Extracted text: Application Case Tesla's Strategy By early 2017, it was clear that Tesla was notsoon going to achieve its goal of oroducing 5,000 Model 3 family sedans per week, and the company also faced numerous human resource management-related challenges. For example, hundreds of workers stopped building Tesla's battery Written and copyrighted by Gary Dessler, PhD. By 2017 Tes a Motors briefly had a market value higher than the much-larger General Motors. Tesla's strategic plan, formulated in 2006 by company founder Elon Musk, was to start by cffer- factory near Reno, Nevada, claiming that outside contract workers ing a high-pertormance energy-etticient electric roadster "with- out compromises" and then expand to offer less-expensive family high employee accident rates. Musk reportedly said that Tesla wasn't cars, while eventually enabling battery recharging with solar power skimping on safety to make more profit, but rather to survive and devices, 0 84 were lowering their pay. Wcrkers at Tesla's car plant complained of continue to offer employment. 92 PART 1 • INTRODUCTION By May 2017, Tesla appointed a new HR head, Gaby Toledano, with the title Chief People Officer. In announcing the appointment, Tesla noted that she would help Tesla address its labor and harassment disputes. Ms. Toledano acknowledged that some disoutes between workers weren't reaching the HR office fast enough, but she said Tesla also laid off about 700 workers at its California manufac- turing facility. Many union activists asked why, having to ramp up production of the new Tesla Model 3, the company would dismiss so many employees. Some felt it wasn't because of poor performance reviews, but because Tes a wanted to fire employees who wanted a union. Elon Musk defends dismissing the 700 workers. Basically, he she's working on the problem. Furthermore, Tesla employees receive said (1) most ccmpanies have performance reviews and use them to screen out employees, and (2) because it wants the highest-quality cars, Tesla needs to have higher performance standards than its competitcrs. As Musk says, if a little company wants to compete with a giant one, the litte one must have a lot more skill, or i: will get pummeled. Some of Tesla's HR procedures are also somewhat unusual. For exam- ple, Tesla requires that new employees sign confidentiality agreements prohibiting them from discussing Tesla's business strategy and working conditions. The United Auto Workers filed unfair abor practice charges against Tesla, claiming that such agreements violate employees' rights. Tesla does use some sophisticated HR tools to improve its HR processes. For exampe, they used talent analytics to determine if employee referral programs imprcve their recruitment and retention processes and distributed an employee engagement survey. antidiscrimination and antiharassment training. Questions 3-13. Was Tesla's human resource strategy consistent with its overall strategy to produce "uncompromising" high-performance cars? 3-14. Given what Kia UK accomp ished, should Tesla implement Such an engagement program? Why? 3-15. What wculd you do ncw if you were Tesla's Chief Peope Officer? 3-16. Based on the case. provide examples for Tesla of at least four strategically required organizational outcomes, and four required workforce competencies and behavicrs. 3-17. Provide a brief illustrative outline of a strategy map for Tesla.