Introduction
Tesla is among the leaders within the scope of the high-tech industry and involves a plethora of employees around the globe. Such a position implies the necessity of an appropriate HRD strategy that is a foundation for a company’s coherent and consistent business processes. Hence, the HRD strategy for Tesla is a relevant theme to develop. Below, after exploring the firm’s position in the industry and its business industry, the HRD program will be suggested. It will focus on three interrelated dimensions – training and development, organizational development, and career development, appealing to the foundations of McLagan’s human resource wheel. Then, an approach for evaluating the program – Kirkpatrick’s four-level taxonomy – will be proposed as well.
Tesla’s Industry Position
In economics and business, the situation is characterized by the emergence of new industries around intellectualized production. There is a significant expansion of the sphere of the non-intermediary economy, primarily transport, information, and financial services. The leaders of new markets understand this situation and build their businesses in accordance with the new realities. An illustrative example is Tesla Motors, which is now the undisputed leader in the electric car market. By the decision of the founder and head of the company, Elon Musk, the company made all its patents public and publicly available (Thomas & Maine, 2019). Musk is confident that he is already so far ahead of competitors in the new market in the engineering excellence of the solution that the disclosure of intellectual property is safe for the company. Moreover, it can help the development of other players within the norms set by Tesla Motors.
It is noteworthy that today the main potential competitors for Tesla are rather an information technology-oriented companies such as Apple and Google. Modern electric vehicles are more a product of IT than the result of the development of automotive technology. The Tesla Model S electric car that revolutionized is a constantly updated computer on wheels connected to the global network (Chen et al., 2019). One can be absolutely sure that further struggle in this market will unfold around software and intelligent transport systems.
Tesla uses vertical integration, directed both toward suppliers and towards end consumers. Forward-going vertical integration is manifested in the fact that the company’s cars are sold only through the company’s website, with the exception of some US states, where sale through intermediaries is mandatory. In all other regions where Tesla operates, the services of intermediaries for the sale of cars are not used. This allows one to significantly reduce the cost of personnel wages and have full control over the price level since the factor of creating value by intermediaries between the company and the consumer disappears. It should be noted that salons still exist, but they perform only the functions of a service center and showroom (Thomas & Maine, 2019). The second option for using Tesla’s direct integration is implemented through the creation of its own large network of car charging stations (superchargers). Such charging stations allow one to charge a car with a battery capacity of 100 kW/h. in about 1.5 hours (Chen et al., 2019). This is many times faster than conventional charging stations; moreover, superchargers can only be used by Tesla owners.
Tesla is focusing more on reverse vertical integration as this strategy opens up more opportunities. One of the company’s strategic goals is to reduce the cost of cars because, despite the fact that electric vehicles are becoming more popular and demand is increasing exponentially, cars are still significantly more expensive than their conventional counterparts. For example, the company now manufactures batteries in venture manufacturing with Panasonic, which significantly reduces the cost of the battery. However, to achieve better results, the company is taking steps to develop battery technologies that will cost less than they do now and be of much higher quality.
In general, the use of the vertical integration mechanism in Tesla’s activities can be seen in the following. In 2015, the company took over Riviera tool LLC, which specializes in the production of complex stamping tools for mass production (Chen et al., 2019). As a result, conditions were created for significant cost savings on production tools and an increase in the company’s profits. In 2016, Tesla acquired the German manufacturer of automated mass production systems, Grohmann Engineering (Thomas & Maine, 2019). This was done in order to provide Tesla’s automated future with the necessary technologies and reduce the cost of production.
Further, in 2017, the company acquired the private company Perbix, which specializes in the production of robots and mass-produced tools. Through these actions, the company went deeper into solving the problem of reducing the cost of production. This transaction paved the way for the development of the technological potential of the organization. In 2019, Tesla acquired the Canadian company Hibar systems, which makes various tools for different stages of development and production of lithium-ion batteries (Chen et al., 2019). This deal confirmed the company’s intention to move further into independent production of batteries, reduce production costs and move away from the venture partnership with Panasonic. Again, in 2019, Tesla bought a promising American start-up, Deepscale, specializing in software for self-driving driving systems (Chen et al., 2019). This is another direction of integration that allows one to get new technologies and potentially improve the competitive position of the organization.
It should be noted that the chosen strategy ensured the strengthening of Tesla’s strategic position. The results after 2015 became especially noticeable (Chen et al., 2019). Tesla remains the leader in terms of the price factor, which determines the company’s potential to change the price situation in the industry as a whole in modern conditions. This factor and others discussed above allow considering Tesla as a driver for the development of the electric vehicle market. In strengthening this role, successful human resource development strategies are essential as well.
Organizational Development
Given the discussed industry and business strategy of Tesla, it will be rational to found its HRD program on an innovative approach. For example, the company may appeal to the digital management system of an organization. The latter is a set of interrelated elements united by a digital platform, with the help of which the organization and implementation of activities are carried out using modern digital technologies (Elg et al., 2019). The implementation of the control object in the digital economy assumes the presence of a digital twin that allows one to digitize the main business processes and virtualize them using augmented reality technologies.
Management processes are digitalized through the introduction of semi-automatic systems for the implementation of basic management functions, such as organization, planning, analysis, and control. The digitalization of management decisions consists of the formation of possible scenarios for the development of the organization on a digital platform. The calculation of indicators for each scenario is carried out according to the principle “what will happen if…”. Managers see various scenarios online and choose the most appropriate one.
The use of artificial intelligence in digital management will make it possible to digitalize most of the functions, leaving managers only with creative work – recruiting employees, developing motivation systems, team building, and leadership. The digital platform will be able to independently develop and evaluate solutions by analyzing goals, processes, and risks (Elg et al., 2019). Managers will only need to approve the most efficient and effective development scenario.
The interaction of employees in the company using electronic document management, online project management systems, and modern means of communication involves the construction of a digital organizational management structure. The implementation of a digital organizational structure of management is possible with the help of modern online platforms.
The digital strategy of an organization is the main strategy for its development, implemented on the basis of modern digital technologies. It involves the digitalization of goals and activities aimed at achieving them. Achieving the set goals may become impossible due to risks that arise within the organization and in the operating environment (Elg et al., 2019). Digital transformation generates new risks, the work which requires the construction of a digital risk management system based on intelligent predictive analytics. Thus, all elements of the management system can be digitized, i.e., a digital organization management system can be built on the basis of a digital platform, which is the core of the functioning of the organization management system.
A digital platform is an integrated information system that ensures the digitalization of the relationship of all its participants. It aims to reduce transaction costs and modernize business models. The development system of an organization on a digital platform can be represented as follows. Initially, the control object is digitized, and its digital twin is formed. Further, the digitalization of the subject of management is carried out (Elg et al., 2019). The subject and object of management interact on a single digital platform, where information is generated for the owners and managers of the organization. Moreover, they can receive information, not from each other but online from mobile devices. The situation when managers give false information to owners about the state of affairs in the organization is excluded.
A digital risk management system and a system for monitoring the implementation of a digital strategy are being added to the digital platform. It provides the necessary information to the digital control panels of the employees of the organization. Each employee can see the goals, indicators, and tasks to be completed, as well as the deadlines and the target result.
Career Development
The core idea of career development processes for Tesla is to arrange its employees’ careers in such a way that the very method of advancement ensures the optimal use of motivational mechanisms and weakens the effect of restraining factors. The long-run plan for the development of careers as a significant system of interconnected actions involves the tasks of the effective use of all types of resources (Wehmeyer et al., 2019). There is also maximum adaptation to the conditions of the business environment, and the flexibility of the individual.
The launching stage within the scope of career development is the formulation of a career mission. The latter is an expression of the individual’s vision of the content and meaning of a career, its main goal. The identification of employees’ strengths and weaknesses will be considered the starting point of the process. This provides a basis for defining the mission and goals and also contributes to the development of a strategy for the career process.
The next task of planning is the identification and analysis of the workplace. This is the identification of a position or workplace, the requirements of which most fully meet the career potential of this particular individual. To resolve this problem, it is necessary to break down the available positions (for which the employee actually or potentially applies) into segments or groups united by certain common characteristics. This can be the basis for making decisions about future direction and career growth.
The next task of strategic career planning is to determine the correspondence between the profile of the workplace and the employee’s career potential. The last stage is the realization of the strategic plan (Wehmeyer et al., 2019). Thus, having formulated a strategic plan and developed tactical steps, it is necessary to periodically analyze it and make the necessary adjustments. The essence of the entire strategic plan process is career rethinking. The purpose of this is to look at a career in perspective, i.e., as a process, and not in retrospect, as a result.
Training & Development
For Tesla, the first strategic direction in terms of training and development is proposed to be coaching. The latter is recognized as the most versatile and effective way to manage personnel in order to maximize its effectiveness. Using coaching, the staff achieves the intended goals more efficiently and quickly. One of the significant goals of coaching is the formation of a team that should be aimed at organizational success. Coaching serves as a foundation for the training and development of employees in order to form a unified team (Milner et al., 2020). Team coaching helps to activate the potential of the team, get out of a temporary unsatisfactory state, and achieve a stable situation.
Next, Tesla should focus on building and managing project teams. Formed groups need to be developed to the command level and then managed, which entails certain costs. For now, team-building practices are being actively advanced in innovative design. Thanks to the emergence of new software products and their use in management, the technology of mobile project teams are being introduced (Milner et al., 2020). The very possibility of meaningful team-building contributes to the effective construction of not only professional but also interpersonal relationships. The introduction of mobile project teams into practice seriously and for a long time actualizes the importance of understanding between project participants, making it a necessary condition for success.
A new direction in team building is the creation of virtual teams, which is also relevant for Tesla, especially in the context of the digital development of an organization. They are created with the active emergence of new information technologies that have a positive impact on the socio-economic activities of companies. It can be noted that such organizational forms are very promising due to their obvious advantages (Milner et al., 2020). The main advantages include the unification of the intellectual efforts of specialists who are remote from each other and the reduction in time spent due to the possibility of constant work on the project.
Program’s Evaluation
There are many significant tools for evaluating contemporary HRD practices. For instance, in the case of Tesla, it would be reasonable to use the Kirkpatrick model to assess the proposed HRD strategy (McGuire, 2014). This model can be considered as a framework for defining the four stages of training assessment. First, it is the employees’ reactions and thoughts regarding the program. Second, it is their resulting knowledge and skills obtained from this program. Third, it is their behavioral shifts and advancement after utilizing the mentioned skills in the framework of the job. Fourth, it is the outcomes or implications of the employees’ performance on the company.
The first category of criterion is the reaction, which assesses whether Tesla’s employees will consider the program interesting, beneficial, and applicable to their work. An after-program survey that will ask the participants to rate their experiences will be the instrument to evaluate this level. It should be emphasized that focusing on the trainee rather than the trainer will be an important part of the Level 1 examination (Ardent Learning, 2020). While it is normal for facilitators to rely on the learning results, Kirkpatrick’s taxonomy prefers survey questions based on the learner’s thoughts.
Level 2 assesses each employee’s learning by determining if they have acquired the desired information, abilities, attitude, confidence, and dedication to the course. Learning may be assessed in a variety of ways, both formally and informally, and should be examined before and after learning to verify correctness and understanding (Ardent Learning, 2020). Exams and interview-style evaluations are examples of assessment methods here. In order to eliminate discrepancies, a specified, unambiguous scoring method must be developed ahead of time.
Level 3 of the Kirkpatrick taxonomy will assess whether employees will be actually influenced by the program and are putting what they have learned into practice. Analyzing behavioral changes allows one to determine not only whether the competencies were learned but also if they are logistically feasible to employ in the job. It should also be noted that examining frequently reveals problems in the workplace (Ardent Learning, 2020). A dearth of behavioral shifts may not indicate that the program will be inadequate but rather that the company’s present processes and culture are not conducive to the intended changes.
The fourth level is devoted to determining actual outcomes. This stage will give the opportunity to compare learning to Tesla’s business objectives or KPIs that will be set in place before the program. A greater rate of return, fewer work-related accidents, and a better volume of sales will be crucial indicators to consider for the organization (McGuire, 2014). The suggested tool is used to establish an executable measuring strategy that clearly defines goals, measures outcomes, as well as identifies areas of significant influence. Data analysis at each level helps companies to examine the link between every stage to properly appreciate learning outcomes, as well as to adapt strategies and alter course during the process.
Conclusion
To conclude, the HRD strategy for Tesla was developed through the prism of three dimensions – career development, training and development, and organizational development. The approach that is suggested for the company is related to the innovative strategy of HRD. Particularly, it was proposed to advance organizational processes by the digitalization of management processes, to consider career development as a coherent process with specific stages, and to appeal to modern practices of coaching and team-building. Then, Kirkpatrick’s model was utilized in order to define the way in which the mentioned program will be assessed.
References
Ardent Learning. (2020, February 2). What is the Kirkpatrick model? Learn the 4 levels of evaluation. Ardent Learning. Web.
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Elg, M., Birch-Jensen, A., Gremyr, I., Martin, J., & Melin, U. (2019). Digitalisation and quality management: problems and prospects. Production Planning & Control, 32(12), 990–1003.
McGuire, D. (2014). Human resource development. Sage Publications.
Milner, J., Milner, T., & McCarthy, G. (2020). A coaching culture definition: An industry-based perspective from managers as coaches. The Journal of Applied Behavioral Science, 56(2), 237–254.
Thomas, V. J., & Maine, E. (2019). Market entry strategies for electric vehicle start-ups in the automotive industry – Lessons from Tesla Motors. Journal of Cleaner Production, 235(1), 653–663.
Wehmeyer, M. L., Nota, L., Soresi, S., Shogren, K. A., Morningstar, M. E., Ferrari, L., Sgaramella, T. M., & DiMaggio, I. (2019). A crisis in career development: Life designing and implications for transition. Career Development and Transition for Exceptional Individuals, 42(3), 179–187.