University: MGMT200 - Management Issue Analysis of Tesla

This report provides a comprehensive analysis of the management and leadership issues within Tesla Inc., an electric vehicle and clean energy company. It delves into the factors influencing these problems, including leadership style, communication gaps, and decision-making processes. The report examines the impact of a charismatic leader, the absence of feedback mechanisms, and the challenges of delegation. It highlights the importance of effective communication, employee engagement, and delegation for improving organizational performance. The report offers recommendations for addressing these issues, such as enhancing interaction between leaders and employees, encouraging feedback, and promoting shared leadership. The report emphasizes the need for a change in leadership style to achieve strategic goals and improve employee performance. It underscores the importance of delegation and employee involvement in decision-making to foster a more engaged and productive workforce. The report is supported by academic sources and aims to provide actionable insights for Tesla's management to improve its operations.

Running head: MANAGEMENT ISSUE ANALYSIS OF TESLA
Management Issue Analysis of Tesla
Name of the Student
Name of the University
Author Note

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MANAGEMENT ISSUE ANALYSIS OF TESLA
Executive Summary
This report comprises of the analysis of the management issues or mainly the leadership issues
which are currently being linked with a very reputed organization like Tesla. The organization
mainly focuses on manufacturing several kinds of electric vehicles and many more products.
This report comprises of factor which are majorly accountable for occurrence of this kind of
issues in Tesla. The report constitutes of the recommendations which could help this
organization in countering all the issues which are related to the management along with the
style of leadership within this organization.

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MANAGEMENT ISSUE ANALYSIS OF TESLA
Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Overview of the factors influencing the problems of management.............................................3
Analysis of the management issues.............................................................................................4
Recommendations for the addressing these particular issues......................................................6
Conclusion.......................................................................................................................................6
References........................................................................................................................................8

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MANAGEMENT ISSUE ANALYSIS OF TESLA
Introduction
Tesla Inc. is an electric vehicle along with a clean energy company which is based in
California, America. The specialization of this particular company comprises of manufacturing
of electric vehicles, storage of the energy of the batteries from home towards a grid scale
(Perkins & Murmann, 2018). This is basically through its subsidiary named as SolarCity. It also
focuses on manufacturing of the solar panel along with the solar roof tiles to name a few.
This report aims to discuss various kinds of management issues which are currently being
faced by this particular company. In addition to this, this report also purposes to focus on several
kinds of factors which are the main reasons behind influencing various kinds of problem linked
with the management of the company. This report also aims to present several recommendations
which would in turn be helpful in addressing various types of problems which are connected
with the management of the company.
Discussion
The main problem which is linked with this particular organization is several kinds of
problems regarding its leadership. It is well known that, good quality of leadership in turn helps
in boosting the overall performance of the entire organization. But in this particular context, the
notion has become totally different (Schoemaker, Heaton & Teece, 2018). Several problems
linked with the style of leadership further effects the performance of the organization which is
not all at good for such a reputed company in the context of manufacturer of electric vehicle
along with various other products along with the like Tesla.
Overview of the factors influencing the problems of management
Several kinds of problems are being faced by this company in the context of its
management as well as the style of leadership despite of this manufacturing company possessing
a very good leadership style. The reason behind it is that this particular manufacturer of vehicle
by charismatic leader and is considered to be a boosting force for the organization itself. But as
it is said, all things cannot run in a successful manner simultaneously (Wiesbaden, 2016). Hence,
several kinds of issues took place within this particular organization with respect to the style of
the leadership.

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But on the other, this particular organization which possesses a specialization for
manufacturing several kinds of electric vehicles and solar panels is also in progress with a
company named Panasonic regarding a joint venture plan with the inclusion of various strategies.
The main concern forms the shifting of the main focus from the actual products which are
manufactured by this particular organization towards representing the CEO as the main face of
the organization (Stringham, Miller & Clark, 2015). This typical scenario forms one of the main
reasons in converting this reputed organization into a single man army on which everything
would depend.
This additionally formed a major reason accountable for obstructing the image of this
particular brand as this particular organization in itself represents a brand. If this would not have
been the scenario, then the actual focus would still remain on various kinds of electric vehicles
along with the solar panel and solar roof tiles and a reputed organization (Zimmerman, Anastas
& Miller, 2014). Some of the factors which are solely responsible for the creation the
management issues or the leadership style comprises of a huge communication gap which in turn
affects the entire performance of the organization.
In addition to this, the other factor which is accountable for influencing several kinds of
leadership issues along with the reputation of such a reputed company like this forms the absence
of the capabilities for providing of the feedback. An important role is played by the feedbacks as
it helps this particular company in identifying those areas which demands higher levels of
improvement (Akakpo et al., 2019). Next forms the occurrence of several kinds of problems
linked with the procedures of making important decisions which could lead to a huge loss within
the organization.
As it commonly known that, each and everything comes with some advantages as well as
disadvantages, the other side of the charismatic leader of this reputed organization formed one of
the main reasons for the occurrences of several kinds of issues with respect to the style of the
leadership which was followed within this reputed company which focuses on manufacturing of
electric vehicles along with solar panels to name a few.

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MANAGEMENT ISSUE ANALYSIS OF TESLA
Analysis of the management issues
An important role is played by the style of leadership in managing such a reputed
organization like Tesla along with boosting up of the performance of the organization as well.
But if the several issues occur with respect to the style of leadership, then it becomes a serious
concern. If the style of the followed leadership goes in an incorrect direction, then severe issues
related with the higher levels of management along are bound to occur in an obvious manner
(Markos & Sridevi, 2010). On the other hand, the performances of the organization also
somewhere depends on several kinds of the functionalities which are followed by the ongoing
leader.
The leader is accountable for showing the correct path with respect to which each and
every member of Tesla could commence to proceed. The style of leadership comprises of
personal dynamism, morality and is accountable for encouraging the employees as to how they
could improvement in their respective sectors which are looking after within the organization
(Ivanov, 2015). But keeping these qualities in mind, it could be witnessed that the excess
utilization of the personal dynamism by the ongoing leaders towards their members of the team
have led to increment in the levels of pressure of working and the employees are being
demanded to give their hundred percent correct work with no error at all.
Pressurizing the employees for delivering error free work is always not good as it could
harm the levels of performances of the employees. Instead of this, the leaders should encourage
the employees by directing through the right path as to how error-free work could be delivered
by them and how they could accomplish their respective goals. The sudden fall in the
productivity of the employees directly affects the productivity of the company as well. An
essential role in achieving higher productivity levels within the company comes with respect to
the functionalities and procedures which are set by the leader and are followed by the entire
organization.
 Communication gap forms a severe factor which acts as a barrier in the exchange of the
essential information which further leads to higher levels of confusion among the
subordinates regarding who needs to be communicated for proceeding with the work and
starts getting demotivated (Kordbacheh, Shultz & Olson, 2014). This further affects the
productivity of the subordinates. Absence of the delegation of those tasks which are

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required does not take place. The employees does not gets encouraged to work as they do
not know what tasks needs to be done at what point of time.
 Problems in the procedure of decision making have also equally contributed towards the
occurrence of the leadership issues. Making of good decisions leads to successful
accomplishment of the goals. But, making of decisions within a fixed frame of time tends
to obstruct quality of the decisions which are taken.
 The ambitions of the leader is not compatible with the employee levels which gives rise
to the alignment problems. One-man leadership could lead this organization to become
endangered.
 Feedbacks are not taken from the employees and the engagement of the employees are
not supported and the employees feels disrespected about the same.
Recommendations for the addressing these particular issues
 The interaction among the leaders and the employees needs to be incremented such that
the information and ideas could be interchanged for successful accomplishment of the
goals of this organization (Rothaermel, 2016).
 Feedbacks should be taken from the employees on a monthly basis such that they feel
that their opinions are valued and it would help in the improving various activities of the
organization.
 Correct decisions needs to be taken with the involvement of the views along with
assistance which are provided by the employees, line managers and the leaders such that
the employees could get encouraged to work accordingly.
 The organization should not be led by a single leader but also other people should be
involved such that when it is the time for the leader to take a break, others could take his
position and perform his duties (Yoon, Kim & Shin, 2016). Others should learn how to
perform these duties such that in the absence the leader, the tasks could be performed
along with the incorporation of the delegated leadership (Molenberghs et al., 2017). This
would help in motivating the employees and enhancing their individual performances.
Conclusion
In the above report, the issues related with the style of the leadership has been mentioned
along with its analysis. The style of leadership really needs to be changed for achieving all the

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strategic goals in a successful manner. This organization is already a reputed organization and is
a green environment enterprise. If this organization focuses on the delegation of tasks to several
departments, then it would become easier for this organization in avoiding these kinds of issues.
The organization needs to focus on encouraging the performance of the employees and
considering the opinion of the employees.

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References
Akakpo, A., Gyasi, E. A., Oduro, B., & Akpabot, S. (2019). Foresight, organization policies and
management strategies in electric vehicle technology advances at Tesla. In Futures
Thinking and Organizational Policy (pp. 57-69). Palgrave Macmillan, Cham.
Ivanov, S. (2015). Exposing myths of modern management: Innovation–exploring a solution.
Journal of Leadership and Management, 2(4).
Kordbacheh, N., Shultz, K. S., & Olson, D. A. (2014). Engaging mid and late career employees:
The relationship between age and employee engagement, intrinsic motivation, and
meaningfulness. Journal of Organizational Psychology, 14(1), 11.
Markos, S., & Sridevi, M. S. (2010). Employee engagement: The key to improving performance.
International journal of business and management, 5(12), 89.
Molenberghs, P., Prochilo, G., Steffens, N.K., Zacher, H. and Haslam, S.A., 2017. The
neuroscience of inspirational leadership: The importance of collective-oriented language
and shared group membership. Journal of management, 43(7), pp.2168-2194.
Perkins, G., & Murmann, J. P. (2018). What does the success of Tesla mean for the future
dynamics in the global automobile sector?. Management and Organization Review,
14(3), 471-480.
Rothaermel, F. T. (2016). Strategic management: concepts (Vol. 2). McGraw-Hill Education.
Schoemaker, P. J., Heaton, S., & Teece, D. (2018). Innovation, dynamic capabilities, and
leadership. California Management Review, 61(1), 15-42.
Stringham, E. P., Miller, J. K., & Clark, J. R. (2015). Overcoming barriers to entry in an
established industry: Tesla Motors. California Management Review, 57(4), 85-103.
Wiesbaden, S. F. (2016). The recipe for success at Tesla is strong leadership. ATZelektronik
worldwide, 11(1), 24-27.
Yoon, J., Kim, M., & Shin, J. (2016). Confidence in delegation and leadership of registered
nurses in long‐term‐care hospitals. Journal of nursing management, 24(5), 676-685.
Zimmerman, J. B., Anastas, P. T., & Miller, G. W. (2014). Green chemistry as a leadership
opportunity for toxicology: We must take the wheel.