COURSE/UNIT INFORMATION

SCQF – LEVEL 11 EXTENDED DIPLOMA IN GLOBAL

Course
BUSINESS MANAGEMENT
Course Level Postgraduate
Strategic Leadership and Human Resource Practices in
Module Name
Organization
Awarding Body Scottish Qualification Authority
Module Code HX3W04
Faculty

ASSIGNMENT INFORMATION
Full/ Part
Full
Assignment
Assignment brief IV
Dr.Vivek Mohan
by
Assessor
Assignment due
date

TO BE FILLED BY THE STUDENT

Student Name Jehad Alwadi
Student ID 977025014900
[email protected]
Email ID
Date Submitted
4 - 4 - 2025
Turnitin ID
31634611
USW1010
Turnitin Key

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 ASSESSMENT FEEDBACK
TO BE FILLED BY THE ASSESSOR
Assessment type Marks Marks Awarded
Executive Summary 5
Introduction 15
Literature Review 20
Application of knowledge and understanding 20
Change Implementation Plan 30
Recommendations and Conclusions 10
Overall Score 100
Overall Marks achieved
GRADE ACHIEVED
Summative Feedback by Assessor for further improvement

Comments for REDO submission(If applicable)

Assignment – Strategic Leadership and Human Resource Practice in Organization

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Learning Outcome 1: Critically analyze the significance of Strategic Human Resources
Management and its changing landscape in organizations.

 PC 1.1 Critically analyze the purpose and functions of Human Resources Management in
organizations.

 PC 1.2 Review the scope of Staffing, Development and Compensation HRM activities in your
chosen organization.

 PC 1.3 Analyse the contributions of Human Resources Management activities in achieving

Organizational Objectives.

 PC 1.4 Critically discuss the paradigm shift in various perspectives on Strategic Human
Resources Management affecting the contemporary HRM issues of organizations.

Learning Outcome 2: Critically discuss the impact of Human Resources Management

activities on the Organisational Performance.

 PC 2.1 Critically discuss the link between Human Resources Management activities and
Organizational Performance.

 PC 2.2 Apply critical analysis of the contributions of Human Resources Management activities
to the Organizational Performance Outcomes in an organization.

 PC 2.3 Explore and discuss the impact of Human Resources Management on Organizational
development.

Learning Outcome 3: Evaluate various leadership styles and practices in organizations.

 PC 3.1 Evaluate a range of Leadership theories and models for organizational management.

 PC 3.2 Explore and discuss application of various leadership theories and models for
organizational management.

 PC 3.3 Conceptualize the best/most suited leadership styles for organizational development for
your chosen organization.

Learning Outcome 4: Plan how to implement change in an organization.

 PC 4.1 Critically analyze the factors driving change in organizations.

 PC 4.2 Evaluate a range of change management theories and models.

 PC 4.3 Develop a change management implementation plan.

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  PC 4.4 Plan how to communicate the change implementation plan to organizational
stakeholders.

 PC 4.5 Critically analyse strategies to overcome resistance.

STRATEGIC LEADERSHIP & HUMAN RESOURCE PRACTICES IN

ORGANISATIONS

Module description

The purpose of this module is to discuss and explain the role of strategic HRM and
leadership practices in an organization and their influence on the overall performance and
competence of the organization. This module is designed to develop an understanding about the
contemporary practices of strategic human resource management and the paradigm shift in the
approaches and methods related to various functions of HRM like strategic recruitment and
selection, strategic leadership, strategic performance management and employee development to
name a few. It also highlights the role and significance of leadership styles and practices during
the planning and implementation of change in the organization. Upon successfully completing
the module, the participants will be able to have comprehensive knowledge about the wider
business context in which the manager has to lead, perform, and make effective decisions.
Learning outcomes

 LO 1: Critically analyze the significance of Strategic Human Resources Management and

its changing landscape in organizations.
 LO 2: Critically discuss the impact of Human Resources Management activities on
organizational Performance.
 LO 3: Evaluate various leadership styles and practices in organizations.
 LO 4: Plan how to implement change in an organization.

Expectations

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 1. Materials Access

All learning materials are provided in the form of a module kit and can be accessed from
the Learning Management system (LMS)

2. Learning Hours

Students need to be aware of their commitment requirements in regard to study time. In

order to give you an indication of that, we have based the following information on the
United Kingdom (UK) Higher Education Quality Assurance Agency guidelines. “The
notional learning hours associated with qualifications, programmes and individual units
of study are based on a broad agreement across institutions that students can expect to
spend 10 hours learning on average in order to gain one academic credit unit” (QAA
2006).

3. Re-sit

If you do not secure a pass, please read closely the feedback and speak with your Course
leader(s) or faculty. After consulting the feedback, close attention is essential to rework
on the areas of weakness, and then resubmit the work at the next opportunity. As per the
QAA requirements, only one REDO is allowed where the marks will be capped at a Pass.

4. Plagiarism

All forms of plagiarism are taken seriously, and any suspected cases will be investigated
thoroughly. If a case is found proven then the work will be graded as a fail and the case
will be reviewed by the academic committee.

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 5. Student appeals

There are no re-evaluations as the marks are graded and internally verified before release.
However, as per our appeals policy, a student can make an appeal to the course leader
which will be then reviewed by the academic committee (please check our academic
policies and procedures manual for more information)

6. Assignment submission extension

Students can apply for extensions via the LMS based on extenuating circumstances (if
any) with evidence (proof) as per our extensions policy

General Guidelines

1. Complete the ‘ To be filled by the student section’ in the cover page

2. All assignments must be submitted as an electronic document in MS word via the LMS (Use
12 Times New Roman script with 1.5 spacing between lines)
3. The results are declared only if the student has met the mandatory attendance requirement of
75% and/or minimum 50 % under extenuating circumstances approved and ratified by the
academic committee and the examination board
4. The assignment should not contain any contents with references cited from websites such as
ukessays.com, styudymode.com, slideshare.net, scribd.com, Wikipedia but should contain
references/citations from credible academic journal and articles.
5. Submit the assignment in MS word document with the file name being:
First Name Last Name _ Module Code
Example: John Smith_GM701

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 Checklist

I have filled the student Information columns below.

✘

✘ The contents of my assignment have been submitted to Turnitin and I have attached
the Turnitin report

I have strictly followed Harvard Referencing Style and Citations.

✘

I acknowledge and adhere to the institution's AI Policy Statement, ensuring the ethical
and responsible use of AI tools, and confirm that all my submissions will reflect
✘

originality and integrity.

✘ I declare that all websites and AI tools utilized during the preparation of this
assignment comply with the AI Policy.

ASSIGNMENT TASK - REPORT

Word count - 4000 – 5000 words

Ensure that there are a minimum of 12 academic articles correctly referenced including the
intext citations in your assignment.
Scenario:
The Covid-19 pandemic has caused tremendous disruption in lives and in business, and the
human resources function is the key to catalyzing changes in the workplace. In wake of the
Covid-19 pandemic, the top management in your organisation has decided to implement a one-
year work-from-home policy. Given the fact that there will be no employees physically present
in the organisation, this policy change will have an impact on different HRM practices within
your organisation. You are the Vice President – Human Resources and you need to write a report
on how the organisation will handle this change and its impact on different HRM activities. You

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can choose your own organization or another other organisation of your choice for writing this
report. Your report must be based in the following format:

1. Executive Summary (5 marks)

2. Provide a brief introduction of the organisation and critically analyse the role of different HR
functions in enabling your organisation to achieve its strategic objectives while reviewing
staffing, development and compensation practices in detail. (15 marks)
3. Critically discuss and analyse the effect of Strategic HRM towards contribution and impact
of HRM activities on organisational performance and development. (20 marks)
4. Evaluate any TWO leadership theories and discuss their application in context of your
organisation. Also, propose the best/most suited leadership style for your chosen
organisational development. (20 marks)
5. Critically analyse the factors driving change and apply any TWO change management
models to your organisation, and strategies to overcome resistance. Develop a change
management implementation plan along with a communication plan to address the new
work-from-home policy. (30 marks)
6. Provide overall recommendations and final conclusion to be given for the chosen
organisation. (10 marks)
Harvard Referencing should be maintained throughout of the assignment

Performance Descriptors

Performance descriptors indicate how marks will be arrived at against each of the above
criteria. The descriptors indicate the likely characteristics of work that is marked within the
percentage bands indicated.
(70-100%) (60-69%) (50-59%) D (40-49%) E (0-39%)
Work of an Work of a good Work of a pass Fail Fail
outstanding standard standard (Resubmission (Resubmission
standard allowed) not allowed)
Executive Exemplary Competent Basic compilation Weak compilation Poor compilation
Summary and compilation with compilation with with sufficient with sufficient with sufficient
Introduction detailed sufficient background on background on background on
(20%) background on background on concepts of HRM, concepts of HRM, concepts of HRM,
concepts of HRM, concepts of HRM, its functions, its functions, its functions,
its functions, its functions, linkage to SHRM linkage to SHRM linkage to SHRM
linkage to SHRM linkage to SHRM and organizational and organizational and organizational
and organizational and organizational performance. performance. performance.
performance. performance. Average links Superficial links Sketchy links

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 Mature links made Sound links made made between made between made between
between relevant between relevant relevant ideas, relevant ideas, relevant ideas,
ideas, theories and ideas, theories and theories and theories and theories and
practice. Extensive practice. A practice. A very practice. An practice. No
range of relevant sufficient range of limited range of insufficient range relevant sources;
sources; those relevant sources; relevant sources; of relevant from among those
identified beyond from among those from among those sources; none from identified in
classroom identified in identified in among those classroom
sessions; are used. classroom classroom identified in sessions; are used.
An argumentative sessions; are used. sessions; are used. classroom No perspective is
perspective is An evocative A descriptive sessions; are used. presented in the
presented perspective is perspective is A vague interpretation of
demonstrating presented in the presented in the perspective is scope of staffing,
originality and interpretation of interpretation of presented in the development and
creativity in the scope of staffing, scope of staffing, interpretation of compensation. Too
interpretation of development and development and scope of staffing, many errors in
the scope of compensation. compensation. development and referencing or
staffing, Negligible errors Evident errors in compensation. grammar or
development and in referencing or referencing or Repeated errors in syntax.
compensation. No grammar or grammar or referencing or
obvious errors in syntax. syntax. grammar or
referencing or syntax.
grammar or
syntax.
Affect of SHRM An exceptional A good analysis of A basic analysis of A weak analysis of A poor analysis of
& HRM on Org analysis of the the literature is the literature is the literature is the literature is
Performance literature is developed. developed. developed. Mere developed. No
(20%) developed. Summarizes and Descriptive compilation of synthesis of the
Summarizes and shows sound presentation of the information. literature
shows insightful synthesis of the literature Includes no information.
synthesis of the literature information. identification and Identification and
literature information, Limited analysis of gaps. analysis of gaps is
information including identification but No linkage is absent. No linkage
including identification and no analysis of established among is established
identification and analysis of gaps. gaps. Average all the among all the
analysis of gaps. Good linkage is linkage is organizational organizational
Strong linkage is established among established among performance performance
established among all the few of the outcomes like outcomes like
all the organizational organizational growth, growth,
organizational performance performance profitability, ROI, profitability, ROI,
performance outcomes like outcomes like competitive competitive
outcomes like growth, growth, advantage, legal advantage, legal
growth, profitability, ROI, profitability, ROI, compliance, compliance,
profitability, ROI, competitive competitive strategic objectives strategic objectives
competitive advantage, legal advantage, legal attainment, and attainment, and
advantage, legal compliance, compliance, key stakeholder key stakeholder
compliance, strategic objectives strategic objectives satisfaction. satisfaction. Too
strategic objectives attainment, and attainment, and Repeated errors in many errors in
attainment, and key stakeholder key stakeholder referencing or referencing or
key stakeholder satisfaction. Dr. satisfaction. Dr. grammar or grammar or
satisfaction. Dr. Dave Ulrich’s Dave Ulrich’s syntax. syntax.
Dave Ulrich’s Strategic HR Strategic HR
Strategic HR Model is well Model is loosely
Model is clearly resonated. referred to.
synthesized. No Negligible errors Evident errors in
obvious errors in in referencing or referencing or
referencing or grammar or grammar or
grammar or syntax. syntax.
syntax.
Leadership The work The work A reasonably well The examination The examination
Practices (20%) thoroughly examines the examination of the of the scenario at of the scenario at
examines the scenario at the scenario at the the chosen the chosen
scenario at the chosen chosen organization is not organization is not
chosen organization. The organization. The well done. The well done. The
organization. The outcomes are outcomes are outcomes are outcomes are poor.
use of the good. The use of obvious and sketchy. The use The leadership
leadership models the leadership average. The use of the leadership models are not
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 clearly bring out models clearly of the leadership models are evident used and hence the
the alignment of bring out the models are evident but the outcomes outcomes fail to
the strategic HR alignment of the but the outcomes somewhat fail to present the
activities to strategic HR are descriptive present the alignment of the
organizational activities to about the alignment of the strategic HR
goals and organizational alignment of the strategic HR activities to
objectives. Highly goals and strategic HR activities to organizational
practical objectives. Some activities to organizational goals and
justifications are sound organizational goals and objectives. Failure
provided. justifications are goals and objectives. Weak to provide
Illustrations and provided. objectives. justifications are justifications.
Tables are Illustrations and Considerable provided.
properly Tables are justifications are Illustrations and
captioned. captioned. provided. Tables are not
Illustrations and captioned.
Tables are not
necessarily
captioned.
Change An ability to The work The work There may be little No application of
Implementation successfully demonstrates a demonstrates a evidence of an theoretical
Plan (30%) synthesize willingness to competence to ability to apply principles to the
theoretical issues question and to explore issues and theoretical case scenario or a
into practice and explore issues and to synthesize principles to the wider context of
evaluate the to synthesize theoretical case scenario or a SHRM and
possible theoretical perspectives and wider context of Change Mgmt.
implications and perspectives and practical SHRM and Conclusions
lessons of SHRM practical application within Change Mgmt. unrelated and
and Change Mgmt. application within chosen case Conclusions confused or
Ideas are presented chosen context context of SHRM unrelated to the illogical and
in a succinct SHRM and and Change Mgmt. scenario. Lessons unsubstantiated.
manner and Change Mgmt. Some helpful learned either Lessons learned
conclusions are Some meaningful conclusions and superficial or either superficial
well reasoned well-reasoned acknowledgement lacking. or lacking.
which have conclusions and of lessons learned. Possibly no real
relevance to the attention given to attempt to address
scenario. lessons learned assignment brief in
which have respect of actual
relevance to the questions asked.
scenario.
Recommendation Well-organised, Well-organised, Reasonably well- Poor organisation; Assertions little
s and Conclusions logical, fully logical, supported organised, logical, gaps in reasoning; related to
(10%) supported by by evidence, generally some obvious evidence,
evidence, conclusions fairly supported by conclusions frequently illogical
conclusions clear clear and arise evidence, omitted for the list; or arbitrary;
and arise from from results & conclusions fairly other conclusions conclusions if
results/discussion; discussion; clear and arise not especially presented are
practical and practical and from results & driven by the disorganized;
feasible, with clear feasible, with clear discussion; findings but from alternatives not
consideration of consideration of practical and ‘common sense’. considered; no real
SHRM issues. SHRM issues. feasible, with No real understanding of
Recommendations Recommendations unclear or weak implications and the need to draw
driven by good driven by decent consideration of recommendations conclusions,
deductions from deductions from SHRM issues. weak and implications and
findings. findings. Recommendations incoherent. recommendations
not always driven from results.
by good
deductions.

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(START WRITING YOUR ANSWER HERE…..)

Strategic Leadership and Human Resource

Practices in Tesla
Introduction
Tesla, Inc. is a globally recognized leader in the electric vehicle (EV) and clean energy industry.
Founded in 2003 by a group of engineers, the company has transformed the automotive sector by
promoting sustainable transportation solutions. Headquartered in Austin, Texas, Tesla is known
for its innovative approach to vehicle manufacturing, battery technology, and renewable energy
solutions. The organization’s mission, “to accelerate the world’s transition to sustainable
energy,” reflects its commitment to environmental consciousness and technological
advancement. Over the years, Tesla has expanded its product line from electric cars to solar
energy products and energy storage solutions, positioning itself as a key player in the global
clean energy movement. Despite facing numerous challenges, Tesla remains a dominant force in
the industry, largely due to its strategic leadership and innovative human resource management
practices.

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Leadership plays a crucial role in Tesla’s success, with its CEO, Elon Musk, being a highly
influential and controversial figure. His leadership style is often described as visionary and
transformational, driving Tesla’s aggressive expansion and technological breakthroughs.
Unlike traditional automotive companies, Tesla follows an unconventional business model,
emphasizing direct sales, software-driven vehicle operations, and continuous innovation. Musk's
ability to inspire employees and push the limits of what is possible has positioned Tesla as one of
the most valuable companies in the world. However, his leadership approach has also been
criticized for being intense, demanding, and sometimes unpredictable, creating both
opportunities and challenges for the organization.
Tesla’s Human Resource Management (HRM) practices also contribute significantly to its
competitive edge. The company prioritizes talent acquisition, seeking highly skilled individuals
who can thrive in a fast-paced and innovation-driven environment. Tesla’s workforce is
encouraged to think creatively and challenge conventional industry norms. The HRM strategy
aligns with Tesla’s culture of continuous improvement, fostering an environment where
employees are expected to adapt to rapid changes and contribute to technological advancements.
However, the organization has faced criticism regarding employee burnout, high turnover rates,
and workplace culture challenges. Balancing innovation with employee well-being remains a
critical aspect of Tesla’s HR strategy.
Another key aspect of Tesla’s management is its approach to change and adaptation. The
automotive industry is evolving rapidly, with increasing demand for electric vehicles, stricter
environmental regulations, and advancements in autonomous driving technology. Tesla’s ability
to navigate these changes through strategic leadership and HRM practices has been a defining
factor in its success. The company’s willingness to take risks, implement new technologies, and
disrupt traditional market structures has solidified its reputation as an industry pioneer. However,
such rapid innovation also requires effective change management strategies to ensure smooth
transitions and employee alignment with organizational goals.
This report will explore Tesla’s strategic leadership and HRM practices in depth, analyzing how
the company leverages leadership theories, workforce management strategies, and change
management principles to maintain its competitive advantage. It will also examine the challenges
Tesla faces in terms of leadership decisions, employee relations, and organizational change.
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Finally, recommendations will be provided to enhance Tesla’s HR strategies and leadership
approaches, ensuring sustainable growth and long-term success.

Strategic Leadership in Tesla

2.1 Definition and Importance of Strategic Leadership
Strategic leadership refers to the ability of an organization’s leaders to set a clear vision, make
informed decisions, and guide their teams toward long-term success. It involves not only
managing day-to-day operations but also planning for future growth, adapting to industry trends,
and fostering innovation. In a highly competitive and rapidly evolving sector like the electric
vehicle (EV) industry, strategic leadership is crucial for ensuring sustainability and continued
advancement.
For a company like Tesla, operating at the intersection of technology, energy, and transportation,
leadership plays a fundamental role in determining its direction. Strategic leaders at Tesla must
be capable of making high-impact decisions, often in uncertain and challenging conditions. The
ability to foresee market shifts, invest in research and development, and manage risks is essential
for sustaining the company’s competitive edge. Furthermore, leadership at Tesla must not only
focus on innovation but also consider ethical concerns, employee engagement, and operational
efficiency. Effective strategic leadership ensures that Tesla remains an industry leader while
navigating external pressures such as government regulations, supply chain disruptions, and
technological advancements.
2.2 Elon Musk’s Leadership Style
Elon Musk, the CEO of Tesla, is widely regarded as a transformational leader who has
revolutionized multiple industries, including automotive, aerospace, and energy. His leadership
style is characterized by visionary thinking, risk-taking, and an intense drive for innovation.
Musk’s approach to leadership has played a critical role in Tesla’s rapid growth, making it one of
the most valuable automobile manufacturers in the world.
Visionary Leadership
Musk is known for his long-term vision, which extends beyond just making electric cars. His
broader mission is to create a sustainable future by promoting clean energy solutions. This vision
drives Tesla’s strategic initiatives, including advancements in battery technology, solar energy,
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and autonomous driving. Unlike traditional car manufacturers, Tesla operates as a technology
company, integrating software-driven solutions into its vehicles to enhance performance and user
experience.
Risk-Taking and Innovation
A defining characteristic of Musk’s leadership is his willingness to take bold risks. Tesla has
introduced groundbreaking innovations such as over-the-air software updates, self-driving
technology, and the Gigafactory model for large-scale battery production. While these initiatives
have propelled Tesla ahead of its competitors, they also come with significant financial and
operational risks. Musk’s ability to make high-stakes decisions and push boundaries has led
Tesla to disrupt the automotive industry.
Demanding Work Ethic
Musk is known for his relentless work ethic, often expecting the same level of dedication from
his employees. He has publicly stated that he works up to 100 hours per week and encourages
employees to embrace a high-performance culture. While this approach has resulted in Tesla
achieving ambitious goals within short timeframes, it has also drawn criticism for creating a
stressful work environment. Employees at Tesla often report experiencing burnout due to the
intense pressure and high expectations.
Controversies and Challenges
Despite Musk’s success, his leadership style has also faced significant criticism. His direct and
sometimes unpredictable communication style, especially on social media, has led to legal
challenges and conflicts with regulators. For example, his tweets about taking Tesla private in
2018 resulted in a legal battle with the U.S. Securities and Exchange Commission (SEC).
Additionally, Musk’s hands-on involvement in multiple projects, including SpaceX and
Neuralink, has raised concerns about his ability to effectively manage Tesla in the long run.
2.3 Leadership Theories in Tesla
Transformational Leadership
Transformational leadership focuses on inspiring and motivating employees to exceed
expectations and embrace change. Musk embodies this leadership style by challenging
conventional thinking and encouraging employees to push the limits of innovation. Under
his leadership, Tesla has consistently introduced industry-changing products such as the Model
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S, Model 3, and the Cybertruck. His ability to create and communicate a compelling vision has
inspired both employees and investors, leading to Tesla’s massive growth.
Situational Leadership
Tesla’s leadership approach also aligns with situational leadership, where decision-making
varies based on circumstances. Given Tesla’s rapid innovation cycles and frequent product
launches, leaders within the company must quickly adapt to changes in technology, customer
demands, and market conditions. Musk’s decision-making style reflects this adaptability, as he
often shifts priorities to respond to emerging challenges or opportunities. For example, during
the COVID-19 pandemic, Tesla swiftly repurposed its production facilities to manufacture
ventilators, showcasing its ability to adapt to external crises.
Autocratic vs. Democratic Leadership
Musk’s leadership style exhibits characteristics of both autocratic and democratic leadership.
On one hand, he is known for making unilateral decisions, often imposing high expectations on
employees and driving aggressive deadlines. On the other hand, he encourages innovation by
allowing engineers and designers to contribute ideas freely. This combination of leadership
styles has resulted in Tesla’s ability to achieve rapid advancements while maintaining a high
level of creative problem-solving among its workforce.
Challenges of Tesla’s Leadership Approach
While Tesla’s leadership style has driven significant success, it has also led to challenges
related to employee retention and morale. Reports of high turnover rates, long working hours,
and intense pressure indicate that Musk’s leadership style may not be sustainable for all
employees. Balancing innovation with a supportive work culture remains a key challenge for
Tesla’s leadership team.
2.4 Impact of Leadership on Tesla’s Performance
The strategic leadership approach at Tesla has had a profound impact on the company’s
performance. Under Musk’s guidance, Tesla has achieved remarkable milestones, including the
mass production of electric vehicles, advancements in battery technology, and the expansion of
Gigafactories across the globe. The company’s ability to introduce innovative products has made
it a market leader in the EV industry, surpassing traditional automakers in terms of market
valuation.
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However, Tesla’s leadership style has also contributed to operational challenges. The intense
work culture and high-pressure environment have resulted in frequent employee turnover and
public scrutiny. Additionally, Musk’s controversial public statements and unpredictable
decision-making have occasionally led to legal and financial setbacks.
Despite these challenges, Tesla’s leadership has enabled the company to outperform
competitors, disrupt traditional automotive models, and establish itself as a key player in
the future of sustainable energy. Moving forward, Tesla must refine its leadership and HR
strategies to ensure long-term stability while maintaining its innovative edge.
Human Resource Management Practices in Tesla
Tesla’s success in the electric vehicle and clean energy industry is driven not only by its
innovative technology but also by its human resource management (HRM) strategies. The
company places a strong emphasis on attracting top-tier talent, fostering a high-performance
culture, and ensuring that employees align with its long-term mission of sustainability and
innovation. However, Tesla’s work environment, leadership style, and employee
management practices have also been subject to criticism and controversy.
This section explores Tesla’s HRM practices, focusing on its recruitment strategies, employee
performance management, workplace culture, compensation policies, and engagement
initiatives. These factors collectively shape Tesla’s workforce and contribute to its overall
productivity and competitiveness in the industry.
3.1 HR Strategies and Policies
Recruitment and Talent Acquisition
Tesla employs a highly selective and strategic recruitment approach, ensuring that it hires
individuals who not only possess the required technical skills but also fit into the company’s
culture of rapid innovation. The hiring process is designed to identify problem solvers,
individuals with a passion for sustainability, and those who thrive in high-pressure
environments. Unlike traditional firms that primarily focus on academic credentials, Tesla
prioritizes practical skills, hands-on experience, and the ability to work in dynamic settings.
Tesla actively recruits from top universities, competitive tech firms, and the automotive
industry. However, the company also welcomes applications from non-traditional
backgrounds, focusing on candidates who demonstrate exceptional skills and a strong
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problem-solving mindset. Tesla’s technical hiring process includes problem-solving
assessments, coding challenges (for software roles), and real-world project evaluations, ensuring
that new hires can contribute to Tesla’s mission from day one.
Diversity and Inclusion Policies
Diversity and inclusion are increasingly important in modern HRM practices, and Tesla has
acknowledged the role of a diverse workforce in fostering innovation. The company has taken
steps to increase representation across gender, race, and professional backgrounds.
However, Tesla has faced legal challenges regarding workplace discrimination, including
allegations of racial bias, gender discrimination, and unfair treatment of employees.
Despite these challenges, Tesla has launched internal initiatives to improve workplace
diversity, including efforts to increase the number of women and underrepresented
minorities in leadership positions. The company’s hiring policies emphasize meritocracy, but
external critics argue that Tesla still has significant room for improvement in creating an
inclusive and equitable work environment.
3.2 Performance Management and Employee Development
Performance Evaluation and High Expectations
Tesla operates under a performance-driven culture, where employees are expected to meet
ambitious goals and consistently contribute to the company’s growth. The company utilizes
data-driven performance metrics, ensuring that individual contributions align with broader
corporate objectives. Managers conduct regular evaluations, tracking employees’ productivity,
efficiency, and ability to drive innovation.
Tesla’s performance appraisal system follows a meritocratic approach, rewarding employees
based on their achievements rather than tenure. Employees who exceed expectations may
receive promotions, bonuses, or stock options, reinforcing a culture of continuous
improvement. However, this model also leads to high stress levels, as employees feel pressure
to constantly outperform.
Employee Training and Professional Growth
Tesla invests in employee training and career development, ensuring that its workforce
remains up to date with the latest advancements in electric vehicle technology, artificial
intelligence, and sustainable energy solutions. The company provides on-the-job training,
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mentorship programs, and leadership development courses to prepare employees for higher-
level responsibilities.
Tesla’s training programs focus on technical excellence and problem-solving skills, enabling
employees to work across multiple disciplines. However, due to the fast-paced nature of the
company, structured training programs are often limited. Employees are expected to learn on
the job and develop skills through hands-on experience, which may be overwhelming for
those unaccustomed to such an environment.
Despite these challenges, Tesla’s commitment to employee development ensures that its
workforce remains skilled, adaptable, and capable of driving industry-wide innovations.
3.3 Workplace Culture and Employee Engagement
Intense and High-Pressure Work Environment
Tesla’s workplace culture is characterized by intensity, high expectations, and rapid
innovation. Employees are encouraged to take ownership of their projects, challenge
conventional thinking, and contribute bold ideas to the company’s mission. Tesla fosters a
start-up mentality, where employees work in small, dynamic teams that operate with minimal
bureaucracy.
However, Tesla’s work culture has been criticized for being overly demanding. Employees
often work long hours, with some reporting 12-hour workdays and six-day workweeks. The
company prioritizes speed and efficiency, sometimes at the expense of employee well-being
and work-life balance. While this intense work culture has led to groundbreaking
advancements in technology, it has also resulted in high turnover rates and employee
burnout.
Employee Motivation and Retention Strategies
To retain employees and keep them engaged, Tesla offers financial incentives, stock options,
and opportunities to work on industry-defining projects. Employees are motivated by the
company’s mission to revolutionize transportation and sustainable energy, creating a sense
of purpose and accomplishment.
However, Tesla’s high attrition rate suggests that many employees struggle with the
demanding expectations. To address this, Tesla must enhance employee well-being programs,
implement structured career advancement paths, and improve overall work-life balance.
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Creating a more sustainable and supportive work environment would likely improve
employee satisfaction and retention.
3.4 Compensation and Benefits
Competitive Salaries and Performance-Based Incentives
Tesla offers competitive compensation packages, ensuring that employees receive financial
rewards aligned with their performance. Salaries for technical roles, engineers, and
specialized professionals are above industry averages, reflecting the company’s need for
highly skilled talent. Employees are also eligible for performance bonuses, stock options, and
additional financial incentives, tying their personal financial success to Tesla’s overall growth.
Despite these attractive financial incentives, Tesla’s compensation model has faced criticism.
Some employees argue that long hours and intense workloads are not adequately
compensated, especially in lower-level positions. Addressing these concerns through salary
adjustments and improved benefits packages could enhance employee satisfaction.
Employee Benefits and Work-Life Balance
Tesla provides standard healthcare benefits, retirement plans, and wellness programs.
Employees receive medical, dental, and vision insurance, as well as 401(k) retirement
savings plans. However, some employees feel that Tesla’s paid time off policies and parental
leave benefits are insufficient, given the demands of the job.
Tesla’s work-life balance initiatives remain limited, with employees reporting difficulty in
taking time off due to aggressive project timelines. Implementing more flexible work
arrangements and enhancing mental health support programs could improve employee
morale and job satisfaction.
Conclusion
Tesla’s HRM practices play a fundamental role in maintaining its competitive edge in the
electric vehicle and sustainable energy sectors. The company’s focus on talent acquisition,
performance-driven culture, and employee motivation has contributed to its rapid growth
and innovation. However, Tesla faces challenges related to workplace culture, employee
burnout, and retention issues.
To ensure long-term success, Tesla must refine its HR policies, prioritize employee well-
being, and establish a more sustainable work environment. By balancing high performance
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with employee satisfaction, Tesla can continue to lead the global transition to clean energy
while fostering a motivated and engaged workforce.

Change Management in Tesla

4.1 Introduction to Change Management in Tesla
Change management refers to the structured approach used by organizations to transition from
their current state to a desired future state. Companies that operate in highly competitive and
innovative industries must frequently adapt to technological advancements, evolving
consumer demands, and market disruptions. Tesla, a leader in the electric vehicle (EV) and
sustainable energy sectors, has undergone numerous changes to maintain its competitive edge
and industry leadership.
Tesla’s approach to change management is unique due to its fast-paced work culture,
disruptive innovation strategies, and visionary leadership under Elon Musk. The company
continuously refines its business model, updates production processes, and invests in
cutting-edge technologies to drive efficiency and growth. However, these rapid transformations
come with challenges, including employee resistance, operational disruptions, and the need
for continuous workforce adaptation.
This section explores the key change management initiatives at Tesla, highlighting the
strategies implemented, challenges encountered, and the impact of these transformations
on the company’s success. By analyzing how Tesla handles change, we can understand how
businesses in highly dynamic industries can successfully navigate transitions while maintaining
market dominance and employee engagement.
4.2 Major Change Initiatives at Tesla
Tesla has implemented several major change initiatives over the years, shaping its trajectory as
an industry leader. These initiatives include:
1. Transition to High-Volume Production
One of the most significant changes at Tesla has been the shift from a niche luxury car
manufacturer to a mass-market producer. Initially, Tesla focused on low-production, high-
cost electric vehicles, such as the Roadster and Model S. However, with the launch of the
Model 3 and Model Y, the company needed to scale production significantly.
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This transition required substantial changes in manufacturing processes, supply chain
management, and workforce expansion. Tesla invested in Gigafactories worldwide, adopting
automation and advanced robotics to streamline production. However, this shift led to
production delays, quality control issues, and workforce strain, requiring rapid adaptation.
2. Adoption of Direct Sales Model
Unlike traditional automakers that sell vehicles through third-party dealerships, Tesla
introduced a direct-to-consumer sales model, relying on online platforms and Tesla-owned
showrooms. This change disrupted conventional car sales channels, allowing Tesla to have
greater control over pricing, customer experience, and brand positioning.
However, this transition faced legal challenges in various regions, as dealership associations
opposed Tesla’s model. To manage this change, Tesla engaged in policy advocacy, legal
battles, and digital marketing strategies to ensure a smooth shift to a fully digital sales
experience.
3. Workplace and Organizational Restructuring
Tesla has undergone multiple internal restructuring efforts, including workforce reductions,
leadership changes, and departmental realignments. These shifts were aimed at optimizing
efficiency, reducing costs, and aligning the workforce with business goals.
However, rapid restructuring often led to job insecurity, employee dissatisfaction, and
concerns about workplace stability. To address these issues, Tesla adopted performance-
based evaluations and transparent communication to ensure employees understood the
rationale behind these changes.
4.3 Challenges in Change Management at Tesla
Despite Tesla’s successful transformations, the company has encountered several challenges
in implementing change. These include:
1. Employee Resistance to Change
Employees often resist change due to job insecurity, increased workload, or lack of clarity
regarding new expectations. At Tesla, rapid transitions, high-performance culture, and
leadership-driven decisions have sometimes led to workforce dissatisfaction and pushback.

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To mitigate resistance, Tesla must focus on better communication, employee engagement
initiatives, and leadership involvement in addressing concerns. Change should be positioned
as an opportunity for growth rather than a disruption to stability.
2. Operational and Production Bottlenecks
Tesla’s fast-paced innovation cycles sometimes lead to operational challenges, particularly in
manufacturing. The company has experienced production bottlenecks, supply chain
disruptions, and quality control issues, especially during the mass production phase of Model
3 and Model Y.
Addressing these challenges requires better supply chain management, enhanced automation,
and strategic partnerships with suppliers. Tesla must also adopt agile change management
frameworks, allowing it to adapt quickly without compromising quality.
3. Leadership-Driven Change and Communication Gaps
Tesla’s change initiatives are often driven by CEO Elon Musk, whose bold decisions and
ambitious goals shape the company’s direction. While his leadership inspires innovation and
rapid progress, it also creates communication gaps and challenges in aligning mid-level
management and employees with these changes.
To enhance change management effectiveness, Tesla should implement structured
communication strategies, ensuring that employees at all levels understand and embrace the
company’s vision. Leadership should also encourage employee feedback to improve workplace
morale.
4.4 Strategies for Effective Change Management at Tesla
To successfully manage change, Tesla implements several key strategies, including:
1. Agile Change Management Approach
Tesla follows an agile change management model, allowing it to adapt quickly to industry
trends and technological advancements. This approach ensures that incremental changes can
be made without disrupting overall operations.
2. Employee Training and Upskilling
As Tesla introduces new technologies and automation, it invests in employee training
programs to equip its workforce with the necessary skills. Continuous learning opportunities
help reduce resistance to change and enhance employee adaptability.
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3. Transparent Communication
Tesla has improved its internal communication channels, ensuring that employees are aware
of upcoming changes, their impact, and how they can contribute. Regular town hall
meetings, internal newsletters, and leadership updates help align the workforce with Tesla’s
evolving goals.
4. Customer-Centric Change Management
Tesla’s change initiatives are always aligned with customer expectations and market
demands. Whether it's enhancing vehicle features, expanding service networks, or
improving battery technology, Tesla ensures that all transitions benefit the end consumer.
4.5 Conclusion
Tesla’s approach to change management has been instrumental in its rise as a market leader in
the electric vehicle and renewable energy industries. While the company has successfully
implemented major transformations, it has also faced challenges related to employee
resistance, operational bottlenecks, and communication gaps.
By adopting agile change management strategies, investing in workforce training, and
improving leadership communication, Tesla can navigate future transitions more
effectively. As the company continues to innovate and expand globally, managing change in a
structured and employee-friendly manner will be crucial for sustaining long-term success.

Challenges and Criticism of Tesla’s Leadership & HRM

Tesla’s success in the electric vehicle (EV) and clean energy sectors is largely driven by its
visionary leadership and dynamic workforce management strategies. However, the company
has faced significant criticism and challenges related to both its leadership style and human
resource management (HRM) practices. These issues have raised concerns regarding
workplace culture, employee treatment, organizational stability, and long-term
sustainability.
This section examines key challenges associated with Tesla’s leadership and HRM practices,
including Elon Musk’s management style, high employee turnover, workplace conditions,
and legal controversies.
5.1 Leadership Challenges at Tesla
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1. Elon Musk’s Controversial Leadership Style
Elon Musk, Tesla’s CEO, is widely recognized as a brilliant innovator and disruptor in the
tech and automotive industries. His leadership has been instrumental in Tesla’s rapid growth,
breakthrough technologies, and bold market strategies. However, his management
approach has drawn criticism for being high-pressure, unpredictable, and demanding.
Musk is known for setting extremely ambitious goals, often pushing employees to meet tight
deadlines and aggressive production targets. While this strategy has fueled groundbreaking
advancements, it has also contributed to high-stress levels, employee burnout, and unrealistic
expectations. Reports suggest that Tesla’s work environment is intense, with employees
expected to work long hours and operate under constant pressure.
Furthermore, Musk’s public statements on social media have sometimes led to controversies,
impacting Tesla’s stock value and corporate reputation. His unfiltered approach to
communication has created uncertainty among investors and regulatory bodies, raising
concerns about the stability of Tesla’s leadership.
2. High Employee Turnover and Retention Issues
Tesla has faced criticism for its high employee turnover rate, particularly in executive and
senior management positions. Several high-ranking executives, including heads of
engineering, finance, and HR, have left the company due to workplace pressure, leadership
conflicts, or strategic disagreements.
This high turnover raises concerns about organizational stability and continuity, as frequent
leadership changes can disrupt strategic planning and long-term business objectives.
Employees in lower-level positions have also expressed dissatisfaction with working
conditions, further contributing to staff attrition.
5.2 HRM Challenges at Tesla
1. Workplace Culture and Employee Treatment
Tesla’s workplace culture has been described as highly demanding and intense, with
employees expected to prioritize work over personal life. While some thrive in this fast-paced,
performance-driven environment, others struggle with the physical and mental toll of long
working hours.

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Reports indicate that some employees have experienced excessive workload pressure, minimal
work-life balance, and limited job security. Additionally, there have been allegations of harsh
disciplinary actions, where employees who fail to meet Tesla’s high standards face sudden
terminations or demotions.
2. Legal and Ethical Controversies
Tesla has been involved in multiple legal disputes and employee-related controversies. The
company has faced lawsuits regarding workplace discrimination, racial harassment, and
unfair labor practices. In some cases, employees have accused Tesla of fostering a toxic work
environment, where issues of gender inequality and racial bias have not been adequately
addressed.
Additionally, Tesla has been criticized for its stance on labor unions. Unlike many other
automotive companies, Tesla discourages unionization efforts, leading to conflicts with labor
advocacy groups. Critics argue that Tesla’s resistance to unions prevents employees from
negotiating better wages, working conditions, and job protections.
Conclusion
While Tesla remains a pioneering force in the EV and sustainable energy sectors, its
leadership and HRM practices have drawn criticism for being high-pressure, demanding,
and controversial. Addressing these challenges by fostering better employee relations,
improving workplace policies, and balancing innovation with employee well-being will be
essential for Tesla’s long-term sustainability and growth.

Recommendations for Tesla’s HR and Leadership Strategies

As Tesla continues to dominate the electric vehicle (EV) and renewable energy markets,
refining its leadership approach and human resource management (HRM) strategies will be
essential for sustained success. Addressing existing challenges in workplace culture, employee
well-being, and leadership communication can enhance organizational stability, employee
satisfaction, and long-term business performance.
This section outlines key recommendations for Tesla’s leadership and HRM strategies,
focusing on enhancing employee relations, improving workplace conditions, and fostering a
more structured leadership approach.
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6.1 Enhancing Leadership Effectiveness (250 words)
1. Balanced Leadership Approach
Tesla’s leadership style, driven by CEO Elon Musk’s visionary yet high-pressure
management, has yielded impressive results but also created workplace challenges. To ensure
long-term organizational health, Tesla should adopt a more balanced leadership approach,
combining innovation-driven decision-making with greater employee consideration.
Encouraging collaborative leadership, where executives and mid-level managers have greater
autonomy in decision-making, can reduce excessive dependence on Musk’s leadership. This
will enable a smoother transition in the event of leadership changes and foster a more stable
work environment.
2. Improved Communication and Transparency
Tesla’s leadership can benefit from more structured and transparent communication
channels. Implementing regular town hall meetings, structured employee feedback sessions,
and enhanced internal communication platforms can help ensure that employees feel
informed, valued, and aligned with the company’s goals.
Moreover, Tesla should refine its public communication strategy to prevent controversial
statements from affecting investor confidence and corporate reputation. Leadership should
focus on more strategic messaging that aligns with Tesla’s long-term objectives.
3. Leadership Development and Succession Planning
To ensure continuity and stability, Tesla should invest in leadership development programs
that prepare mid-level and senior managers for higher roles. Succession planning is crucial to
reducing the risks associated with sudden executive departures and ensuring a steady
leadership pipeline.
This can be achieved through executive training, mentorship programs, and structured
leadership development initiatives that empower managers to handle critical decisions
independently while maintaining Tesla’s innovation-driven culture.
6.2 Strengthening HRM Practices (250 words)
1. Employee Well-Being and Work-Life Balance
Tesla’s intense work culture has led to concerns about employee burnout and high turnover
rates. Introducing better work-life balance policies can improve employee satisfaction and
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productivity. Strategies such as flexible work schedules, mental health programs, and
structured rest periods can help reduce stress and exhaustion among employees.
Tesla should also emphasize employee recognition and reward programs to acknowledge
hard work, innovation, and long-term commitment. Providing performance-based
incentives, career growth opportunities, and enhanced benefits will improve retention and
motivation.
2. Workplace Diversity and Inclusion
Tesla should take proactive steps to address diversity and inclusion concerns by strengthening
policies related to gender equality, racial inclusivity, and anti-discrimination measures.
Creating employee resource groups, diversity training programs, and mentorship initiatives
can foster a more inclusive and supportive work environment.
Additionally, Tesla must ensure that complaints related to workplace discrimination and
harassment are addressed swiftly and effectively, promoting a zero-tolerance policy for any
form of workplace misconduct.
3. Embracing Labor Relations and Ethical HR Practices
Tesla has been criticized for its stance against labor unions and handling of employee rights.
While maintaining a direct relationship with employees is beneficial, Tesla should consider
constructive engagement with labor representatives to foster fair and transparent
negotiations on wages, working conditions, and job security.
Implementing third-party audits, ethical HR frameworks, and employee feedback systems
can ensure that Tesla’s workplace policies align with global labor standards, reducing legal
risks and enhancing its reputation as an employee-friendly company.
Conclusion
By enhancing leadership effectiveness, strengthening HR practices, and prioritizing
employee well-being, Tesla can cultivate a more stable, inclusive, and sustainable work
environment. Adopting these recommendations will enable Tesla to attract and retain top
talent, improve organizational performance, and maintain its position as a leader in
innovation and technology.

Conclusion
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Tesla has established itself as a pioneer in the electric vehicle (EV) and renewable energy
industries, demonstrating an unwavering commitment to technological advancement,
innovation, and sustainability. Under the leadership of Elon Musk, the company has
revolutionized the automotive market by popularizing electric mobility, direct-to-consumer
sales, and cutting-edge manufacturing techniques. However, Tesla’s rapid growth and
unconventional strategies have brought challenges in leadership, human resource
management (HRM), and change management, all of which impact the company’s long-term
stability and success.
This report has analyzed Tesla’s leadership strategies, HRM practices, and change
management approaches, while also addressing challenges, criticisms, and potential
improvements. The key takeaways highlight Tesla’s strengths, areas of concern, and the
necessity for strategic refinements to maintain its competitive edge in a rapidly evolving
market.
7.1 Key Findings from Tesla’s Leadership and HRM Practices (200 words)
Tesla’s leadership is visionary yet controversial, driven by Elon Musk’s ambitious, high-
pressure management style. While his leadership has accelerated Tesla’s growth, it has also
led to concerns regarding workplace stress, high employee turnover, and executive
instability. The company’s rapid decision-making and aggressive production goals have
fostered an environment of innovation but also increased workforce strain.
In terms of HRM, Tesla has implemented non-traditional workforce management strategies,
prioritizing high-performance expectations and direct engagement with employees.
However, criticisms surrounding employee well-being, diversity, and labor relations indicate
that improvements are needed to enhance job satisfaction and organizational stability.
Tesla’s change management strategies have allowed the company to adapt to market trends,
optimize production, and expand globally. However, challenges such as employee resistance,
supply chain disruptions, and inconsistent communication have posed obstacles to seamless
transitions. Strengthening leadership transparency, employee engagement, and structured
HR policies can improve workplace morale and operational efficiency.
7.2 Recommendations for Tesla’s Future Growth (200 words)

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To sustain its market dominance and organizational success, Tesla must adopt a more
balanced leadership and HRM approach. Implementing a structured leadership framework
with defined communication strategies and leadership development programs will help
ensure stability during transitions and minimize internal conflicts. Additionally, allowing
greater managerial autonomy will reduce over-reliance on Musk’s leadership, fostering a
more resilient organizational structure.
Tesla’s HRM practices should emphasize employee well-being, work-life balance, and
diversity initiatives. Introducing flexible work arrangements, structured performance
evaluation systems, and comprehensive training programs will enhance employee retention
and job satisfaction. Additionally, Tesla should actively address concerns related to labor
relations, anti-discrimination policies, and ethical workplace practices to create a more
inclusive and fair work environment.
Furthermore, improving change management strategies by integrating employee-driven
initiatives, proactive communication, and structured transition planning will help Tesla
navigate industry shifts more effectively. Establishing a stronger internal support system
will encourage employees to embrace change rather than resist it, improving long-term
adaptability.
7.3 Final Thoughts (100 words)
Tesla has disrupted the global automotive and energy industries, but sustaining long-term
growth and success requires a more structured and employee-centric approach. By refining
its leadership strategies, improving HRM practices, and enhancing change management
frameworks, Tesla can build a more sustainable, inclusive, and adaptive organization.
As the company continues to push the boundaries of innovation, prioritizing organizational
stability, ethical workforce management, and proactive leadership development will be
crucial in securing Tesla’s future as an industry leader. A well-balanced approach will enable
Tesla to drive both technological progress and employee satisfaction, ensuring continued
excellence in the years ahead.

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