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COURSE TITLE: HUMAN

RESOURCE
MANAGEMENT

COURS NUMBER: MBA 551

CREDIT HOURS: 2
Chapter Lecture Topics
One Human Resource Management: An Overview

Two The Environment of Human resource Management

Three Job Analysis (JA)

Four Human Resource Planning (HRP)

Five Recruitment & Selection

Six Performance Management, Training &


Development
Chapter Group Work Assignment Topics
Seven Compensation And Benefit Administration

Eight Managing Employee and Labor Relations

Nine Performance Appraisal and Management

Ten Diversity Management and Harassment

Eleven Work life Balance and Stress Management

Twelve Ethics and Corporate Social Responsibilities


3
Objectives
Chapter One
Human Resource Management
(HRM): An Overview
After completing this part,
participants will be able to
understand:
1.HRM Definition
2.The Importance of HRM
3. Evolution & Development of HRM
4.Objective of HRM
5. HRM & Personnel Management
6. Model Of Personnel Management
7. HRM Activities
What is human resource management?
 
• Before giving an answer to this question, it would
be better to define "management" it self.

• Management can be defined as the process of


reaching organizational goals by working with and
through people and other resources.

• According to Kinard, "Management is the process


of maximizing the potential of an organization's
people and coordinating their efforts to attain
predetermined goals.
5
1.Human Resource Management Definition

The management of one of the most


important resources of organizations the-
people

Human Management
Resource +
•Plan
•Organize
People •staff
•Direct
•Control
6
contd

HRM could be defined in many ways:


• HRM is a series of integrated decisions that govern
employer-employee relations.

• HRM deals with the human element in the


organization, people as individual and groups,
their recruitment, selection, assignment,
motivation, empowerment, compensation,
utilization, training and development, promotion,
and retirement.

7
Contd
Human resource Management refers to the
management of the
 abilities,
knowledge,
skills,
attitudes (KSA) to the best use of organizational
objectives.
Human Resource Management is the utilization
and maintenance of human (people) resource in
organizations in order to achieve objectives.
2. HRM: Roles/Importance
Management in all areas of life implies achieving goals with
effective and efficient use of organizational resources.

 Organizational resources can be grouped into four major


categories:

 Human resources, key resource


 Financial resources
 Physical resources
 Information resources

9
Contd…HRM: Roles/Importance
• People at work provide pool of knowledge, skills,
creative, abilities, talents, and attitudes
• People design, operate and repair the
technology,
 people control the finance, and
 people use the material,
 people mange information

10
Contd…HRM: Roles/Importance

 Without the appropriate HRM it is possible


that you will end up in
• Hire the wrong person for the job.
• Experience high turnover
• Have your people not doing their best.
• Have your company taken to court because
of disciplinary actions.
• Allow a lack of training to undermine your
department’s effectiveness.
• Commit any unfair labor practices.
11
Contd….HRM: Roles/Importance
 With good human resource management
employee objectives, organizational objectives and
societies objectives are met
• Employee enjoy their work
• Employees have a sense of accomplishment
in and through their work
• Employees have a high sense of belonging
to their organization and work place
• Employees feel that they are respected as
individuals and their contributions are
recognized and valued
1212
Contd …HRM: Roles/Importance

• Employees have a feeling to enhance


their competence and perform more
challenging and satisfying task

• Organizational needs are fulfilled


because satisfied employees contribute
to the at most of their abilities

• Society will develop and industrial


piece are maintained 13
3. HRM History: Evolution & Development
The origins of managing people can be traced
back to the existence of man as a social animal.

Think of the Egyptian pyramid, the Wall of China,


the Obelisk of Axum and the church of Lalibela.

 The most documented beginnings were as a


result of the Industrial Revolution, where the mass
production of goods had significant implications for
the ‘employees’ operating this machinery.
contd
The Industrial Revolution was
characterized by:
The development of machinery
The linking of power to machines
The establishment of factories employing many
workers, and
Extensive specialization of labor – that is,
individual workers performing very narrow tasks
contd

 At the beginning of the Industrial Revolution


factories in order to maximize profit they were
using :
• Long hours of work
• Minimum pay
• Poor working condition (often overcrowded,
little or no sanitation and clean water,
disease, accidents and death were common
place as a result of the poor sanitary
conditions)
contd
• Unsafe working conditions and hazards.

• Women and children were often ‘employed’


in these factories, often receiving no wage
but received shelter and food in return for
their labor.

• This time marked the beginning of trade


unions, and the concept of Marxism and
Leninism.

17
contd
The consequence of grouping workers into
shops and factories, and the specialization
of labor, was a gradual emergence of more
systematic attention to:
The design of jobs
The choice of workers for those jobs (selection)
The provision of pay and benefits
(compensation), and
The welfare of employees both on and off the
job
Robert Owen (1771-1855) and Human resource
Management
 Robert Owen an owner of a textile mill in
Scotland made an attempt to improve the
relationship between workers and owners.
 He tried to improve the relationship in his
own factory by undertaking the following:
• Improved working conditions
• Reduced hours of work
• Allowed workers to buy the product of the
factory at cost.
Contd……Robert Owen

• Opened school for the children of the factory


• Played workers even when work interrupted
• Provided meal
• Provided bathroom facilitates
• For the contribution he has made to HRM he is
referred to as the father of modern personnel
management
• He said that workers in organizations need
special attention and dignity or respect.
20
Management Theories and Influences on
HRM
 A range of management theories have had
direct application to the development of
human resource practices. These include:
• Classical Management theory
i. Scientific management theory
ii. Classical Organizational Theory
• Behavioral School (industrial Psychology)
• Management Science
Integrative Approaches: Systems theory and
Contingency Approach
contd
• The two classical approach perspectives are based
on the problems each examined.

• One perspective concentrated on the problems of


lower level managers dealing with the everyday
problems of managing the work force.
• This perspective is known as scientific management.

• The other perspective concentrated on the problems


of top managers dealing with the everyday problems
of managing the entire organization. This
perspective is known as classical organization
theory.
Classical Management theory (Scientific
management Frederick Winslow Taylor)
• Jobs can be scientifically analyzed to find one
best way of doing a job.
• Training ensures employee and job fit
 It emphasizes on improving worker efficiency
through the scientific study of work.
 He was angry or he was impressed with the
degree of “soldiering” - systematic, deliberate
delay in performance.
Classical Organizational Theory
 Fayol’s primary focus was the managerial activity,
because he put managerial skill had been the most
neglected, least understood but the most crucial
aspect of business operations.

 He defined managing in terms of the five functions:


planning, organizing, commanding, coordinating
and controlling.

 Part of his thinking was expressed in the 14


principles of effective management.
Behavioral School (industrial Psychology)
 Emphasized on human relations- a general term
used to describe the ways in which managers
interact with their subordinates- based on social
environment of work, individual and group
behavior and interpersonal relationships.

 It has provided important insights into motivation,


group dynamics and other interpersonal processes
in organizations.
 Assignment, Hawthorne study
Modern Management Theories
• This stage of management is the rein of the
refinement, extension and synthesis of the
classical and behavioral theories to
management.

• A few of the streams of this approach are:


1. Systems
2. Contingency
26
Integrative Approaches: Systems
theory
 Systems approach sees organizations as
unified systems with specific inputs, process
and outputs.
 Important features include interaction's
between jobs, technology, environment
(Internal and external) and control
mechanisms.
 HR aspect include communication between
the various subsystems, the coordination of
inputs and outputs, and interaction between
employees and technological systems.
Contingency Approach
• Contingency approach contends that every
organization and environment is different and
therefore requires a different approach.
• Scientific management , organization theory,
behavioral science or management science
may or may not apply, according to business
circumstances.
• Victor Vroom and Fiedler among others have
successfully applied this theory to
management of behavior.
28
Which Theory and Principles to use in
Human Resource Management?
 Application of human resources management theory
differ from the view of scientific management of ‘ one
best way’ hard model of practice to organic soft model
of self control practice.
 Diverse national and industrial relations environmental
demand different HRM applications. Thus , an HRM
theory derived from one country such as the US
experience may not be suitable for Ethiopia or other
countries or Japan.
 Application of Human Resource Management need to be
contingent on specific situations
4. Human Resource Management Objectives

Human resource management pursue several


objectives.
 The primary objective of HRM is to ensure a
continuous flow of competent workforce to
an organization.
Three categories of objectives include
 owners objectives,
 Societal objective, and
 Political/legal objectives
30
 Owners objectives- Human
resource management contributes to
the objectives of the owners.
• Profit for business organizations.
gratify users and owners for non
business organizations.
• Ensure the constant creation and
innovation of employees to the
fulfillment of organizational objective.

31
Social Objectives_ satisfy customers
needs, fair competition, keep societies
welfare including safe products and
healthy environment.
Political/legal objectives-comply
with government laws and regulations,
avoid decimation, allow equal
employment opportunities, fair
treatment, minimum pay, working
hours, Affirmative actions, etc.
32
6. HRM & Personnel Management

 The two concept are different


in their views of managing people
in organizations.
 Human Resource Management
is the modern name given to the
activities called personnel
management.
33
Personnel Management and Human Resource
Management Some Differences
Personnel HRM
Considers employees as economic Considers employees as social,
beings, costs psychological beings, investment

Considers employees as Consider employees as capital,


expenditure investment, profit center

Concentrates on the task or the job Concentrates on people aspect,


their skills, abilities talents

Mechanistic Organic

Greater employee involvement Lesser employee involvement

Bureaucratic control Self control


3434
1. Job Analysis (Job 7. Encouraging
Description, Specification) teamwork
2. Human Resource 8. Rewarding employees
Planning (Compensation)
3. Recruitment and 9. Benefits and Services
Selection
10. Counseling employees
4. Orientation
11. Labor Relations
5. Training and
12. Discipline and
Development (Coaching)
Termination
6. Performance Appraisal
(Feedback)
35
3535
.

Thank You

36
Objectives
Chapter Two
Human Resource
Management Environment
After completing this part,
participants will be able to
understand:
1.HRM Environment
2.The External Environment
3. The Internal Environment

37
1. Human Resource Management Environment

 Human Resource management as a system is affected by


several factors including external and internal environment.

 HRM cannot take place in isolation from the external and


internal environment.

 The functions of Human resources are execute on permeable


systems.
contd
These environments affect the human
resource functions, and shape the policies
and practices of human resource
management.

Today HRM is much more integrated into


both the management and the strategic
planning process of the organization.
contd
 External Environment are those factors that are
outside the organization, they are largely
uncontrollable and provide opportunities
and threats (OT) to the organization.

 The analysis of external environment is some


times called PEST analysis
contd
Major economic, technological, political, and
cultural forces are affecting human resources
management today.

All are contributing to the growing importance of


understanding how to manage human resources
effectively and to the growing importance of human
resources function in organizations.
• Internal environment are factors within
the organization, they constitute the
strengths and weaknesses (SW) of
the organization.
• The analysis of the internal and
external environment together is called
SWOT analysis.

42
contd
International competition, cooperation, and the
interdependence of business have its own impact.

Employment in manufacturing and mining industries (in the US)


is expected to decline slightly. On the other hand, employment in
service industries – including temporary help, health care,
government, banking, computer, and data processing industries –
is expected to increase by 40 percent. Differential Industry
Growth

Such shifts in employment have major implications for human


resources management, including how much recruiting needs
to be done and the kinds of training required.
contd
Downsizing, outsourcing, and mergers: Faced with
accelerating national and global competition and
pressure from shareholders to maintain profits, many
American firms have embarked on restructuring

Some of the major downsizings have been associated


with company breakups, including the selling off a
subsidiary or division.
contd
Downsizing and its planning and aftermath
create all kinds of issues in human resources
management. For example,
Have layoffs produced the desired results in terms of
increased profits, productivity, etc. in other
organizations? What has been the track record?
What cost reduction options should be considered
before resorting to a layoff?
If a layoff is to occur, how are the affected employees to
be selected?
contd
What as the negative effects and hidden costs of a layoff? What
happens to loyalty and trust? What is the impact on
cooperation and teamwork? What important talent may be
lost? What will be the future impact on recruiting?
Will there be severance pay after layoff and how will it be
calculated? Will there be other benefits available to laid-off
employees?
Are there likely to be any suits alleging age, racial, or gender
discrimination?
These and other issues need to be addressed, or circumstances
will likely produce unnecessary costs and suffering.
External Internal
Environment Environment
• Political/legal • Vision, mission,

• Economic • Organizational
leadership styles
• Social • Organizational
• Technological Structure
• Nature of the task
• Work groups
2.The External Environment
Political/Legal- Governments make different
laws that require HRM to respect. Laws include:
• Equal employment opportunities,
• Affirmative actions
• Compensation and benefits
• Safety and health,
• Hours of work, holidays,
• Industrial relations etc.
The Legal Environment of HRM
Equal Employment Opportunity
Discrimination
• Forbids discrimination in all areas of the
employment relationship.
• Employment based on age, sex,
disabilities, national origins (ethnicity),
religion, compensation (payment on
similar jobs) etc.

49
The Legal Environment of HRM (cont’d)
Affirmative Action
• Governments encourage Affirmative action
the commitment of employers to
proactively seek out, assist in developing,
and hire employees from groups that are
underrepresented in the organization.

• Various executive orders, require employers


to develop affirmative action plans and
engage in affirmative action in hiring
veterans and the disabled.
50
contd
Affirmative Action is taken for the
purpose of eliminating the present effects
of the past discrimination.

 Such as women, and the disadvantaged


groups of the society.
The Legal Environment of HRM (cont’d)

Compensation and Benefits


– Fair Labor Standards Acts
 Sets a minimum wage and requires overtime
pay.
 equal pay for equal work, hours of work,
holiday, leaves, etc

8–52 52
The Legal Environment of HRM (cont’d)

Employee Retirement Income Security


• Sets standards for pension plan management
and provides federal insurance if pension
plans go bankrupt.
Family and Medical Leave Act
• Requires employers to provide up to 12
weeks of unpaid leave for family and
medical emergencies.

53
The Legal Environment of HRM (cont’d)

Occupational Safety and Health Act


(OSHA) requires that employers:
• Provide a place of employment that is free
from hazards that may cause death or serious
physical harm.
• Obey the safety and health standards
established by Occupational Safety and
Health Administration
(OSHA).

54
The Legal Environment of HRM (cont’d)

Labor Relations
• Sets rules on how employers and
employees relationship is
governed
• Joining union
• Establishing union
• Bargaining in good faith etc.

5555
Technological environment-
 The world has never before seen technological
changes occur as rapidly as they are today.
 Technologies have an impact on HRM by changing
the entire working methods.
 Technological change will continue to shift
employment from some occupations to others, i.e.,
labor-intensive and clerical jobs will decrease while
technical, managerial, and professional jobs will
increase
Economic Environment
Economic parameter like GNP, per capital income,
an employment rate, inflation rate, etc affects HRM.
If the economy is booming and unemployment rate
is low, it may be harder to acquire and retain the
staff;
In times of economic decline, unemployment rate
increases and a greater choice of labor is available
to the employer
Socio-Cultural Factors
These factors are created by the society on human
resource management, such as demographic
factors and culture.
 Demographic factors describe the composition of
the workforce, such as age, sex, race, and
language.
Culture is the belief and custom (religion) of the
society. It affects the attitude and activities of
workers.
HR managers need to understand the culture and
society from which their employees are recruited.
3. The Internal Environment
• An internal environment is the
environment that exists inside the
organization.
• Vision, mission, objectives and strategies-
HRM require to align its activities to these
requirements.
• Styles of leadership-the styles of management
whether it is autocratic, democratic or laissez fair
• Organizational Structure- Number of positions
and relationships
contd
• The work group- Whether the work group is
supportive.
• Nature of the task- whether the job is attractive
or repulsive.
 The elements of the nature of the task include:
Degree of physical exertion, Working
environment, Physical location, Degree of
human interaction
Summary of Human Resource Management Environment

Unions EXTERNAL ENVIRONMENT Society

Technology
INTERNAL ENVIRONMENT
Legal Considerations

Marketing Operations
i ng
aff
St

Unanticipated Events
Di
re
ct i
ng
Plan

Human
ning

Resource
1
Management

g
rollin
Economy

Other

Con

Shareholders
Finance Organizing Functional
Areas

Customers Competition
© 2008 by Prentice Hall
Labor Market 1-61
The Steps in Dealing Environmental Challenges

Monitor the
environment
Obtain and
analyze
feedback

Evaluate
the impact

Take proactive
measures

1-62
1. Monitor the environment
Human resource managers must be always informed
about new changes in the environment.

They can scan the environment through professional


associations, attendance of seminars, furthering their
formal education, reading newspaper and magazines,
and browsing the internet.
2. Evaluate the impact
After human resource managers acquire new
information about changes in the environment, they
should:
 analyze and evaluate the impact of the environment
on the organization’s human resource management
3. Take proactive measures
Once the impacts of environmental changes are
evaluated, human resource managers implement
approaches that help the organization to reach its
goals by the aid of human resources.

Note that, there are two opposite approaches of


human resource management, reactive and
proactive.
contd
Reactive: human resource management occurs
when decision makers respond to human
resource problems, i.e., after the actual problem
happens.
Proactive: approach of human resource
management anticipated human resource
problems and correction action begins before the
problem arises.
To give effective and efficient solutions to
human resource problems, human resource
managers should take proactive measures
4. Obtain and analyze
feedback
The results of proactive measures taken by the
HR manager are evaluated to see if the desired
outcomes are achieved.

It help the HRM for closing rooms for other


related problems
.

Thank You

68
Objectives

Chapter Three
Job Analysis (JA)
After completing this part,
participants will be able to
understand:
1.Job analysis definition
2.Who is involved in JA
3. Components of JA
4. JA Steps
5. JA Potential Problems

69
69
1. Job Analysis Definition
 The reason why people are required in an
organization is to fill job vacancies and to do the
job.
 This requires HRM to understand the nature of
the job and the nature of the person required for
the job.
 Job analysis is a systematic process of collecting
and making judgment about all of the important
information related to the nature of the job.

70
 
When job analysis is needed?

Job analysis is performed on the


following three occasions:
when the organization is formed
When new jobs are created in the organization
When jobs are changed (change in nature of jobs),
because of new technologies, working methods,
procedures or systems

1-71
The Multifaceted Nature of the
Job Analysis
Labor Relations Recruiting
Selection

Safety and Health Strategic HR


Planning

Job
Analysis Employee
Training
Compensate

Employee Development
Performance Appraisal

72
2. Components of Job Analysis
 Job Analysis has two components-job
description and job specification
Job Description—a listing of the
job’s duties; its working
Job conditions; and the tools,
Description materials, and equipment
used to perform the job. It
identifies the picture of the
Job
Job Analysis
Analysis
job

Job Specification—a listing of


the skills, abilities, and other
Job credentials the incumbent
Specification jobholder will need to do a
job. It identifies the picture
of the person.
 The following are items frequently included
in the job description:
Major duties performed
percentage of time devoted to each duty
performance standards to be achieved
working conditions and possible hazards
number of employees performing the job and to
whom they report
contd
Job specification is a document containing the minimum
acceptable educational and experience qualifications.

Job specification should include:

Physical characteristics, such as height, weight, sight,


physical structure, Health, etc.
Psychological characteristics, such as decision making ability,
analytical view, mental abilities, etc.
Personal characteristics, such as behavior, enthusiasm,
leadership qualities, etc.
Qualification and experience, such as academic qualification,
experience, training etc
Job analysis provides the following information
about the job
Job context: This specifies working conditions i.e. physical
working conditions, health and safety consideration, work
schedule, information about incentives and motivations, the
number of people interacting and their interaction.
Organizational factors: The reporting relationship of a
jobholder i.e. to whom he or she reports.
Human or work requirement: Information regarding
human requirements of the job, such as job-related
knowledge or skills (education, training, work experience
etc.) and required personal attributes (aptitude, physical
attitudes, personality, interests, etc)
contd
Performance standard: It provides information about
expected performance levels (in terms of quantity, quality, or
speed for each job duty) by which an employee will be
evaluated.

Machines, equipment’s, and work aids: Included here would


be information regarding products made, raw materials
processed, tools knowledge dealt with or applied (such as
finance or law), and services rendered (such as counseling or
repairing).
3. Steps in Job Analysis

1. Determine the purpose of the JA


2. Gather Information about jobs to
be analyzed
3. Write the job Analysis
4. Obtain Approval

78
3.1 Determine the Purpose of JA
Job analysis serves several purpose of HRM
• How do you want to use the JA?
• Legal requirement
• Manpower Planning
• Recruiting
• Selection
• Performance appraisal
• Training
• Compensation
• Others
79
3.2 Gather Information about Jobs
• Decide which jobs to include in the job
analysis project
• For similar jobs select representative jobs
• Different methods of gathering data include:
1. Interviews
2. Questionnaire
3. Observation
4. Diary/Logs
5. Critical Incident Technique (CIT)

80
Methods of Gathering information

 Interview Method
– This method provides an opportunity for the
interviewer "to explain unclear questions and
probe into uncertain answers (Werther &
Davis, 1996).
• Although, the interview method is time-consuming
and expensive, but the method ensures a high level of
accuracy.

81
contd
 Questionnaires
 The questionnaire is a widely used
method of gathering data on jobs.
 A survey instrument is developed and
given to employees and managers to
complete.
– Employees answer questions about the job’s
tasks and responsibilities
– The questionnaire method is quick and
economical to use.
82
contd
 Diary Method/ Employee Log

– Incumbent Employees record information


into diaries of their daily tasks
 Record the time it takes to complete tasks
– Must be over a period of several weeks or
months
• Although this approach sometimes generates
useful information, it may be burdensome for
employees to compile an accurate log.
83
contd

 Observation Method
– Analyst observes incumbent
 Directly
 Videotape
– Useful when job is fairly routine
– The observation method is slow and less
accurate than other methods.

8484
contd

 Critical Incident Technique (CIT)


– Takes past incidents of good and bad
behavior
– Organizes incidents into categories that
match the job.
– The CIT is helpful in illustrating to an
employee what kind of behavior is required
for the job.

8585
3.3 Write the Job Analysis
 Many organizations write as job description
combining both job description and specification.
 However it can also presented in two parts as job
description and specification.
The following Items are common to both job
description and specifications
1. Job Identification (Title, Date, Approvals,
Supervisor’s title ,Salary, Grade level)
2. Job Summary (General nature, Major functions
or activities, Includes general statements)
3. Relationships (works with who)

86
Job Description
1. Job Identification (Title, Date, Approvals,
Supervisor’s title ,Salary, Grade level)
2. Job Summary (General nature, Major
functions or activities, Includes general
statements)
3. Relationships (works with who)
4. Responsibilities and Duties (Limits of
authority, what is done-such as sales, lifts, drives etc.)
5. Standards of Performance (Quality,
quantity etc.
6. Working Conditions and Physical
Environment
87
Job Specification
1.Job Identification (Title, Date, Approvals,
Supervisor’s title ,Salary, Grade level)
2.Job Summary (General nature, Major
functions or activities, Includes general
statements)
3.Relationships (works with who)
4.Qualifications
5.Experiences
6.Behaviors

88
Restaurant Manager
Job Summary:
Plan, organize, direct, and coordinate the workers and resources of the restaurant for the
efficient, well-prepared, and profitable service of food and beverages.
Tasks and Duties:
1. Work with chefs and other personnel to plan menus that are flavorful and popular
with customers. Work with chefs for efficient provisioning and purchasing of
supplies. Estimate food and beverage costs. Supervise portion control and
quantities of preparation to minimize waste. Perform frequent checks to ensure
consistent high quality of preparation and service.
2. Supervise operation of bar to maximize profitability, minimize legal liability, and
conform to alcoholic beverage regulations.
3. Work with other management personnel to plan marketing, advertising, and any
special restaurant functions.
4. Direct hiring, training, and scheduling of food service personnel.
5. Investigate and resolve complaints concerning food quality and service.
6. Enforce sanitary practices for food handling, general cleanliness, and maintenance
of kitchen and dining areas.
7. Comply with all health and safety regulations.
8. Review and monitor, with bookkeeper or other financial personnel, expenditures
to ensure that they conform to budget limitations. Work to improve performance.
9. Perform other duties as assigned by management.
Qualifications:
1. Bachelor of Science degree in hotel/restaurant management is desirable. A
combination of practical experience and education will be considered as an
alternate.
2. Good organizational skills for dealing with diverse duties and staff.
3. Pleasant, polite manner for dealing with public as well as staff.
Reports to: Department:
Supervises: Division:
Date: Approved:

Source (revised from): http://www2.hrnext.com/Article.cfm/Nav/2.4.0.0.6719.0

89
4. Potential Problems of JA

 Employees may resist JA because


 Resistance to change
 Possible changes to job duties
 Changes to pay
 Lack of trust of consequences

90
5. Who is involved in the job
analysis?

9191
.

Thank You

92

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