the organization which will be helpful for them in implementing cost leadership
strategy and focus strategy in the company (Brewster, Mayrhofer & Morley, 2016). There
are other significant competitors present in the market; therefore the HR department of the
company needs to focus on training methods and policies which will be beneficial in
managing the costs of the labourers in the market. Tesla can target business executives and
entrepreneurs who are tech savvy (Brewster, 2017).
Implementation of HR Strategy at Department Level
The HR strategy can be implemented in the department level in the different
organizations through following the particular aspects:
Firstly, there can be the introduction of proper employee training and development
policies which can be incorporated by the companies which play a beneficial role in
improving their morale (Bailey et al., 2018). With proper training program, it will allow in
strengthening the skills which employees need to grow, and it helps in reduction of weak

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links within the organization who rely heavily on others to complete the necessary tasks
(Cascio, 2015).
Secondly, there should be the inclusion of promotional opportunities for the
different employees working in the organization which will help retain the staffs and improve
their morale (Cherkesova et al., 2016). With proper promotional opportunities, it elevates the
status and accountability of the employees which will be beneficial for improving the overall
productivity of the organization and retaining the staffs. There can be the inclusion of
workplace diversity as it manifests in building the reputation for the organization and it leads
to increased profitability along with creating opportunities for the workers present in the
company(Aras& Crowther, 2016).
Proper focus should be provided on the well-being of the employeeswho are present
in the organization which will be beneficial in increasing the morale of employees. The
satisfaction of the employees plays a significant role as it creates necessary implications for
productivity along with work relationships(DeCenzo, Robbins& Verhulst, 2016). There
should be an introduction of the workplace health and safety policies which is one of the
most effective approaches which can be adopted by the companies as to gain a competitive
advantage in the competitive market.
Contemporary HR Challenges Faced by Tesla
The different human resource challenges which are faced by Tesla in the current
scenario are discussed as follows:
Turnover of the various employees working in the organisation as there are different
kinds of stress and pain which are suffered by them. Being overworked is one of the major
aspects which is making them work extra hours without providing them with a bonus or

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payment. In Tesla, the workers complain regarding the imbalance which is suffered by them
between personal and professional life which affects their morale, and it creates turnover
among employees (The Guardian.com, 2019).
There is a little opportunity provided to the employees in the process of decision-
making aspects wherein it affects their morale. There is lack of trust among the higher
authorities relating to the employees which are reducing their opportunities for innovation
and lack of freedom which contributes to the high turnover among employees as well(Stone&
Deadrick, 2015).
Lack of collaboration and communication are the other aspects which are affecting
the overall growth of the employees working in the organization. In the automotive industry,
the employees tend to have difficulty communicating or working together, and they are
focused mainly on completing tasks and due to which there is lack of communication that
affects the overall balance between employees and employer communication process (Reiche
et al., 2016).
Recommendations
Due to the different kinds of HR challenges which have been discussed above, they
create a huge impact on the current HR strategy which should be reduced through the
following aspects:
Firstly, rewarding and compensating employees is the first aspect which should be
followed by Tesla Motors which will help value the contribution of the employees. Proper
compliance with the different laws and legislation is required to be adopted by Tesla in
managing the overall aspect through the appropriate contribution from both employees and
employers (Noe et al., 2017).

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Moreover, fostering a culture of continuous learning is the other aspect which can
be adopted by Tesla which can be incorporated through gamification along with
microlearning features through which the different employees will remain engaged in their
training, and they will be able to enjoy the flexibility of consuming bite-sized chunks of the
learning which will be convenient to them (Nankervis et al., 2016).
Looking after thehealth and safety of the employees is the other aspect which should
be followed by Tesla Motors Company which will help improve the morale of employees as
they will feel that the employers care about their health and they will be performing more
effectively. In the present scenario, in the automotive industry, the psychological well-being
of the individuals deteriorates due to high demands and limited time which leads to burnout
of the employees. The proper training managers in emotional intelligence can be helpful for
them in recognising the benefits of the healthy mental state which will help build the flexible
workforce in an appropriate manner (Nankerviset al., 2016).
These are the different recommendations which can be provided to Tesla to improve
the overall workplace issues which are appropriately faced by the employees.
Conclusion
Therefore, from the above, it can be concluded that the human resource management
strategies can be embedded in the corporate strategy of the company through analysing the
different requirements which are required to be incorporated by the company. In Tesla, there
are different kinds of issues which are being faced by employees, and it can be solved
through proper creating a quality work experience and appropriately reduce the staff
turnover. The health and safety policies are mandatory to be incorporated by Tesla that will
be beneficial for the improvement of morale among employees and gain productive results.

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References
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development. Routledge.
Bailey, C., Mankin, D., Kelliher, C., & Garavan, T. (2018). Strategic human resource
management. Oxford University Press.
Brewster, C. (2017). The integration of human resource management and corporate strategy.
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Brewster, C., Mayrhofer, W., & Morley, M. (Eds.). (2016). New challenges for European
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Cherkesova, E. Y., Breusova, E. A., Savchishkina, E. P., & Demidova, N. E. (2016).
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