Strategic Human Resource Management: Tesla HR Strategy Analysis

This essay provides a detailed analysis of Tesla's Human Resource (HR) strategy. It begins by outlining the rationale for embedding HR strategies within broader corporate strategies, emphasizing the importance of aligning HR practices with organizational goals for effective recruitment, retention, and development. The essay then examines how Tesla integrates its HR strategy with its corporate vision, focusing on its use of advanced technology, market penetration, and product development strategies. It explores the implementation of HR strategies at the departmental level, particularly in the context of establishing a national branch in a growing economy like India, including recruitment, training, and conflict resolution. Finally, the essay discusses the contemporary HR challenges faced by Tesla, such as technological changes, employee complaints, and workforce reductions, and how these challenges necessitate changes to its current HR strategy. The analysis is supported by relevant academic sources.

Running Head: TESLA 0
STRATEGIC HUMAN RESOURCE MANAGEMENT
4/30/2019

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Question 1: In every organization, corporate strategy lays down the long-term vision, and
objective of the organization. It is true that all the actions or output is done by ensuing the
commitment of human resource to these corporate strategies. If employees will not be sure or
unclear about the long-term vision or objective, they will not be able to work effectively. HR
strategies mainly include the recruitment, selection, compensation, and training of the
employees. If corporate strategy will not be clear, it will not be possible to hire the personnel
accordingly. Therefore, in order to work according to the corporate plans, human resource of
the organization also needs to aware of all the corporate goals. It will prove to be good idea
as whenever corporate objective changes in the organization, employees working pattern can
also change if HR strategy will be linked to it (Engert, Rauter & Baumgartner, 2016). The
proper linking of both the strategies will also assist the organization in achieving expected
outcome. All the corporate strategies made by the top management are further carried on by
the human resource of the organization. Therefore, employees will also feel motivates when
all the required actions will be given to them by the top level. In this way, effective
communication is also the essential part of each corporate and human resource strategy. It is
also being stated that the effective human resource strategies are those that properly integrate
with the completely corporate plans. It is one such reason most of the organisations are being
successful by linking the HR strategy with the corporate strategy. At one side, HR strategy
tends to provide the framework for all the tactical plans. In the next level, developed action
plan comes that assist the organization in covering its strategies into the operational working.
There are time when government policy or external condition changes, that requires the
organization to bring these changes. However, all the changes are carried out by the human
resource that can also be said to the significant asset in the organization. Communication
those corporate changes with the employee are only, it is essential to bring the needed
changes. In this way, both the strategies help the organization to bring required changes in
both Human resource as well as corporate strategy. It also proves to be good idea to embed
both the strategies (Love & Roper, 2015).
Question 2: The main corporate vision of the Tesla is to achieve the competitive advantage
among all of its competitors. For achieving such vision, it ensures the use of advances
technology in its production. It tends to build the competitive advantage by ensuring the
development of products. All these process are carried out by including the human resource

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of the organization (Hollenbeck & Jamieson, 2015). All the human resource of the Tesla is
quite acknowledged about using the environment friendly technology. In addition to this, at
the time of applying differentiation focus strategy, company put emphasis on the uniqueness
of its products by including the workers in taking decisions. Moreover, it also uses the market
penetration strategy for its growth strategy (Alshehhi, Nobanee & Khare, 2018). This strategy
helps it in bringing the growth in business by increasing the revenue of sales in current
market. The sales are also carried out by the human resource that lays down the significance
to include those human resources in its decision. This growth strategy helps in developing the
competitive advantage based on the market share. Product development is also one such
growth strategy of Tesla. This strategy helps in developing the new products, which in turn
generate the sales (Semuel, Siagian & Octavia, 2017). This phase is also carried on by the
human resource of the organization. It therefore includes the human resource in each of its
activity that is undertaken for the corporate strategy. Due to this reason only, it is able to put
emphasis on the high technology automobiles and thereby attract the large number of
customers. Research and development is also carried on by the human resource that helps it
in achieving its corporate vision effectively (Weissenberger, Almeida & Seus, 2019). It has
also established the worldwide offices that comprises of the skilled and competent
employees. It tends to support the long term vision and mission of the Tesla (Huselid, 2015).
Question 3: In the prior time, human resource department was putting emphasis on the
administrative duties by including processing standard transaction, managing records, as well
as dealing with all the legal issues and compliance. In recent time, HR professionals are also
required to ensure the higher level planning, consultation and effective communication with
the top executives for giving proper direction and shaping the key policies. By putting more
emphasis on talent as the strategic resource for the overall success of organization,
professionals of human resource are giving as well as obtaining more insights of business.
Besides this, they are also incorporating the knowledge into the day to day operations.
Aligning the organizational goal with the strategic direction of the human resource
department, more and more success can be achieved by the company for implementing the
innovative approaches (Wyss, 2014). Similarly, Tesla is also implementing the robust HR
strategy at the national branch. Therefore, if Tesla is required to set up the business in India
that is one of the fastest and best growing economies in the world, it will require to establish
the national branch. Tesla can accordingly also implement the HR strategies in order to align
that with the national branch (Silver, Djalilian, evine & Rimell, 2012).IN order to hire the

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employees at the national branch, it first determines the needs of human resource. This part
heavily involves the strategic planning. It also identifies the decline as well as growth that is
expected in the organization. In identifying the human resource needs, it tends to forecast the
sales of next year (Mangram, 2012). In addition to this, it also determines the recruitment
strategy at the national branch. In this strategy, it also writes down the strategy by addressing
how it will recruit the right talent at the right time. For selecting every member for the
projected team, it properly interview and include the hiring process. On the basis of its
strategic plans, it finds out the need of training. For example- whenever any software comes,
it finds out the necessity of learning of the new software (Namada, 2018). At the time of
conflict between the team members, it has also made the HR policy for overcoming the
respected problem. By using such conflict resolution strategy, it helps in solving the problem
of its employees. HR manager also address the several plans in order to offer the training in
the HRM plans. Based on the HRM plans, the HR manager also determines the pay scale at
each of the branch. IN its every branch, it provides the wages according to the on-going wage
rate in the country. This includes the compensation such as bonuses, healthcare, as well as
other benefits. Several set of standards has also been developed in order to know how to rate
the performance of its employees. In this way, it is clear that Tesla effectively using the
several innovative HR polices (Stone & Deadrick, 2015).
Question 4: In recent time, Tesla is facing several HR challenges in its organization. Among
all the challenges, the major HR issue that Tesla is facing to cope up with the changes in
technology. It is lacking in creating the batteries that are more durable as well as efficient at
the same time reducing the price. In addition to this, Tesla is also facing issues from its HR
leader that are required to listen to the complaints of its employee directly. Due to this, it is
also facing fallout of the poor HR documentation and practices. With the several processes in
human resource, the cure starts with the culture. It is also need to ensure the accountability
and transparency. In the recent report, it is also found that Tesla has lay off the 3000 around
employees that is creating problem for the organization. It is also hiding the fact that Tesla is
still the new entrant in the difficult industry. The major challenge for the Tesla is that all the
automakers are required to forecast the dip in the sales of new vehicles. In addition to this,
several persons have also complained about the damaged batteries that prove to be the biggest
question mark for Tesla human resource (Marshall, 2018).

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