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Tesla

Cody Ngo
Grand Canyon University
Raquel City-Carroll
April 3th, 2021

Organizational Change Research: Part 2

Directions:Continue researching the company you selected for the Topic 6 assignment using the previous research sources and others that may be needed to address the remaining questions. You will use this research to determine potential organizational change areas and address questions related to planning and managing change within the company.

Criteria

Research Findings

Citation of Sources
Provide APA citations for the company’s annual report and the other research sources utilized in completing the assignment.

What needs to change or improve for the organization?

Most people love how Tesla’s service works as it mainly doesn’t aim to make money off its customers from its services that it offers, and it also bends backward for early customers. Tesla’s products tend to bring about long-term reliability as most of its cars have many fewer moving parts. Moreover, with the continuous improvement designs of its vehicles, Tesla tends to make them more reliable. Thus, making them cheaper to fix. However, with all those advantages Tesla brings about, there are some changes or improvements that Tesla could focus on for its success. Firstly, Tesla tends to have a mobile service whereby most customers can check issues and be solved through the mobile service. This forces the customers to make appointments through a mobile application to get their cars fixed. Not all customers are convenient with using the mobile service others prefer face-to-face or phone conversation with the technician. I will propose the company hire more people for the existing service centers and hope to open new ones in areas with high sales for them to perform services to their customers. Secondly, most customers who use Tesla have complained of getting an appointment after a few weeks. Tesla needs to hire more mobile service technicians, and according to Fosse (2020), Tesla needs to open more service centers and increase their staff to support its growth. With Tesla aiming to reduce the service demand needed through their innovative design, Tesla must have a little more service to protect its reputation.

· Fosse, P. (2020, September 15). Suggestions To Improve Tesla Service To Meet Mainstream Buyers’ Expectations. Retrieved April 5, 2021, from Torque News website: https://www.torquenews.com/11681/suggestions-improve-tesla-service-meet-mainstream-buyers-expectations

What kind of communication needs to occur between management, employees, and the change agent(s)?

Elon Musk, the CEO and the face of Tesla, isn’t a fan of bureaucracy meetings hierarchy or any other system to hinder immediate communication (Kanter & Loria, 2019). He expects employees to apply common sense to the task at hand rather than wasting time going through various managers to pass on a piece of information. According to an email sent to employees by Elon Musk cited in Bariso (2017), he stated that it’s down for data to go from one manager to its employee and then back the same way will lead the managers that encouraged finding themselves working in another company. Tesla is encouraging direct communication among its employees in various departments in that it uses the shortest path to get the job done and mainly discourages the chain of command communication. In other words, the organizationallows a free flow of information between all departments to get the job done within the shortest period, rather than wasting time passing information from one director of another department to the director of other departments to get the data to a particular employee.

· Bariso, J. (2017, August 30). This Email From Elon Musk to Tesla Employees Describes What Great Communication Looks Like. Retrieved April 5, 2021, from Inc.com website: https://www.inc.com/justin-bariso/this-email-from-elon-musk-to-tesla-employees-descr.html

· Kanter, J., & Loria, K. (2019, June 13). These are eight strict workplace rules Elon Musk makes his Tesla employees follow. Retrieved April 5, 2021, from Insider website: https://www.businessinsider.com/elon-musk-productivity-tips-for-tesla-employees-2018-4?IR=T

Identify at least two proactive steps the organization needs to take today to avert possible problems in the future.

In the third quarter of 2017, there were production woes whereby the company intended to produce 1500 model 3 cars for September alone but only achieved creating 222 modelsthree cars (Global Electronic Services Inc, 2017). This originated because being dependent on one external supplier as an external supplier had issues with Tesla, forcing the Tesla manufacturers to rework one of the four steps to create their car batteries. To avoid such problems in the near future, Tesla should aim to be independent in making all of its parts rather than depending on third-party suppliers. Self-reliance in manufacturing your parts tends to create more control over production and enables the company to avoid third-party products’ risks. With Tesla using highly automated systems, the company should opt to value adaptability more as humans can adapt to change more than artificial intelligence (AI), Floreano (2018), which also led to the company’s reduced output.

· Floreano, D. (2018). Tesla’s problem: overestimating automation, underestimating humans. Retrieved April 5, 2021, from IMD business school website: https://www.imd.org/research-knowledge/articles/teslas-problem-overestimating-automation-underestimating-humans/

· Global Electronic Services Inc. (2017, November 11). Tesla Manufacturers Work to Overcome Production Issues. Retrieved April 5, 2021, from Global Electronic Services website: https://gesrepair.com/tesla-manufacturers-work-overcome-production-issues/

Identify and explain the most significant obstacle that might be encountered by each of the following: management, employees, the change agent(s), and other significant stakeholders?

One of the significant obstacles that face Tesla’s management is receiving lawsuits from different investors and other stakeholders. According to various petitions that have been against Tesla, they tend to be expensive for the company as they have to hire or appoint costly lawyers to get the best favorable decision. With this, it tends to affect a company’s funding, and the share prices might fall and go down with each lawsuit thus, putting the company at risk. According to Alamalhodaei (2021), a Tesla investor sued the company and Musk for the continuous sending of erratic tweets that tended to violate the settlement with the US Security and Exchange Commission. The Investor stated that with Musk’s erratic tweets, it tends to face potential fines and penalties from various regulators that could drive down the company’s share price that’s putting the company at risk.
Employees at Tesla tend to face more layoffs, and those that have been fired tend to point out that Musk has created a more toxic environment working at Tesla (Matousek, 2020). The electric car market becoming more demanding extends to more job stress and employees working long hours. According to the survey done by Matousek (2020), stated that the nine former employees interviewed, one of them said that there are a million things that might go wrong from a car being manufactured and reaching the final consumer; thus, one needs to be perfect everywhere in every step along the way or else one would be fired.

· Alamalhodaei, A. (2021, March 13). Elon Musk, Tesla board, sued in a lawsuit alleging “erratic” tweets violate a fiduciary duty. Retrieved April 5, 2021, from TechCrunch website: https://techcrunch.com/2021/03/12/elon-musk-tesla-board-sued-in-lawsuit-alleging-erratic-tweets-violate-fiduciary-duty/

· Matousek, M. (2020, March 23). Tesla is having another chaotic year — these are the biggest challenges that Tesla has faced in 2019 (TSLA). Retrieved April 5, 2021, from Insider Africa website: https://africa.businessinsider.com/lifestyle/tesla-is-having-another-chaotic-year-these-are-the-biggest-challenges-tesla-has-faced/zehy5mr

What sacrifices might need to be made to accomplish the goals/objectives of this organization?

According to Brooks (2018), the company’s mission is accelerating the world’s transition to sustainable energy. To achieve this mission, Tesla opts to recruit people who genuinely believe the company’s mission—having employees who share the common goal and drive the company to achieve its mission and vision, thus creating a loyal employee base. For Tesla to maintain and be competitive in the electric car market, it has to ensure that its employees will work tremendously hard and improve their communication channels. Tesla is also aiming to build a medium-sized, mass market and low weight vehicle it will tend to move to a high strength steel construction or have a new aluminum chassis. Advantages of these cars are that it’s fast and most likely affordable. For Tesla to be competitive in the electric car market, it will lower their price benchmark for their cars as Nissan and GM have sold more electric vehicles than Tesla because of the cost that is less than the target price set by Tesla.

· Brooks, R. (2018, July 23). The Challenge of Maintaining Tesla’s Mission-Driven Culture. Retrieved from Peakon website: https://peakon.com/blog/employee-success/tesla-company-culture/

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