Professional Documents
Culture Documents
525 Asm1
525 Asm1
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Founded: 2003
Website: https://www.tesla.com/
2. The organizational structure of Tesla.
Tesla's organizational structure is basically a concentration with an active function
hierarchy. As a result, each internal decision and each communication in the company
moves quickly. Tesla staff come from many crops. This allows Tesla to have global crops in
its business while creating a sophisticated innovation.
Kimbal Musk, Zachary Kirkhorn, and Jerome M. Guillen are Tesla's top individual insider
shareholders as of December 15, 2020, and Elon Musk, Susquehanna Securities, and Capital
World Investors are its top institutional shareholders. Elon Musk was appointed CEO in
October of 2008 (Reiff, 2020). Musk was a co-founder of the firm and made early
investments. The bulk of Tesla's shares are held by the company's executives. CEO Elon
Musk owns 22.8 percent of the company. Fidelity Management and Research Centre is the
largest outside stakeholder, with 7.96 percent ownership. Their investment in the firm is
mostly due to the powertrain cooperation with Tesla. The remaining 40 percent is
distributed among institutions and funds. Geographically, 53 percent of shares are owned
in the US (Frank, 2021).
II. ORGANIZATIONAL CULTURE, BEHAVIORS AND PERFORMANCE ANALYSIS
1. The influence of organization’s culture, politics and power on behaviors of individual
and team, and organizational performance
a. Theories of culture
A corporate personality is called "corporate culture". It determines the working
environment of employees. Many factors contribute to corporate culture, including work
environment, business mission, beliefs, ethics, ambitions and goals (Doyle, 2020).
According to psychologist Edgar Schein (1980), who created a model for understanding
and evaluating corporate culture, a cultural community organization is divided into three
levels: artifacts, values, and assumptions (Burkus, 2014).
Work culture is important to employees because workers are more likely to enjoy their
time at work when they fit the culture of the organization. They continue to bond better
and become much more competitive with their peers. On the other hand, if individuals
work for a company where they don't fit in with the organization's environment, they may
lose their joy in their work. If people are looking for an interesting company to work for,
organizational culture will be an important factor in their selection (Doyle, 2020).
b. Culture of Tesla
Tesla's primary goal is to facilitate the global transition from a fossil fuel economy to a
sustainable energy future (Tesla, 2021). As a result, Tesla, INC has an innovative,
problem-solving corporate culture. As (Yasinskyi, 2017) pointed out, Tesla highlights
many organizational aspects, including:
Acceleration provides an organization with a competitive advantage as it analyzes how
well its ability to react quickly to employee progress and certain changes occurs (Meyer,
2018). Tesla enables rapid response to current industry concerns.
Ownership of the Company - organization allows for the renovation of a mind-set
supportive of the business`s development. The organization instructs its group of workers
to deal with the organization as though it have been their own. The ownership mind-set
gives the organization’s venture and vision (Meyer, 2018). Allowing personnel to
broaden obligation and accountability.
Continuous innovation the main mission of Tesla Motors Inc. is innovation. Its
organizational culture often focuses on the innovative nature of the business. Models and
related objects can be developed through innovation (Meyer, 2018). Tesla communicates
its needs through its corporate culture, making it easier to maintain a competitive edge.
Tesla Motors' culture connects all employees by fostering teamwork, which benefits the
company (Meyer, 2018). Cultural attributes contribute to reducing conflict in the
workplace. Teamwork promotes the maximization of employee benefits and growth
within the company. Teamwork creates energy within the company, allows the HR area
to run smoothly, and contributes to Tesla's competitiveness in the international auto
industry.
Gather reasons from “first principles” The CEO fosters a deep understanding of his first
principles, including understanding the underlying reasons that will allow him to see and
solve problems. Employees apply the first principle to improve their work (Meyer, 2018).
Corporate culture will bring out the best response with the help of a training program to
guide the HR field.
c. Theories of Power and Politics Organizations.
Power and politics are two sides of the same coin. They move in a straight line.
Possessing power and influence over others is called power. Coercive power is the ability
of a manager to compel an employee to follow orders by threatening to punish them for
disobeying orders. Power is a social force that allows selected individuals to mobilize
others, organize others into action, and disperse leaders' opposition to power (Petress,
2003).
According to (Petress, 2003) has said that referral power is derived from the connections
we form and/or the groups/organizations to which we belong or are affiliated. To some
extent, the identity of our companions or of the groups to which we belong becomes our
own.
Power and politics are essential for the proper functioning of any institution. Employees
need to identify and accept gambling in their organization in order to thrive in their
careers. Organizational politics is necessary for a leader to gain and retain power, as well
as achieve key goals.
d. Power of Tesla
Elon Musk, Creator and CEO of Tesla, showing the personality and culture of society.
Declaration of Tesla mission, accelerating the transition from the world of fossil fuels to
more sustainable energy forms (Tesla, 2021). Elon Musk always provides future
strategies for itself and its businesses. He is very passionate about protecting its own land;
He also works with solar or energy.
Tesla plans to decentralize electricity for society. One of the most important powers to
have expert strength. For beginners, the company has talent and ability to manage and
guide people. Not only that, but the power introduced based on great relationships.
Therefore, leaders must have this to have a favorable influence on their employees. There
are some of Elon Musk's most powerful features, he has while exploiting Tesla.
For beginners, Musk is a very hard worker spending all the time at work. Elon Musk is
famous for placing over 80 hours a week every week. However, he can do more in 80
hours than most people in a year. He even sleeps on the floor of the company. He himself
admitted that this is not healthy and has modified his schedule to work hard rather than
crazy. Working such long hours has led in people working alongside him for up to 100
hours each week. "There is no other way to achieve this," he explained in an interview
with Recode (Umoh, 2018). Second, musk is not a fan of long-term meetings, meetings
should not be held regularly as if there is an emergency (Loria & Kanter, 2019). He
recommends against meetings if the management is uncertain, whether the best interests
of the public (Loria & Kanter, 2019). Therefore, Tesla's main principles and beliefs are
aimed at increasing efficiency while minimizing non-production activities such as
meetings.
In addition, it is important to mention that Elon Musk has determined communication,
allowing Tesla staff to argue and express their thoughts. The solution includes enabling
flow of information without blocking between levels. In an email Musk sent to Tesla
employees posted by Justin Bariso of Inc, he indicated that all of his employees can talk
to anyone when they need to (manager or even the CEO). In fact, he writes, with a super-
fast and good work culture, employees have an obligation to do so until the right thing
happens (Kane, 2017).
The CEO of this company always has a clear vision. Musk has a mission and a dedication,
and he's determined to overcome obstacles. He established Tesla's vision "to accelerate
the world's transition to sustainable energy (Tesla, 2021) called "Tesla Ships". Musk is
an agent of change who has influenced his people in transformative ways (Gayathri and
Kumari, 2019).
Musk embodies a charismatic leader with a narcissistic mindset, running in a company
that benefits from his strong leadership qualities. (Reiff, 2020) argues that Musk has great
personal and official power: he is a billionaire, CEO of Tesla (and until recently
chairman) and the company's largest shareholder 20.7% as of December 2019). Musk
has a huge following thanks to his amazing use of inspirational appeals - drawing on
team dedication by calling for a better future for humanity - making him irreplaceable
for Tesla.
2. Tesla apply Handy’s model.