Tesla Firm’s Human Resource Management Practices


Human Relationship Management (HRM) plays an integral role in the performance of Tesla’s organization. It ensures that the organization attains the best talents to increase productivity (Parnell and Jones-Sepulveda, 2019). HRM majors in employees’ feelings, career development, motivation, and other aspects of employment. Due to its influence on the organization’s performance, Tesla has a robust HR process to ensure that the organization attracts and retains the best employees. For example, Tesla’s hiring process consists of a series of interviews and tests (Business Insider Africa, 2017). This enables the organization to recruit the most appropriate applicant. Apart from hiring, the employees are trained to work in a diverse environment. Therefore, Tesla is one of the organizations with the best HR management approach, especially in training and recruitment.

HRM Practices in The Tesla Electric Cars Organization

Training and Development

The HRM practice is training and development, which is the most important management skill for Tesla to gain a competitive edge in the global automotive market. The HR team should always make sure that the training programs for employees are of a higher quality (Rao, 2019). This will help expatriates do their jobs better and help the organization reach its goals. The HRM is in charge of running the training programs, which must focus on things like the environment and HRM policies and practices. Training for international operations always included planning, hiring, recruiting, and evaluating employees. In addition, coaches, managers, and organizations need to clearly understand international training and development, as it shows how HRM training and development is done in different countries.

Tesla’s HR department offers cross-cultural training to help all employees who are sent overseas deal with a different culture. Tesla has created an organization through innovation and given its employees the freedom to look for the best solutions (Blank, 2019). This makes the company stand out in the auto and energy generation and storage industries. The company encourages its workers to develop new ideas to ensure that the business can keep getting better. This innovative environment has helped the company shape the behaviors and attitudes of its employees (Blank, 2019). Through the organizational values and beliefs, Tesla’s management encourages employees to engage in creative practices to generate new ideas. These actions are necessary for the company to keep developing new technologies, which is one of its main goals.

Recruitment and Hiring

Tesla uses first-hand experience to hire the right candidates for its position regardless of whether they are local or international. According to Elon Musk, “it is not simply that experience matters more than education. Rather, experience is a form of education. And in many ways, it is the best education” (Ryan, 2022). This indicates that education is not just what an individual learns in a classroom. It is what a person learns through real-life experiences. Due to this, people look for individuals with deep knowledge who have first-hand experience. For example, when reviewing applications, think about which candidates have the hands-on experience needed to start right away, or at least how little training they will need to do well in the role. Therefore, Tesla’s hiring process majors more on the experience of candidates and not just the level of education.

Moreover, Tesla adopts hands-on testing to recruit the best candidates the various positions. A hands-on skills assessment is an evaluation that tests a trainee’s ability to perform employment practices, work procedures, or any other skill taught in an accredited training institution (Ryan, 2022). Tesla’s HR culture is based on the concept that to test candidates well, give them tests that are most like what they might face in the job. Elon Musk believes that it is crucial to determine ways to test a candidate’s skill beyond looking at the degree on their resumes. Make sure that the test is only about the needed things to do the test or task. This will give an individual a good idea of how well the person can do the job’s tasks. As a result, this technique helps Tesla select candidates who can effectively undertake their roles.

Tesla hires people by sticking to its mission statement, which has helped them enhance the transition to more environmentally friendly transportation. The company only hire people who believe in its mission and are always willing to give their time and energy to help them reach their goal (Business Insider Africa, 2017). Tesla cares about how loyal and dedicated its employees are and what they can do for the company. Tesla has high standards for hiring talented people and is working hard to find the best ones. Musk’s new way to hire people in 2018 is to let job seekers or current employees stay in one place and compete by solving a problem in a set amount of time (Ryan, 2022). Thus, those who can give the right answers in the allotted time can get the job and move up in the company.

Reward Management

Tesla’s reward management solely prevents unhappiness by implementing hygiene factors. Hygiene aspects avoid unhappiness and are present to meet individuals’ psychological needs, such as a good income and working circumstances, but these do not lead to long-term positive fulfilment. Although extrinsic rewards can assist drive employees, a proper mix of intrinsic rewards is also required, which Tesla lacks. This motivation generates good satisfaction and drives employees to do better, such as recognition and responsibility. According to reports, Elon Musk’s comments heavily influence a team’s performance evaluation. He has previously been known to dismiss employees’ efforts just because he changed his mind about a product; this might demotivate staff because they do not feel respected.

The HRM Practices Alignment with The Tesla Business Objectives

Alignment of HR Practices to Tesla’s Objectives

Training equips the employees with the required capabilities to become the best car company across the globe. Tesla is focused on designing and building the best products for its customers (Shet, 2020). This indicates that the company concentrates on using appropriate resources to develop quality products. To achieve this, Tesla requires employees who can help achieve this objective. Training is the process of improving employees’ skills, knowledge, and competencies to perform their current jobs effectively. The main goal of training is to assist Tesla in achieving its objectives by adding value to its employees. Therefore, training is an initiative adopted by the corporation to help develop quality products for its customers.

Moreover, training employees is an HR practice that assists Tesla in achieving sustainable objectives. The corporation is changing the global transportation sector and the world away from polluting combustion engines towards a more sustainable and environmentally friendly energy source. To achieve this, the employees must understand the mission and vision statement of the company and work towards making them a reality (Sims and Bias, 2021). Skill development is an important prerequisite for sustainable development. As a result, training is essential to Tesla, especially in addressing the opportunities and challenges to attain the new demand of changing economies and new technologies in globalization.

As a multinational corporation, cross-cultural training help prepare employees to operate in a diverse culture. It equips employees with the necessary skills to operate in a diverse workplace (Lattuch, 2021). In addition, cross-cultural skill development lessens the impact of culture shock on employees posted abroad or international assignees, increasing the likelihood of a successful international assignment (Sims and Bias, 2021). It also allows them to communicate more effectively with their colleagues, fostering stronger bonds and increasing respect, trust, and workplace productivity. Therefore, cross-cultural training also assists reduce employee turnover due to increased satisfaction achieved through the positive relationship among teamwork.

The Impact of HR practices On Overall Organization’s Performance

Tesla’s HR practices are responsible for its increased performance in the motor vehicle industry. They enable the corporation to have skilled employees to effectively perform their roles and achieve the set objectives (Akakpo et al., 2019). When the employees have the required competency, they can attain individual and professional goals. The HR practices also motivate the employees to perform their corporate vision and mission, such as sustainability. Therefore, the corporation ensures that the employees are satisfied through motivational strategies. In addition, HR initiative allows the corporation to handle a diverse team effectively. This enables Tesla’s employees to work in a cross-cultural team and achieve common objectives. Therefore, the productivity of the company depends on the applied HR practices.

HR Process in Tesla organization

HR process Description
Application The HR process starts when there are employment gaps at Tesla they want to fill with relevant candidates. Then, the position is announced on social media platforms such as Twitter. After the announcement, interested individuals are expected to apply and submit their credentials through the provided platforms (Business Insider Africa, 2017). The digital platform allows the information to reach various people across the globe, which is important for selecting the most appropriate candidate.
Phone interview A phone interview is the first interview conducted to understand the applicants and offer direction on the next course of action. In this case, the HR personnel calls an applicant, asks questions about interests in the company’s basic skills, and arranges an interview. This enables the HR team to appropriately shortlist the most qualified applicants for an interview (Business Insider Africa, 2017).
Interviews The interview process at Tesla consists of an interview with HR personnel, onsite interviews, and an interview with the CEO. Once an applicant is selected in the preliminary screening, an interview will be performed with the hiring manager for appropriately 40-45 minutes. After the recruiting manager interview, an applicant will have 3-5 onsite interviews (Business Insider Africa, 2017). Therefore, a panel of Tesla personnel would be present in only a few interviews. After going through the entire process, the final step is to have an interview with the CEO.
Exam The Hogan Personality test is a crucial aspect of this process. This workplace personality profile estimates a candidate’s future performance based on their strengths, limitations, values, and problem-solving approaches (Business Insider Africa, 2017).
Assessment Centre Once an applicant is invited to the Tesla Group Assessment Centre, they will spend a day or two doing different things, such as giving a presentation, taking part in group discussions, acting out different scenarios, and role-playing. The applicant will also have to take tests and go on a number of interviews. Assessment centers are more accurate in judging job candidates than interviews and tests (Business Insider Africa, 2017).
Onboarding This is a hiring phase where candidates who have been hired are taken through the organization’s culture, such as values, goals, mission, and vision.

The Improvement of HR Process of Tesla

Although Tesla’s hiring process is considered adequate, it has some shortcomings that should be addressed. Firstly, the current hiring process should be redesigned to make it friendly to the applicants. The rigorous process may scare away potential applicants (Business Insider Africa, 2017). People believe that is not favorable to new applicants who may have the required skills but are afraid to go through the process. Secondly, the number of tests should be reduced to save time. For example, a meeting with its CEO should be removed because it is unnecessary. Therefore, the HR policy should be changed to ensure that the hiring process only involves crucial activities.

Workforce Planning, Recruitment and Selection Practices

Workforce planning is an important process of an organization that helps achieve its core objectives. The training and development equip the employees with the requisite skills to help attain organizational goals (Business Insider Africa, 2017). For example, when the employees have cross-cultural skills, they foster a conducive environment for teamwork and collaboration. In addition, workforce planning ensures that employees are satisfied and motivated to perform their roles effectively. When the employees are happy, they are more likely to engage in professional development to increase their capabilities and productivity in the workplace. Thus, workforce planning provides an effective platform for the development of skills.

Recruitment and selection practices at Tesla are focused on hiring skilled candidates for its positions. The candidates are taken through interviews to determine their capabilities to effectively perform their roles (Business Insider Africa, 2017). For example, apart from an interview with the HR manager, an applicant must be interviewed with the CEO to complete the interview session. Other than the interview, the applicants are subjected to tests and assessments to ensure that only the right candidate is chosen. This is supposed to reveal important capabilities that Tesla requires of the employees for the position. For example, one of the areas being tested is an applicant’s ability to communicate effectively and work with various teams. As a result, the hiring practices ensure that the candidates have the right skills.

HRM Practices and Their Impact On Organizational Productivity and Profitability

Cross-Culture Training

HRM practices such as cross-culture training have a long-term and considerable impact on employees’ work output. Effective education on diverse cultures in the workplace can assist employees in dealing with issues such as experiencing new working settings and cultures, preparing employees for change, revamping, and the extensive (Blank, 2019). Additionally, the procedures must be regularly altered to effectively handle the difficulties posed by the organization’s changing environment. For example, it enables employees to work in different parts of the country and has a diverse workforce. With cross-cultural competency, Tesla is sure of effective performance due to collaboration.

Hiring Process and Motivation

Tesla’s HRM practices, such as recruitment and motivation, guarantee that people are happy, skilled, and productive. They also ensure that employees can contribute meaningfully to the organization’s growth (Business Insider Africa, 2017). These practices have a tremendous impact on the interaction between employees and the organization. HRM methods contribute to developing viable exchange links between the organization and its employees based on shared trust and responsibilities. Employees contribute their services to the organization in exchange for the perks and other benefits that the organization provides. Employees’ perception of job satisfaction is determined by their achievements and working abilities.

The Outcome of Specific Practices

Training, recruitment, and motivation of employees are some of the specific practices that impact employees and employers. Training is a practice that effectively equips employees with the right skills to perform their roles (Pidun, 2019). This also helps employers through increased productivity of the organization. Hiring is a process that ensures that only the right candidates are selected for a given position. The process allows employees to showcase their capabilities while it enables the employers to get skilled staff to assist in attaining organizational goals.


Tesla’s HRM strength is in the hiring process and training of employees. HRM is a key part of how well the Tesla organization does. It makes sure that the company hires the best people to be more productive. HRM also focuses on how employees feel, how their careers are going, what motivates them, and other things that have to do with work. Because HR has a significant impact on how well an organization does, Tesla has a strong HR process to ensure it gets and keeps the best employees. For example, Tesla’s process for hiring new employees includes a number of interviews and tests. This lets the organization find the best person to work for them. The employees are hired and taught how to work well in a diverse environment.

Reference List

Akakpo, A., Gyasi, E.A., Oduro, B. and Akpabot, S. (2019) Futures thinking and organizational policy. Palgrave Macmillan, Cham.

Blank, S. (2019) Managing organizational conflict. McFarland.

Business Insider Africa. (2017) ‘A former Tesla recruiter breaks down the company’s intense hiring process — and explains why all candidates had to go through Elon Musk (TSLA),’ Web.

Lattuch, F. (2021) ‘Building innovation capabilities through human resources practices,’ Strategic HR Review, 20 (5), pp. 162-167. Web.

Parnell, J.A. and Jones-Sepulveda, N. (2019) Nonmarket Strategy in Business Organizations. Springer International Publishing.

Pidun, U. (2019) Corporate strategy: Theory and practice. Springer.

Rao, I. (2019) ‘Proven people practices at three leading Indian firms,’ Global Business and Organizational Excellence, 38(3), pp.43-49. Web.

Ryan, K. J. (2022) Elon Musk’s Brilliant Hiring Strategy Uses The ’2 Hands Test’–Instead of Degrees – IncAfrica. Web.

Shet, S.V. (2020) ‘Strategic talent management–contemporary issues in international context,’ Human Resource Development International, 23(1), pp.98-102. Web.

Sims, R.R. and Bias, S.K. (2021) ‘Human Resources Management and ethics,’ Human Resources Management and Ethics: Responsibilities, Actions, Issues, and Experiences, p.269.

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