Application CaseTesla's StrategyBy early 2017, it was clear that Tesla was notsoon going to achieveits goal of oroducing 5,000 Model 3 family sedans per week, and thecompany also faced numerous human resource management-relatedchallenges.For example, hundreds of workers stopped building Tesla's batteryWritten and copyrighted by Gary Dessler, PhD.By 2017 Tes a Motors briefly had a market value higher thanthe much-larger General Motors. Tesla's strategic plan, formulatedin 2006 by company founder Elon Musk, was to start by cffer- factory near Reno, Nevada, claiming that outside contract workersing a high-pertormance energy-etticient electric roadster "with-out compromises" and then expand to offer less-expensive family high employee accident rates. Musk reportedly said that Tesla wasn'tcars, while eventually enabling battery recharging with solar power skimping on safety to make more profit, but rather to survive anddevices, 084were lowering their pay. Wcrkers at Tesla's car plant complained ofcontinue to offer employment.92PART 1 • INTRODUCTIONBy May 2017, Tesla appointed a new HR head, Gaby Toledano,with the title Chief People Officer. In announcing the appointment,Tesla noted that she would help Tesla address its labor and harassmentdisputes. Ms. Toledano acknowledged that some disoutes betweenworkers weren't reaching the HR office fast enough, but she saidTesla also laid off about 700 workers at its California manufac-turing facility. Many union activists asked why, having to ramp upproduction of the new Tesla Model 3, the company would dismiss somany employees. Some felt it wasn't because of poor performancereviews, but because Tes a wanted to fire employees who wanted aunion. Elon Musk defends dismissing the 700 workers. Basically, he she's working on the problem. Furthermore, Tesla employees receivesaid (1) most ccmpanies have performance reviews and use them toscreen out employees, and (2) because it wants the highest-quality cars,Tesla needs to have higher performance standards than its competitcrs.As Musk says, if a little company wants to compete with a giant one,the litte one must have a lot more skill, or i: will get pummeled.Some of Tesla's HR procedures are also somewhat unusual. For exam-ple, Tesla requires that new employees sign confidentiality agreementsprohibiting them from discussing Tesla's business strategy and workingconditions. The United Auto Workers filed unfair abor practice chargesagainst Tesla, claiming that such agreements violate employees' rights.Tesla does use some sophisticated HR tools to improve itsHR processes. For exampe, they used talent analytics to determine ifemployee referral programs imprcve their recruitment and retentionprocesses and distributed an employee engagement survey.antidiscrimination and antiharassment training.Questions3-13. Was Tesla's human resource strategy consistent with its overallstrategy to produce "uncompromising" high-performance cars?3-14. Given what Kia UK accomp ished, should Tesla implementSuch an engagement program? Why?3-15. What wculd you do ncw if you were Tesla's Chief PeopeOfficer?3-16. Based on the case. provide examples for Tesla of at leastfour strategically required organizational outcomes, and fourrequired workforce competencies and behavicrs.3-17. Provide a brief illustrative outline of a strategy map for Tesla.

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Application CaseTesla's StrategyBy early 2017, it was clear that Tesla was notsoon going to achieveits goal of oroducing 5,000 Model 3 family sedans per week, and thecompany also faced numerous human resource management-relatedchallenges.For example, hundreds of workers stopped building Tesla's batteryWritten and copyrighted by Gary Dessler, PhD.By 2017 Tes a Motors briefly had a market value higher thanthe much-larger General Motors. Tesla's strategic plan, formulatedin 2006 by company founder Elon Musk, was to start by cffer- factory near Reno, Nevada, claiming that outside contract workersing a high-pertormance energy-etticient electric roadster &#34;with-out compromises&#34; and then expand to offer less-expensive family high employee accident rates. Musk reportedly said that Tesla wasn'tcars, while eventually enabling battery recharging with solar power skimping on safety to make more profit, but rather to survive anddevices, 084were lowering their pay. Wcrkers at Tesla's car plant complained ofcontinue to offer employment.92PART 1 • INTRODUCTIONBy May 2017, Tesla appointed a new HR head, Gaby Toledano,with the title Chief People Officer. In announcing the appointment,Tesla noted that she would help Tesla address its labor and harassmentdisputes. Ms. Toledano acknowledged that some disoutes betweenworkers weren't reaching the HR office fast enough, but she saidTesla also laid off about 700 workers at its California manufac-turing facility. Many union activists asked why, having to ramp upproduction of the new Tesla Model 3, the company would dismiss somany employees. Some felt it wasn't because of poor performancereviews, but because Tes a wanted to fire employees who wanted aunion. Elon Musk defends dismissing the 700 workers. Basically, he she's working on the problem. Furthermore, Tesla employees receivesaid (1) most ccmpanies have performance reviews and use them toscreen out employees, and (2) because it wants the highest-quality cars,Tesla needs to have higher performance standards than its competitcrs.As Musk says, if a little company wants to compete with a giant one,the litte one must have a lot more skill, or i: will get pummeled.Some of Tesla's HR procedures are also somewhat unusual. For exam-ple, Tesla requires that new employees sign confidentiality agreementsprohibiting them from discussing Tesla's business strategy and workingconditions. The United Auto Workers filed unfair abor practice chargesagainst Tesla, claiming that such agreements violate employees' rights.Tesla does use some sophisticated HR tools to improve itsHR processes. For exampe, they used talent analytics to determine ifemployee referral programs imprcve their recruitment and retentionprocesses and distributed an employee engagement survey.antidiscrimination and antiharassment training.Questions3-13. Was Tesla's human resource strategy consistent with its overallstrategy to produce &#34;uncompromising&#34; high-performance cars?3-14. Given what Kia UK accomp ished, should Tesla implementSuch an engagement program? Why?3-15. What wculd you do ncw if you were Tesla's Chief PeopeOfficer?3-16. Based on the case. provide examples for Tesla of at leastfour strategically required organizational outcomes, and fourrequired workforce competencies and behavicrs.3-17. Provide a brief illustrative outline of a strategy map for Tesla.

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