Tesla HRM Subsystems: Manufacturing Change Analysis
This paper examines the three major roles of human resources management (HRM) — administrative, operational, and strategic — as they apply to Tesla, Inc. It identifies Tesla's manufacturing subsystem as the primary area in need of change, citing persistent production failures, over-reliance on robotics, and declining product quality. By comparing Tesla's approach to Ford's proven assembly-line model, the paper argues for replacing automation-heavy processes with skilled human labor. Additional sections address stakeholder satisfaction, the attraction and retention of talent, internal consistency in HRM practice, and the application of a Christian servant-leadership worldview to organizational management.
- Introduction: Overview of HRM roles and Tesla thesis
- Subsystems in Need of Change: Tesla manufacturing failures and robotics overreliance
- Impact of Change and Stakeholder Satisfaction: Change effects on investors, consumers, and executives
- Attracting, Developing, and Maintaining Human Resources: Talent strategy and CEO leadership crisis
- Internal Consistency and Course Connectivity: HRM planning, workforce quality, and organizational lessons
- Christian Worldview and Servant Leadership: Servant leadership model applied to Tesla management
- Conclusion: Recommendations for Tesla reform and cultural change
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What makes this paper effective
- Uses a real, high-profile company case (Tesla) to ground abstract HRM concepts in observable, current events, making arguments concrete and verifiable.
- Systematically addresses each required topic — impact of change, stakeholder satisfaction, attracting/developing/maintaining HR, internal consistency, and worldview — giving the paper a clear, organized structure.
- Integrates peer-reviewed sources (Gerhart & Fang, 2015; Mahmood, 2015) alongside journalistic evidence to balance academic and applied support.
Key academic technique demonstrated
The paper demonstrates comparative organizational analysis: it benchmarks Tesla's failing manufacturing subsystem against Ford's established assembly-line model to build a normative argument for change. This technique — using a successful peer organization as a standard of comparison — is a standard method in applied business and HRM writing at the undergraduate level.
Structure breakdown
The paper opens with a brief overview of HRM roles and a thesis statement identifying Tesla's key problem areas. It then moves through subsystem diagnosis, a comparison to Ford, and an assessment of change impacts and stakeholder concerns. The middle sections address HRM functions (attracting, developing, maintaining talent) and internal consistency. The paper closes with a reflection on Christian servant leadership before a brief conclusion synthesizing the core recommendations.
Introduction
The three major roles of human resources management (HRM) are (1) administrative, (2) operational, and (3) strategic. The functions that fall within these roles include recruiting and selecting hires, orientation, maintaining stable and quality workplace environments, managing employee relations, and training and developing staff. This paper examines how the HRM practices of Tesla, Inc. — including its manufacturing, finance, and marketing subsystems — are in need of change. By comparing these subsystems to those of more successful organizations, this paper argues that Tesla can improve its productivity and increase demand. In that context, the impact of change, stakeholder satisfaction, attracting, developing, and maintaining human resources, internal consistencies, and the application of a personal Christian worldview are all addressed.
Subsystems in Need of Change
The most critical organizational subsystem within Tesla in need of change is manufacturing. The company has failed to meet its internal production goals for several years running (O'Kane, 2018), while its reputation as a leader in the electric vehicle (EV) market has been eroded by complaints of shoddy manufacturing — including bumpers falling off in the rain, battery cells catching fire, and autopilot failures (Lambert, 2018; Orlove, 2018; Torchinsky, 2018). Tesla's manufacturing subsystem is a highly complex system involving artificial intelligence, robotics, and trained employees, both in the main manufacturing plant and in the Gigafactory where Tesla's batteries are produced.
The need for change within this subsystem stems from Tesla's inability to reach its production goals. The factory is too reliant on robotics, which were envisioned by CEO Elon Musk as the future of auto manufacturing. Musk has since admitted that this overreliance on robotics was a mistake (Matousek, 2018).
Compared to a subsystem at a successful and profitable automaker such as Ford, Tesla's manufacturing subsystem is sub-par. Tesla's production line needs to be overhauled: robotics must be replaced with skilled laborers who assemble the more intricate aspects of the vehicle by hand. Ford pioneered the modern assembly line without excluding human involvement entirely. Tesla's Musk, in an effort to market himself and the company as visionary and forward-thinking, attempted to rely wholly on robotics — and it has cost the company dearly (Hawkins, 2018).
Impact of Change and Stakeholder Satisfaction
The proposed change — retiring robots on the production line and returning to a more traditional assembly-line model — would impact the company in numerous ways. First, it would challenge Musk's reputation as a visionary capable of revolutionizing the means of production. Second, it would require a substantial drawdown on Tesla's capital. The company is heavily invested in robotics, and admitting defeat could frighten speculative investors who bought into Musk's vision of a fully automated production line as the future of auto manufacturing (DeBord, 2018). Most importantly, however, the change would correct Tesla's production process and allow the company to reach its goals through traditional assembly-line practices — simply by investing in human capital rather than in robotics that have proven inefficient.
Tesla must also protect its image and reputation as a leader in the luxury EV market. It has branded itself as the next generation of manufacturing. Changing its manufacturing subsystem would, in a sense, require the company to admit that it is not quite as trailblazing as its CEO envisioned. However, what matters most now is that Tesla meet production goals, because convertible notes are coming due and the company must demonstrate profitability in the coming quarters to retain investors (SEC, 2018).
Three key stakeholder groups must be satisfied. First, investors must see results. That means Tesla needs to focus on productivity rather than visionary tactics — investors care about output, not the method of production. Second, consumers want delivery. Many buyers committed to the idea of an affordable Model 3 but have been waiting years to take delivery because of what has been described as "production hell" at Tesla (Boudette, 2018). Third, executives want better accountability. Senior leaders have been leaving the company in significant numbers (Hull, 2018) because fundamental production concepts are not being applied. In order to retain good leaders, Tesla's chief executive must confront operational reality.
Conclusion
Tesla has the potential to succeed — it just needs to redefine itself. Rather than marketing the company as a technological revolution in manufacturing, Tesla's leadership should support practical production techniques that allow the company to meet its goals. For this reason, the manufacturing subsystem needs to change. In order to attract top talent, the current CEO must be replaced, as his conduct has damaged the company's reputation. Finally, a culture of servant leadership should be established so that capable leaders will be attracted, developed, and retained for the long term.
References
Boudette, N. (2018). For Tesla, production hell looks like the reality of the car business. Retrieved from https://www.nytimes.com/2018/04/03/business/tesla-model-3.html
DeBord, M. (2018). Elon Musk promised a Tesla alien dreadnought factory — but what we got was a tent. Retrieved from https://www.businessinsider.com/tesla-is-failing-to-build-the-factory-of-the-future-2018-6
Gerhart, B., & Fang, M. (2015). Pay, intrinsic motivation, extrinsic motivation, performance, and creativity in the workplace: Revisiting long-held beliefs. Annual Review of Organizational Psychology and Organizational Behavior, 2, 489–521.
Hawkins, A. (2018). Tesla relied on too many robots. Retrieved from https://www.theverge.com/2018/4/13/17234296/tesla-model-3-robots-production-hell-elon-musk
Hull, D. (2018). Tesla erupts in chaos after senior execs leave, Musk tokes up. Retrieved from https://www.bloomberg.com/news/articles/2018-09-07/tesla-chief-accounting-officer-leaves-citing-level-of-scrutiny
Lambert, F. (2018). Tesla Model S battery caught on fire without accident. Retrieved from https://electrek.co/2018/06/16/tesla-model-s-battery-fire-investigating/
Mahmood, M. (2015). Strategy, structure, and HRM policy orientation: Employee recruitment and selection practices in multinational subsidiaries. Asia Pacific Journal of Human Resources, 53(3), 331–350.
Matousek, M. (2018). Elon Musk says he agrees that there are too many robots on the Model 3 production line. Retrieved from https://www.businessinsider.com/elon-musk-says-model-3-production-using-to-many-robots-2018-4
Mullen, J., & Shane, D. (2018). Weed, whiskey, Tesla and a flamethrower. Retrieved from https://money.cnn.com/2018/09/07/technology/elon-musk-joe-rogan/index.html
Nees, T. (2014). On becoming a servant leader. Retrieved from
O'Kane, S. (2018). Tesla misses production goal of 2,500 Model 3s a week. Retrieved from https://www.theverge.com/2018/4/3/17192312/tesla-goal-model-3-elon-musk
Orlove, R. (2018). This test shows why Tesla autopilot crashes keep happening. Retrieved from Jalopnik.
SEC. (2018). Tesla convertible notes due. Retrieved from https://www.sec.gov/Archives/edgar/data/1318605/000119312517086195/d349123dfwp.htm
Torchinsky, J. (2018). Bumper falls off brand new Tesla Model 3. Retrieved from Jalopnik.
Wolverton, T. (2018). Elon Musk says he was thinking like a Vegas casino owner. Retrieved from https://www.businessinsider.com/tesla-ceo-elon-musk-funding-secured-tweet-vegas-odds-2018-8
Wong, J. (2018). Tesla workers say they pay the price. Retrieved from https://www.theguardian.com/technology/2018/jun/13/tesla-workers-pay-price-elon-musk-failed-promises
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