A Report on Leadership and Diversity in SpaceX (L0015KGSKGS1118)

This report provides an in-depth analysis of leadership and diversity within SpaceX. It begins with an overview of SpaceX's history and mission, emphasizing its innovative contributions to the aerospace industry. The report then explores leadership, defining the concept and examining various leadership styles, including transformational leadership and the application of Theory X and Y. It highlights Elon Musk's leadership style, identifying it as primarily transformational and providing examples of his leadership principles. The report also addresses diversity, defining its importance and outlining the benefits of diversity in the workplace, with a focus on the diversity initiatives at SpaceX. The analysis incorporates relevant organizational theories and concludes with recommendations for improving leadership and diversity practices within the company. The report uses sources from various academic and industry sources to support its findings.

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Table des matières
Executive summary.........................................................................................................................2
Introduction on SpaceX...................................................................................................................3
Topics..............................................................................................................................................3
Leadership....................................................................................................................................3
Définition of Leadership..........................................................................................................3
Introduction on the leader........................................................................................................7
Theory X and Theory Y...........................................................................................................8
Leadership style adopted by Elon Musk..................................................................................9
Diversity....................................................................................................................................10
Définition of Diversity :.........................................................................................................11
Conclusions and recommendations...............................................................................................14
References......................................................................................................................................16

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Executive summary
This report is based on organizational theories and innovations. SpaceX Company is a well-
known company in the world, which has provided many innovations in the aviation field.
Leadership is necessary for innovation and it is necessary for the growth of a business. Most of
the companies are based on their unique products and services. Therefore, it is necessary to
introduce new products and services.
This report will describe about the leadership and role of Elon Musk in the SpaceX Company as
a leader. It will also describe the diversity in the organization and its benefits to the company and
employees.

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Introduction on SpaceX
Space Exploration Technologies Corporation is also known as SpaceX is an American aircraft
manufacturer within the atmosphere and beyond space, this company offers space transportation
services. It was founded in 2002 by the famous entrepreneur Elon Musk Fueled with the dream
of its founder that is the colonization of Mars and the rest of the space. SpaceX became the first
company in the private sector to send cargo to the international space station in 2012 and the first
to successfully launch a rocket out into orbit, made possible with the Dragon rocket family
manufactured in 2010. More recently in 2016, Mr. Musk announced the Interplanetary
Transport System it is a mission to facilitate the desired Mars colonization, after that in 2017 this
system got updated with the Big Falcon Rocket which is planned to be reusable when it returns
to Earth. SpaceX launches sixty internet satellites in a batch in a single landmark mission
(Wattles, 2019). According to (Mosher, 2019), Elon Musk has launched 60 satellites in a single
launch.
This report will describe the innovations and entrepreneurship.it will describe the role of a leader
in an organization and comparison between leadership using two different theories. It will
provide a definition of diversity and its benefits to the company. At the end of the report,
recommendations will provide for the company.
Topics
Leadership
Définition of Leadership
Leadership is the art of motivation and inspiring his troop or group to achieve a specific or a set
of goals, it is not simply about titles or hierarchy it is about influencing another person (Gerhardt,
2019).

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Some leaders are born and some are made, that is a big difference between leaders. Robert House
“If your actions inspire others to dream more, learn more, do more and become more, you are a
leader.” -John Quincy Adams.
“Leadership is an influence process that enables managers to get their people to do willingly
what must be done, do well what ought to be done.” (Cribbin, J.J. ‘Leadership: strategies for
organizational effectiveness’).
Here are the most valuable traits that a Leader must have:

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Leadership traits
Leadership traits Job knowledge Drive Desire to lead
Extraversion Self-confidence Intelligence Honesty/Integrity
Sabri Ould-ali
These traits are qualities that make good leaders shine from bad ones, John C Maxwell says
about leadership, “A leader is one who knows the way, goes the way, and shows the way.”
Organizations are in need of both managers and leaders since managers will be in charge of
planning and budgeting and leaders setting a direction for people to follow (Gilley, et al., 2008).
However, more and more Organizations need their managers to incorporate leadership roles into
their managerial behaviors. “Let’s stop the dysfunctional separation of leadership from
management. We all know that managers who do not lead are boring, dispiriting. Well, leaders
who don’t manage are distant, disconnected” -Mintzberg 2004.

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Leadership splits into multiple styles depending on their individual personalities and ways to
lead their people, the most important ones are:
1. Transformational Leadership: This style is used in business organizations. Leaders are
always expecting the best of their followers and themselves; they are always looking for
initiatives (Kelloway, et al., 2013).
2. Transactional Leadership: Transaction involves extra payments for team members for
their efforts and loyalty. As well as punishments if the results are not there ( Langley ,
2016).
3. Servant Leadership: Robert Greenleaf came up with this title in the 1970s, to describe
leaders that are simply meeting the needs of their followers (Michaelis, et al., 2009).
4. Autocratic Leadership: This style implies that the leader makes the decisions since it is
quicker, but the downside is that employees might feel oppressed it results in a high level
of staff turnover (Nixon, et al., 2012).

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5. Laissez-faire Leadership: This French phrase means “leave it be”, since leaders using
this style allow their staff to work and take decisions on their own with the leader
supervision (Oke, et al., 2009).

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6. Democratic Leadership: Democratic style is the opposite of Autocratic since the leaders
give the chance to their people and only take the final decision (Raza, 2017).
7. Bureaucratic Leadership: Leaders are fervent followers of rules and ensure team
members follow them rigorously. This style is perfect for workspaces involving safety
risks (Tseng & Levy, 2018).
8. Charismatic Leadership: This style resembles the transformational leadership
9. Situational Leadership: The situational style implies that there is no “best leadership
style”; it all depends on the situation they are in with a high level of flexibility
(www.gsblsu.org, 2018).
Introduction to the leader
Elon Musk also is known, as “the real-life Tony Stark” is a self-made billionaire, technology
lover first then an entrepreneur with his breathtaking list of accomplishments:
SpaceX launches privately funded Israeli moon Landor, which is a huge example of innovation
(Harwood, 2019).

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Theory X and Theory Y
Created by Douglas McGregor in the 1950s and more developed in the years after, the Theory
X and Y according to him these theories imply that managers are divided into 2 categories:
Theory X (authoritarian management style): X managers have the assumption that employees
dislike work, lazy, dislike responsibility and need constant direction. These managers are most
hated, and this leads to high absence rates or even “Labour turnover” meaning people leaving
their jobs and that has a bad impact on the organization.
Theory Y (participative management style): Y managers believe that employees like work, are
motivated by their contribution, are creative, seek more responsibility and are self-directed. Y
managers are in favour of a more friendly collaborative working environment, they lead based on
trust. People are mostly happy with this style of leadership.

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Leadership style adopted by Elon Musk
Elon Musk is a person that knows which leadership style to use with his followers, with his high
desire to lead, leading by examples as well as through his drive towards the best of individuals
pushes everyone as well as himself to the fullest potential is what makes him the inspiration for
the staff. That leadership style is Transformational Style.
Leadership principles at SpaceX:
1. Leading by examples: He is well known for his tenacious work to see through his
visions even if him. “If you’re co-founder or CEO you have to do all kinds of tasks you
might not want to do … If you don’t do your chores, the company won’t succeed … No
task is too menial.” Elon Musk.
2. Promotion of creativity: Without creativity, progress and innovation are impossible, that
is why Musk said: “The problem is that at a lot of big companies, the process becomes a
substitute for thinking. You are encouraged to behave like a little gear in a complex
machine. Frankly, it allows you to keep people who aren’t that smart, who aren’t that
creative.”- Elon Musk.
3. Endorse collaborative works: Musk understood that teamwork is required in any
organization as he said: “Talent is extremely important. It’s like a sports team, the team

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that has the best individual player will often win but then there’s a multiplier from how
those players work together and the strategy they employ.”- Elon Musk.
4. Right people in right place: “If you’re trying to create a company, it’s like baking a
cake. You have to have all the ingredients in the right proportion.”- Elon Musk. If people
are happy in their roles, they will automatically be more productive and more motivated
to succeed and want the organization to prosper.
Elon Musk is an adaptive leader, but he is more of a Y manager/leader, with his care and
attention gave for his staff. He said about the report of the high rate of injuries in one of the
Tesla factory “It breaks my heart when someone is injured…I’ve asked that every injury be
reported directly to me, without exception…I would like to meet with each injured individual
so I can understand, from them, exactly what we need to do to make it better…”-Haden,
2017. That statement can be divided into 2 elements of the Y theory. Firstly, being a
supportive leader by linking with his people especially with the injured for his cause. As well
as caring for their well-being and wanting a safer environment for them. Secondly, Musk’s
wants to get the reports directly, to make them participate in on how to go about making their
job safer.” Participative Leadership, which requires a leader to involve followers in decision-
making by consulting with subordinates to get their opinions and input” -Williams, 2018.
Diversity
Définition of Diversity :
It is a process in which few things are affected by various reasons, which are age, religion,
gender, education, ethnic origin, marital status, and many others. Therefore, it is necessary to
remove most of the reasons for the diversity of employees and leaders from a company. It is
necessary for the success and growth of the company. Human resource management is
responsible for diversity management. They should optimize all the issues of diversity. They can
use cultural awareness and sensitivity training for diversity management. Few companies are
already providing diversity management programs in training time of their employees.
According to (FORBES, 2017), SpaceX has a good culture for working, as the company hires
self-driven people who are extremely passionate about the work. Elon Musk has always-
motivated people for work with passion and provides their 100 % to accomplish mission.

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Source: (comparably.com, 2019)
Diversity can furnish many benefits to businesses. A number one benefit is that a big range of
worker backgrounds approach the company as an entire has greater enjoy and knowledge
coverage in vital areas that have an effect on the organization. In addition, discussions typically
produce a broader variety of thoughts whilst personnel have numerous backgrounds. Moreover,
corporations that serve a various population or a global target audience can extra competently
serve that various marketplace with personnel, which could communicate the language and relate
from a cultural point of view.
Source: (comparably.com, 2019)

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There are many other factors attach to diversity. Employees face language issues in few cases.
Therefore, the company should provide training of different language to their employees to avoid
language problem. It is also necessary to celebrate all the holidays of different cultures. It makes
unity between employees and top management (Grossberg, 2016).
The company can manage gender diversity using job rotation schedule and it will help in
knowledge sharing as well. Language and communique limitations are most of the greatest
challenges to effectiveness in a diverse agency (Martic, 2018). With worldwide variety,
employees may also talk about many different primary languages, making accurate
communication difficult. Culturally, specific perspectives on conversation and special
viewpoints on discussions can get within the manner of green selections and determination of
conflicts (Zhao, et al., 2016). Conflicts are not only more common in a diverse place of job, but
they are regularly greater difficult to solve due to the fact personnel have a greater hard time
seeing every differing is perspective (Mulford & Silins, 2003).
Management in conjunction with imparting schooling, corporation leaders need to set the tone
for an especially functioning various place of the job (Drucker, 2014). This indicates setting the
tone from the top by rewarding employees for involvement in diversity programs and assisting
tolerance and attractiveness of range (Dodgson, 2018). Some employers also take part in or
financially support a variety of attention programs inside the communities in which they function
( Langley , 2016). Eventually, enterprise leaders want to sell a non-discriminatory work
environment (Day, et al., 2014).
Source: (Martic, 2018)

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There are many benefits of diversity at the workplace; it is used properly, as shown in the above
diagram. There are few common benefits of the diversity at workplace, which areas:
 Variety of different perspectives: it provides different kinds of person in an organization,
which are capable of different types of specialties in their fields. SpaceX is having
various types of employees to innovate new things.
 Higher innovation: diversity provides a high rate of innovation and various types of
personality provide different approaches for the finding solution of a given problem
(Goodman & Dingli, 2017).
 Incising creativity: this is the best benefits of the diversity that employees from different
sectors are more creative and the aviation industry requires it.
 Faster problem solving: the company can use diversity in problem-solving as people from
different culture provide better solutions to a single problem.
 Increased profit: sharing knowledge is useful for reducing cost from different operations
and it increases the profit of the company
 Better company reputation: company is also famous and popular because of diversity.
 Higher employee engagement: employees are more enrage in case of diversity, such as
education, gender, and many others
 Improved hiring results: diversity is also helpful in hiring. There is no condition for
employment, such as gender, education, and many other things. A qualified and skilled
employee will take the job.
Innovations are necessary for the development of many things, such as business performance,
business marketing, increasing sales, and many others (Dawson & Andriopoulos, 2014). A
business always requires innovations because the user has more expectation from their vendors
(Chesbrough, 2010). It is necessary to establish research and development labs for creation of
innovations, but it requires huge cost in implementation and maintenance ( Cherry, 2018). There
are many approaches to the development of the business of an organization. In addition,
innovation is the best way to enhance the business of an organization (Chemmanur, et al., 2014).
From the last two decades, most of the organizations are moving towards digital transformation

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because it is necessary for providing the best products and services to the clients (Brown &
Ulijn, 2004).
Innovations were based on the fresh idea for solving a problem or provide a new and innovative
way to handle issues and challenges. There are many innovations, which are created for problem-
solving. According to (Hojnik & Ruzzier, 2016), Eco-innovation is need of the business in the
future because natural sources are limited and it is necessary to make environmental friendly
innovations, which will provide profit for a long time (Bolman & Deal, 1991). There are
different types of innovations, which are based on two things that are market and technology. It
is not necessary to create something new but apply the same technology in the existing market to
create a new market and customers (Bolden, 2016).
Many leaders are famous because of their innovation and problem-solving skills. It is not
necessary to create new products and services for the customers. They can guide their employees
for doing creative work for the organization, which increases the performance (Asheim, 2007). It
is a good way to innovate new things. In addition, feedback of the products and services can be a
way to understand issues of products and services (Alexander, 2014). This will provide help in
the modification of products and services. According to (Dodgson, 2018), technological
collaboration is a necessary industry to create new strategies and policies. It is necessary for the
development innovations and makes an international level of innovations.
In the present era, innovations are based on sustainable development, which is suitable for the
environment. Innovators are always thought about long-term benefits from their products and
services. Therefore, it is necessary to create disruptive innovations, which provide a huge profit
in business. According to (Oke, et al., 2009), leadership influences employees for more
innovations to save time and cost of the company and increase profit. There are many examples
in the world. In terms of gender diversity, SpaceX is an arena where female engineers and
business women can thrive (Isenegger, 2017).

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Conclusions and recommendations
In conclusion, the company has a good image in the market based on its innovations and
organization management. There are many things in the company, which makes it different from
others, such as leadership, innovation, management, and many others.
This report has described the SpaceX Company. It has explained about the different types of
leadership and leadership advantages for the company. Elon Musk is a good entrepreneur and
innovator in the field of aviation and others. He was already provided many innovations to the
world, which are social, economic, and environmentally friendly.
Innovations are the basic need of a business, but it is also necessary to make those innovations
for social, economic, and environment. This report has described the diversity and its impact on
the employees and organization. In this report, leadership is explained from two different types
of theories, which are Theory X (authoritarian management style), and Theory Y (participative
management style).
The company should follow a few recommendations for their growth and success. The company
should establish a training and education centre for improvement of different skills of their
employees and develop a cybersecurity team for security data and information of their
information’s.
Finally, the company will always provide better innovation in the field of aviation, and it will
helpful for the company in its growth and success. Employees of the company will be satisfied
with the company’s policies and changes.
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