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HRM Questions
HRM Questions
Human Resource Management (HRM) is the term used to describe formal systems devised for
the management of people within an organization. The responsibilities of a human resource
manager fall into three major areas: staffing, employee compensation and benefits, and
defining/designing work. Essentially, the purpose of HRM is to maximize the productivity of an
organization by optimizing the effectiveness of its employees.
Human resource management is concerned with the development of both individuals and the
organization in which they operate. HRM, then, is engaged not only in securing and developing
the talents of individual workers, but also in implementing programs that enhance
communication and cooperation between those individual workers in order to nurture
organizational development.
The primary responsibilities associated with human resource management include: job analysis
and staffing, organization and utilization of work force, measurement and appraisal of work force
performance, implementation of reward systems for employees, professional development of
workers, and maintenance of work force.
Job analysis consists of determining--often with the help of other company areas--the nature
and responsibilities of various employment positions. This can encompass determination of the
skills and experiences necessary to adequately perform in a position, identification of job and
industry trends, and anticipation of future employment levels and skill requirements. "Job
analysis is the cornerstone of HRM practice because it provides valid information about jobs
that is used to hire and promote people, establish wages, determine training needs, and make
other important HRM decisions," stated Thomas S. Bateman and Carl P. Zeithaml
in Management: Function and Strategy. Staffing, meanwhile, is the actual process of managing
the flow of personnel into, within (through transfers and promotions), and out of an organization.
Once the recruiting part of the staffing process has been completed, selection is accomplished
through job postings, interviews, reference checks, testing, and other tools.
Organization, utilization, and maintenance of a company's work force is another key function
of HRM. This involves designing an organizational framework that makes maximum use of an
enterprise's human resources and establishing systems of communication that help the
organization operate in a unified manner. Other responsibilities in this area include safety and
health and worker-management relations. Human resource maintenance activities related to
safety and health usually entail compliance with federal laws that protect employees from
hazards in the workplace. These regulations are handed down from several federal agencies,
including the Occupational Safety and Health Administration (OSHA) and the Environmental
Protection Agency (EPA), and various state agencies, which implement laws in the realms of
worker's compensation, employee protection, and other areas. Maintenance tasks related to
worker-management relations primarily entail: working with labor unions; handling grievances
related to misconduct, such as theft or sexual harassment; and devising communication
systems to foster cooperation and a shared sense of mission among employees.
Performance appraisal is the practice of assessing employee job performance and providing
feedback to those employees about both positive and negative aspects of their performance.
Performance measurements are very important both for the organization and the individual, for
they are the primary data used in determining salary increases, promotions, and, in the case of
workers who perform unsatisfactorily, dismissal.
Reward systems are typically managed by HR areas as well. This aspect of human resource
management is very important, for it is the mechanism by which organizations provide their
workers with rewards for past achievements and incentives for high performance in the future. It
is also the mechanism by which organizations address problems within their work force, through
institution of disciplinary measures. Aligning the work force with company goals, stated
Gubman, "requires offering workers an employment relationship that motivates them to take
ownership of the business plan."
Responsibilities associated with training and development activities, meanwhile, include the
determination, design, execution, and analysis of educational programs. The HRM professional
should be aware of the fundamentals of learning and motivation, and must carefully design and
monitor training and development programs that benefit the overall organization as well as the
individual. The importance of this aspect of a business's operation can hardly be overstated. As
Roberts, Seldon, and Roberts indicated in Human Resources Management, "the quality of
employees and their development through training and education are major factors in
determining long-term profitability of a small business'¦. Research has shown specific benefits
that a small business receives from training and developing its workers, including: increased
productivity; reduced employee turnover; increased efficiency resulting in financial gains; [and]
decreased need for supervision."
Now, increasing numbers of businesses are incorporating human resource managers into other
business processes as well. In the past, human resource managers were cast in a support role
in which their thoughts on cost/benefit justifications and other operational aspects of the
business were rarely solicited. But as Johnston noted, the changing character of business
structures and the marketplace are making it increasingly necessary for business owners and
executives to pay greater attention to the human resource aspects of operation: "Tasks that
were once neatly slotted into well-defined and narrow job descriptions have given way to broad
job descriptions or role definitions. In some cases, completely new work relationships have
developed; telecommuting, permanent part-time roles and outsourcing major non-strategic
functions are becoming more frequent." All of these changes, which human resource managers
are heavily involved in, are important factors in shaping business performance.
Job design is the division of work tasks assigned to an individual in an organization that
specifies what the worker does, how, and why. Effective job design contributes to the
achievement of organizational objectives, motivation, and employee satisfaction. One of the
most well-known approaches to job design is the Job Characteristics Model (JCM). In the JCM,
five core characteristics are considered: (1) skill variety, (2) task identity, (3) task significance,
(4) autonomy, and (5) feedback. Three strategies are necessary for organizations to increase
the motivation potential of any job: job rotation, job enlargement, and job enrichment. Each of
these offer options for mangers to implement in order to effectively design jobs. Employee jobs
will need to be designed with fluid composition and boundaries that can rapidly change in size
and shape as the winds of change form and reform internal work requirements.
Job analysis is the process of studying a job to determine which activities and responsibilities it
includes, its relative importance to other jobs, the qualifications necessary for performance of
the job and the conditions under which the work is performed. An important concept in job
analysis is that the job, not the person doing the job, is assessed, even though human
resources (HR) may collect some job analysis data from incumbents.
Job analysis is often confused with job evaluation, but the two activities are quite different. Job
evaluation is the process of comparing a job to other jobs within the organization to determine
the appropriate pay rate and is not addressed in this toolkit. See Performing Job Evaluations.
HR rates the competencies, and panel members identify KSAs required to meet them.
HR identifies performance standards for each job. The organization must develop and
implement selection, screening, training and compensation instruments, or processes that focus
on competencies.
HR uses the job analysis output to develop a job description and job specifications. The job
description summarizes and organizes the information for the organization's job-related actions.
Generally, the job description and specifications are combined but compartmentalized to enable
independent updating as needed. See How To Develop a Job Description and Sample Job
Descriptions.
Compensation decisions
In relation to employee pay practices, job analysis has two critical uses: It establishes
similarities and differences in job content, and it helps determine the internal equity and relative
worth of like jobs. If jobs have equal content, then the pay established for them will likely be
equal. If, on the other hand, job content is perceptibly different, then those differences, along
with the market rates, will become part of the rationale for paying certain jobs differently.
Selection assessments
Job analysis information can also be used as a basis for selecting or developing employment
assessments that measure the most critical tasks or KSAs. Some assessments involve work
samples that simulate job tasks and require candidates to demonstrate that they can perform
these tasks effectively. HR uses job-oriented or task-based job analysis data as a basis for
developing these types of assessments because they focus directly on assessing how well job
candidates can perform critical work tasks. Other assessment methods focus on measuring
KSAs that are required to perform job tasks effectively, such as various mental abilities, physical
abilities or personality traits, depending on the job's requirements. See SHRM Talent
Assessment Center.
There are four key steps to the HRP process. They include analyzing present labor
supply, forecasting labor demand, balancing projected labor demand with supply, and supporting
organizational goals. HRP is an important investment for any business as it allows companies to
remain both productive and profitable.
Investing in HRP is one of the most important decisions a company can make. After all, a
company is only as good as its employees, and a high level of employee engagement can be
essential for a company's success. If a company has the best employees and the best
practices in place, it can mean the difference between sluggishness and productivity, helping to
lead a company to profitability.
Special Considerations
The goal of HR planning is to have the optimal number of staff to make the most money for the
company. Because the goals and strategies of a company change over time, human resource
planning is a regular occurrence. Additionally, as globalization increases, HR departments will
face the need to implement new practices to accommodate government labor regulations that
vary from country to country.
The increased use of remote workers by many corporations will also impact human resource
planning and will require HR departments to use new methods and tools to recruit, train, and
retain workers.
Human resource planning (HRP) allows a business to better maintain and target the right kind of
talent to employ - having the right technical and soft skills to optimize their function within the
company. It also allows managers to better train and develop the skills needed amongst the
workforce.
KEY TAKEAWAYS
The labor market refers to the supply of and demand for labor, in which employees
provide the supply and employers provide the demand.
The labor market should be viewed at both the macroeconomic and microeconomic
levels.
Unemployment rates and labor productivity rates are two important macroeconomic
gauges.
Individual wages and number of hours worked are two important microeconomic gauges.
At the microeconomic level, individual firms interact with employees, hiring them, firing them, and
raising or cutting wages and hours. The relationship between supply and demand influences the
hours employees work and compensation they receive in wages, salary, and benefits.
What is Recruitment?
Recruitment is the process in which people are offered selection in an organization. It is when
prospective employees are searched for and are then encouraged to apply for jobs within the
organization.
This is just one step in the process of employment however it is a long process that involves a
series of tasks, starting with an analysis of the job requirements and ending with the appointment
of the employee. Specific tasks involved in the process of recruitment include:
Analyzing job requirements
Advertising the vacancy
Attracting candidates to apply for the job
Managing response
Scrutinizing applications
Shortlisting candidates
What is Selection?
Selection is the process of identifying an individual from a pool of job applicants with the requisite
qualifications and competencies to fill jobs in the organization. This is an HR process that
helps differentiate between qualified and unqualified applicants by applying various techniques.
The term ‘selection’ comes with the connotation of placing the right person in the right job.
Selection is the process in which various strategies are employed to help recruiters decide which
applicant is best suited for the job. Some activities include:
Screening
Eliminating unsuitable candidates
Conducting an examination (aptitude test, intelligence test, performance test, personality
test, etc.)
Interviews
Checking references
Medical tests
Key
Advertising the job. Appointing the candidate.
Factor
Sequenc
First. Second.
e
Recruitment only
implies communication Selection involves the
Contractu
of vacancies and open creation of a contractual
al
positions – therefore, agreement between the
Relation
no contractual relation employer and employee.
is established.
Key Differences
The process of recruitment involves the development of suitable techniques for attracting more
candidates to a position vacancy, while the process of selection involves identifying the most
suitable candidate for the vacancy. Recruitment precedes the selection process, and the
selection process is only completed when a job offer is created and given to the selected
candidate by appointment letter.
Recruitment is a positive process aimed at attracting more and more job seekers to apply.
Selection is a negative process, rejecting unfit candidates from the list.
Of the two, recruitment is relatively simpler. Recruitment has the recruiter paying less attention to
scrutinizing individual candidates, whereas selection involves a more thorough examination of
candidates where recruiters aim to learn every minute detail about each candidate, so they can
choose the perfect match for the job.
A smooth transition into a new role benefits both new employees and their new managers and
colleagues. By clearly communicating expectations and responsibilities to a new employee, they
can start being productive quickly. As part of an effective onboarding process, a thorough and
engaging orientation can also help reduce new employee turnover due to misunderstood or
unmet expectations. Additionally, a clear policy for employee orientation will ensure that all new
team members receive the same training and information.
On the more practical side, offer a map of the facility, a list of nearby restaurants, a glossary of
company jargon, and an outline of the structure of your company and department that the new
hire can refer to easily. Discuss how the employee’s own responsibilities fit into the bigger
company structure.
Make sure the employee understands expectations, and invite them to offer ideas for
improvement on current processes relevant to the job. On the first day, if appropriate, give them
a simple project or two to get started on.
As part of training new employees, consider assigning a mentor to check in with the employee
over the first few months. That way new employees know who to ask questions, have a built-in
friend, and can be trained and mentored in their day-to-day tasks.
A smooth transition into a new role benefits both new employees and their new managers and
colleagues. By clearly communicating expectations and responsibilities to a new employee, they
can start being productive quickly. As part of an effective onboarding process, a thorough and
engaging orientation can also help reduce new employee turnover due to misunderstood or
unmet expectations. Additionally, a clear policy for employee orientation will ensure that all new
team members receive the same training and information.
Typically, employee orientation at a new job begins on day one of employment. Because of this,
employees are typically paid their agreed-upon wage or salary for the time they spend training.
Some companies may offer raises once an employee has completed specified certifications
required to complete their job. Because there are costs associated with training new employees,
it is crucial to create a streamlined process that welcomes new colleagues and empowers them
to become comfortable and productive as soon as possible.
Examples. A primary example of employee socialization is new hire orientation. This a time
when new employees develop working relationships with each other, and should be a time when
the company encourages new and existing staff members to become acquainted as well. Other
forms of corporate-sponsored socialization include holiday parties, family nights at sporting
events, social gatherings such as a company bowling night and a company summer picnic.
Significance. Employee socialization not only helps new employees understand corporate
culture, but it also encourages the development of teamwork between new hires and current
staff members. Allowing employees to become more familiar on a social as well as
professional level can develop strong bonds that improve productivity and help to reduce
employee turnover.
Warning. While an employee socialization program is essential to integrating new hires into
the company culture, it can be counterproductive if there is too much focus on socialization.
Each new hire requires an effective balance of corporate work policies and socialization
programs to get a comprehensive understanding of productivity in the company culture.
Good training and development programs help you retain the right people and grow profits. As
the battle for top talent becomes more competitive, employee training and development
programs are more important than ever. Hiring top talent takes time and money, and how you
engage and develop that talent from the time they are first onboarded impacts retention and
business growth.
And it’s not just about retention. Employee training and development programs directly impact
your bottom line.
According to SHRM, the link between learning and business success is compelling. “Companies
that learn fastest and adapt well to changing environments perform the best over time,” says
Edward Hess, a professor of business administration and author.
High-impact training and development programs don’t just happen. Instead, they’re the result of
a careful planning and alignment process. The following steps can help you translate business
objectives into a tailored training plan.
1. Identify Business Impact: Design and develop your training to meet the company’s overall
goals. Keeping business goals in focus ensures training and development makes
a measurable impact.
2. Analyze Skill Gaps: How are your employees’ behaviors helping meet the business goal?
By finding out what the gaps are between employees’ current and ideal skills, you can
better pinpoint what your specific learning objectives should be. Categorize these
learning objectives into these three groups and have activities in your training plan that
target all three.
2.1 Motivation: How can you help learners understand why they need to change their
behaviors? By working with employee motivations–for example, pinpointing a
purpose–you’re more likely to change behavior over the long term.
2.2 Skills Mastery: What do your learners need to be able to do the job? These behaviors
will have the most impact on performance.
2.3 Critical Thinking: What must your learners know to perform their jobs well?
Distinguish critical knowledge from nice-to-know information to identify what content
should be in the course, and what should be in optional resources.
3. Layer Training Methods: The most effective training programs use layered, sustainable
learning activities to create performance improvement over time. A layered approach
makes sure your program targets the essential employee, customer, and business needs
while training the right people at the right time in the right way. A layered approach is the
best of all worlds because it blends learning experiences and training methods that
maximize the benefits of your time.
4. Evaluate Effectiveness and Sustain Gains: Employees’ need for training and support
don’t end when they get back to work. In fact, continued support is required to ensure that
initial training sticks. Measurable learning objectives are the foundation for you to
evaluate an initiative’s impact.
5. Performance management
Managers can use performance management tools to adjust workflow, recommend new courses
of action, and make other decisions that will help employees achieve their objectives. In turn, this
helps the company reach its goals and perform optimally. For example, the manager of a sales
department gives her staff target revenue volumes that they must reach within a set period. In a
performance management system, along with the numbers, the manager would offer guidance
gauged to help the salespeople succeed.
Recruitment and retention of qualified employees is a common goal shared by many employers.
To some extent, the availability and cost of qualified applicants for open positions is determined by
market factors beyond the control of the employer. While an employer may set compensation
levels for new hires and advertize those salary ranges, it does so in the context of other employers
seeking to hire from the same applicant pool.
Morale and job satisfaction are affected by compensation. Often there is a balance (equity) that
must be reached between the monetary value the employer is willing to pay and the sentiments of
worth felt be the employee. In an attempt to save money, employers may opt to freeze salaries or
salary levels at the expence of satisfaction and morale. Conversely, an employer wishing to
reduce employee turnover may seek to increase salaries and salary levels.
Compensation may also be used as a reward for exceptional job performance. Examples of such
plans include: bonuses, commissions, stock, profit sharing, gain sharing.
What are the components of a compensation system?
Compensation will be perceived by employees as fair if based on systematic components. Various
compensation systems have developed to determine the value of positions. These systems utilize
many similar components including job descriptions, salary ranges/structures, and written
procedures.
Job Analysis The process of analyzing jobs from which job descriptions are developed.
Job analysis techniques include the use of interviews, questionnaires, and observation.
Job Evaluation A system for comparing jobs for the purpose of determining appropriate
compensation levels for individual jobs or job elements. There are four main
techniques: Ranking, Classification, Factor Comparison, and Point Method.
Salary Surveys Collections of salary and market data. May include average salaries,
inflation indicators, cost of living indicators, salary budget averages. Companies may
purchase results of surveys conducted by survey vendors or may conduct their own salary
surveys. When purchasing the results of salary surveys conducted by other vendors, note
that surveys may be conducted within a specific industry or across industries as well as
within one geographical region or across different geographical regions. Know which
industry or geographic location the salary results pertain to before comparing the results to
your company.
Base Pay
Commissions
Overtime Pay
Bonuses, Profit Sharing, Merit Pay
Stock Options
Travel/Meal/Housing Allowance
Benefits including: dental, insurance, medical, vacation, leaves, retirement, taxes...
Some employee benefits are country-specific. In the US, for instance, health insurance is a key
component of employee benefits packages and in France, many employees get restaurant
vouchers for every workday.
Nowadays, however, the list of employee benefits continues to grow. We’ll take a look at different
examples of employee benefits below.
This includes working hours & leave, skills development, food & beverage, and employee clubs,
activities & gifts.
Skills development
Rapid technological developments and the fact that people change jobs more often make skills
development more important too. Skills development, however, is not just an important benefit
for (younger) employees, it’s also essential for organizations if they want to remain competitive.
Flexible hours and the possibility to work from home remain important benefits for employees.
Healthcare
Healthcare benefits also come in different shapes and sizes. Think of physiotherapy and
chiropractic sessions, for instance, but sometimes fertility treatments and psychological support
can also be included.
Pension plans
Interestingly, according to the research study, pension plans are considered as a very important
benefit by every generation, but they’re not among the top ten most appreciated benefits.
Insurances
As we mentioned above, in some countries health insurance is something that comes with the
simple fact of being an employee. Other types of insurance benefits for employees cover
parental leave or injury.
Financial benefits
Think of commissions, bonuses and the possibility for employees to buy shares of the company
they work for.
Personal finance benefits
The Benify report too shows that stress about personal finances has grown bigger over the past
year. Yet another reason for employers to seriously start thinking of benefits such as advice
about loans and savings. In other words: employee financial wellness.
LIFESTYLE BENEFITS
Lifestyle benefits consist of work-life balance and mobility.
Work-life balance
As employees increasingly attach importance to their work-life balance, it’s no surprise that
benefits in this area become more popular too. Examples are childcare, grocery delivery, and
legal services.
Mobility
Mobility benefits can make your employees’ life a lot easier. Because even if they can work from
home or elsewhere, they’ll still have to come into the office – or workplace – regularly. This
category covers things like public transport and cars but also bicycles and carpooling.
What types of employee benefits are most appreciated among the different generations?
Different generations of workers (often) want different things. We’ve already seen this in our
article about generational differences in the workplace.
As each generation is in a different stage of their lives, it’s no surprise that they tend to
appreciate different types of employee benefits. After all, young Millennial parents have other
priorities than a close-to-retirement Baby Boomer, right?
The Benify study separates employee benefits into two categories: those that employees find
most important and those they most appreciate. Let’s see what the overview looks like per
generation.
Most important benefits among the different generations in the workplace.
Image source: The Employee Happiness Index 2019
Two things immediately stand out when we look at what benefits people find important. The first
and perhaps the most obvious one is the fact that pension plans gain in importance as the
generation gets older. This is something that makes sense as graduates who just entered the
workforce probably won’t be thinking about their retirement in 40+ years yet…
The second thing worth noticing here is skills development. Unsurprisingly, the development of
new skills is more important for younger generations – as they will be more affected by
technological developments – than it is for Baby Boomers.
Something that’s important for all employees, regardless of their age, and that tops almost every
list, are working hours and leave.
When we look at the benefits that are most appreciated by employees, the top 5 per generation
looks slightly different. All of a sudden things like food & beverage and mobility pop up on various
lists. The number one among pretty much every generation, however, is health & wellness.
It’s interesting to see that financial wellness is something that the youngest generation in the
workforce, Generation Z, has in its top five. As companies will increasingly hire people from
Generation Z, financial wellness will probably become a more important employee benefit.
Wrapping up
Well, there you have it, 12 types of employee benefits every HR practitioner should know. The
days where employee benefits packages offering health insurance and a basic pension plan
were enough to get candidates working for you are over. Today’s candidates and employees
expect benefits at work, benefits for their health, financial security and work-life balance. If you
want to get a competitive edge, you need to make sure to choose the best employee benefits
that fit your workforce.
While most would relate rewards and recognition to monetary bonuses or extravagant awarding
events, employee appreciation doesn’t have to be that expensive or glamorous. Employee
rewards can be as candid as a pat-on-the-back and a genuine compliment. It can also be as
simple as a ‘thank you’ email or a friendly greeting at work.
Employee retention is the ability of an organization to retain its employees. Employee rewards
and recognition is one of the possible approaches to retain your staff. One example can be
financial incentives such as raises, bonuses, and stock options.
Employee recognition gifts are also a great plus – for example, a gift card from their favorite store
or a token of appreciation for every five years of service. Incentive programs as means of
employee recognition in the workplace is a great way to show appreciation for your employees,
keep them motivated, and make them stay.
4. Boost morale
The way your organization’s leaders manage your employees also plays a significant factor in
employee motivation. Letting your staff know their hard work is being recognized by the
management can help motivate your company’s most valuable asset.
A simple greeting before and at the end of the day is an obvious but sometimes overlooked form
of recognition. Saying a sincere thank you and apologizing for some misunderstanding can be
subtle ways of showing appreciation and respect. These small gestures may seem quite trivial.
But, these are some of the best (and most cost-effective) ways of employee recognition in the
workplace.
You’ll also be surprised that having a company culture that promotes these simple ways of
showing appreciation as staff recognition can have a big impact on staff morale and productivity.
This also applies to employee recognition in the workplace. You shouldn’t just recognize your
employees, but you should do it in a more personal way, the way you’d want to be acknowledged
in your dream job.
Here are some ways to get you going with recognizing your employees’ hard work:
Bonus/ Treats
There are so many ways to treat your employees for doing a great job. Here are some ideas:
· Monetary bonuses will show them they are valued and make them feel their hard work is paying
off and is greatly appreciated by the company.
· Give away company-branded gift tees, sweatshirts, or tokens (like pens, bags, mugs, etc.) to
employees who are doing great.
· Who does not love food? Why not have free lunch once a week for everyone in the office?
This can serve as inspiration for those who did well to keep doing better. It will also challenge
those who don’t find their names on the wall to keep on trying to do better until they see posted
messages addressed to them.
Extra Tips
Recognition programs should be all-inclusive. Everyone needs to be eligible for the rewards.
Excluding specific employee or groups can negatively affect performance.
Don’t hold up too long to remember somebody for their diligent work. ‘Now’ is always the best
time to say ‘thanks,’ ‘congratulations,’ or ‘job well done.’ This is so that the employee can
associate the recognition with the exact behaviors that resulted in an exemplary performance.
Conclusion
There are countless ways to put employee recognition in the workplace into action; however, it
all begins with company culture. A winning employee recognition program starts with having a
company culture that advocates appreciation for top performers. This can be the foundation for
solid staff engagement, continuous employee development, and retention strategy for the future.
It is also becoming more commonly recognised that an organisation that embraces Equal
Employment Opportunity and advocates for workers’ safety are sure to win the confidence and
trust of their people. Furthermore, it is essential that an organisation will enforce and act on laws
to safeguard the identity, respect their people, and protect them from any unlawful undertaking
whatsoever. However, the importance and benefits of imposing Equal Employment Opportunity
training and policies are not limited to the employees. It has a broad scope of recognition for the
employer as well. Please read on to find out why understanding and implementing best practise
EEO is vital for your organisation.
Improved recruitment
Since it is a requirement enforced by the law to consider all applications equally regardless of
their background, race, culture, religion, language, etc., the organisation can focus on evaluating
the talent, skillset, and abilities of applicants who can efficiently contribute and make significant
value-addition to the organisation. Usually, most organisations overlook the demand of the
vacant position and fail to recruit the right candidate by hiring an individual who “seemingly fits
the role” without any evaluation or assessments done to measure one’s qualification. Hence, on
the lines of Equal Employment Opportunity policy, the companies can spread word of mouth of
their transparent and ethical recruitment process, attract potential applicants and make unbiased
hiring decisions to employ qualified candidates, and build a proficient team with the right know-
how and capacity to perform challenging tasks to add to the overall growth of the organization.