Tesla Report (memo +ES) PDF

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Memo To: Tesla Team From: Luisana Yacarini Re: Implementing a new auditing system in the workplace Date: December 12, 2018

The Human Resource department is pleased to let you know that all Tesla workplaces will have new electronic auditing systems. The new systems will be effective as of Mid-2019. Switching from paper audits to electronic audits will also create more free space in the environment. We firmly believe that launching these systems will help the productivity and learning in the workplace. The new system will include: • Monitoring internet usage and analyzing emails. • Flag certain keywords • Set video surveillance across the buildings to ensure productivity in the company • Certain websites unrelated to work will be flagged and unable to access. The auditing system will be a continuous audit when using any company device such as computers, tablets, and phones. As part of continuing development, we will meet with you to discuss and validate results as the audits progress. We will potentially need some volunteers to help reorganize previous paper audits into the new system. Please come see me if interested, bonuses/pay spiffs will be included with job task. We are looking forward to working with you on this audit! If you have any questions or concerns, please feel free to contact me.

Sincerely, Luisana Yacarini Human Resource Manager

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REPORT FOR

Tesla’s Auditing Procedures

Prepared for Elon Musk, CEO of Tesla

By Luisana Yacarini Human Resource Manager

November 26, 2018 2

Luisana Yacarini Human Resource Manager Tesla Headquarters 1600 Holloway Ave. San Francisco, CA 94132

Elon Musk Chief Executive Officer of Tesla Inc. Tesla Inc. 3500 Deer Creek Road, Palo Alto, CA 94304

Dear Mr. Elon Musk, Earlier this week, you had asked of me to research into investing in installing an electronic auditing system for Tesla and if it were to be beneficial to monitor employees’ internet and email usage. Since many other competitors have been installing these systems to their company’s workplace, the question to install this to Tesla came up in conversation. In this report I have gathered information to inform you why an electronic auditing system would be beneficial or malign to this company. In the following report my findings will pinpoint the advantages and disadvantages of monitoring employees and address on if this were to be an invasion of privacy, which was one of your concerns. I hope this information serves you well in your decisionmaking process. Please contact me for further questions.

Best, Luisana Yacarini Human Resource Manager

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Table of Contents

Executive Summary……………………………………………………………...………………5

Introduction………………………………………………………………………………………6

What is auditing and why is it important?..................................................................................7

Types of Electronic auditing ……………………………………………………………………8

Invasion of Privacy………………………………………………………………………………8

Disadvantages and advantages if Installing an Electronic Auditing Procedure….……….…9

Pricing for Hiring an Auditor to set up or installing a software………………….……….….9

Implementation Plan………………………………………………………….………..………10

Recommendations………………………………………………………………………………10

Findings…………………………………………………………………………………….……11

References…………………………………………………………………………………..…12

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Executive summary Tesla is a highly regarded company that manufacture the top of the line electric cars. Tesla has a well-known reputation for their quality service and team. To continue our reputation here at Tesla, we must seek in improving our workplace with innovative, ethical employees. We, the HR department have researched the benefits in installing an electronic auditing system to Tesla, with additional video surveillance cameras. We can take two different approaches to implement, first is to hire an auditor to set everything up or install the software and cameras ourselves. If we decide to hire an auditor, it will save time but cost around $69,000 annually. We would need to assign employees to conduct interviews and make sure auditors are well qualified. Then plan a routine meeting with auditor to go over the results and reports. For the second option, to set up ourselves it will be a longer process, but we would be saving about $56,000, costing us around $13,000 to set up. We would need to find the best suitable software, I would recommend Teramind, which is equipped with a variety of options like flagging keywords and websites. Then we would need to find the right employees to help install the software and cameras. For a video surveillance company to invest in I would recommend Trendnet, giving us the best options for multiple cameras. Following that we could create awareness in the workplace, by creating a policy act that the new system will be implemented. We will follow that, by assigning employees to transfer previous paper audits to the new system, offering spiffs/bonuses for the tasks. If we decide to set up ourselves, we anticipate it can take up until Mid-2019 to be completely up and running. If we decide to hire an auditor, it may lessen the time. We hope that implementing this to Tesla, will help increase productivity from our employees and maintain confidentiality, thus preventing any potential threats or lawsuits. ! !

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Introduction

This report is being written for the Chief Executive Officer of Tesla, Elon Musk who had asked of me, his Human Resource Manager to investigate electronic auditing procedures that many other companies have implemented to monitor the computer use of employees. The findings of my report will then uncover the advantages and disadvantages of installing an electronic auditing system at Tesla. If CEO, Elon Musk agrees to implement an electronic auditing system in Tesla the installation can be possible by mid-2019. Contact Information: Luisana Yacarini Human Resource Manager Tesla Headquarters 1600 Holloway Ave. San Francisco, CA 94132 Written For: Elon Musk Chief Executive Officer of Tesla Inc. Tesla Inc. 3500 Deer Creek Road, Palo Alto, CA 94304 Written on: November 25, 2018 Effective Start Date for Work Plan: July 1, 2019

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What is auditing and why is it important?

The technology nowadays is exploding, and as it becomes mature it may further assist auditors in improving the quality of their work. Helping both businesses and auditors, auditing is becoming faster and more efficient with the use of advanced technology 1. Auditing is extremely important to any company where employees have access to the internet. Auditing can help with ensuring information and compliance. Audits are beneficial in a way to evaluate a company’s performance and help manage risk better and the productivity of their employees. Many other companies are using electronic auditing systems to monitor employee’s internet usage and analyze emails. Installing an electronic auditing system could be very beneficial to Tesla. An audit could help with increasing productivity in the workplace by monitoring employees to make sure they are not using company time and computers for personal usage. This could help protect trade secrets and make sure certain business information stays confidential. Improper behaviors like sexual harassment, fraud, theft, embezzlements, identity theft and other misuses of electronics would be more efficient to prevent. 2 The electronic process allows the creation and storage of electronic paperwork: processing documents through workflows; corrective actions and findings. 3 Preventing the misuse of electronics in the company can help Tesla by not being in a position where Tesla might be held accountable and liable from the cause of unethical employees. Inappropriate forms of behaviors exposed may lead Tesla to several charges of sexual harassments or perhaps a lawsuit with identity theft.

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(Shaikh, 2005)

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(V. John Ella, 2016)

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(Affairs, 2004)

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Types of Electronic auditing Electronic auditing software’s like “E-Audits”, help with the same system only instead of having someone come onsite to do an internal audit, there is software that can be purchased online, which then downloads to the computers and audits all information usage on company computers, tablets, phones, and other electronic devices. The software could restrict access to certain sites and track social media activity, monitor all incoming and outgoing emails, highlight and flag designated keywords that could be set by the employer. Then there are actual auditors who manage information and provide paperless audits for businesses which can save time for the employer. The auditor will be able to access and run reports that can be managed by their end. Instead of the employer setting up a software, an auditor will come and set it up and keep in contact with the employer about the reports. However, the auditor, business employees, and employer should be comfortable with technology. Auditors can also help set up video surveillance and scanners as well. This can also help remove the task of setting up an electronic auditing software yourself, as the employer. Both options would help with saving more filing space since the reports would be kept electronically rather than needing to store reports physically. The two could help with reducing human error since the audit is done electronically. Yet, the cost comes out to be higher in the long-run to hire an auditor rather than download a software.

Invasion of Privacy Employees may view that installing an electronic auditing system could be a sign of mistrust between both employee and employer. Some employees may see this as invasive and feel that their privacy should be protected. However, what an employee might decide to do on their own time (breaks and lunch), with their own devices is up to them. With all risk factors in consideration, Tesla should implement an electronic auditing procedure, to protect the company. Before implementing a new system, our HR department would need to create a new policy act regarding the new software, so that employees will understand the seriousness of misuse of electronics in the workplace. The policy would be followed by a training course that will help employees’ function and operate systems with new software.

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Disadvantages and advantages if Installing an Electronic Auditing Procedure Advantages • E-audits or more rapidly done • Data comes out to be more accurate • Can examine large quantity of data • Help prevent unproductivity from employees • Prevents potential lawsuits and charges • Overcomes loss of audit trail due to human errors • Less physical storage place

Disadvantages • Can be expensive to install • Knowledge of system may be required • Tedious if transition from a paper audit to electronic • Computers must be unoccupied when testing/auditing • Can be an invasion of privacy • Potential loss of electronic reports due to malfunctions • Employees may see system and mistrust

Figure 1.1: Chart showing the advantages and disadvantages in installing an electronic auditing system

Pricing for Hiring an Auditor to set up or installing a software (ANNUALLY)

Cost of Hiring an Auditor to set up Imaging software Capture-preparation software Email Capture software Video Surveillance Scanner software Setup by Auditor Cost of transferring old paper audits to electronic Total

50+ users $ 5,000+ $15,000 $5,000 $10,000 $12,000 $20,000+ $ 2,000

Cost of Setting up Auditing Software • Email Capture • Website Blockers • Scanning Software

50-250 users

250+ users

$5,200

$7,600

Cost of Purchasing Video Surveillance apart.

$2,000

$5,400

Total

$7,200

$13,000

Figure 1.3: Chart explaining the cost break-down of setting up auditing system ourselves

$69,000+

Figure 1.2: Chart explaining the cost break-down of hiring an auditor

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Implementation Plan (Now – July 2019)

Create awareness in the workplace about new policies coming up

Decide a software to install or hire an auditor

Create new policy act and training for Tesla's new auditing system

Have policy signed by employees

Set up training for new software

Install software

Transfer previous audit Information to new system

Figure 1.4: Work plan for installing an electronic auditing software to Tesla in consecutive order following the arrows.

Steps for choosing setting up ourselves 1. Finding the best suitable software for the company. 2. Teramind has the best overall qualities for a software. 3. Choosing a good video surveillance system like Trendnet. 4. Finding the right employees to assign tasks 5. Create a plan to have designated employees to transfer paper audits to electronic 6. Create a policy act informing the workplace of new changes 7. Set up system and assign tasks

Steps for contracting an auditor 1. Finding the right employees to conduct interviews 2. Creating a list for resume screening 3. Candidates must be licensed and have clear background checks 4. Create a policy with auditor to enforce in the workplace 5. Set continuous meetings with auditor about reports

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Findings

In conclusion, as the human resource manager of Tesla, I feel that I must stress the importance of implementing an electronic auditing system at Tesla. Having an audit done electronically can help reduce human error or paper trail loss due to relying on a person. Whether installing a software or hiring an auditor to install a software is highly up to you and the budget costs for this. I would like to reiterate that putting an electronic audit in effect will keep Tesla’s professionalism by keeping our employees ethical and productive. Electronically auditing will promote and minimize Tesla’s liability for employee’s negligent acts. I would recommend installing a software and having someone set up video surveillance apart, which would save some money rather than hiring an auditor to set up the equipment. We could also assign a number of employees to help transfer the old paper audit reports to the new electronic filing of your choosing. Having a system like this set up would only benefit Tesla and help weed out the unproductive employees making the workplace safer, reliant, and productive.

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Works Cited Affairs, R. o. (2004). Schedule Subject: Electronic Audit Process Management System. Retrieved from Archives.gov Shaikh, J. M. (2005). E-commerce impact: emerging technology – electronic auditing. Managerial auditing journal, Vol. 20 Issue: 4, pp.408-421. V. John Ella, J. C. (2016). Employee Monitoring and Workplace Privacy Law. American Bar Association.

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