Page 88 - MS Year in Review 2020

o Does Tesla have a “leadership development system” for managers?

o What is the nature of Tesla’s “performance management” system?

Evaluation:

 The existence of published information about “growing pains” and
customer dissatisfaction (cited above) are a clear indication that
management systems are insufficiently developed.

 For a quantitative evaluation, we assign a score of “2.5” to Tesla for the
development of the management systems necessary for the long-term

functioning of the business.

Development of The Organizational Culture and Culture Management

System.

Two of the five core aspects of culture are treatment of customers and employees .
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Positives:

 There is no published record of employee dissatisfaction with the
culture at Tesla.

Negatives and Risk Factors:

 Unlike some companies, Tesla does not discuss its culture and culture

management system.
 There is, as above, an indication of a degree of customer dissatisfaction.

Questions:

 In a multi-divisional business such as Tesla, a core culture is an important
tool to bind together all employees:

o Does Tesla have a defined set of core values?
o What is the nature of Tesla’s culture management system?

71 Eric G. Flamholtz and Yvonne Randle, Corporate Culture: The Ultimate Strategic Asset, Stanford
University Press, 2011.

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