BUSM4499 Human Resource Management - Task 2 Organisation Analysis Assignment Solution

Introduction 

Human resource management holds the position of backbone of organization, as humans are core resource of organization which can define performance prospects of an organization. The underlying essay is aimed to carry out investigation of real world organization to recognize HR issues faced by company and how these issues affect overall organizational performance. For this purpose, Tesla Motors has been chosen that is considered as renowned player in automotive sector. Tesla’s background, context of industry, information on stakeholders and overall industry trends details is given firstly. Secondly, the focus is maintained on describing the nature of organization and its strategy. The five key HR issues of Tesla are then presented including; talent management, diversity management, health and safety, unionizing and creation of quality employees experience. Followed by this, HR performance chain of Tesla has been presented and then company is recommended to take steps through which it can overcome HR related issues and can improve its performance. 

Tesla Motors – Context and Industry Insight

Tesla Motors is American based automobile manufacturing and energy generating company. The main specialty of company is linked with generation of electric cars, which are aided by solar city subsidiary of the company (Tesla 2018). Tesla motors operates in automotive industry, which is considered as energy and labor intensive industry. There are many players operating in automotive industry and Tesla can be considered as younger player which has changed the face of industry based on its innovations related to renewable energy and self-driving vehicles (The Guardian 2018). Tesla has entered into the industry in 2003 and has competed with companies which are operating in industry for several years, having significant brand image (Tesla 2018). However, Tesla has competed with all the existing players based on innovative electric cars and it has created market for luxury electric and sustainable vehicles. It seems that Tesla has stood out of competition since its inception and it is likely to innovate the automotive industry. 

There are number of external stakeholders within automobile industry, of which customers hold the core importance and they have both interest as well as power to influence profitability of business (Wang & Shyu 2008). Other stakeholders include; Government, environment protection groups, local communities, pressure groups and suppliers are considered as external stakeholders of Tesla. Current trends in industry are driven by innovation, technology and sustainability. The players in automotive sector are thriving to manufacture vehicles which are energy efficient, have low emissions and are sustainable in nature (Matousek 2018). Tesla is considered as pioneer of this technology and it is efficiently producing vehicles which comply with most recent trends of industry (Tesla 2018). 

Description of Organization and nature of work

Tesla motors is operating to manufacture vehicles and it is considered as a technology selling company in automotive industry. The core specialization of company is in electric and sustainable vehicles which consume less energy and are environmentally friendly. The company has created sense of urgency based on need of innovative and electric vehicles. Another innovative product of Tesla is self-driving cars which are intelligent and does not require human input (Matousek 2018). In terms of technology, the company produces and sells batteries, motors, autopilots, sensor and artificial intelligence. 

The strategy of company is termed as Complex Coordination by the investors of Tesla, as it fits different pieces together. The core target customers of Tesla were affluent buyers who are willing to purchase luxury cars which are sustainable (Teclemichael Tessema & Soeters 2006). However, latter the company has also targeted low end customers. On the other hand, the production strategy of Tesla includes the vertical integration, which enables the company to operate multiple factories for generation of economies of scale. The 80% of vertical integration of Tesla’s production is different other automotive companies, which outsource around 80% of their operations (Houser 2018). The sales strategy of Tesla is based on online selling as well as sales through company owned stores and showrooms. All of these departmental strategies combine to generate differentiation for Tesla, which is generic business strategy of Tesla.