Role of Human Resource in Tesla's Success Assignment Sample

How Human Resource Strategies Drive Tesla's Innovation and Global Expansion

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Introduction Of The Report Discusses The Importance Of Human Resource In Business Organization Assignment

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Human resource is the part of a business organization that involves employing people, recruitment, screening, selecting, training them, developing policies, and strategy building to retain and motivate employees. The report helps in developing the brief understanding about the role of human resource in decision making and strategy planning in an organization(Mathis et. al. 2016). For understanding all these aspect the report considers Tesla as the case company.

The main objective of this report is to develop detailed understanding about the various challenges that company’s HR management faces in achieving its aims and objectives and what solution an HR manager can apply to solve these issues(DeCenzoet. al. 2016). The report also discusses about the SMART objectives of human resource, which help in identifying the future strategies of company. The focus of this report is mainly on the role of HR metrics and its needs in making decision in organization by evaluating all the performance of human resource management of the case company Tesla.

Overview of company

Tesla is an automotive company which is not only manufactures the electronic vehicles but also substantially provides clean energy and storage production. The company is involved in designing and producing electrical vehicles which are fully automatic and fast cars. Company’s headquarters are at Austin, Texas. It is one of the most valuable company in the all world (Carlson, 2015)Tesla

Figure 1: Tesla

(Source: Fred Lambert, 2023)

The role and purpose of HRM

Human resource is an essential component for every company, apart from the range of the organization. HRM focus is on maximizing employees' productivity and securing the organization from all issues that may arise inside the business. Human resource includes various responsibilities which are compensation, recruitment, policy making, and updating laws that may affect the organization and employees (Stewart and Brown, 2019).The various activities followed by the HRMof the cas3 company in order to work effectively and to add value are discussed below:

  • Proper and effective use of the workforce for achieving objectives and aims of the company.
  • Providing performance appraisal throughproviding various compensation to encourage the capabilities of employees of the company Tesla (Bauer al. 2019)
  • HRM focus on developing abilities that will further help in enhancing company as well as individual performance of employees working in the company.
  • Increasing innovation, flexibility, and, creativity enhances competitiveness by applying various tools and techniques.
  • By using several new approaches to design work processes, career development, succession planning, and inter-organizational mobility in the company, company is using various HRM techniques which to attain its goals.
  • Managing the operation and integration of technology by different factors like adopting communication strategy to work fluently with employees working in the company.

The organisation’s culture, relevant global factors, including cultural differences and values

Tesla's culture and values are focused on innovation, sustainability, and constant improvement. The company is known for its fast-paced and dynamic work environment, with a strong emphasis on teamwork and collaboration. CEO Elon Musk has set a clear vision for the company to accelerate the world's transition to sustainable energy, and this mission drives the company's culture and values.

In terms of global factors, Tesla operates in many different countries and cultures around the world. The company is committed to diversity and inclusion, and has implemented a number of programs and initiatives to promote diversity and inclusion at all levels of the organization. However, like many companies, Tesla has also faced criticism for a lack of diversity in leadership positions and for not doing enough to address discrimination and bias in the workplace (Van Dalen, 2015).

Tesla is also affected by global regulations and policies related to electric vehicles and sustainable energy, and the company has had to navigate the different cultural and political environments in the countries where it operates. For example, while it is relatively easy to set up a charging network in California, the same is not true in India or China. The company also has to take into account the cultural differences in terms of consumer pReferences and habits.

Comprehensive Human Resource Strategy

The human resource management uses various strategies whichhelp in increasing the achievement of international company's objectives. A consistent, complete plan intended by human resources management of the company to manage its worldwide human wealth is called a global human resource strategy. It is very well known that the tesla is an international brand which is trading in electrical vehicles all across the world, managing the overall human resource is tough task for the company and its management team(Amladi, 2017). The Human resource strategies that contribute to the achievements of international company Tesla’s objectives are as follows:

  • Setting goals and activities that best suit the company's goals –companyhas its own style and philosophy that is also part of the its goals. By identifying the best activities that focus on achieving the goals will later on gives the results of success to the company(Sen, 2020).

The organizational structure of company needs to be in accordance with the goals which will help in planning activities with effective strategies made by the management team of the company.

  • Finding the right talents – after setting the role and responsibilities it becomes quite easier to find the right person for the job. One of the best global HR strategies used by the company is to enable global hiring, which provides the company with the benefits to hire employees from every corner of the world.
  • Managing employee activities – The most important HR strategy on which the company focuses is to manage the workforce, manually managing all activities of employees in company is very tough or nearly impossible (conway al. 2016). To manage employees' activities HR of the companyuse several tools like timesheets, logs, task list, etc. These all tools help in building effective management of employees' activities.
  • Employee retention – For retaining employees in ancompany like Tesla uses various methods which are considered which further benefits compensate and give challenges that encourage employees in the company to work to their full potential. This also provides opportunities for employees of the company to enhance their skills and improve their strengths. Company’s

Figure 3: Tesla profit soars

Figure 2: Tesla profit Soars

  • HR team work so hard to manage and retain their employees.

(Source: Statisa, 2021)

Contemporary issues in organisations

The human resource of case company Tesla faces several issues like recruiting new employees, engaging the existing employees, retaining the leaving employees, and providing training and benefits to all employees. This all is done by maintaining compliance in the company. For overcoming these issues HR managers of company have access to various tools and techniques that help the HR team of the company to find solutions to a variety of issues faced.

The various issues that affect the human resource of the company are as follows:

  • Compliance with direct laws and regulations –the most common human resource problemin company is making sure about adhering to all the relevant laws in the operation area in the company is dealing. It is a very huge challenge for company, especially when HR managers or professionals do not have any experience in dealing with local labour laws and regulations, how to guide them, and plan on strategies (Stewart and Brown, 2019). However the Human resource management team of the company is quite capable of handling all its employees and labour.
  • Recruiting the best of all: recruiting candidate’s requiresalot of burden for human resources management of the company. It includes evaluating the skills and necessary qualifications required for the job, creating an accurate job description, advertising, and screening and sorting resumes of applicants. All these are stages that occur before the interview stage (So?ek, al.2018). Company like Tesla recruitment is very important task as the employees working in the company need to be fully skilled and qualified.
  • Employee retention – selecting the top talents is very important for the company but retaining them for long period in the company is a very big challenge. Retaining employees require lots of time and energy which is a big issue for HR team of the company. Balancing the cost between hiring the new employee and risking the retention of existing employees causes a big challenge for the human resource management of the company.
  • Monitoring and feedback –monitoring the performance of employees in company leads to shared responsibility between the manager and the human resource department of the company (Pourrashidi, al.2017). HR manager is the person who is responsible for the motivation of employees and their performance. It is a tough decision for the HR department of the company to look out for every employee and give them feedback about their performance as it is very well known that Tesla is big company so giving feedback to all the employees is tough task for the management team of the company (Ajitha and Nagra, 2021). Providing feedback to an executive as well as employees will help the executive to make better decisions and employees to improve their performance.
  • Compensation management –benefits and compensation are a big issue in human resources as these are the factors that encourage and affect the employee's performance in the organization. Compensation is the core concerns for every employee in the organization, as it impacts the performance of employees and also their productivity.

Tesla profit soars

Objectives of Human resource management

The basic objective of human resource management is the achievement of organizational goals with the satisfaction of the employees. Tesla is using SMARTobjective (Akakpoet. al. 2019). SMART objectives identify what an organization should do to achieve the desired goals with the available resources (Sarah kristenson, 2021).SMART objectives are used as key performance pointers and key results. A detailed description of SMART objectives used by the company is as follows:

  • Specific- In this category of objectives, managers specify every detail related to who,where, what, when, and what the company desires. A specific objective can be related to the performance of employees, salary of employees, reduction in employee turnover, etc. For example, if a company's employee retention rate is low then its specific goal can be an improvement in the employee retention rate and a reduction in the employee turnover rate.
  • Measurable- In this objectivehuman resource manager set the criteria totrack performance and measure the success of the organization. Human resource objectives should be quantified in nature, and these numbers can be used as success parameters(Ogbeiwi, 2017).Forexample, if the specific objective is to increase the employee retention rate, then the measurable objective is to increasethat rate up to 90%.
  • Achievable- In this category the manager checks that the objective should be attainable with the available materialistic and human resources. Achievable objectives are set in a range rather than exact value, forexample, an organization's objective is improving the employee retention rate but Its measurable objective is to increase the employee retention rate from 85% to 90% within a year.
  • Relevant- In this category, managers make sure the chosen objective should be aligned with the set objectives there should not be any contrast between goals (Townley, 2019).An objective can be understood by answering, why this goal deserves to be an organization's objective. For example, a specific objective can beto increasethe employee retention rate, because it will cut down and save the organization's displacement cost.
  • Time-bound- In this category of human resource objectives managers make sure that the objectives are set for a specific period(Ulrich and Dulebohn, 2015). The manager should make sure to have a lot of deadlines for the completion of those objectives because objectives without any deadlines will impact the ultimate goals of the organization.

Human resource management should formorganization objectives that contain all the characteristics of the SMART objectives. SMART objectives will further help in setting the path to success for the organization.


Figure 1: SMART Goals

Source: Hailey Hudson, 2022

The role of Human Resource Metrics in Decision Making

The HR metrics also known as human resource metrics helps the organization to keep track on the human capital. It also helps in measuring how effective the human resource strategies and plans are in the the case of the Tesla the , HR metrics include data such as turnover, benefits rate per participation, and cost per employee hired (Jennifer Hartman, 2022). This HR metrics help the company in measuring all information like what strategy is working well, what needs for improvement, and also about trends and how will they help the organization in the upcoming future. The key role of HR metrics in decision-making of the company is as follows:

  • By application of HR metricsin managing company’s performance by making strategies. Strategies regarding turnover of company, controlling all the loss percentages, collecting information about its employees leaving, and behaviour of employees towards the company and their work (Mathis, al. 2016). In company like Tesla has its own HR metric analyst who further on behalf of company analyse the pros and cons of the strategies made by company.
  • Human resource operations of company also play an important role in decision making;as it includes analyzing HR efficiency and effectiveness of company like HR service quality, time to resolve HR issues, etc. the HR metrics analyst of the company applies all models and tools on company’s operations to enhance forecasting accuracy and encourage workforce.
  • Company’s process of expansion helps in deciding what to do and how to do it in human resource management.The HR metrics of company focus on the effectiveness and efficiency of HR over the time and helps in using reinvent decisions and procedure of HR in innovative decision making and encourage new ideas.
  • HR metric helps in spreading awareness about the cost and resources used in company which plays an important role in the decision-making of the company. Human resource metrics helps the company in making a decision regarding cost control and proper usage of resources available for manufacturing of car and other auto parts. By collecting all the data regarding cost, the production department of company able to make a decision regarding cost reduction.
  • Human resource metrics play an important role in understanding global factors which affect the company as it is very well known that Tesla is international brand (Gali, 2020). This HR metric includescultural differences, and diversity (Wawer, 2018). HR management of company is required to make strategies regarding facing all the global factors which affect the performance of its operational as well as production department. Cultural difference in ancompany affects the performance of employees and the HR managers need tomake effective strategies that
    encourage a good environment in the

Human resource metrics

Figure 4: Human resource metrics

Source: Shani Jay, AIHR, 2022

Evaluating the human resources performance

Evaluating an employee's performance is a very crucial task for a company.It provides feedback to the employees working in every department of company about their performance and suggests an area for skill development(McDavid 2018). Following are some recommendation which company can evaluate employees’ performance:

  • Work efficiency- The evaluation of the employee's performance is done based on the quality of work performed by employees. The level of quality can be determined by comparing to the set standards or by reviewing the executive and HR manager’s feedback.
  • Level of improvement- The employee's performance evaluation is done based on improvement in the performance of the employee as compared to the previous work(Lele, 2020). A positive result reflectsa consistent improvement in the performance of the employee.
  • Reaction to the feedback- The performance evaluation has also been done based on how the employee reacts to the feedback provided by the HR manager. The employee who accepts the feedback and works on improving their performance is rated better in the performance evaluation process.
  • The ratio of work done on time- The employee performance evaluation includes the ratio of tasks completed on time to the total tasks allotted(Tweedie,et.al2019).The HR manager calculates the rate of tasks completed on time and the quality of work in the task assigned, which further helps in increasing the productivity of the company.
  • Capacity to take responsibility- The employees that can take the authority and responsibility for the work performed, are an asset to the company. A team of employees who can take responsibility helps in faster growth. Employees with the potential and the capacity to take challenges are important for ancompany’s success.


The report concluded with the importance of human resources in case company Tesla. Human resource plays a key role in helping the company in dealing with the fast-changing environment of business and also to full fill needs and demands of employees. HR helps in managing and monitoring the workforce of a company, main focus of HR is on the recruitment of the right candidate, training the current workforce to develop their skills, retaining the employees, etc. The case company is required to take measured steps to find an effective solution to these issues to expand in the global market more.


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