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Organizational Improvement Plan:

  • There should be more of a focus on a human relations management style approach.
  • There needs to be more room to allow employees to exercise freedom and responsibility within the workplace. By taking into consideration employees thoughts on the creative process
  • This would result in there could be a higher job satisfaction and productivity rate, and more of a sense of reward.
  • There needs to be a more consistent reward and incentive system
  • There needs to be more frequent promotions for women
  • There needs to be more women added to their workforce to increase diversity
  • This will help to retain motivation and the best talents to contribute further to the company.
  • Increase pay and lessen pressures of work.
  • This will help boost employee morale, and thus lead to more production.
  • Tesla must better better communicate with their stakeholders.
  • Tesla must improve its protocol and procedures such as in communication in crisis’ and damage control.
  • The response time for Tesla in these situations needs to be faster
  • They need to use more channels and platforms to notify consumers more quickly and efficiently avoiding public relations disasters.
  • Tesla needs to to elaborate more on how future revenue from its new products can facilitate its current situation, instead of ignoring its current problems.
  • Tesla needs to improve its customer relations and address customer concerns in a more efficient manner by hiring an internal division to evaluate client relations, and make improvements based on that.
  • Once Tesla can do this, customer satisfaction with their products will increase, thus increase profits from word of mouth recommendations from satisfied consumers.

Organizational Weaknesses:

  • Tesla lacks diversity with its employees.
  • Tesla has relatively less women working within the company as well as a difficult glass ceiling for them to break when obtaining a promotion.
  • Its organizational structure is so rigid that it does not allow rapid adjustment within.
  • Tesla fails to do is that it does not have a consistent reward and incentive system, as well as to lessen its work demands for employees.

Organizational Strengths:

  • It has a strong control on the processes of production, in regards to employee interaction.
  • This is due to its human relations and job design and compensation. For example, to attract competent and effective workers, there is a there is a competitive compensation strategy.
  • There is regular training and leadership development programs for employees so that there there is a high productivity and effectiveness rate, and this coincides with the organizational behavior perspective of job enrichment and employee involvement
  • Its traditional managerial focus and control helps to facilitate extensive control within the company, as well as its vertical integration and centralization in its hierarchy.
  • Tesla Motors Inc. also is effective when communicating with its stakeholders. For example, “the company publishes its annual report on its website, disclosing key financial data, the company’s strengths and values, potential risk factors, its products, services, network and infrastructures, and other important information.”

Criticisms:

  • Some customers have complained citing multiple issues with their cars and how Telsa handles it’s customer affairs
  • Other examples would be delays, hacking or crashes and fires. They have been criticized for under delivering and overpromising.
  • One example is that of when in 2016, two Chinese hackers took remote control of a Tesla Model S from 12 miles away, and “were able to interfere with the car’s brakes, door locks and other electronic features, demonstrating an attack that could cause havoc”
  • This obviously raised concerns on the integrity of its electronic systems and safety, especially more since the recent autopilot crashes and deaths that have occurred with Tesla vehicles, further diminishing Teslas public relations image.
  • Loup Ventures Managing Partner Gene Munster has said that “The bigger issue is erosion of brand which impacts demand for Tesla’s and investors’ willingness to keep funding the Tesla mission...our patience is being tested, but we continue to expect Tesla to be a winner…”

Tesla's Performance:

  • Their 2017 annual income statement on Tesla.com revealed that their revenue was $12 billion USD
  • -2.0 net income and a profit margin of -16.68%.
  • According to the balance sheet, the total assets accumulated to $29billion USD, with total liabilities = $23 billion and 35.65% debt to assets.
  • There was a 0 operating expense and -4 investing expense and 4 of a financing expense.
  • Overall Tesla´s productivity is 25% less than its competitors, which means that their sales per employee are much lower than, for example, Mercedes or Porsche. This situation is given by the high costs of Tesla, which increase Tesla´s losses, and the great efficiency of their competitors.

http://www.nasdaq.com/symbol/tsla/financials?query=income-statement

Working within the Company:

  • The turnover rates for Tesla are much higher than others in the industry.~typical engineer works for around 3 yrs.
  • Could be due to the employee satisfaction rates from the working conditions and pay.
  • Also could be due to the average age being 30 yrs old, which implies that the employees of the company are still exploring their options and interests in their careers.
  • Workers have a high motivation working in Tesla because of the good benefits the company offers.
  • This is consistent to the Equity Theory by Adams, which includes that there will be a lower production rate with a higher quality when over-rewarded.
  • To support this, according to a report done by Forbes.com, the three largest automakers (GM, VW, Toyota) each produce a little over 10 million cars a year, whereas Tesla shipped around 100,000 vehicles in 2017 which is a comparative production of about 1%.

Working Statistics:

  • Sometimes there are 10-12 hours worked daily.
  • Production jobs are built around 12-hour shifts
  • For production jobs, are build around 12-hour shifts.
  • Example: SolarCity, has 4 shifts of workers; where it has 2 day shifts-7 a.m.-7:30 p.m., from Sunday-Tuesday, another from Thursday-Saturday. Each will alternate on Wednesdays.
  • 2 night shifts-7 p.m. to 7:30 a.m
  • 16 weeks for mothers and 7 for fathers for paid paternity and maternity
  • Few incentives: there are no incentives to purchase a car, but there are incentives for leases.
  • Paid vacation, health insurance coverage and a 401k
  • Employees have reported that working for Tesla is one of the most stressful jobs, with a very dangerous work environment and slightly average paying jobs compared to others in the industry, but also one of the most meaningful.
  • In a report done by CNBC, It found that Tesla's "total recordable incidence rate" was 8.8% (8.8 injuries per 100 workers) in 2015... That's 31% more than the 6.7% total recordable incidence rate for the automobile industry as a whole...That 8.8% injury rate is higher than the similar injury rates of both sawmills and slaughterhouses…Sawmills have an injury rate of 7.3% and slaughterhouses have an injury rate of 5.1 -7.3%
  • Job satisfaction rate is at 70%, and job stress is at 70%, meanwhile job meaning is at 89%.

Wage Statistics

  • $15.17/hr ($41,749/yr) for a Detailer
  • $45.62/hr ($152,153/yr) for Engineering
  • Wages are determined on the position and the expertise required. Engineers earn more, and retail workers earn less. Tesla pays its employees well, since its lowest possible salary is still above the minimum wage.
  • For example, for a software engineer compared to General Motors, Tesla pays 123K as a base salary, and GM pays 70K.
  • When compared to other top tech companies, this statement still holds true, with a general median base salary of $81,400, SpaceX paying $785,000, Oracle with $71,400

Employee Statistics:

  • 37,543 employees
  • Median age: 30 years old
  • 80% of the workforce being men.
  • 25,000 U.S. employees
  • 18,000 employees worldwide
  • 700 engineers and technicians in Germany and China, and 300 in Mexico, and the rest in various production and factory jobs.
  • Most American employees are spread out in various manufacturing locations and warehouses near its headquarters and in Fremont.
  • 6,000 workers at the Tesla Factory and the design studio in Los Angeles
  • 100 employees in Michigan
  • With the new partnership with Panasonic, there has been a new plant named SolarCity erected in Buffalo, New York that creates photovoltaic panel modules and solar roofs. This factory currently employs 500 workers, and expects to employ 1,460 people in manufacturing and R&D by 2019. Furthermore, there are plans to employ over 3,000 people in the state of New York.

Anna Tajkowski

Jeffrey Stoelhorst

Daniel Echavarri

Nicola Angelucci

Organizational Structure

  • Tesla has a human resource based organizational practice and corporate culture.

  • Tesla, Inc. has an innovative problem-solving organizational culture. This type of corporate culture motivates employees to develop profitable solutions to current and emerging problems in the target market. It encourages employees to innovate to support continuous improvement of business.

  • Tesla Inc. identifies six main features of its organizational culture that help to achieve its goal, values, and vision: which are that of:
  • 1.) Move Fast
  • 2.) Do the Impossible
  • 3.)Constantly Innovate
  • 4.)Reason from “First Principles”
  • 5.) Think Like Owners
  • 6.) We are all-in

  • It has traditional, formal managerial focus and control helps to facilitate extensive control within the company, as well as its vertical integration and centralization in its hierarchy.

  • This hierarchy is function based, “it involves functional teams or offices that oversee domestic and international operations” (Meyer 2018).

  • From the top management (CEO, CFO, CTO), to lower level managers and production workers. Even though there is a formal leadership level, Tesla also encourages workers to act with freedom and responsibility.

  • Regarding communication, Tesla workers engage in lateral communication to solve problems, and then report to their supervisor by upward communication.

Shareholders

Board of Directors

ELON MUSK

CEO,

Product Architect, Chairman,

JB. Straubel

J. Guillen

VP WW Sales

CTO

J. Vijayan

D. O'Connell

VP Business Development

CIO

D. Ahuja

P. Carlsson

CFO (Refiring)

VP Supply Chain

Vision and Mission

  • "Our vision is to create the most compelling car company of the 21st century by driving the world's transition to electric vehicles."
  • "Our mission is not the safety of our vehicles, which can be easily replaced, but for the safety of our customers and the families they entrust to our cars and to accelerate the world's transition to electric mobility with a full range of increasingly affordable electric cars for all consumers."
  • To accelerate the advent of sustainable transport by bringing compelling mass market electric cars to market as soon as possible

History

Introduction

  • Tesla Inc. is known for its innovation in electronic and automatic automobiles and solar panels. It is an innovative leader in advanced and sustainable transport technology and is widely praised for its new and creative products.
  • It has grown into a leading company, especially due to its commitment to high quality, efficiency, and sustainability.
  • Tesla Motors is an electric automotive, electronic storage, and solar panel company that was was founded on July 1, 2003 by Jeffrey B. Straubel, Elon R. Musk and Marc Tarpenning in the United States.
  • The current CEO, chairman of the board of directors and product architect of the company is Elon Musk, who was also a cofounder. Tesla, Inc. is currently headquartered in Palo Alto, California.

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