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Managing People and Organizations

Introduction

The management of people and organizations is a fundamental activity in every company. This is
because it assists managers and leaders in understanding the relationship between human
resources management, management actions as well as labour relation in corporate procedures
and strategies. Essentially, managing people and organizations involves implementing
procedures that effectively promote employee output and enhance organizational productivity
and success (Indeed Editorial Team, 2021; Malec, 2022). With that, Tesla Inc. is the company
this report will explore. This is an American and multinational company in the automotive
industry producing electric cars. Tesla was established in 2003 to “accelerate the world’s
transition to sustainable energy.” Today, the company manufactures not only electric cars but
also infinitely accessible storage products and clean energy generators. To keep moving, Tesla
believes that soon people will stop using fossil fuels and shift to a zero-emission future. Finally,
the company has been competitive and efficient in its operation due to efficient management of
people and the company. Therefore, this paper will explore Tesla’s strategies and success in
managing people and organizations.

The Relationship between Tesla’s Goals, Objectives, and Policies

Tesla has several goals. Among the goals is to sell approximately twenty million vehicles by
2030. Besides, the company aims to produce new car models annually. Nonetheless, the main
goal is to transform the world into more sustainable energy consumption. Besides, according to
Musk, the chief executive officer of the company, the business has four main objectives,
including “integrate energy generation and storage, expand to cover the major forms of terrestrial
transportation, sharing, and autonomy” (Tesla, 2022). In addition, the company has a set of rules
and regulations that both managers and employees need to follow in order to keep the
organizational processes and functions running efficiently. These include the code of conduct,
health and safety policy, harassment and anti-discrimination policy, recruitment policy, and
email and internet policy. In Tesla, the established goals, objectives, and policies have
contributed significantly to effective and successful management. For instance, through the
policies, the company aims relentlessly on teamwork, collaboration, and innovation to assist in
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accomplishing the stated goals and objectives. Furthermore, Tesla has always developed a
culture of respect, safety, inclusiveness, and fairness for all employees to assist in the company’s
effective management.

Differences between Formal and Informal Organization

A formal company is a corporation with an established and fixed set of rules and regulations of
the internal organizational structure and procedures. In other words, a formal corporation is a
social scheme organized and controlled by clearly created practices, rules, and goals and that
departmental roles and responsibilities are rooted in a comprehensively defined hierarchy of
power and division of functions and labour. Having a formal organization promotes
coordination, systematic working, and combined effort towards achieving common
organizational goals. Managing human resources is also much easy in formal organizations. On
the other hand, the informal organization describes a group of individuals sharing common
characteristics or identities and are dedicated towards accomplishing a common purpose. Often,
an informal organization is established by members’ shared identity and will. It is linked to
benefits such as support for cultural and social values, members having specific roles, there are
more opportunities for communication and greater concentration on individual employees. For
that reason, Tesla is a formal organization because it has a status symbol, chain of command, and
established policies and objectives.

The Composition of the Open System Theory

Open system theory involves the notion that a corporation is, to a larger extent, influenced by the
environment. In essence, the environment encompasses other companies exerting numerous
political, economic, or social forces. Several organizations are open systems for the reason that
they often exchange feedback with the external environment. Healthy companies usually make
efforts to comprehend their external environments by using approaches such as market research,
industry evaluation, and environmental scanning.

The open system theory significantly applies to Tesla. This is because the general operation of
the company, including managing human resources and processes, substantially relies on
external forces. For instance, before establishing its subsidiary in a foreign country, the company
will have to begin by conducting internal and external analyses. The management will consider
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the external environmental factors before establishing the company are threats, opportunities,
legal aspects, political factors, competitors, technology, and social-cultural aspects.

Three Different Stakeholders

Investors: These are people responsible for financing a company or a project. They put their
money into a company with the aim of making profits. In Tesla, the investors often influence an
organization by developing policies and procedures that will ensure they obtain maximum profits
with minimum inputs (Tesla, 2022).

Employees: These are human resources in any organization. In other words, they are the factor
of production. Organizations hire employees to assist in producing products and services. Most
organizations seek to find the best talents in order to promote effective management and quality
of products. Tesla hires people with technological skills and knowledge to produce the best
automobile that meets consumer needs and wants (Tesla, 2022).

Customers: These are the buyers of products and services. They can also be described as the
final product or service consumers. Tesla targets upper-middle-class consumers. These
stakeholders make the company achieve high revenue and become competitive in the industry
(Tesla, 2022).

The Effective Control Strategy

An effective control system describes the power an individual or position has in a company.
Often, companies are responsible for verifying the identity of all employees with an effective
organizational control system. Among the features of an effective control system are accuracy,
acceptability, corrective action, economic feasibility, timeliness, integration, and flexibility.
Management by objective is the most effective approach Tesla should take in managing human
resources and the entire company. This approach would be more effective because it encourages
planning, employee involvement, company performance, career development, and
communication. Also, the control strategy has strong criteria for evaluating employees and
organizational performance. However, it can be challenging to implement if the company lacks
support from top management and employees have inadequate skills and training (Cardona and
Rey, 2022).
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The Content and Process Theory of Motivation

Content theory of motivation defines a structure of need that motivate the actions of employees.
This is the earliest theory concerned with the philosophy of motivation. Remarkably, the theory
highlights the whys and wherefores for motivating employees. This means that it describes the
requirements and necessities significant to motivating an individual. On the other hand, the
process theory of motivation describes the reasons why a behaviour is initiated. These
philosophies concentrate on the mechanism where an organization selects a target and makes
efforts to achieve the target. Expectancy, operant conditioning, goal, and equity are the four
significant process theories. In general, the content theory describes the actions of employees
through incentives, while process theory explains through goals and objectives. Both are
essential for managing people and employees.

Methods Managers use to Improve Job Performance

The main method Tesla uses to improve job performance is operations management. This is an
approach used to minimize the costs of production while maximizing efficiency and
productivity. Moreover, it contributes to the capability of the company to sell products at
sensible prices, provided the existing cost of raw materials and the market forces (Mehale,
Govender and Mabaso, 2021). Other effective methods managers use in addition to operations
management are collaborative, transformational, participative, and consultative styles. These
management approaches have been effective for Tesla since its establishment, making it one of
the best companies in the automotive industry. Also, the approaches have made the company
manage human resources effectively to produce the best product quality.

The Importance of Team Working

A team working together plays a significant role in ensuring organizational success and
productivity. Notably, collaborative problem solving often leads to successful results. Therefore,
teamwork involves the ability of team members to communicate effectively, work together,
inspire confidence, and achieve the demand of each other. The benefits of teamwork are that it
promotes better problem solving, increases the potential of problem-solving, enhances the
potential of innovation, promotes personal growth and more opportunity for growth, boosts
success and productivity, as well as expands creativity and fewer mistakes. Tesla has a culture of
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teamwork where employees work collectively to achieve both personal goals and organizational
objectives. This has made managing human resources and the entire organization easier. It has
also made the company become more innovative and competitive in the automotive industry.

Factors Affecting Team Cohesiveness and Performance

Similarities of values and attitudes: Among the most significant root of group cohesiveness is
the resemblances in values and attitude among team members. Often, Tesla enjoys the company
of team members with the same morals, opinions, code of conduct, and beliefs for the reason that
when employees have cohesiveness, they deliver their best, there is reduced conflict, and it
promotes easier human resource management.

Size of group: Normally, small groups, are more effective than large groups. This is due to the
fact that in small groups, team members understand each other culture due to close interaction
and communication. On the other hand, in a large group, the likelihood of communication and
interaction is less among the team members. Having a small team makes the management of
people easier in Tesla.

Previous shared goals and success: Among the factors that maintain cohesiveness between
team members is the previous performance. A team with a previous history of success are likely
to be more cohesive than a team with a previous history of failure. Tesla has had a previous
history of success, making its team more cohesive.

Conclusion

This report established that managing people and organizations involves implementing
procedures that effectively promote employee output and enhance organizational productivity
and success. For an organization to be successful, a manager must use the best approaches to
ensure managing human resources and the entire company. This paper explored Tesla’s
strategies and success in managing people and organizations. Tesla is a multinational company
producing electric cars. In general, this paper provided more insights into how goals, objectives,
and policies can be integrated to promote organizational productivity, the differences between a
formal and informal company, open system theory, content and process theory of motivation,
and the significance of teamwork.
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References List

Cardona, P. and Rey, C. (2022). The Limits of Management by Objectives. Management by

Missions, pp.35–48.

Indeed Editorial Team (2021). Guide to People Management: Definition, Tips and Skills |
Indeed.com. [online] Indeed.com. Available at: https://www.indeed.com/career-advice/career-
development/guide-to-people-management.

Malec, M. (2022). What is people management, and why is it so important? [online]

www.learnerbly.com. Available at: https://www.learnerbly.com/articles/what-is-people-
management.

Mehale, K.D., Govender, C.M. and Mabaso, C.M. (2021). Maximizing training evaluation for
employee performance improvement. SA Journal of Human Resource Management, [online]
19(0), p.11. Available at: https://sajhrm.co.za/index.php/sajhrm/article/view/1473/2394
[Accessed 22 Apr. 2022].

Tesla (2022). About Tesla. [online] Tesla. Available at: https://www.tesla.com/about.