HRMT20026: Tesla's Strategic Human Resource Management Analysis

This essay provides a detailed analysis of Tesla's strategic human resource management. It begins by outlining the rationale for embedding HR strategies within broader corporate strategies, emphasizing the importance of aligning HR with overall business objectives to achieve competitive advantage. The paper then examines how Tesla integrates its HR strategy into its corporate strategy, focusing on the company's approach to employee development, rights, and technological advancements. The essay further discusses the implementation of HR strategies at the departmental level within Tesla, highlighting the complexities and interconnections between different departments. Finally, it addresses contemporary HR challenges faced by Tesla, such as employee turnover and workplace controversies, and how these challenges have prompted or necessitated changes to its HR strategy. The analysis draws on relevant literature to support its findings, offering valuable insights into Tesla's approach to human resource management.

CPL by T
STRATEGIC HUMAN RESOURCE MANAGEMENT

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Table of Contents
Introduction......................................................................................................................................2
Question 1:.......................................................................................................................................2
Outlining the rationale of embedding HR strategies into broader corporate strategies...............2
Question 2........................................................................................................................................3
Analysis of HR strategy embedded in the broader corporate strategy of Tesla..........................3
Question 3........................................................................................................................................4
Discussion on the organization implementing HR strategy at departmental level......................4
Question 4........................................................................................................................................5
Discussion on some of the contemporary HR challenges faced by Tesla...................................5
Conclusion.......................................................................................................................................6
Reference.........................................................................................................................................7

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Introduction
Human resource management of an organization focuses on the strategic utilization of its
staffs and its measurable influence of employee programs on the operations of its business. The
effectiveness of the management of human resources is highly crucial for the success of the
business organization. However, ineffective human resource management can invite severe
challenges for the organization. This paper focuses on outlining the rationale of embedding HR
strategies into broader corporate strategies. It analyzes the HR strategy embedded in the broader
corporate strategy of Tesla. This study discusses on Tesla implementing HR strategy at
departmental level. It sheds light onsome of the contemporary HR challenges faced by Tesla.
Question 1
Outlining the rationale of embedding HR strategies into broader corporate strategies
In order to cope up with the competitive market, almost every organization is having
sound corporate strategies that regulate its operations of business. In this regard it is ascertained
that human resource strategy is an integral part of its corporate strategies (Noe, Hollenbeck,
Gerhart & Wright, 2017). The sustainability of the business organizations are strengthened by
optimizing the utilization of its human resources. Previously, efficient management of human
resources actively acts as a support function to the business enterprises. Along with the
progression of time and increase in the level of competition, alignment of the human resource
strategy with the corporate strategy of the organizations has become ardently important for
competing efficiently with similar enterprises (Caputo, Giudice, Evangelista& Russo, 2016)..
In the recent corporate world, the business strategies of the organizations are found to be
closely tied with the policies related to the human resources (HR) followed within the firm. It is
observed that on clubbing the HR strategy with the corporate strategy, it is possible to achieve
higher level of corporate performance (Brewster& Hegewisch, 2017). The HR strategies of the
enterprises are considered to be the strategic partner to the operating divisions of such enterprise.

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Under this view, it is obtained that the HR managers assist the other line managers operating at
different level of the organization to accomplish their strategic goals.
The organizations are required to choose the correct set of its HR practices that are
compatible with its mission and business strategies in order to reflect the best possible business
practices. In this parlance, it is gathered that organizations can gain competitive dominance in the
market by focusing on the employment and retain its best possible human resources. This can be
achieved only when solid HR strategies are overlapped into the corporate strategies by recruiting
the most eligible personnel, training them to enhance their efficiencies and placing them in the
appropriate job tracks. In this regard, employees are crucial resources of an organization that are
hard to be duplicated (Bratton& Gold, 2017). Hence, HR strategies that forms part of the broader
corporate strategies focuses on capitalizing its human resources by motivating them to utilize
their best efforts and retain them for longer tenure in order to be benefited from their services.
Question 2
Analysis of HR strategy embedded in the broader corporate strategy of Tesla
Tesla is observed to take active initiative to merge its HR strategy with its broader
corporate strategy in order to maintain its dominance in the competitive market. The HR strategy
of Tesla is found to dominate its business strategy. Considering the view, that employees are the
most effective tool that is responsible for the organizational success, the corporate strategies are
formulated in favour of the benefits of its employees. In this aspect, it is obtained that employees
of business firm are recognized as the assets of the said firms (DeCenzo, Robbins& Verhulst,
2016).
For optimization of benefits derived from the human resources of the said organization,
the leadership style is altered in relation to its HR department. The employees are recognized as
the prime strength of the organization that has contributed to the competitive advantage of Tesla.
Like other organizations operating in the market, the given organization focuses on the
development of the matrix of its staffs. The HR strategy that is embedded in the broader version
of the corporate strategy of Tesla sheds significant attention on preserving the basic human rights
of its employees.In this regard, it is obtained that the HR strategies of the organizations involves

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conducting training and development programs for the enrichment of its human resources
(Nankervis, Baird, Coffey& Shields, 2016). Under similar view, with the emergence of the
technological era, Tesla remains ahead in relation to its rivals in imparting training to its
employees. This is done in order to excel the technological benefits derived from them that
create the overall benefit for the organization. The employees are provided with strategic
directions by the broader dimensions of corporate strategies that have built in HR strategies
within it (Rees&Smith, 2017).
Question 3
Discussion on the organization implementing HR strategy at departmental level
Implementation of HR strategies of an organization at the departmental level involves
immense complexity owing to the involvement of multiple factors. Before getting into the
implementation process of the HR strategies at the departmental level, it is highly required to
assess the HR policies. Before, implementation of a strategy an organization requires to ascertain
whether it maintains proper alignment with the organizational framework in order to enhance its
outcome. It is evident that implementation of HR strategy at the departmental level is crucial as
there exists interconnection between all departments (Lang & Rego, 2015).
In case of HR strategy of Tesla, the employee skills are required to be enhanced. The
efficiency of the employees is sharpened with the training of automation that enhances the
productivity of an organization. In this regard, it is known that application of automation
technology can help an organization to generate better revenues (Engert& Baumgartner, 2016).
Moreover, the managers are required to be trained enough to provide guidance to the employees
in order to ensure success of the organization. The organizations are required to take active part
in the assisting the employees to be accustomed with complex work processes involving
advanced technological techniques. Hence, the supervisors of the business organizations are
required to be well acquainted with the introductory processes in order to provide guidance to the
employees (Berman, Bowman, West& Van Wart, 2019).

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Question 4
Discussion on some of the contemporary HR challenges faced by Tesla
In spite of having strong HR policies, it is evident that Tesla has faced a setbackwhen the
person spearheading its HR department has resigned. Such resignation has created a challenging
environment when the turnover of the employees increased to an alarming level("Tesla's head of
HR has reportedly resigned", 2019). The public image of the said organization was heavily
shaken due to its poor practices of its HR department. The said organization is found to be
amidst several controversies demonstrated by reporting instances in relation to unsafe working
conditions, harassment and discrimination at the workplace. Owing to such instances, the
finances, sales and their ability to produce car at large scales are heavily impacted. These severe
challenges have put forward a question of doubt regarding the future sustainability of the
organization. (Arsenijevic, Andjelkovic & Lilic, 2016)
It is gathered that in order to reverse its poor working condition by revising its attending
policy after minimum of 9 per cent turnover of its employees. According to the revised
attendance policy has ruled out penalties for lapses observed in the attendance of its employees.
Previously, the workers were awarded demerits for being late even for 1 min to the scheduled
shift. If the employee’saccumulated specific number of demerits termed as “occurrences” their
employment were terminated (Akakpo, Gyasi, Oduro & Akpabot, 2019). In the revised
attendance policy, it is observed that employees who were late for shorter duration are to be
penalized less harshly than those who are late for longer hours.
However, in order to consolidate its HR platform, the HR strategies of Tesla could focus
on empowering its HR department by adding flexibilities to the working conditions of its
employees. In this regard, it is evident that establishing a connection between the corporate
strategy and HR strategy, assists a business organization to evaluate its existing HR policies and
replacing the inefficiencies for promotion of effective employee relations and ensures better
environment of workplace. In order to sustain in the competitive market, organizations focus on
effective HR strategies that ensures competitive advantage to withstand the competition thrown
by its competitors (Saeedet al. 2019).

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Conclusion
The effectiveness of the management of human resources is highly crucial for the success
of the business organization. Human resource strategy is an integral part of its corporate
strategies. The business strategies of the organizations are found to be closely tied with the
policies related to the human resources (HR) followed within the firm.The employees are
recognized as the prime strength of the organization that has contributed to the competitive
advantage of Tesla. Before getting into the implementation process of the HR strategies at the
departmental level, it is highly required to assess the HR policies.The said organization is found
to be amidst several controversies demonstrated by reporting instances in relation to unsafe
working conditions, harassment and discrimination at the workplace

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Reference
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.
Arsenijevic, O., Andjelkovic, M., & Lilic, V. (2016). Recruitment and Selection of Human
Resources. No. 18 Int'l J. Econ. & L., 6, 9.
Berman, E. M., Bowman, J. S., West, J. P., & Van Wart, M. R. (2019). Human resource
management in public service: Paradoxes, processes, and problems. CQ Press.
Bratton, J., & Gold, J. (2017). Human resource management: theory and practice. Palgrave.
Brewster, C. & Hegewisch, A. eds., 2017. Policy and practice in european human resource
management: The Price Waterhouse Cranfield survey. Taylor & Francis.
Caputo, F., Giudice, M. D., Evangelista, F., & Russo, G. (2016). Corporate disclosure and
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Managerial and Financial Accounting, 8(1), 75-96.
DeCenzo, D. A., Robbins, S. P., & Verhulst, S. L. (2016). Fundamentals of Human Resource
Management, Binder Ready Version. John Wiley & Sons.
Engert, S., & Baumgartner, R. J. (2016). Corporate sustainability strategy–bridging the gap
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Lang, R., & Rego, K. (2015). German Human Resource Management professionals under
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Nankervis, A. R., Baird, M., Coffey, J., & Shields, J. (2016). Human resource management:
strategy and practice. Cengage AU.

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Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource
management: Gaining a competitive advantage. New York, NY: McGraw-Hill
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Rees, G., &Smith, P. (Eds.). (2017). Strategic human resource management: An international
perspective. Sage.
Saeed, B. B., Afsar, B., Hafeez, S., Khan, I., Tahir, M., & Afridi, M. A. (2019). Promoting
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Tesla's head of HR has reportedly resigned. (2019). Retrieved from
https://www.businessinsider.in/teslas-head-of-hr-has-reportedly-resigned/articleshow/
65723001.cms