Strategic Planning Assignment Help
Strategic planning serves several purposes, including defining an organization's identity, preparing for the future, analyzing the environment, providing focus, creating a culture of cooperation, generating new options, and serving as a guide for the daily activities of all organizational members. To be useful, performance management systems must rely on the strategic plan. The behaviors, results, and developmental plans of all employees must be aligned with the vision, mission, goals, and strategies of the organization and unit. Discuss the following: Identify an international company and evaluate their strategic plan. Briefly explain and evaluate the performance management programs of the organization. Propose two suggestions that would make them more productive towards accomplishing their strategies while impacting employee effectiveness.
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Identification of an International Company and Evaluation of its Strategic Plan
Tesla is an energy and automotive organization established in Palo Alto in California in the year 2003. The firm was founded by a group of young engineers who were enthusiastic about making the most developed electric cars in the world. The company has become a leading firm in the fields of producing electric cars and improving related technology (Electric Cars, Solar Panels & Clean Energy Storage | Tesla, 2019). The co-founder of PayPal, Elon Musk by contributing $30 million, became one of the major stakeholders in Tesla in 2004. He became the CEO of the company in 2008, and under his supervision, the firm launched its first electric car.
Business Strategy - Tesla accessed the US market through its costly cars and targeted to financially privileged people. After it is set up and became famous as a successful idea, it ventured in a more competitive market of less expensive business models. The first business model of Tesla was introduced to make the mission of the firm out into the market. Once it started to make a name and widely accepted, the firm modified its business model. The current business model of the firm is on the basis of servicing, charging and selling its electric cars (Akakpo, Gyasi, Oduro & Akpabot, 2019).
The strategic plan of the company establishes various directions of the firm and aligns with the vision, mission, objectives, core values and culture of the organization (Borén et al., 2017).
The vision statement of the company is to build the most convincing car business of the 21st century by motivating the transition of the world towards electric cars. This vision statement highlights the efforts of the firm to renewable energy (Kancherla & Daim, 2018).
The mission statement of the company is to speed up the transition of the world towards sustainable energy (Ingram, 2018). This statement identifies the aim of the firm for addressing the market opportunities for renewable energy.
The expansion of the market has become the main motive of Tesla to progress in the automotive industry. The target audience must be the mid-20s to early-40s that is generation Y.
The significant investment must be in improving the current services and innovating new products by emphasizing on the research and development to gain the competitive benefits
The low-level entry costs of the products to ensure higher customer shares in the present market
A clean launching needs an approach of Silicon Valley, which demonstrates that Tesla is moving quickly with technologies and innovation. The commitments of the company for being totally electronic for producing the best electric cars in the world. The technologies not just improves the performance of the cars but also proposes a path to the future of sustainable energy in a well-organized manner. The space around the drivers is built in such ways which have never been prepared by any other firm all around the globe. The core plan of the firm is to produce methods to support the research and development for manufacturing reasonable electric cars (Liu, Blome, Sanderson & Paulraj, 2018).
The organizational culture of Tesla generates opportunities for innovation, which keeps the effectiveness of the business of the electric cars. The features of this organizational culture motivate the staffs of the firm for generating new concepts as well as solutions.
Evaluation of the Performance Management Programs of the Organization
For any company, performance management has a vital role to monitor and ensure that the firm meets all its specified goals and also communicate these achievements successfully to its essential external stakeholders. In Tesla, the firm imposes different measurement and techniques for keeping track of the performance of the firm that is mainly based on its productivity (Buck & Morrow, 2018). For instance, the firm evaluates its production performance on the basis of the number of cars manufactured in a day. For the division of customer service, the company considers resolving the inquiries, answering emails and handling the complaints. Moreover, the company also sets up Key Performance Indicators (KPI) for monitoring its inventory, production and assess the successful achievement of the targets in a pre-determined time. The managers of Tesla, for experience, prospective and familiarity, apply and monitor KPIs for a specific area which are not only huge benefits but also part of their work responsibilities (Magdinceva Sopova, Boskov & Elenov, 2018).
The company is managing its development and objectives like an old-school taskmaster. In the year 2017, the automotive firm reportedly fired hundreds of employees with no or little warning after the yearly performance reviews. It was an unusual step, and everybody was wondering if the low rank and yank approach is making a comeback. Again in the year 2018, the company declared it was preparing to reduce more 9% of its 46,000 employees, referring to the usual ebbing and flowing of recruiting and firing in a company (Dalton, 2017). The company stands out among its tech-star competitors for its less healthy attitude towards the performance management.
As most of the companies like the same size and impact of Tesla, its performance management systems is also a mystery. The culture of performance management of the company has changed dramatically since the past few years as the firm has developed (Teece, 2018). In 2016, when Louis Efron was Head of Global Employee Engagement and Juliana Bednarski was HR Business Partner in Tesla, they recognized the significance of the engaged staff and their influence on client engagement. Tesla360 Summary was created by them in that response, and it was an employee survey which utilized the Maslow Hierarchy of Needs for managing the performance of the employees. It was an instant hit and got 91% participation rate (Perkins & Murmann, 2018).
But when Gaby Toledano became Chief People Officer of Tesla, he embraced a completely different method. Not many details are known, but it looks like that he went back to use the traditional practice of the annual review for determining firings, promotions and demotions. That was a dynamic switch from its previous approach that aimed to help the staffs to reach the peak of the pyramid of self-actualization. The reviews of the performance take place on an annual basis, and the staffs meet their managers for discussing their achievements of the last 12 months. The top performers are rewarded with promotions, compensations or equity awards. The low performing employees are fired from the company. It is trying hard to offer the best product on a limited budget, and for that, the company needs to run a lean and mean business operation. For all these aspects, Tesla thinks that traditional rank and yank method is the right approach.
However, Jack Welch, the godfather of rank and yank method, has said that it is a method which is as much as regarding the development of the employees as it is about performance analysis. It might be possible that the present framework of performance management combines both the factors. But with the downsizings still the topic, it might take some time to open up its latest performance strategy.
It is difficult to say where the current performance management of Tesla would go in the future. For a firm with high ambitions, it is clear that the staffs of Tesla hold the path to its success (Vukajlovic, Brzakovic & Curcic, 2016). But the methods in attracting and nurturing the best talents looks to be a matter of doubt. It will be interesting to see how Kevin Kassekert, the new Vice President of People and Places in Tesla, will settle in his role and evolve the performance management in the future.
It is strongly suggested that Tesla need to establish a more consistent and objective incentive and reward system. For instance, it has been informed that the analysis of the performance of the team is vastly dependent on the views of Elon Musk. In the past, it has been reported of his disregard towards the efforts of the employees simply because of his change of mind regarding the product. Moreover, since there are high demands of work at the company, several staffs find it challenging to balance their personal lives and work. For retaining the best talents and encouraging them to make a contribution more to the firm, Tesla must address these problems as soon as possible
It is recommended to Elon Musk that while setting the targets, he must take the support of the top leaders of the company. He must consider more rational short-term as well as long-term goals for reducing the financial pressures experiencing by the company at present. Ambitious targets can encourage the staffs for high goals, but might easily backfire if these targets could not be achieved. Performance appraisal must be made an integral part of the performance management systems to provide feedback to the performance of the staffs and communicate their success to report regularly about the progress of the team.
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