Strategic Human Resources Management


The aim of this essay is to analyse the HR strategy of the Tesla firm. However, Tesla is an American based automotive and energy firm that operates in multiple areas such as Palo, Alto and California etc (Tesla, 2019). The firm is specialised in manufacturing of electric car by uses of solar panels.

Tesla vision is to become a most compelling car company in 21st century by driving the electric vehicles (Jackson et al., 2014). Whereas, mission is to accelerates world transition to achieve the sustainable energy. In regards to this firm, the study analyse the corporate and HR strategies and based on this, implementation process will be mentioned for the departmental staff.

Thus, this essay provides detail understanding about the firm HR strategies and its implementation process.


Embedding HR strategies into broader corporate strategies

The embedment of HR strategies into firm corporate strategies is an important part for the business as HR manager requires to making an understanding about the corporate strategy as the knowledge about the business strategy helps the HR manager to decide what resources are required to available for meeting the needs of business (Marler and Fisher, 2013).

Moreover, the alignment between the HR strategy and corporate strategy is also important because HR team able to assess the current condition about the business position in market and this helps them to plan or organise the activities.

Likewise, HR manager assess that customer are not satisfied with the firm staff customer services and business plan to adopt the service quality improvement business strategy. In regards to this business strategy, HR manager undertakes various HR functions like recruitment of talent staff, conduct the training session for employees.

This practice helps the business to bring quality improvement in services. That is why, it is stated that the alignment of HR and corporate strategy is crucial for achieving the long-term success in business.

In addition to this study, the embedment of HR strategies into corporate tactic is also proved to be useful for making HR planning as with analyse of firm business strategy, HR manager able to plan the activities and events accordingly (Bailey et al., 2018).

This area supports toward the performances of work in organisation goal direction. Similarly, it is found that HR team analyse the business strategy as with this, they able to monitor the workplace safety and risk management. Likewise, HR manager create the work environment free from unnecessary hazards and adopt such HR strategy which helps to manage risk.

In regards to HR strategy, it includes the proper compensation to employees, worker’s insurances, reduce accidents by timely provide training to them in context to machinery and equipment etc (Budhwar and Debrah, 2013). Thus, these strategies help the business to successfully implement its corporate strategy in the form of expansion of business or bring differentiation in product and services line.

Analyse Tesla HR Strategy and its embedded with firm corporate strategy

In context to Tesla, there are various HR strategies are identified which present as an embedded within broader corporate strategy. As per Efron and Bednarski, HR strategies support the Tesla to achieve the large competitive advantage.

This is because engagement of employee is must to have for organisation and Tesla is the firm where employee shown huge loyalty and determination towards the productivity of business (Kompalla et al., 2016). In regards to retain their engagement, Tesla also include several HR strategies into the business.

Likewise, Tesla HR uses the top-down approach for getting people on board. In this, leader enthusiastic the individuals through properly guide them about the task and make them clear about their roles and responsibility. This helps the employees to enhance their productivity with greater enthusiasm.

However, the development of right communication is another HR strategy in which it uses Tesla360 method for making employee informed about their current performances status. Other than that, HR team conduct pre-shift meetings at manufacturing plants and engineer’s all-hands meetings (Dalton, 2017).

In addition to communication to corporate employee is done through e-mails practices. Besides that, HR manager eliminate all barriers to participation and build flexible working environment where everyone ideas are accepted.

Moreover, Tesla also created the dashboard to present the data in an easily digestible format. This allows the employees to analyse the data and accordingly perform the task. Likewise, Tesla conduct the survey regards to sale and satisfaction with the electric cars.

So in regards to respondent views, employee performs their next step (Plastino and Purdy, 2018). Thus, this allows the employees to move in one direction without including the misunderstanding. These HR strategies are designed to fulfil the needs of business.

Tesla corporate strategy is to bring broad differentiation and this generic tactic achievement helps the business to gain the competitive advantage. It used the differentiation focus by early adopted the high-end market for electric vehicles.

Tesla achieves the high market share due to existences of uniqueness in its product and services in the form of develop the environmental-friendly product for the global market (Falola et al., 2014). In respect to this Tesla differentiation business strategy, HR manager design the tactics that help to accomplish the goal of business.

Implementation of HR strategy at the departmental level

Tesla used international HR strategy in the China stores. However, Tesla expands its market in diverse countries such as North America, Europe, China and Hong & Kong and Australia etc.

However, Tesla used various HR strategies for the stores in china in the form of create positive organisational working culture where diversified cultural group become satisfy (Elnaga and Imran, 2013). In respect to this, Tesla invests more on the recruit of new talents with diverse backgrounds and provides sufficient training to them.

This Hr strategy allows Tesla to assist the existing or new staff in regards to learn new skills and able to adjust in different cultural people. However, training session also leave a positive impact on marketing & sales department of china branch in regards to understand the culture of china and accordingly design the marketing strategy for the product and service.

In addition to this study, Tesla also adopts the right technology in Hr strategy. In this, firm implement strong Information system which connected globally to create connection with suppliers, retailers and customers etc (Hakelová et al., 2013).

This system also helps the firm to successfully operate its business on international market as software or IS system helps the business to properly flow of information among the different stakeholders. So this assists the individuals to perform the activities accordingly.

Moreover, HR manager of Tesla in Chinese market organise weekly training regards to make proper understanding about the language and culture of Chinese people. This assists different cultural group to make proper coordination with each other.

Moreover, HR manager also hire the specialised staff for making support to existing or new employees of Tesla. Similarly, Tesla also involve the change in HR leadership within department for encourage people in different manner (Lazorko and Zajac, 2014).

Likewise, in US store, employee put allegation on leader behaviour and this result in employee turnover. In regards to this, firm change the leader of store. This practice is used in their every store and department of Tesla so that each team group experiences different style of leaders.

At the same time, Tesla also introduces 360 degree performance appraisal method for making individual familiar about their strength and weakness. It helps them to bring improvement in their performances (Jackson et al., 2014). So this motivates them to do better for organisation or personal growth. Thus, these HR strategies are used by Tesla in regards to make employees retain for longer duration.

Contemporary HR challenges that faced by Tesla

There are various challenges that are faced by Tesla with the HR practices. The currently Tesla employees are paid less bonus. This influences the employee effectiveness to contribute more (Collings, 2014). However, the poor leadership style also becomes an reason why employees are moving towards other firm.

Alongside, Tesla faces lot of criticism in 2018 for their poor quality of electric vehicles. Likewise, there is accident occur where Model X crashed on highway. At the time of accident, no car window or emergency gear opened. This improper product quality results in affecting the firm goodwill.

Similarly, Tesla also failed to report workplace injuries or unable to provide some safety aids to people at right time. There are lot of physical injured occurred in the factor of Fremont, California. The reason behind of accident are found that new employees in factory are not trained which is why employee got hurt (Guo et al., 2013).

This situation presents the firm unethical behaviour towards not setting law for workplace, health and safety or training & development for new employees. These areas challenge Tesla in regards to regain its goodwill and customer loyalty in both local and global market.


From the above discussion, it is concluded that Tesla adopts various HR strategies for retaining its stakeholder into the business. Likewise, firm include various employee engagement HR strategies such as conduct training & development session, organise right set of communication through implement incorporate different system and software’s.

Moreover, the use of tesla360 performances appraisal is another method which also assists to improve the performance of employee. These HR strategies are used by firm to achieve the differentiation corporate strategy of Tesla.


Bailey, C., Mankin, D., Kelliher, C. and Garavan, T., 2018. Strategic human resource management. USA: Oxford University Press.

Budhwar, P.S. and Debrah, Y.A. eds., 2013. Human resource management in developing countries. UK: Routledge.

Collings, D.G., 2014. Integrating global mobility and global talent management: Exploring the challenges and strategic opportunities. Journal of World Business49(2), pp.253-261.

Dalton, S., 2017. The impact of training on operational performance: the case of the customs service at Nikola Tesla airport in Belgrade. Serbian Journal of Management12(1), pp.41-52.

Elnaga, A. and Imran, A., 2013. The effect of training on employee performance. European Journal of Business and Management5(4), pp.137-147.

Falola, H.O., Osibanjo, A.O. and Ojo, I.S., 2014. Effectiveness of training and development on employees’ performance and organisation competitiveness in the nigerian banking industry. Bulletin of the Transilvania University of braşov7(1), p.161.

Guo, B., Zhang, D., Wang, Z., Yu, Z. and Zhou, X., 2013. Opportunistic IoT: Exploring the harmonious interaction between human and the internet of things. Journal of Network and Computer Applications36(6), pp.1531-1539.

Hakelová, M., Csikósová, A. and Antošová, M., 2013. The model of manpower management influence on mining business effectiveness. Acta Montanistica Slovaca18(2), pp.85-90.

Jackson, S.E., Schuler, R.S. and Jiang, K., 2014. An aspirational framework for strategic human resource management. The Academy of Management Annals8(1), pp.1-56.

Jackson, S.E., Schuler, R.S. and Jiang, K., 2014. An aspirational framework for strategic human resource management. The Academy of Management Annals8(1), pp.1-56.

Kompalla, A., Kopia, J. and Tigu, G., 2016. Limitations of business strategies and management systems within automotive industry. Inted 2016, pp.3817-3827.

Lazorko, K. and Zajac, M., 2014. Internal marketing and talent management as integral elements of employer branding strategies. Economic Processes Management, (1).

Marler, J.H. and Fisher, S.L., 2013. An evidence-based review of e-HRM and strategic human resource management. Human Resource Management Review23(1), pp.18-36.

Plastino, E. and Purdy, M., 2018. Game changing value from artificial intelligence: Eight strategies. Strategy & Leadership46(1), pp.16-22.

Tesla., 2019. Model 3. [Online] Available at: (Accessed on: 02-05-2019)

Leave a Comment