Question: I need some help with the summary I wrote, It's suppose to be an executive summary and I have chosen Tesla. If you could check
I need some help with the summary I wrote, It's suppose to be an executive summary and I have chosen Tesla. If you could check conciseness, clarity and overall structure please.
Executive Summary
Tesla is one of the most dominating car manufacturers in the world. It's quick rise is accounted for by having an innovative team led by Elon Musk and being able to produce cars to a lower to middle market. It's quick rise to fame has also brought challenges within the organization. These challenges include problems with management structure, employee working and safety conditions, employee happiness, and governmental interventions. Some of these changes came partially from the fast growth, part of them self inflicted by Musk by consistently pushing employees, safety regulations, and government. In order for the company to thrive and continue to grow, change in the upper management needs to occur. The change needs to consist of Musk giving over some of his control and let managers lead their workforce, improve safety of employees which would increase employee satisfaction, and play a more active role in innovation rather than management.
Introduction
Tesla is a major auto force in the industry and the highest selling electric car manufacturer. Tesla Motors was founded in July 2003 by Martin Eberhard and Marc Tarpenning. Elon Musk, who currently is the Chief Executive officer and often represented as the entrepreneur and founder of the company joined in 2004. Formerly known as Tesla Motors, it changed its name in 2017 to Tesla. The company vision is to "create the most compelling car company of the 21st century by driving the world's transition to electric vehicles(Tesla Inc., 2011)." It's mission is to accelerate the world's transition to sustainable energy (Tesla Inc., 2020). Tesla's management consists of a key few people. Elon Musk and Zachary Kirkhorn (Powell, 2020) represent the upper management structure of Tesla. In the last quarter of 2019, Tesla announced lower sales numbers since its inception and has also structured with some of it's car functionality. It had to introduce a "New Vehicle Limited Warranty" for its new customer because of problems with the battery, paint, and Memory Chips. Tesla has been in the news lately due to compromised safety and working conditions. We will discuss our findings, conclusion and recommendations in the next following sections.
Method (if applicable)
Research of this Executive summary was performed by members of the MGT-325 CLC group which used a collection of company published information, news sources, and business articles. Tesla is a major auto force in the industry and the highest selling electric car, however, the market is slowly catching up with other auto manufacturers releasing their own version of electric only vehicles.
Findings
We have identified a few key items that might prevent the organization from a successful change.
As of today, CEO Elon Musk is by far the most important and prominent face at Tesla. His influence in the company affects every move the company makes, and he is also known for his micromanagement style. Tesla's employees see Musk as ambitious and driven, sometimes to a fault where he doesn't take into consideration any outside opinions from employees, the board, or industry experts. Because of Musk's dominance in the company, employees think he is essential to the success, crediting him with being a creative, humorous, and inspirational boss (Kolodny, 2018). However, Musk erratic, unhinged, and ambitious behavior has gotten him into trouble more than once. In 2018, the SEC fined Musk to pay $20 million in fines and required him to step down as chairman of the company after Musk controversial tweets that Tesla had the funding secured to go private (Siddiqui, 2020). That has not stopped Elon Musk from continuing to be in the News making controversial commands related and unrelated to Tesla. Tesla needs to be more proactive in providing better working conditions for employees, a better set of protocols to follow, and establish solid manufacturing standards.
Having a relatively slim management layer is an obstacle because of Musk dominance, and because there is no force to counteract. Even though Elon's innovative way of doing business might work for a startup, it is very difficult to run a public company with a significant headcount with only one person.
Musk has made lofty promises on the behalf of his company that he has not been able to follow through with. An obvious example of that is when he demonstrated the new Tesla cyber trucks 'unbreakable' glass, which shattered (Valdes-Dapena, 2019). That also means clear communication between Musk and his employees, so they are all on the same page on what the company is focusing on producing for their customers.
Because of the decline in sales at the end of quarter 2019, an obstacle in management will be meeting revenue targets, delivery of quality assured products, and keeping employee satisfaction and safety high. A significant obstacle for employees and change agents will be being adequately rewarded and recognized for the work, and the fear of losing their Jobs. However, the most significant obstacle will be for Musk. Even though Musk is considered a micromanager to level-level employees, his Inability to lead and connect with his management team to handle issues might propell Musk to getting too involved.
Investors would certainly breathe a sigh of relief and welcome stability in the company. Because of Musk's influence over Tesla, investors deal with constant change and instability. Having a change in management would allow for investors to make much better predictions about the company's future and be able to be more strategic about new investments into the company.
Employees could also see a lot of benefits from a change in management. Even though employees generally like working for Tesla, the constant changes in production schedules, higher demands for outputs, and the micromanagement certainly cannot be sustainable in the long run. A change in management and stability could significantly raise employee morale and therefore increase productivity. In summary, a change in Tesla's management can benefit in a lot of areas, but satisfying the government, investors, and employees seems to be a constant struggle for Tesla that if not brought under control, can lead to negative effects on the company.
Conclusions
In order for the organization to be able to implement changes, the organization will require resources to see sustainable change.
As described by many, agents of change within any type of workplace or organization are individuals who are placed with the responsibility of applying change on multiple levels. This is done to ensure that the areas that are in need of improvement are fully addressed and taken care of for the better of the organization. It is said that, "The success of any change effort depends heavily on the quality and workability of the relationship between the change agent and the key decision makers within the organization" (Lunenburg, 2010). With this said, it is crucial that the change agent of an organization facilitates and coordinates organizational changes with the help of higher-up decision makers. Within the organizational structure of Tesla, the agents of change would include CEO Elon Musk, along with his creators and inventors. It is through the creation, invention and development of his products, where Elon Musk is able to brainstorm and develop the multiple ways that his company is able to improve and change the things at hand. For example, when dealing with indicators of awareness such as other electric car competitors, car malfunctions, and organizational structure. Elon Musk is faced with the daunting task of incorporating his creators and inventors to overcome these issues that are in need of change, which is something this company thrives in. According to Christian Harkan, "Tesla has grown organically by letting their impressive products speak for themselves, while being lead by today's most iconic dreamer, Elon Musk" (Harkan, 2018). When the change agent, in this case Elon Musk, is able to make these specific changes, there will be greater organizational strength which will lead to profitability and awareness.
By easing the tense relationships between the government and Tesla, both could benefit from enhancing innovation. Tesla could potentially inherit technologies available through the government to make their cars even more fuel efficient and safer. On the flipside, a strong management structure can benefit the government by using Tesla's technologies and claim it as their own. The United States could become a leader on environmental issues and set an example for the world. It could invest and partner with Tesla to continue and evolve technologies such as autonomous driving, road safety, and potentially reap the benefits of utilizing some of Tesla's technologies for the military. Therefore, both could be beneficiaries of a solid management structure in different ways.
Recommendations
In order to continue to thrive and be the top leading producer of electric vehicles, Tesla's need for a change is inevitable and necessary.
By making the recommended changes outlined in the document, the company can continue to output at a faster level while keeping quality and employee safety the most important concern. This will also help the company to continue to build a strong and loyal employee base. When rules and guidelines are created by a CEO, it generally stays unaddressed at mid-level management in the race of self-recognition and power of the position. This should stay addressed. Making each employee feel at home will make him come the next day again.
The first proactive step would include management implementing change over the course of the organization. It is said that, "The primary goal of change management is to successfully implement new processes, products and business strategies while minimizing negative outcomes" (SHRM, n.d.). With this information provided, it is clear that through the midst of confusion and organizational issues, change is needed in order to (create a) new business process that doesn't encounter these issues again. When this is done, there is more room to minimize negative outcomes and while focusing on a new process of production and business strategies.
The second proactive step Tesla must indulge in, is the process of creating effective and productive communication. With the right communication that can serve effectively throughout an organization, there is significant room for an organization to thrive due to healthy communication and employees being on the same page across the structure of the company. With clear communication and the correct implementation of organizational change, Tesla will be more structured in organizationally within to overcome and avoid future issues.
The second step Tesla could implement is to empower employees and upper management to have more freedom. Currently all the rules and processes are created by Musk. These usually stay unchallenged and get lost through the poorly existing communication channels. By implementing a mid level management that negotiates with Musk and disseminates information down, management can be empowered to work directly with employees and establish working terms and conditions favorable to everybody. This would also allow for a more relaxed and stress-free atmosphere, empower employees to speak up and allow for creativity and new ideas, and eliminate or decrease employees stress levels.
Furthermore, my recommendations would be for the company to improve upon the upper management structure. Currently, Elon Musk leads the entire organization by himself, which is dangerous. A structure like this doesn't provide checks and balances, and his aggressive management style leads employees to be overworked, disgruntled, and without clear direction. Tesla prides itself on innovation and progressiveness when comparing the management structure to competitors such as Fiat Chrysler, BMW, Mercedes Benz. Having a flat organizational structure might be great in the beginning, but as Tesla continues to grow, it can avoid problems by incorporating strong layers of management. The trick is going to be to keep the company innovative and entrepreneurial enough for Elon Musk to be motivated to continue to invent and push the Tesla brand, but at the same time implement better management structure throughout the company to become better organized and more efficient.
Currently, Elon Musk's leadership is felt throughout the entire organization. However, in order to continue to expand and grow as well as satisfy investors and government, implementing a better flow of communication throughout the company would be a first good step. As of right now, there appears to be no flow of communication between the departments since Musk holds a pretty strong handle on everything. By implementing a better communication flow within the management and between employees, they could avoid a lot of confusion and reduce discontent and unhappiness. While a multi-layered management structure might not necessarily be right for Tesla, effective communication can still occur through direct and very few channels and keep all related departments on the same page. This will make the process quicker and faster and allows room for creativity and entrepreneurship. It also enables employees to be more in the loop of new developments and gives them a sense of empowerment and well-being by knowing they have someone directly to go to in case of issues.
In the short term, the company might take a few sacrifices in regards to production level outputs, uncertainty with management, employees, and investors. This certainly would bring some instability in the beginning but would decrease with time. Setting up a dedicated team comprised of more than just Musk would allow Tesla to work on its mission and vision to achieve its long-term goals. Establishing and developing target goals that are realistic will be important, especially because current targets are most of the time unrealistic and keep changing on how Musk feels on a particular day.
The transition to a new organizational structure will require people to work longer hours, participate in ideas and solutions, planning and setting up realistic strategic goals, and potentially will require a money investment as well.
Also, as safety and employee satisfaction grow with the suggested changes, employees should be more recognized and rewarded for their work. A workforce that is motivated and dedicated can become an important asset to Tesla's success.
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