Policy analysis of Tesla

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Policy Analysis:

1.0 Internal Issues:

1.1 Organizational culture:

The culture of a firm defines employees’ attitudes and their decision making capability (Osibanjo & Adeniji, 2013). Tesla motivates its employees to be creative and bring ideas for to improve the business activities of the company. The company understands that a good human resource department can be a source of growth for the company among its rivals (Meyer, 2019).

1.2 Organizational Justice:

The recruitment process in the company is an extensive one because the CEO of Tesla, Elon Musk wants to have a highly talented workforce in the industry. Moreover, an Anti Handbook have been leaked that encourages communication between employees through the quote “you can talk to anyone without anyone else’s permission”, innovativeness and creativity to improve the company’s business actions through the quote “your no. 1 job – everyone’s no 1 job – is making this company a success” and  motivate the employees to be at their best. The handbook is like a person talking to you on how to be a part of Tesla without any politics or biasness (Ranosa, 2020).

1.3 Human Resources Strategies:

The recruitment process of Tesla is handled by Must himself because he wants to create skilled workforce who are goal oriented. There are six way in which the company hires an employee that are (Henshall, 2017):

  1. Every candidate is interviewed by the CEO himself
  2. Asking technical questions from the employees like solving a recent problem
  3. Put forward mind boggling problems and tricks in front of the candidate
  4. If the candidate doesn’t have a degree that is not an issue unless the candidate has prior skills
  5. Musk’s aim is to hire the best of the best employees
  6. Hiring a positive minded person, the company has a “no assholes policy” that means that Musk doesn’t want negativity in his company

1.4 Corporate Governance:

Tesla has set out many policies for the workers to follow like the Worldwide Bribery & Anti Corruption Policy that emphasizes on bribery and how to avoid it. Another main policy, the OFAC compliance policy that does not permit the company to participate into activities that can lead to terrorism or narcotics trafficking (Tesla, 2018).

1.5 High turnover rate:

The company is popular in the industry for high turnover rates of top level managers and employees. This can be hard for Musk to attract talented workers for the company, Elon Musk is famous for his challenging attitude. Musk wants a work place environment that is fast paced and keeps high expectations from the employees that also lead towards the employer to be demanding (Matousek, 2019a)

2.0 External issues:

2.1 International sales:

In the year 2019, Chinese government banned the sale of the new Tesla Model 3s because of multiple indiscretions. The irregularities included lack of stickers on tans and wrong stickers about the “motor capacity” (Matousek, 2019b). This impacted the sale of the company in the second biggest market of the electrical cars, China is among the top markets for Tesla and this helps the company in earning good amount of foreign exchange for the company. This indirectly impacted the annual revenue growth for the United States.

2.2 Government Policy:

In 2009, the American government introduced an Innovative policy to encourage the production of the electrical vehicles. Tesla was among the manufacturers to receive a loan of about four hundred and sixty five million from the government, that helped the company to increase its functions. A decade ago, it was not possible for someone to manufacture an electric vehicle but today there are millions of them. This all started because of Tesla’s first electrical vehicle, Roadster (Mair, 2016)

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