Table of Contents
- Introduction
- Leadership style
- Role in dealing with organisational objectives and challenges
- Linking the leadership style with academic theories
- Recommendation
- Conclusion
- Reference List
Introduction
The assignment focuses on analysing the leadership style and leadership skills of Tesla’s CEO Elon Musk who is respected around the world to be a visionary leader. The assignment aims to assess the role of the CEO in achieving the organisational objectives and addressing the internal as well as external challenges. Thereafter, based on the understanding acquired from the selected case, general insights, and recommendations will be shared for leaders addressing current leadership issues.
Leadership Style
Musk’s high level of involvement and hands-on approach to decision-making define his leadership style. He is renowned for micromanaging and demands that his team members perform at the highest level in all they do. Musk is heavily active in the research and development of new products since he has a passion for innovation and technology. He has a reputation for being a strict boss who has high standards for the people on his staff. Tesla’s CEO is renowned for his revolutionary leadership approach (Archwell & Mason, 2021). He is a visionary leader that encourages his team to think creatively and unconventionally to solve challenging issues.
Musk encourages his team members to try new things and take calculated risks. He promotes an innovative and creative culture, which has been essential to Tesla’s success. Elon Musk’s leadership style also exhibits a high level of emotional intelligence. Musk’s capacity for understanding his team members, good communication, and the development of trusting bonds have been crucial in fostering a supportive and cooperative culture at Tesla (Muwara & Uddin, 2020). In addition to emotional intelligence, Musk possesses a wide range of other abilities that have been crucial to the success of his companies. These abilities include strategic thinking, problem-solving, creativity, and innovation.
Role in dealing with organisational objectives and challenges
Ethical challenges
Tesla has faced ethical challenges, including concerns about the safety of its electric vehicles and allegations of labour violations. In response, Elon Musk has taken steps to improve safety and working conditions at Tesla’s factories, such as increasing the number of safety personnel, implementing safety protocols, and providing additional training for employees (Khan, 2021). He has also created a hotline for employees to report concerns and has encouraged a culture of transparency and accountability.
Climate change and sustainability challenges
Tesla is dedicated to reducing carbon emissions and producing sustainable energy. Elon Musk has taken the lead in advocating for electric vehicles as a practical substitute for those fueled by fossil fuels. Electric cars made by Tesla are praised for being very energy efficient and environmentally friendly (Rao, 2022). Through SolarCity, a division of Tesla, Musk has also made investments in sustainable energy technology like solar energy and battery storage.
Cross-culture challenges
Tesla operates in several countries and has a diverse workforce. Elon Musk has recognized the importance of cross-cultural understanding and has taken steps to promote diversity and inclusivity within the company (Craig & Amernic, 2020). Tesla has implemented training programs to promote cultural awareness and has established employee resource groups to support underrepresented groups.
CSR challenges
Tesla has a strong commitment to corporate social responsibility (CSR). Elon Musk has taken steps to promote CSR within the company by implementing sustainable practices, supporting local communities, and promoting employee volunteerism (Pattnaik, Beharay, & Yogitha, 2022). Tesla has also established a foundation to support education and sustainable energy initiatives.
Gender pay gap
Tesla has faced criticism for its gender pay gap, with reports indicating that female employees earn less than male employees on average. In response, Elon Musk has publicly acknowledged the issue and has committed to addressing it (Archwell & Mason, 2021). Tesla has implemented policies to promote pay equity and has conducted internal audits to identify and address any disparities. The impact of Musk’s leadership style on these challenges within the organisation has been significant. His hands-on approach and high involvement in decision-making have helped to create a culture of excellence and accountability within the company (Khan, 2021).
Linking the leadership style with academic theories
The personality theory, skills models theory, and behaviour/style theory are all in line with Elon Musk’s leadership style. According to trait theory, leaders have some innate qualities that contribute to their effectiveness as leaders, including intelligence, confidence, and tenacity. Many of these qualities, such as brilliance, originality of thought, and risk-taking propensity, are exhibited by Elon Musk (Muwara & Uddin, 2020). Another quality that enhances his leadership effectiveness is his capacity to uplift and encourage the members of his team to share his vision. According to the skills models approach, training and experience can help people build their leadership skills.
Elon Musk has honed his leadership abilities through his experience as an entrepreneur, his participation in the founding of numerous prosperous businesses, and his capacity to draw in and keep outstanding personnel. Musk’s success as a leader has mostly been attributed to his abilities as a visionary, problem-solver, and strategic thinker. According to the behaviour/style theory, leaders can select a particular style of leadership depending on the context and their personality. With an emphasis on innovation and sustainability, Elon Musk’s leadership style is a blend of transactional and transformational leadership (Khan, 2021). As a transactional leader, he takes a hands-on approach to management and is heavily involved in decision-making. A transformational leader is one who has the capacity to both inspire and motivate his team members to share his vision.
Recommendation
According to the talks on current leadership difficulties, it is reasonable to advise that leaders adopt a transformational leadership style that emphasises the significance of inspiring and encouraging staff members to reach their maximum potential. In today’s quickly evolving corporate world, leaders should also promote a culture of creativity and innovation, which can be essential to the success of organisations (Khan, 2021). Also, leaders should be genuine and true to their principles in order to encourage their teams to fall into line.
Conclusion
In conclusion, Elon Musk’s leadership style has been vital in helping Tesla solve issues like the gender pay gap, cross-cultural issues, sustainability, and ethical issues. Musk’s proactive strategy for dealing with these issues, his hands-on decision-making style, and his dedication to transparency and accountability has all contributed to the development of an organisation-wide culture of excellence and innovation. Musk has contributed to the company’s financial success while also having a good impact on society and the environment by advocating sustainability, diversity, and inclusion, as well as corporate social responsibility. His leadership style gives great insights and lessons for leaders experiencing comparable issues in their organisations.
Reference List
- Archwell, D., & Mason, J. (2021). EVALUATING CORPORATE LEADERSHIP IN THE UNITED STATES: A REVIEW OF ELON MUSK LEADERSHIP. African Journal of Emerging Issues, 3(2), 1-10. Retrieved on 20th March 2023 from: https://www.ajoeijournals.org/sys/index.php/ajoei/article/download/170/205
- Craig, R., & Amernic, J. (2020). The language of leadership in a deadly pandemic. Strategy & Leadership, 48(5), 41-47. Retrieved on 20th March 2023 from: https://dro.dur.ac.uk/31151/1/31151.pdf
- Khan, M. R. (2021). A critical analysis of Elon Musk’s leadership in Tesla motors. Journal of Global Entrepreneurship Research, 1-10. Retrieved on 20th March 2023 from: https://link.springer.com/article/10.1007/s40497-021-00284-z
- Muwara, D., & Uddin, K. (2020). A Critical review on Leadership: A Case Study on Elon Musk’s Leadership Style. Retrieved on 20th March 2023 from:https://www.academia.edu/download/63705300/A_Critical_study_on_Elon_Musk_Leadership_Style…..120200622-6922-1cufx6w.pdf
- Pattnaik, R. P., Beharay, A., & Yogitha, L. J. (2022). Leadership in the Age of Digitalization. Journal of Positive School Psychology, 6(3), 5672-5683. Retrieved on 20th March 2023 from: https://journalppw.com/index.php/jpsp/article/download/3254/2114
- Rao, M. S. (2022). Innovative leadership: tools and techniques to acquire innovative and inspiring ideas. Innovative Leadership in Times of Compelling Changes: Strategies, Reflections and Tools, 69-78. Retrieved on 20th March 2023 from: https://link.springer.com/chapter/10.1007/978-3-030-67258-4_5
- Tran, B., Zhang, D., Al Gafly, M., Akhter, T., Lilithcleopatra, J., Daim, T. U., & Meissner, D. (2020). Elon Musk Transportation Projects. Innovation Management in the Intelligent World: Cases and Tools, 213-232. Retrieved on 20th March 2023 from: https://link.springer.com/chapter/10.1007/978-3-030-58301-9_14
