Human Resources

Human Resources

The process of managing employees in a workplace

Human Resource Management

The process of managing staff within an organisation

Focus of HRM

Relationship between employed + employee + how they are able to work to achieve goals of business + their individual goals

Employer

• Exercises control over employees

• Has responsibility for payment of wages

• Hold the power to dismiss employees

Employee

A worker under an employer’s control. May involve

• Location of the workplace

• The way in which the work is performed

• Degree of supervision involved

Strategic Role of HR

• Seeing an effective workforce as a way of adding value to all areas of their business performance

• Focusing on the use of specific human resource management strategies to retain, reward and motivate effective + skilled employees to achieve the business’s objective

Benefits of Strategic Role of HR

• Development of highly qualified workforce that value skill development

• Introduce systems + procedures that deal with workplace conflict + grievances

• Recruiting employees that fit into the long-term organisational needs of the business

• Workforce creating a competitive advantage

Strategic Challenges for HR Management

• Developing + retaining talented staff

• Improving leadership development

• Managing an ageing workforce

• Analysing the increased role of technology

• Communicating fully to all stakeholders

• The company’s position on ethics and CSR

• Discussing the advantages + disadvantages of outsourcing in a global market

Interdependence with Oher Key Business Functions

Operations:

• Recruit staff with relevant skills + experience necessary to product

• Monitor performance of those involved in production

• Provide training and development initiatives for staff

Marketing:

• Through marketing process, business is able to determine the skills required for employees to produce desired product

• Staff are public face of business + actions influence consumer decisions

Finance:

• Budget developed that allocates funds toward training and development e.g. HR manages must work within budgets

• Budget developed that allocates fund toward new roles + recruitment

Outsourcing

• Need to reduce costs, improve productivity, globalisation + technological change → increased competition

• As a response new organisational structures have emerged with the growth outsourcing business functions

Reasons for outsourcing

• Reduce costs

• Focus on core

• Improve quality

• Increase speed to market

• Foster innovation

• Conserve capital

Domestic Contractors

• Labour hire/employment agency

• Labour hire/employment agencies/dependent contractors

• Independent contractors

• Outsourced suppliers

Global Outsourcing

Process Outsourcing:

• Most common form of outsourcing and involves jobs that are repetitive + easily measured work

Project Outsourcing:

• Involves use of intellectual property + strategic business knowledge, tends to operate in a longer time frame, is more difficult to measure + quality cannot be fully anticipated which is risky

Risks of Global Outsourcing

• Difficulty controlling quality + reliability of the service

• Cultural differences

• Security issues

• Lack of remedies for breach of contract

• High labour turnover

• Well-qualified employees may be replaced with less qualified staff

Key Influences

• Stakeholders — Employers, Employees, Employer Associations, Unions, Government Organisations, Society

• Legal — The Current Framework

Stakeholder

Anyone that has an interest in the business

Employers

Owner or a manager of a business whose responsibility is to pay others to work for the business

Stakeholders in HRM are

• Responsible for ensuring that the business has the appropriate staff to achieve the organisation’s goals

• Employers’ responsibilities are increasing, as current legislation encourages them to negotiate agreements + resolve disputes at the individual workplace

• Employers are widely criticised for not managing employees effectively

Employees

• Provide skills to business in return for regular source of income

• Require development opportunities, rewards + increased priority towards work life balance

• Unions assist employees to negotiate improved work conditions/incentives with employers e.g. provisions for child care + paid maternal leave

Employer Associations

Aim to promote the interests of the employer within a business environment

• Provide advice on matters e.g. unfair dismissals + discrimination issues

• Make submissions to safety net wage cases

• Negotiate agreements

• Lobby governments + other organisations with the views + interests of employers, industries + trade

• Unlike unions, represent employers on a broader range of issues

• Examples: Business Council of Australia, Australian Confederation of Commerce and Industry (ACCI), National Farmers Federation

Trade Unions

An organisation that aims to protect + promote the interests of employees within a workplace

• Assist employees with disputes in the workplace + act as a bargaining agent in wage negotiations

• Advise members on

  • Workplace rights

  • Wage levels

  • WHS issues

• ACTU: National union group in Australia in Australian Council of Trade Unions (ACTU)

  • Lobbies governments for improved work conditions

  • Works with other unions on submissions to FWC for wage increase hearings

  • Works with unions, employer associations + Federal government on appropriate increase of minimum wage

Governments

• One of the most influential stakeholders in the employment relationship process

• Federal government establishes legal framework that employees, employers + unions abide by

• Government influences HRM through changing policies on contracts, minimum wages, industrial relations, WHS

Key Roles:

• Legislator

• Employer

• Responsible Economic Manager

• Administrator of government policy on industrial relations

• Representative of Australia in international arena, International Labour Organisation

Legislation affecting HRM

• Statutes — laws made by federal + state parliaments

• Constitution → limited powers to Commonwealth Government about industrial issues + allows states to make laws about matters from residual powers

Role of Statute Law

• Provide framework for awards + agreements + resolution of disputes + require employers to

  • Meet WHS requirements

  • Maintain worker’s compensation insurance

  • Provide all employees with superannuation, annual leave + long-service leave

  • Ensure employment practices in the workplace are free from discrimination

  • Give each new employee covered by national industrial relations systems, a fair work statement — gives basic information about employee rights

Fair Work Act 2009

• Administered by federal government

• Covers all constitutional corporations + most private employees

• Gives employers + employees the same workplace rights and obligations, regardless of the state they work in

• Key Elements:

  • Ten National Employment Standards (NES) developed to provide basic protections to employees

  • Collective bargaining + good faith bargaining required by all parties

  • Modern awards for specific industries and occupations

  • Enterprise bargaining continued

  • Annual National Wage Case sets minimum wage

  • Protection from unfair dismissal

Industrial Tribunals and Courts

• Exist at the federal and state levels of enforces laws established by governments

• The FWC today plays a role in ensuring that the bargaining process and any associated industrial action occur according to law

• FWC assists in resolving disputes involving employers, employees, unions + employer associations who are covered by the national workplace relations system

• A panel of 7 senior members, the FWC’s expert panel — responsible for hearing annual wage cases + setting minimum wages for employees in the national workplace relations system

Federal Court

• Under the constitution, only courts have the judicial power to determine disputes about existing rights + make decision about these matters

• Federal Court has division that enforces industrial relations legislation by administering court actions that arise under Australian industrial laws

• Handles cases relating to industrial action + breaches of industrial laws, interprets industrial legislation + able to impose penalties for the breach of an award or order

Other Government Agencies

• AHRC, the Workplace Gender Equality Agency (WGEA) + state organisations such as the Anti-discrimination board are to implement particular areas of government legislation

• Safe Work Australia began operating as an independent statutory agency in 2009.

  • Its primary responsibility is to improve occupational health + safety, and workers’ compensation arrangements across Australia

Society

• The UNDHR recognises the importance of work in people’s lives

• The battle between employers + employees is very public and voters will elect + vote out governments that significantly hurt employees’ rights

• Global competition means greater outsourcing and relocation of production outside Australia → can significantly harm local communities

• Community interest in health + safety at work has grown as has criticism of any perceived discrimination

• All this is going on while businesses look for ways to reduce the cost of labour

Legislation Covers

• The nature of employment contracts + agreements

• Dispute-settling methods

• Protection of human rights in employment

• Employer responsibilities for tax payments on behalf of employees

Employee Welfare is provided for through

• WHS legislation + specific legislation

• Superannuation Guarantee — all employers are obliged to pay superannuation contributions for employees, whether or not they are on awards

The legal system — Current Framework

• Changing community + worker expectations on social justice (equal employment + anti-discrimination), safety + environmental issues are increasingly reflected in legislation + work practices

• Australia has shifted from strongly centralised industrial relations system in 1990s → decentralised + more fragmented system based increasingly on bargaining at the workplace level

Themes within the current legal system

• Many people are

  • employed using unregistered individual common law contracts

  • Have only casual work

  • Work as independent contractors

Government Influence on Employment Contracts

• Federal Government — Department of Education, Skills + Employment responsible for

  • FWC

  • Fair Work Ombudsman → educates employees + employers + ensures they comply with the law

  • Safe Work Australia → aim to bring a national policy development on WHS + Worker’s Compensation

  • Comcare → education role but also runs a worker’s compensation scheme

Employment Contract

Agreements between employers + employees to ensure that responsibilities are performed + rights are protected

• 3 Parts to a contract

  • Offer

  • Acceptance

  • Consideration

• Can be written/verbal

• Can be contract of service

  • Standard employer-employee contract)

Contract for service

• A contractor is used for a specific job for a set time

• Court can decide that a contractor is actually an employee if the company had the right of continuous, dominant + detailed control over contractor

Contract is valid when:

• Parties involved intend to create legal relationship

• One party offers + other accepts offer

• Both parties obtain a benefit

• Both parties have capacity to contract e.g. they are old enough to agree/make contract

• Consent is genuine + not pressured

• Offer does not contravene public interest

Common Law (Rights and Obligations of Employees)

• Developed by judges + relies on precedent

• Most aspects of rights + obligations in employment contracts stem from common law + formalised in statute law

• Employees who need common law contracts e.g.

  • Senior executives in award-free industries

  • Sole traders + partners working in partnerships

  • Employees working in microbusinesses/on special projects

Employers rights and obligations under common law

• pay correct wages

• cover work related expenses

• Provided safe working environment

• forward payg tax to ATO

• act in a way that will not affect employees reputations, cause mental distress/ruin the employment relationships

• Makes superannuation contributions

Employees rights and obligations under common law

• Follow lawful + reasonable instructions

• Use due care in performance

• Are accountable for all money + property

• Faithful to employers interests

• Make available any product/process developed while in employment

Common Law Statutes

• Fair work act 2009

Minimum employment standards

• Maximum weekly hours

• requests for flexible working arrangements

• Parental leave + related entitlements

• Annual Leave

• Personal Carers leave and compassionate leave

• Community service leave

• Long service leave

• Public holidays

• Notice of termination + redundancy pay

• Fair Work Information Statement

  • (Awards + Enterprise Agreements need to be based on these)

Minimum wage rate

• An employee’s base rate of pay for number of ordinary hours that they have worked

• Generally determined by a modern award, enterprise agreement/national minimum wage

• Both employees + employers cannot agree upon a pay rate that is less than the minimum wage

• National Minimum Wage set by FWC

  • Current minimum wage is $23.23/hour or $882.80 per 38 hour week (before tax)

  • Casual employees covered by national minimum wage also get at least 25% casual loading

Awards

• Refers to the legally enforceable minimum terms + conditions that apply to a business/industry

• Modern awards ⇒ legally binding orders which define working conditions + set wage rates

• Generally industry wide + at federal level modernised by January 2010 e.g. Fast Food Industry Award

Modern award Flexibility

• ‘flexibility term’ allows employers + employees to negotiate changes to conditions in modern award

• Individual Flexibility Arrangements (IFA) allow an employer + employee to come to an agreement that varies the modern award/enterprise agreement to address their individual circumstances

• Cannot undermine minimum employee entitlements + must leave the employee better off on the IFA compared to the award/enterprise agreement

• IFA can only address following areas

  • Arrangements for when work is performed e.g. working hours

  • Overtime rates

  • Penalty Rates

  • Allowances

  • Leave loading

Enterprise Agreements

Collective agreements made at a workplace level between an employer + group of employees about terms + conditions of employment

Types of Enterprise Agreements

• Single Enterprise Agreements

  • Made between single employer + group of employees - can involve more than one employer in limited cases

• Multi-enterprise Agreements

  • Made between 2/more employers + group of employees

  • May occur if they share common funding, operate collaboratively + have common regulatory system e.g. group of hospitals

• Greenfields Agreements

  • Single-enterprise + Multi-enterprise agreements relating to a genuine new enterprise of the employer(s) that are made before any employees to be covered by the agreement are employed

  • Made with 1 or more relevant unions

Key features of enterprise agreements

• May include

  • Rates of pay

  • Penalty rates + overtime

  • Allowances

  • Hours of work

  • Personal + annual leave

  • Any matters related to the relationship between employer + employees + representative organisation involved

  • How the agreement will operate including nominal expiry date

• Must be approved by FWC + satisfy them that the agreement

  • Has been made with genuine agreement

  • Passes a ‘better off overall test’ compared to modern award

  • Covers a representative group of employees

  • Has a specified nominal expiry date (within 4 years of the FWC’s approval)

  • Includes dispute settlement procedure, including an option for disputes to be brought before an independent person e.g. FWC for arbitration if parties agree to it

  • Incudes flexibility clause + consultation clause, allowing for variations if required

  • Provides opportunities for employees to be represented by a bargaining representative + to bargain in good faith during negotiation of an agreement

Other Employment Contracts

• Individual Common Law Employment Contracts

• Independent Contractors

• Contracts for casual work

• Part time contracts

Individual Common law employment contracts

• exist when an employer and an individual employee negotiate a contract covering pay + conditions

• Can be written/verbal - many informal and offer much less protection than other agreements

Independent Contractors

consultants/freelancers — undertake work for others; however, they do not have the same legal status as an employee

Contracts for casual Work

• have contracts with employers for short-term, irregular/seasonal work.

• Work period varies, paid on hourly/daily basis + not entitled to paid leave

• Many employers prefer casual staff as it reduces costs for recruitment dismissals and other on-costs (additional costs involved in hiring an employee above the cost of their wages)

Part-time contracts

• 29% of all employees in Australia are employed on a part-time basis

• have access to employment entitlements offered to full-time employees on a pro-rata basis

Work Health and Safety

• Commonwealth Government Organisation — Safe Work Australia

  • Conducts research + national standards

• Usually handled by states

• Legislation in NSW - Work Health and Safety Act 2011

Work Health and Safety Act 2011 requires

• Employers ensure health, safety and welfare at work of all employees

• Employers must take out worker’s compensation or face imprisonment/$55,000 fine

• Employees are required to take reasonable care for the health + safety of others, to cooperate with employers and comply with WHS requirements

• Employees who engage in any behaviour that puts other employees at risk are breaching their duties + could be fined

• Health + safety committee must exist at workplaces with more than 20 employees

• SafeWork NSW may inspect workplace, collect information + issue improvement + prohibition notions under Factories, Shops + Industries Act 1962

Worker’s compensation

• Provides range of benefits to an employee suffering from an injury/disease related to their work.

  • Provided to families of injured employees when the injury/disease was caused by, or related to, their work

• All employers must have workers’ compensation insurance through a licensed insurer

• In NSW, the workers compensation is regulated by the State Insurance Regulatory Authority (SIRA)

• Icare — NSW government agency that provides insurance + care services to government organisations + to people with injuries under various compensation schemes

  • Covers about 3.6 million workers in NSW

Anti-discrimination

Occurs when a policy/practice disadvantages a person/group because of a personal characteristic that is irrelevant to the performance of the work

• Anti-Discrimination Act 1977 (NSW) entitles employees to fair treatment + covers almost all types of discrimination

• Legislative body associated with discrimination is the Australian Human Rights Commission + (act in 1986)

  • Has responsibility to enforce equal opportunities in the workplace at the federal level and to enforce human rights in Australian workplaces

• Laws enforced by AHRC

  • Age discrimination act 2004

  • Disability discrimination act 1992

  • Race discrimination act 1975

  • Sex discrimination act 1984

• Under commission illegal to take adverse action in employment on the grounds of a person’s

  • race, sex, sexual preference, colour/age

  • physical/mental disability

  • religious faith/political opinion

  • social origin/national extraction

  • marital status + carer responsibilities

  • pregnancy/potential pregnancy

Equal Employment Opportunity

• Refers to equitable policies + practices in recruitment, selection, training + promotion

• Ensures the best person is chosen for the job

Affirmative Action

• Measures taken to eliminate direct and indirect discrimination, and for implementing positive steps to overcome the current and historical causes of lack of equal employment opportunity for women

• Workplace Gender Equality Act 2012 aims to promote + improve gender equality and outcomes for both women + men in workplace

Gender Equality Aims

• achieve equal outcomes for both women + men, to achieve workplaces must

  • provide equal pay + conditions for women + men

  • remove anything that prevents the full participation of women in workplace

  • must facilitate access to all jobs and industries, including leadership roles for women and men

  • must eliminate discrimination on basis of gender, particularly in relation to personal responsibilities including family and caring for both women + men

Economic Influence

• Several factors influenced by economic cycle including

  • Demand for labour

  • Employment levels

  • Bargaining power of labour

Structural Change — Economic Influence

a change in the nature and pattern of production of goods and services within an economy. Includes significant growth in the services sector e.g. closing of manufacturing

Globalisation — Economic Influence

Increased global competition forces employers to not only seek motivated, skilled staff but look to cut costs by reducing benefits, employing casual staff + contractors

Technological Influence

• Has significant influence on HR through

  • Recording employee actions

  • Payroll

  • Labour in the operations process

  • Location of workplace

  • Recruitment

  • Job applications

  • Increased workplace flexibility

Social — Changing Work Patterns, Living Standards

• Last 20 years seen significant growth of part-time + casual work

  • Result of growth in finance, retail, hospitality + community service industries

  • Part-time workers, including casual workers make up 30% of all workers

  • Many workers want part-time work as they are studying/wanting to reduce work hours before retirement

  • Casual employment grown from 17% in 1992 → 25% in 2016

Career Flexibility + Job mobility

• Around 14-16% of employees are considered job mobile. Less than half of full-time employees have been in their job for 5 years

• Creative and knowledge based fields like education, design + information technology provide flexibility in the workplace + many workers seek part-time, casual, flexible work days + work from home options

Increased participation rate for women

Rate for women rose to 62.7% November 2023 from 43% in 1978

Ageing workforce

Flexible working arrangements, including job share, part time + contracting, all critical in utilising ageing workforce, particularly women → concentrated in health, education + society and culture

Early retirement

• Participation in part-time work much higher ⇒ suggesting older employees are using a gradual withdrawal approach to retirement

• People are returning to work in a part time capacity following retirement for financial reasons/to relieve boredom

Living standards

• Desire to improve living standards will motivate people to join workforce/if employed to achieve promotion + increase wages

• Several issues with employment + standard of living

  • Casualisation of workforce

  • Increasing pressure to manage finances

  • A lack of work-life balances

  • Gender pay gap + growing income inequality

Ethics and CSR — Influence

• Ethical Business Practices are practices are socially responsible, morally right, honourable + fair

• Socially responsible, ethical employer recognises that

  • Pleasant working environment + good working conditions are valuable in motivating + retaining staff

  • Performance and motivation are maximised when staff feel secure, confident in their work, recognised, safe, valued and rewarded for efforts

  • An effective workplace benefits from good relationships + teamwork

  • Business depends on community support, as a source of staff and as a source of business and resources

  • Customers eventually find out which businesses are acting responsibly + which are not

Ethics

Ethical framework must be developed for workplace e.g. code of conduct + code of ethics

• Benefits accruing from ethical practices are becoming increasing evident from research include

• Staff retention + absenteeism rates improve

• Business costs reduced

• Significant marketing + business opportunities

Code of Conduct + code of ethics

Conduct: Statement of acceptable and unacceptable behaviours in a business

Ethics: Statement of a firm’s values and principles

Ethics + CSR Working Conditions

• An ethical employer can be expected to achieve safe and fair working conditions that improve the welfare of employees achieved through

  • Compliance with social justice + industrial legislation

  • Providing safe + healthy working environment

  • Challenging/meaningful work

  • Improving communication, fostering teamwork + empowerment of staff

  • Providing study leave + training opportunities ⇒ improve skills

  • Offering flexible working hours + conditions that promote a balance between work and life

  • Strategic plan supported by management that incorporates specific ethical responsibilities

  • Establishes a code of practices for customers, employees+ suppliers

Acquisition

Process of attracting + recruiting the right staff

Acquisition involves analysing

• Internal Environment: Focus on the business goals and culture

  • Goals + objectives

  • Current business performance

  • Corporate culture

  • Technology

  • Structure and size

  • Rates of turnover and promotion

  • Productivity levels

  • Budget

• External Environment: Economic conditions, competition, technology and legal, political and social factors

  • Competition

  • Labour market trends

  • Economic trends

  • Labour costs — features

  • Changes in laws that affect HR

  • Changes n industrial relations practices

• Once needs are determined, options may be considered — managing for a shortage/surplus of staff

  • Firstly, taking account of the business’ strategic plan

  • Forecast demand — what human resources are needed

  • Forecast supply — what human resources are currently available

Recruitment, — Acquisition

Process of locating + attracting the right quantity and quality of staff to apply for employment vacancies or anticipated vacancies at the right cost

Employee Selection

Gathering information about each applicant and using that information to choose most appropriate applicant

• The business can fill vacancies by recruiting staff

  • Internally

  • Externally

    • Outsourced to private employment aganecies

    • Graduate programs

    • Cadetships

    • Online career sites

    • Company websites

    • Newspapers

    • Government agencies

    • Poached/headhunted employees from competitors

Development

• Process of developing and improving skills, abilities and knowledge of staff through induction, ongoing training and further professional development

• Helps workers broaden capabilities to assist their career progress + helps business retain staff

• Focuses on enhancing employee’s skills

Induction

• Given to new recruits to prepare them for their roles — Includes:

  • Health and safety training

  • Tour of workplace + opportunity to meet colleagues

  • Information about values and expectations

  • Discussions about employment issues

  • Role-specific training

• A well prepared induction program

  • Gives employees positive attitude to job and business

  • Builds employee’s confidence in job

  • Stresses safety policies + procedures

  • Helps establish good working relationships with co-workers + supervisors

Training

Provides work-related education which helps employees to acquire knowledge + skills needed to carry out their jobs

Key Features of an Effective Training Program

1. Assess needs of individual, the job, and business

2. Determine objectives of training program

3. Consider influences

4. Determine process of training

5. Evaluate program

Benefits of training

• Greater productivity

• Good quality products + services

• More motivated staff

• Lower labour turnover + absenteeism

• Greater ability to deal with change

• More flexibility

On the Job Training

• Carried out in the workplace + related to an employee’s specific job role

• 3 Main methods

  • Observation

  • Coaching

  • Mentoring

Advantages of on-the-job training

- Cheaper

- Good transfer of learning

- Workers may feel more comfortable in familiar surroundings

- Employees still productive

- Employers have more control over training

Disadvantages of on-the-job training

- Training is provided by co-workers who may be

— unskilled providing training

— not given enough time to carry out training effectively

— pass out bad habits

Off the job training

• Carried out away from the workplace

  Examples:

  • Day courses at college

  • Evening classes

  • Events at specialist training firms

Advantages of off-the-job training

- Professional trainers and specialist training facilities are used

- No distractions from workplace

- Provides opportunity for networking

disadvantages of off-the-job training

- Can be expensive in terms of fees, transport, materials, accommodation + time out of work

- Transfer of learning back to workplace may not be high

- Training may lack relevance to trainee’s job

Organisation Development

• Flatter organisational structure have been a key influence in improving efficiency + effectiveness in the workplace

  • Also means there is less availability for promotions for employees

Strategies to continue to motivate and retain staff

• Job enlargement — increasing breadth of tasks in a job

• Job rotation — multiskilling

• Job enrichment — increased responsibility

• Self-managed teams — teams choose own roles

• Monitoring and coaching — more experienced staff lead teams support development employees

Mentoring + Coaching

Increasingly used to motivate + develop staff with leadership potential

Mentoring

Mutually agreed role, which suits experienced staff keen to transfer knowledge + skills through succession planning

• More focused on building personal relationship that encompasses the life experience of both parties

Coaching

Focused on improving skills and performance, and on helping individuals manage specific work roles more effectively

• Coaches may be provided by the business/may be sought by those seeking further development

Performance Appraisal

Systematic process of analysing and evaluating employee performance for strengths, weaknesses and opportunities for development

4 Main objectives of performance appraisal

• Provide feedback

• Act as measurement for promotions and pay rises

• Helps monitor employees

• Identify training and development needs of employees

Performance appraisal must be

• Constructive + fair

• Free of discrimination

• Conducted by a trained appraiser

Maintenance

Process of managing the needs of staff for health and safety, industrial relations and legal responsibilities, including compensation and benefits, of all staff

• Involves looking after staff wellbeing, safety + health, managing communications effectively + complying with industrial agreements + legal responsibilities

Staff wellbeing

involves encouraging staff to participate in decision-making and gives employees some control over their work lives

Communication + Workplace Culture

• Methods of communication — regular team meetings between managers and employees; staff newsletters; seminars; surveys; email + internet

• Focus on building trust + communication between people is critical in preventing conflicts

• Creative firms are redesigning the layout of their offices to create spaces for people to meet together in one or two central locations

• Recognition of staff achievements is critical in building positive workplace culture

Employee Participation

Used to improve communication, empower employees and drive commitment to improving quality and efficiency

• The value and effectiveness of employee participation depends on the training, knowledge and skills of the employees involved

• Effective participation is fostered through regular team meetings/briefing to discuss customer feedback, company trends and issues — builds a sense of shared purpose and company identity