Executive summary
Although
businesses and employees can benefit from new policies, organizations must consider how best to implement the
modern approach to ensure it delivers what is required for the business and its
employees. The report will utilize the historical financial performance of
Tesla to determine how the performance has been affected by the hybrid
functional approach, which has become the new typical. With
many employees revolting against returning to offices today, businesses have
been forced to deal with the challenges of adapting to the new world of hybrid
work. Organizational leaders such as Tesla's
CEO, Elon Musk, have presented their concerns that remote and hybrid work is
undermining their organization's culture (Nicholas & Hull, 2022). The report will
utilize the historical financial performance of Tesla to determine how the
performance has been affected by the hybrid functional approach, which has
become the new typical. The analysis also shows that the company's HRM
team should focus on introducing new strategies to drive solutions that support
TESLA's successful future in today's world of hybrid work. The
approach to be utilized by human resource management can involve training
programs to orient the leaders and employees to the features of its new
operational strategy and how it affects the organizational culture. The strategies should
consider the benefits of the modern hybrid and remote workers workforce, which
is vital for continued success in the next two to five years. With the help of
the approach of hybrid working, Tesla can provide a better work-life balance
for the employees to create more time for family and friends. The modern
working approach also helps resolve the people and organizational-related
challenges identified in TESLA. The approach provides the workers with a more
remarkable ability to focus with fewer distractions, saved commuting time and
costs, and Tech up-skilling.
Introduction
The modern
business environment is characterized by changes that have impacted how business
is operated and managed today. As different organizations implement their
post-pandemic work models, the modern business approaches in organizational and
Human Resource Management (HRM) are increasingly becoming an irreversible part
of modern (Teevan, 2022). However, there are concerns that the changes in the
modern business environment can also result in negative challenges to business
operations and management among organizations in the global economy. Moreover,
the key roles played by HRM have been captured following the challenges
presented by modern working approaches such as hybrid working. With many
employees revolting against returning to offices today, businesses have been
forced to deal with the challenges of adapting to the new world of hybrid work.
The HRM can help to resolve the people and related organizational challenges
identified by different organizations in efforts to revitalize culture in the
world of hybrid work.
As a result, the
paper will present a report that evaluates recent media news and the decision
by Tesla's CEO Elon Musk on compulsory return to the office. It will focus on
building on the case study about revitalizing culture in the world of hybrid
work to address the concerns presented by the assessment. The evaluation will
include an overview of challenges Tesla may be faced with and would need to
address. It will also identify and discuss the primary HRM role(s) captured and
how HRM can help resolve the people and organizational-related challenges
identified in Tesla. The report will utilize historical financial performance
to predict Tesla's success in the next two to five years. It will also consider
how HRM can drive solutions that support Tesla's successful future in today's
world of hybrid work.
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Tesla is among
the top automotive company that manufactures electric vehicles by focusing on
clean energy. The company also designs and manufactures solar panels, battery
energy storage, and roof tiles. Tesla employs a functional organizational
structure of hierarchical structure characterized by functional centers
covering all business activities. The company utilizes an organizational
structure that supports business growth by defining the interactions between
the operational systems and the team members. The company's organizational
structure is characterized by transformational management that manages the
operations in the global hierarchy. Tesla is known for aligning its
organizational structure with the business's mission and vision statement
(Thomas & Maine, 2019). Tesla has introduced a companywide policy that
demands the employees to spend a minimum of 160hrs per month in the office.
However, introducing a hybrid work approach has affected the organizational
structures, operations, and performance among the companies like Tesla. The
impacts of hybrid work can be analyzed using historical financial performance
for a given period. Thus, the report utilized the data for Tesla's stock prices
to analyze the financial performances for the last decade.
Organizational culture at Tesla Company
An organization's culture can
be defined as the cultural and organizational values and briefs that define the
employees' perception, understanding, and behavior. Organizational leaders
establish, communicate, and reinforce them using different strategies. The
culture governs performance and promotes a company's competitiveness in the
changing business environment. According to the studies, an organization's
culture should be created by trust between employees and leaders (VLAD &
STAN, 2013). Furthermore, it inspires the employees to exhibit more innovative
qualities by motivating a sense of healthy competition. Therefore, there is a
close relationship between adopting hybrid work and performance because a
company's culture is related to operations and productivity. Besides, adopting
a flexible organizational culture can be useful for HRM leaders when
introducing a modern working approach to boost overall business performance
(Fatehi & Choi, 2019).
The modern
business environment is characterized by changes that have forced companies to
address people and organizational-related challenges. Similarly, an outbreak of
covid-19 resulted in new company policies that allowed employees to work
remotely from home. In addition, the outbreak of covid-19 resulted in the
introduction of social distancing rules, which made it hard for organizations
to keep their workers in offices. However, many leaders worry that the new
working approach of remote and hybrid work is affecting the organizational
culture (Evetts, 2016). Thus, the primary HRM role(s) in resolving the people
and organizational-related challenges identified in TESLA includes introducing
an adaptable culture to remain competitive in the evolving organizational
context. Instead of viewing hybrid work as disrupting the cultural experience,
organizational leaders have been encouraged to view the modern working approach
as an opportunity to build culture differently.
Internal Organizational Analysis
The information
presented in graph 1 below shows the historical trends of the stock
prices for Tesla, Inc. (TSLA) for the period between 2018 and 2020. Tesla uses
its corporate structure to facilitate extensive control of the organization's
operational activities and maximizes its ability to implement new strategies.
In addition, the organizational structure creates business capabilities that
enable solid managerial control despite growing international operations.
Currently, the company employs a global centralization approach in its
organizational structure, which emphasizes control of the entire organization
where the decisions are made in its headquarters.
Graph
1: Tesla’s Stock prices performances (2018-2022)
An overview of challenges TESLA may be faced with and would need to
address.
Coordination of resources
The hybrid
working approach has presented the need for better coordination of resources to
ensure that the right tools are available at home and on-site for effective
working. Hybrid work is creating a need for better coordination of resources to
ensure maximum productivity among remote and on-site employees. Adopting the
modern working approach of hybrid working might force Tesla to ensure that the
employees are fully equipped with the resources required for productivity. The
resource-based view (RBV) is a model that can be utilized to determine the
company's resources and relate them to the firm's capabilities
(Akingbola, 2013). The model considers the
profitability and the value factor associated with coordinating the company's
resources. According to the theory, a company's sustained competitive advantage
relies on the available resources considered rare, non-substitutable, valuable,
and inimitable (Akingbola, 2013). In today's
hybrid work world, Tesla's capability to acquire and coordinate resources
affects its performance and competitiveness over its competitors. Such
resources can include functional and permanent workstations that maximize
individual and group productivity. Additionally, the company faces challenges
installing workstations that will allow team collaboration and communication in
the modern work environment. Therefore, resource coordination is required to
ensure that Tesla introduces remote-capable collaboration stations so that the
remote participants can be fully included in team interactions.
Impaired collaboration and
relationships
The increasing
use of remote and hybrid workers has also been associated with impaired
collaboration and relationships among team members and disrupted work processes
(Nicholas & Hull, 2022). Effective communication has been identified as a
critical element in organizational cultures (Jackson, 2019). However, the
modern working approaches fail to create the opportunity for employees to spend
meaningful time together in the office, collaborating and building
relationships. For example, a lack of communication might affect the culture of
building meaningful relationships among employees at Tesla. The modern
working environment will require Tesla to adopt a regular meeting and schedule
strategy to address the changes in establishing strong collaboration and
communication among the team members.
Disruption to the organizational
culture
Tesla is
currently facing the challenge of managing the disruption to the organizational
culture. While organizational culture is substantially more difficult to
cultivate in a fully remote environment, the hybrid working approach impacts
the connections among remote workers with the company's culture. The new
working approach of Hybrid work is flexible, allowing employees to choose
whether to work in the office or work from home (Evetts, 2016). However, the
potential downsides to remote and hybrid work arrangements can include an
erosion of the organizational cultural norms such as cohesion, shared experience,
and trust among the employees.
Thus, many organizational leaders, such as Tesla's CEO Elon Musk, have presented concerns that employees can quickly feel disconnected from the business and their colleagues while working under the modern approach of hybrid work. Adapting a modern organizational culture that focuses on flexibility is crucial for Tesla Company to remain competitive in the evolving modern business context (Maamoun, 2021). As a result, HRM leaders should consider post-pandemic strategies such as remote and hybrid work as an opportunity to build culture differently instead of viewing them as disrupting the cultural experience.
The primary
HRM role(s) in resolving the people and related organizational challenges
identified in TESLA
The company's
HRM department is responsible for inspiring desired cultural practices,
behaviors, and beliefs as the stewards and keepers of the company's culture.
They connect the dots between the behaviors, expectations, and activities of
the employees through people and organizational management practices (Holbeche,
2022). The HRM leaders work with other organizational leaders to turn the
cultural vision into tangible actions. As a result, the HRM strategy adopted by
Tesla should train middle-level management on managing a team that includes
remote and on-site workers effectively.
Cultural values
are among the factors that influence HRM exercises because they are used to
manage employees' behaviors. For example, a company that employs a strategy
that supports collaboration and involvement is likely to have higher employee
satisfaction, positively affecting its operations and performance (Warrick,
2017). The HRM department in a company like Tesla is mainly responsible for
fostering a positive workplace culture by deploying engagement and feedback
tools. The HRM can focus on relying on proven agile practices and techniques,
gaining credibility and confidence in achieving Tesla's preferred cultural
norms.
Moreover, the
HRM strategy employed by Tesla Company is known to support corroboration and
employee involvement. It allows the leaders and the employees to voice concerns
and opinions while the company's leaders employ it to issue directives and
policies. HRM can help create a thriving hybrid work culture within an organization
by actively aligning the recruitment process with the company's vision and
desired goals (Teevan, 2022). The sustainable development of an organization in
the current modern hybrid workforce can be related to the culture of that
organization because it aligns employee values with organizational values.
Organizations have been forced to utilize cultural theories to redefine their
operations, vision, and performance in the current competitive global economy.
In the current hybrid work environment, the change initiatives can only be
successful due to the lack of consideration for organizational cultural
variables.
The cultural
theories and strategic planning can be useful in increasing the chances of
success in implementing the operational changes for TESLA to adapt to the
current environment. The Competing Values Framework (CVF) is various companies'
most dominant theory to diagnose organizational culture worldwide. Tesla can
employ the model to assess its organizational culture by determining the quality
improvement implementation, team functioning, and employee satisfaction, among
other outcomes. The CVF framework is based on the two cultural dimensions that
form four quadrants of cultural types used to identify the criteria, key
factors, and indicators of organizational effectiveness (Buhumaid, 2022).
What success
would look like for TESLA in the next two to five years in today's world of
hybrid work
For the last
decade, the organization has faced a lack of profitability, resulting in staff
layoffs and high turnover rates. Tesla is an international organization that
deals with various cultures from diverse parts of the world. According to
Warrick (2017), different cultural values and behaviors significantly influence
an organizational culture's influence. The introduction of hybrid work can be
considered an innovation that can be used as a means for companies to improve
their performance with the help of HRM strategies.
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Figure2:
Tesla Share performance for the last 5 years
Based on the
insights presented in Graph
1 above, Tesla has improved
their revenues and capabilities, resulting in a positive stock price trend. The
company is more likely to benefit from adopting the new approach of hybrid work
by facilitating collaboration between on-site employees and those working from
home. Thus, a new HRM strategy that combines Tesla's current management
approach with the hybrid approach can enhance employee and leader productivity
(Corbett, 2022).
Figure 3: Tesla Growth
Estimates
The historical financial
performances can be used to predict what success would look like for TESLA in
the next two to five years. Table
1 below shows TESLA's Income
Statement between 2018 and 2022. The information to predict the future
performance of Tesla's shares has been portrayed in Figure 2. The analysis
shows that Tesla had reached the lowest point after reporting a net income of
-976,091 in 2018 in 2017 (Almenhali et al., 2021). However, the performance has
been improving since it recorded a net income of $11,190,000 for the last 12
months of 2022, as shown in the table above. Therefore, its future performance
can be estimated to be excellent, given its continued financial performance
improvements over the last decade. The analysis in figure 1 above shows that the
company reported an increase in net profit of $721M and $5.5 under the income
statement for the period ending in 2020 and 2021. It has also reported revenue
of $74,863,000 in the first 12 months of 2022, which portrays a successful
performance despite the challenges faced during the pandemic.
Innovation has
become necessary for success in today's business world, where tight competition
exists in every business industry (Holbeche, 2022). The current business
context is marked by a growing need for creative problem-solving strategies to
find suitable solutions to improve productivity and gain a competitive
advantage. As a result, the estimated growth for Tesla is expected to increase
by 85.01% for the next five years, as shown in Figure 3 above.
Since 2018, the company has focused on utilizing the organizational culture to
maintain a mindset that supports performance and development. The analysis
shows that the hybrid work approach has presented an opportunity for Tesla to
improve its future financial performance with the help of the modern workforce
and maintain employee motivation.
Tesla HRM Strategy evaluation and recommendation
A company's HRM
team creates and maintains a high-performance organizational culture. An
organizational culture entails the collection of values, traits, and policies
that define the company. In addition, it includes the practices and
expectations practices that guide and inform the actions company's team
members. According to the research, a clear, strong, well-communicated, and positive
culture can attract and maintain the right talent from the diverse modern
workforce (Kelliher & Richardson, 2018). In addition, the culture motivates
a sense of healthy competition, which inspires the team members or employees to
exhibit more innovative qualities.
Given that the
culture employed by an organization can impact the happiness and satisfaction
among the employees, it determines how employees feel or interact with their
work and the organization. Tesla's current management strategy focuses on
training and orientation programs, especially for new employees, to the
features of the company's organizational culture. In addition, the leadership
vision emphasizes high outputs among the employees through a culture of
collaboration and teamwork (Maamoun, 2021). Thus, Tesla's HR leaders should aim
to develop a new HRM strategy that accommodates the modern hybrid workforce to
maintain positive financial performance in the current market.
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Tesla's
historical performance for the last since 2018 has been noted by adopting an
organizational culture that emphasizes various social causes. It focuses on
providing opportunities for cross-cultural employment, environmental
protection, and energy conservation. The company is also focused on introducing
and adopting new innovative business strategies. Therefore, it is clear that
the management has managed to incorporate a flexible culture (Corbett, 2022).
By adopting the hybrid work approach, the company will perfectly align the
organization's culture with social responsibilities, its vision, and
strategies. However, the current organizational culture utilized by the company
has resulted in internal disruption and poor performance.
Therefore, the
Company's HRM team can utilize the intercultural and modern working models as
practical strategies to help develop adequate communication skills among
diverse cultures. Shuang et al. (2015) suggested that the strategy can be
helpful for managers to foster organizational performance by utilizing the
modern approach of working to collaborate with talented individuals from
diverse cultures. In addition to improving overall productivity, hybrid work
and intercultural models will also assist Tesla in reducing cultural barriers
due to ineffective communication strategies among the employees. The awareness
of the cross-cultural workforce and the modern working approach is critical to
developing productive relationships and operating efficiently in the current
competitive markets.
Conclusion
Since the hybrid
functional approach has become the new normal, employers and employees can
benefit from new policies. However, organizations must consider how best to
implement the modern approach to ensure it delivers what is required for the
business and its employees. The research has shown that Tesla's organizational
culture mainly focuses on the company's vision which emphasizes high outputs
among the employees through collaboration and teamwork. Thus, Tesla's current
leadership is disconnected from what truly matters to the employees within the
organizational performance in the current world of business. Despite the
increasingly modern approach of hybrid working. The report recommends that
Tesla's HR leaders develop a new HR strategy to utilize the modern workforce to
accommodate the modern hybrid workforce.
Tesla's HR
department can help create a thriving hybrid work culture by actively aligning
the recruitment process with the company's vision and desired goals. The HR
department in a company like Tesla is mainly responsible for fostering a positive
workplace culture by deploying engagement and feedback tools. In addition, the
HRM department is responsible for inspiring desired cultural practices,
behaviors, and beliefs as the stewards and keepers of the company's culture.
The HR strategy employed by Tesla Company is known to support corroboration and
employee involvement. It allows the leaders and the employees to voice concerns
and opinions while the company's leaders employ it to issue directives and
policies.
Similarly, the
connection between HR management and culture can influence the organization's
performance. The management strategy to be utilized by Tesla can present a new
organizational culture that is flexible to modern working models. Therefore, a
new organizational culture can be useful for Tesla to remain competitive in the
current evolving business environment. As a result, organizational leaders
should see the approach of hybrid work as an opportunity to build culture
differently instead of viewing hybrid work as a disruption to the cultural
experience. However, organizational cultural values are part of the factors
controlling employees with various HRM strategies, such as recruiting more
hybrid workers and increasing wages. The HRM strategies can be useful in
redefining the existing organizational culture by promoting a company's
competitiveness in the changing business environment context. The trust between
the employees and leaders of an organization determines culture. Higher
employee satisfaction and encouragement can be seen in organizational cultures
where employee engagement and involvement are typical. A collaborative
organizational culture can help employees to exhibit more innovative qualities.
It motivates a sense of healthy competition among the members of the team.
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