ASSIGNMENT HUMAN RESOURCE MANAGEMENT (Code MB0027)
1. Write a detailed note on charismatic leadership.
Charismatic Leaders exhibit charismatic authority. Defined as "resting on devotion to the
exceptional sanctity, heroism or exemplary character of an individual person, and of the
normative patterns or order revealed or ordained by him." Charismatic authority is one of
three forms of authority laid out in Weber's tripartite classification of authority, the other two
being traditional authority and rational-legal authority. The concept has acquired wide usage
The term charisma means "a certain quality of an individual personality, by virtue of which
he is set apart from ordinary men and treated as endowed with supernatural, superhuman, or
at least specifically exceptional powers or qualities. These are such as are not accessible to
the ordinary person, but are regarded as of divine origin or as exemplary, and on the basis of
them the individual concerned is treated as a leader. How the quality in question would be
ultimately judged from an ethical, aesthetic, or other such point of view is naturally
indifferent for the purpose of definition."
Charismatic authority is ―power legitimized on the basis of a leader's exceptional personal
qualities or the demonstration of extraordinary insight and accomplishment, which inspire
loyalty and obedience from followers.‖ As such, it rests almost entirely on the leader; the
absence of that leader for any reason can lead to the authority's power dissolving. However,
due to its idiosyncratic nature and lack of formal organization, charismatic authority depends
much more strongly on the perceived legitimacy of the authority than other forms of
authority. For instance, a charismatic leader in a religious context might require an
unchallenged belief that the leader has been touched by God, in the sense of a Guru or
Prophet. Should the strength of this belief fade, the power of the charismatic leader can fade
quickly, which is one of the ways in which this form of authority shows itself to be unstable.
In contrast to the current popular use of the term charismatic leader, charismatic authority is
not so much as character traits of the charismatic leader but as a relationship between the
leader and his followers — much in the same way that Freud would transform Gustave Le
Bon's crowd psychology through the notion of identification and of an Ideal of the Ego. The
validity of charisma is founded on its "recognition" by the leader's followers. This recognition
"is not (in authentic charisma) the grounds of legitimacy, but a duty, for those who are
chosen, in virtue of this call and of its confirmation, to recognize this quality.‖Recognition" is
psychologically, a completely personal abandon, full of faith, born either from enthusiasm or
ASSIGNMENT HUMAN RESOURCE MANAGEMENT (CODE MB0027) SET 2 1
from necessity and hope. No prophet has seen his quality as depending from the crowd
opinion towards himself", although his charisma risks disappearing if he is "abandoned b
God" or if "his government doesn't provide any prosperity to those whom he dominates."
Charismatic authority almost always evolves in the context of boundaries set by traditional or
rational (legal) authority, but by its nature tends to challenge this authority and is thus often
seen as revolutionary. However, the constant challenge that charismatic authority presents to
a particular society will eventually subside as it is incorporated into that society. The way in
which this happens is called routinization.
Reutilization is the process by which ‗charismatic authority‘ is succeeded by a ‗bureaucracy‘
controlled by a rationally established authority or by a combination of traditional and
Some leaders may employ various tools to create and extend their charismatic authority; for
example utilizing the science of public relations.
In politics, charismatic rule is often found in various authoritarian states, autocracies,
dictatorships and theocracies. In order to help to maintain their charismatic authority, such
regimes will often establish a vast personality cult, which can be seen as an attempt to gain
legitimacy by an appeal to other forms of authority. When the leader of such a State dies or
leaves office and a new charismatic leader does not appear, such a regime is likely to fall
shortly thereafter unless it has become fully reutilized.
Note that, a charismatic leader does not have to be a positive force thus, Benito Mussolini and
Adolf Hitler could be reasonably considered charismatic leaders. Furthermore, Sociology is
axiological neutral towards various forms of charismatic domination: it does not make
difference between the charismas of a Berserker, of a shaman, of the founder of Mormonism
or of the one displayed by Kurt Eisner. Sociology considers these types of charismatic
domination in "an identical manner than the charisma of heroes, prophets, the "greatest"
saviours according to common appreciation."
Whenever problems seem intractable, there comes a call for MORE LEADERSHIP. This
usually means a call for better leadership and for many, it is a call for charismatic leadership,
something that we think we know when we see it but is very hard to define. We can't seem to
get enough of movies like Rocky, Patton, or Godfather that centre on charismatic leadership;
we seem to think that if only we had better leaders, we could solve our problems.
Yet it isn't that simple. While on the one hand we call for more charismatic leadership, we
also have a distrust of charismatic leadership. Charismatic leaders can lead us astray and into
ASSIGNMENT HUMAN RESOURCE MANAGEMENT (CODE MB0027) SET 2 2
Does Charisma Matter?
It seems so; - sometimes. Charismatic leaders can inspire and create excitement. Yet there are
times or situations where it probably doesn't matter at all. Do you want a banker to have
charisma? Some companies do fine without charismatic leaders and some companies do
poorly with charismatic leaders. Research on the topic concluded that "when conditions are
uncertain, charismatic bosses spur subordinates to work above and beyond the call of duty."
What do Charismatic Leaders do"?
1. Charismatic people have a remarkable ability to distil complex ideas into simple
messages ("I have a dream"); they communicate by using symbols, analogies, metaphors
and stories. Anyone can understand them.
2. They relish risk and feel empty without it; they are great optimists.
3. They are rebels who fight convention; they may seem idiosyncratic.
An "Objective way at looking at what charismatic leaders do:
There appear to be four stages in the development of charismatic leadership:
1. Sensing opportunity and formulating a vision: These leaders seem to sense their
constituent needs as well as see the deficiencies of the existing situation and untapped
opportunities. The combination of these leads to an idealized vision of the future. These
visions at least in organizations seem to fall along one of four major types: an innovative
product or service; a contribution to society; a transformation of the organization; or a
contribution to the workforce.
2. Articulating the Vision: These leaders seem to have a great sense of strategic vision and
a capacity to convey the essence and viability of that to a broad group of people.
3. Building Trust in the Vision:
4. Subordinates must desire and support the goals of the leader and this is likely to be
accomplished by more than coercion; rather the leader builds trust in the leader and the
viability of the goals; this is likely to be done through personal risk taking,
unconventional expertise, and self-sacrifice.
5. Achieving the Vision: These leaders use personal example and role modelling, reliance
on unconventional tactics and their use of empowerment practices to demonstrate how the
vision can be achieved and how motivation can be sustained.
ASSIGNMENT HUMAN RESOURCE MANAGEMENT (CODE MB0027) SET 2 3
2. Discuss four types of interviews used for selection.
Interviewing is probably the most widely used single method of selection. A substantial amount
of subjectivity, and therefore, unreliability, is to be expected from interviewing when used as a
tool of evaluation.
The interview consists of interaction between interviewer and applicant. If handled properly,
it can be a powerful technique in achieving accurate information and getting access to
material otherwise unavailable.
Four kinds of interviews for selection have been identified. These are:
1. Preliminary interview: These interviews are preliminary screening of applicants to decide whether
a more detailed interview will be worthwhile. The applicant is given job details during the interview
to afford him freedom to decide whether the job will suit him. This method saves the company's
time and money.
2. Stress interview: Stress interviews are deliberate attempts to create pressure to observe
how an applicant performs under stress. Methods used to induce stress range from frequent
interruptions and criticism of an applicant's opinion, to keeping silent for an extended period of
time. The most important advantage of the stress interview is that helps to demonstrate
important personality characteristics which would be difficult to observe in tension-free
situations. However, stress- inducing must be done carefully by trained and skilled interviewers.
3. Depth interview: Depth interviews cover the complete life history of the applicant and include such
areas as the candidate's work experience, academic qualifications, health interest, and hobbies. It is
an excellent method for executive selection, performed by qualified personnel.
4. Patterned interview: Patterned interviews are a combination of direct and indirect questioning of
the applicant. The interviewer has certain clues and guidelines to areas which should be probed deeply
and the interview also encourages the candidate to express the relevant information freely.
After the patterned interview is complete, the interviewer should evaluate the candidate on
the basis of practical experience. According to R.N. McCurry and others, certain factors lead
to accurate predictions of the candidate's suitability for a particular position.
The factors are:
(1) basic character traits,
(2) motivation, and
(3) emotional maturity.
One advantage of a patterned interview is that systematic and chronological information
is obtained, and hence this yields to statistical analysis.
ASSIGNMENT HUMAN RESOURCE MANAGEMENT (CODE MB0027) SET 2 4
3. Write a short note on career planning and succession planning.
While most people think the term Career means ―advancement‖ in an organization, a broader
view of career defines it as an ―individually perceived sequence of attitudes and behaviour
work-related activities and experiences over the span of a person‘s life.‖ in other words, the
term career has an internal focus and refers to the way and individual views his/her career and
it has a external or objective focus and refers to the actual series of job positions held by the
individual. Understanding career development in an organization requires an examination of
two processes; how individuals plan and implement their own career goals (career planning),
and how organizations design and implement their career development programs (career
management). Career planning is a deliberate attempt by an individual to become more aware
of his or her own skills, interests, values opportunities, constraints and consequences. It
involves identifying career-related goals and establishing plans to achieving those goals.
Career management is considered to be an organizational process that involves preparing,
implementing and monitoring career plans undertaken by an individual alone or within the
organizations career systems.
A variety of career components i.e. activities and tools exists for use in organizations. HR
managers should be familiar with these components because the managers often serve as
internal consultants responsible for designing the career development systems. Some of the
activities described are individual career planning tools and others are commonly used for
organizational career management. In general the most effective career development
programs will use both types of activities.
A variety of career development activates are available for use. Some of the more popular
ones include: 1. Self assessment tools example career Planning Workshops, Career
Workbooks); 2. Individual Counselling; 3. Information Services (e.g. Job posting systems,
skills inventories, career ladders or career paths, career resource centres and other
communication formats); 4. Initial employment Programs (e.g. Anticipatory socialization
programs, realistic recruitment, employee orientation program); 5. Organizational
Assessment programs (e.g. Assessment Centres, Psychological Testing, promotability
forecasts, succession planning); and 6. Developmental programs (e.g. Assessment Centres,
Job rotation programs, in-house training, tuition refund plans, mentoring). No matter what
tools are used for career development, it is important that employees develop and
individualised career plan. For example Raychem requires every person to have a learning or
Succession planning involves having senior executives periodically review their top
executives and those in the next-lower level to determine several backups for each senior
position. This is important because it often takes years of grooming to develop effective
senior managers. Succession planning is usually restricted to senior-level management
positions and can be informal or formal. For informal succession planning, the individual
ASSIGNMENT HUMAN RESOURCE MANAGEMENT (CODE MB0027) SET 2 5
manager identifies and grooms his or her own successor. This is more prevalent in smaller
Formal succession planning involves an examination of strategic (long-range) plans and HR
forecasts and a review of the data on all potential candidates. The objective is to identify
employees with potential and increase managerial depth as well as promoting from within the
company. In addition it includes determining and clarifying the requirements of the
managerial position and development plans for how future managerial requirements will be
Components include identification of high-potential employees, updated lists of possible
replacements, performance appraisal of all employees, and individual development plans and
management development programs. Additionally, the factors rated as most important in
selecting specific candidates for grooming includes: past job performance, past positions or
prior employment, perceived credibility, area of expertise and career paths and values and
Benefits: There are many benefits of having a formal Succession Planning system:
1) Provides a specific connection to business and strategic planning
2) Provides a more systematic basis to judge the risk of making particular succession and
3) Assists in developing systematized succession plans that fit with a distinct trend to
codify, whatever possible, more general and comprehensive corporate palling actions.
4) Improves the identification of high potential and future leaders, whereby the
organization can engage with them for leadership development initiatives
5) Reduces randomness of managerial development movements.
6) Helps anticipate problems before they get started – and thereby avoid awkward or
7) Provides logical approach for locking succession planning into the process of human
resource planning – connecting formats (data, timing) with process (judgement,
8) Facilitate integration of the many components of human‘s resources planning after
having done many of these separately in the past.
9) Improves internal promotion opportunity
10) Provides early warning if succession does not exist for a position allowing for lateral
hiring from the market.
Regardless of what type of succession planning program is used (formal or informal); most
successful programs obtain the support of top management. Usually, committees of top
managers‘ work together to identify high potential candidates and then out-line
developmental activities for them. They may also include a formal assessment of the
performance and potential of candidates and written individual development plans for
ASSIGNMENT HUMAN RESOURCE MANAGEMENT (CODE MB0027) SET 2 6
4. Elaborate different theories related to managing compensation.
The basic purpose of wage and salary administration is to establish and maintain an equitable wage
and salary structure. Its secondary objective is the establishment and maintenance of an
equitable labour-cost structure i.e., an optimal balancing of conflicting personnel interests so
that the satisfaction of employees and employers is maximised and conflicts
are minimised. The wage and salary administration is concerned with the financial aspects of
needs, motivation and rewards.
Managers, therefore, analyse and interpret the needs of their employees so that reward can be
individually designed to satisfy these needs.
The word 'salary' is defined in the Oxford Dictionary as ‗fixed periodical payment to a person doing
other than manual or mechanical work‘. The payment towards manual or mechanical work is
referred to as wages. The word pay refers to the payment for services done which would
include salary as well as wages.
Wages are commonly understood as price of labour. In ordinary parlance, any remuneration paid for
services is etymological wage. Benham defines wage as ―‗a sum of money paid under contract by an
employer to a worker for services rendered.‖
Labour was always looked upon as a commodity governed by the law of supply and demand. Certain
theories were propounded for determination of wages but these could not stand the test of time. A
few theories are discussed below:
Subsistence theory: This theory, also known as 'Iron Law of Wages', was propounded
by David Ricardo (1772-1823). According to this theory, wages tend to settle at a level just
sufficient to maintain the workers and his family at minimum subsistence levels. The theory
applies only to backward countries where laborers are extremely poor and are unable to get
their share from the employers.
Standard of living theory: This theory is a modified form of subsistence theory. According to
this theory, wages are determined not by subsistence level but also by the standard of living
to which a class of labourers become habituated.
Residual claimant theory: Francis A. Walker (1840-1897) propounded this theory. According
to him, there were four factors of production/ business activity viz., land, labour, capital and
entrepreneurship. Wages represent the amount of value created in the production which remains after
payment has been made for all these factors of production. In other words, labour is the
The wage fund theory: According to this theory, after rent and raw materials are paid for, a definite
ASSIGNMENT HUMAN RESOURCE MANAGEMENT (CODE MB0027) SET 2 7
amount remains for labour. The total wage fund and the number of workers determine
the average worker's share in the form of wages.
Demand and supply theory: According to this theory, wages depend upon the demand and supply of
Marginal productivity theory: This is an improved form of demand and supply theory. Wages are
determined by the value of the net product of the marginal unit of labour employed.
Purchasing power theory: According to this theory the prosperity, productivity and progress
of industry depend on there being sufficient demand to ensure the sale of its products and pocketing of
reasonable profits. A large pact of the products of industry is consumed by workers and
their families and if wages are high, demand will be good. However, if wages and
the purchasing power of the workers are low, some of the goods will remain unsold; output will go
down, which will result in unemployment.
The bargaining theory of wages: John Davidson propounded this theory. According to him, wages
are determined by the relative bargaining power of workers or trade unions and of employers. When
a trade union is involved, basic wages, fringe benefits, job differentials and individual
differences tend to be determined by the relative strength of the organization and the trade union.
5. How employee morale is measured? Briefly explain different methods used to measure
Morale can be measured by assessing attitudes and job satisfaction. As it is intangible and
subjective concept, it cannot be directly measured or evaluated. Employees may be
unwilling to express their feelings of satisfaction or dissatisfaction with their job to the
management. Methods of measuring morale range all the way from the "hunch" or general
"feeling", appraisal to reasonably scientific efforts.
The most commonly used methods for measuring morale are:
The supervisor/executive's impressions.
The guided interview.
The unguided interview.
A combination of the guided and unguided interview
An analysis of company records.
The "listening-in" process.
A combination of any of the foregoing methods.
General Impression of the Supervisor: Some supervisors may not be able to tell you how
ASSIGNMENT HUMAN RESOURCE MANAGEMENT (CODE MB0027) SET 2 8
they know the morale of their men, but they enjoy such an intimate relationship with them
that they do know what their attitudes are. They usually know how to get things done
according to the methods they have been taught, but few of them have had any special
training in evaluating morale as such. Some executives are inspirational leaders and capable of
developing a high morale, but few of these are trained in observing and evaluating morale
standards. Executives should be encouraged to strive to sense the morale situation and
should be aided by more accurate tools that are available.
The Guided Interview: The guided interview is based on the hypothesis that employees'
answers to certain questions will reveal their attitudes. The questions selected are presumed to
be the ones that will call forth a true picture of how the employees feel. This series of
questions is usually rather large. The interviewer seeks to direct the interview in such a
manner as to secure the answers that will reveal the desired information. The guided
interview is a useful method of investigating the morale of supervisors or other groups that
are small in comparison with the employees as a whole.
The Unguided Interview: This technique for measuring morale is predicated upon the
theory that, if employees are placed in a position to talk freely, they will reveal a true
situation not so much by the exact thing complained of or discussed as by the interviewer's
ability to relate what is said to basic causes. It is also assumed that, if the employee himself is
permitted to talk through a given problem or work situation without special prompting or
questioning by the interviewer, he usually will become aware of the logic or lack of logic in
the situation and choose for himself the appropriate line of action.
The method of employee-attitude analysis is designed both to correct an unfavourable situation
and to secure information regarding the status of morale within the group. Though it is an
expensive method of measurement than the questionnaire method, it not only provides a
means of interpreting morale but at the same time is used to build morale.
A Combination of the Guided and Unguided Interview: To combines the two methods,
the interviewer may start with the guided interview, which should be not too long or cover
too much territory. The interviewer is then invited to discuss any subject that he may like to
talk about. During the guided interview some persons tend to bring in material that has no
special significance in relation to the information sought. The interviewer should observe
such instances and encourage the interviewee should observe such instances and encourage
the interviewee to follow up these leads during the unguided position of the interview. As a
matter of fact, few guided interviews are strictly kept on the detailed subjects laid out in the
formal programme and a conscious effort has to be put forth to get the most out of the
unguided phases of the interview.
Company Records and Reports: These are usually prepared by the Personnel Department
at regular intervals with the assistance of supervisors and Department Heads. Generally,
grievances and complaints tend to reveal the state of morale of a group unless these are being
artificially stimulated. Excessive absenteeism or tardiness may also serve as an index of
ASSIGNMENT HUMAN RESOURCE MANAGEMENT (CODE MB0027) SET 2 9
general or specific morale conditions, particularly where certain departments have an
especially unfavourable record. Labour turnover is a fair index of labour unrest or morale,
particularly during a period of labour shortage. This type of analysis is difficult and is not
always reliable as an index of morale because it may not be possible to reveal the managerial
deficiencies that are not directly interpretable in terms of morale.
Listening-in by a Trained Observer : Whiting Williams of Cleveland, Ohio has
developed the "listening-in" technique to the extent that it would be appropriate to call it the
"Whiting Williams Method". He associates with the porkers at work and during recreational
periods. He personally possesses the ability to make his observations largely objective,
something that is unusual in men who might be available for such work. But it is difficult to
secure individuals who possess the required scientific approach to do this work. Such
observers are prone to report what they think their employers want them to find rather than
the true situation. As a whole, this type of investigation of the morale status of employees is
The Questionnaire Method: This method is generally used to collect employee opinions
about the factors which affect morale and their effect on personnel objectives. Morale
surveys are generally conducted with a view to:
1. Finding out what employees really think;
2. Finding out about the kind of education and information they need;
3. Improving morale and keeping a check on the effectiveness of personnel programmes;
4. Determining the training needs of employees; and
5. Finding out what employees really like.
In the questionnaire, questions may be asked in various ways. The interviewer has to
determine the type of questions to be used depending on the objectives of the survey. These
include multiple choice, dichotomous (yes or no)"and open-ended questions.
Conducting the Survey: Management may engage an outside consultant to conduct the
entire survey. In this event, the consultant must be introduced to the employees, and they
should be assured that he will not reveal to anyone an individuals' answer. In some cases
the company's representatives may give the employees the questionnaires in a stamped
envelope, planning them on a table and permitting the employees to get them if they wish
to, or having a fellow employee distributed them. The stamped envelopes are frequently
addressed to some management consultant or college professor who tabulates the results.
6. Explain the guidelines of a disciplinary action.
The principal ingredients of a sound disciplinary system are:
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1. Location of responsibility: The responsibility for maintaining discipline should be
entrusted to a responsible person (e.g., a line executive), though it is the Personnel
Officer who should be entrusted with the responsibility of offering advice and
assistance. The Line Executive should issue only verbal and written warnings. In
serious cases, which warrant discharge or suspension, the Industrial Relations Officer
should be consulted.
2. Proper formulation and communication of rules: Since employees are expected to
conform to rules and regulations and behave in a responsible manner, it is essential that
these rules and regulations are properly and carefully formulated and communicated to
them. It would be preferable if a copy of these regulations, together with any
explanations there of, is included in their handbook; at any rate, they should be put up
on notice boards and bulletin boards. While finalising the rules, everyone should be
given the opportunity to express freely his views thereon.
3. Rules and regulations should be reasonable: Plant conditions and the management
climate should be such as would be conducive to the observance of rules and
regulations. The workload should be such as is practicable in normal working
conditions for an average employee.
4. Equal treatment: All defaulters should be treated alike, depending on the nature of their
offence. Identical punishment should be awarded for identical offences, irrespective of
the position or seniority of the employee.
5. Disciplinary action should be taken in private: This is essential because the main
objective of a disciplinary is to ensure that a wrong behaviour is corrected and not that
the wrong-doer should be punished, or held up to ridicule. If a disciplinary action is
taken in the presence of other employees, it may offend the sense of the employee and
impair his social standing with his colleagues. Such an action may rouse resentment in
the employee and his fellow-workers, and make for a disturbed climate in the
6. Importance of promptness in taking disciplinary action: Justice delayed is justice
denied. If the penalty is imposed long after a violation of rules has been committed, it
loses its positive and corrective influence, and may even induce resentment, which
may not have developed if the penalty had been imposed in time. Care should,
therefore, be exercised to ensure that a penalty is imposed soon after an infringement
of a rule has occurred, and that the punishment is not unfair. If decision has been justly
taken for termination of an employee, it should be implemented soon.
7. Innocence is presumed: An individual is presumed to be innocent until he is proven to
be guilty. The burden of profits is on the employer and not on the employee. It is for
the management to prove beyond a reasonable doubt, that a violation or an offence has
been committed before any punishment is awarded. The kind of proof that would be
needed for this purpose would depend on the gravity of the offence that has been
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8. Get the facts: Before taking any disciplinary action, it should be made sure to get and
keep adequate records of offences and warnings. It is always better to let the
subordinate fully explain what happened and why it happened. It may then be
discovered that there were mitigating circumstances, or that he was not aware of the
rules; or that the person had conflicting orders or even permission to break the rule for
some reason. Getting facts is a good management practice, especially when defending
the decision, to superiors, union arbitrators and others.
9. Action should be taken in cool atmosphere: The action should be taken, not when one is
angry but when the anger has "cooled off" a bit so that rational and sensible judgement
could be taken.
10. Natural justice: A punitive action must satisfy the condition of natural justice. The
management must act without bias and without vindictiveness; it should always
indicate that its disciplinary action against an employee is based on justice and fair
play. The punishment should be commensurate with the gravity of the offence; and
it should be corrective or reformative rather than retributive. The employee should
be taught to behave better; he should be "rehabilitated", and not "injured".
11. After a disciplinary action has been taken by the supervisor, he should treat his
subordinate in a normal manner: The employee has paid the penalty for his violation of
a rule. He should, therefore, be treated as he would have been, had there been no
violation and no punishment. The attitude of the supervisor should be: "Forgive and
12. Don't back down when you are right: When the supervisor knows he is right-that the rule
was broken, that adequate warning is given, that the penalty is not too severe-he
should not back down or compromise on penalty-especially once the decision is
announced. In most cases "being soft" is not viewed as a virtue. Instead, employees
either assume that the rule itself is frivolous, or that the rules and penalties are being
applied inconsistently. In either case, backing down is not advisable.
13. Negative motivation should be handled in a positive manner: The philosophy behind
administering a disciplinary action is that a negative motivation should be handled in a
positive manner, that is, it should be brought home to the employee that a negative
approach does not pay. Positively-oriented managers generally feel that discipline
should not punish but instead be corrective and constructive. As far as possible,
disciplinary action should deal with specific rule in question, rather than with the
employee in general. The saying "let the punishment fit the crime" is appropriate
when disciplining the employee.
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