Tesla’s Organizational Culture and Business Performance

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  • Introduction

  • The purpose of this paper is to analyze how an organization’s culture may affect its overall
    business performance. Since business entities have various work culture and philosophies, it is a good
    idea to identify a specific notion that can be identified in a particular company and enrich it. For this
    purpose, the company Tesla was chosen because of its wider influence towards the needs of the society
    when it comes to technology and related disciplines. The company was initially built upon the idea of
    producing electric cars that can automate driving. Eventually, it has evolved into a firm that now caters
    to energy, space and other related concepts. In the automotive industry, Tesla’s conventional
    competitors include companies with established market presence such as General Motors, Toyota, and
    Volkswagen. However, the aspect that sets it apart from them is that it has other divisions with very
    little competition like energy, battery, and space, making it more resilient to market competition.
    Culture
    A business organization aims to achieve one thing, to generate profits. While this notion might
    be too generic, various companies employ a specific organizational culture that can separate its
    operations from others. In the case of Tesla, the culture of mission driven innovation is widely
    implemented and encouraged (Meyer, 2018). In fact Elon Musk, one of the founders of Tesla, is not very
    much bothered about how his electric cars will compete with the market. Rather, he wants to solve the
    very dilemma of creating a car that is fully automated. As such, the company believes in the aspect of
    building its core operations to solve problems especially related to electric automobiles, energy
    resources and similar technologies. The company’s management believes in the innovation culture that
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    is based on the organization’s problem solving capability. It allows its workers to have a definite
    contribution to solve problems of the society by integrating their ideas into what they intend to build.
    Unlike with a conventional business culture where workers are instructed to follow specific guidelines,
    Tesla empowers its workforce to offer solutions for the automotive and energy industry. Relating Tesla’s
    organizational culture to Schein’s three levels of culture will reveal that Espoused Values are the most
    evident level. The researchers and workers in the company are very particular with delegating their
    knowledge and skills to solve a particular need in the market, a transition from fuel-based to electrical
    and automated form of transportation. Apart from the skills in assembly in testing, the people of Tesla
    all contribute to first establishing the concept behind the innovation they want to execute. In fact, Musk
    seemingly requires that each employee should have solved at least one problem (Dyer, 2015). The
    concept of making a car run on its own using an operating system is embedded in the values of the
    workers as innovative presentation of ideas. The aspect of Artifact may not be too obvious but
    Assumptions are identifiable to the unconscious desire of each employee to solve a problem.
    Development
    As mentioned, innovation is at the heart of Tesla’s mission to produce a vehicle that can run
    with electricity. Such a feat from its origin back in 2003 was already the main consideration if one is to
    enter the premises of the company. The linking factor that promoted the culture of innovation stemmed
    from addressing disadvantages related to petrol powered cars. Initially, the company was only
    represented by a few people who pioneered the project of electric car. Upon investor’s entry which
    includes Musk, corporate reorganization was implemented.
    From the very start, innovation has always been the core culture of Tesla’s business. It developed into a
    full mission based notion as it entered different segments like energy and portable power. As of the
    moment, very little has changed with regards to the business culture. Various modifications have been
    implemented in its succeeding electric car models leading to software based driving for automation.
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    Current State
    Elon Musk is still the CEO of Tesla which means the current organizational culture is maintained
    since the company’s inception. The motivation of people who work and apply for positions at Tesla are
    based on a shared goal of discovering new and better technologies without compromising the
    environment. However, such mission driven culture can sometimes take a toll at the aspect of efficient
    communication among the employees. Each one has a preferred way if forward thinking which may
    overshadow the importance of collaborative work. As of the moment, the culture is somewhat unstable
    and requires change. Some employees at the company has noted that communication procedures are
    among the primary concerns they have with the business culture. While communication is present, it is
    not an optimum level in Tesla and probably this is due to the fact that it is a tech innovator (Brooks,
    2018). One of the modifications and changes underway is the restructuring the company’s management.
    On May 14 of this year, Musk announced the change in the management wherein Musk said “We are
    flattening the management structure to improve communication, combining functions where sensible
    and trimming activities that are not vital to the success of our mission.”
    Conclusion
    An organization can only function if it has a solid structure for its process implementation. Most
    of the time, the structure is influence by the very organizational culture that is present in the business.
    The people who work under one company need to have a guiding principle so that the goal of the
    organization can be achieved. The workplace culture enables each individual to meet the expected
    results from the processes of the business. For Tesla, the problem solving and mission driven culture
    have always been the catalysts for innovation. In this regards, it is necessary that each of the individual
    working for the company adhere to the core values that allows the company to get an edge over its
    competitors. However, since profit generation is not the mere consideration of Tesla, there could be
    some lapses in the procedures of communication as indicated in the recent surveys among the
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    company. Because of such inefficiency, Musk has ordered a complete overhaul of its management
    process especially identifying the communication pattern as a priority. If the recent organizational
    culture has been having gaps in terms of coordination, the innovation driven strategy of the company
    may not be dispersed at an optimum rate.

 

SOLUTION

Struggling with where to start this assignment? Follow this guide to tackle your assignment easily!

Step-by-Step Guide to Structuring and Writing Your Paper on Tesla’s Organizational Culture and Business Performance

Step 1: Understand the Assignment Purpose
Your goal is to analyze how Tesla’s organizational culture affects its overall business performance. This means you will explain Tesla’s culture, how it developed, its current state, and its impact on business outcomes.

Step 2: Plan Your Paper Structure
A clear structure will help your paper flow logically. Based on the provided content, a good outline is:

  1. Introduction: State the purpose of the paper and why Tesla was chosen.

  2. Culture: Describe Tesla’s organizational culture focusing on mission-driven innovation, employee empowerment, and relate it to Schein’s three levels of culture (Artifacts, Espoused Values, Assumptions).

  3. Development: Explain how Tesla’s culture started and evolved with the company’s growth and diversification.

  4. Current State: Discuss the current organizational culture, highlighting strengths and challenges, such as communication issues and recent management changes.

  5. Conclusion: Summarize how Tesla’s culture impacts business performance and the importance of maintaining core values alongside addressing communication gaps.

Step 3: Write Your Introduction Clearly
Begin by explaining the purpose: to analyze Tesla’s culture and its impact on business. Briefly introduce Tesla, its origins, and why it stands out in technology and innovation.

Step 4: Expand on Tesla’s Culture
Detail the innovation-driven culture that empowers employees to solve problems. Use examples such as Elon Musk’s expectation that every employee solve at least one problem. Link these ideas to Schein’s levels of culture:

  • Espoused Values: Shared mission and innovation focus.

  • Assumptions: Unconscious beliefs about problem-solving and innovation.

  • Artifacts: Visible practices like software-driven cars, but less obvious.

Step 5: Explain Development and Evolution
Discuss how Tesla’s culture began with a small pioneering team focused on electric cars and expanded to energy and space technology. Emphasize the ongoing commitment to innovation despite changes in company size and scope.

Step 6: Analyze Current Organizational Culture
Discuss the current state, including the shared mission but also communication challenges. Mention Musk’s recent management restructuring to improve communication and efficiency.

Step 7: Conclude by Linking Culture to Business Performance
Summarize how Tesla’s innovation culture drives its competitive edge but also point out the risks of communication inefficiencies. Highlight the importance of maintaining strong culture while improving organizational processes.

Step 8: Review and Refine
Ensure your writing is clear, coherent, and free of grammar errors. Use transitions between sections to help readers follow your arguments smoothly.

Step 9: Cite Your Sources Properly
Make sure to include citations for ideas or quotes, such as Meyer (2018), Dyer (2015), and Brooks (2018), using proper APA format.

Following this guide will help you produce a well-organized, insightful paper analyzing Tesla’s organizational culture and its effects on business success.

 

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