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Q.

1 Why is it important to examine management from


different perspectives and what do you achieve from this
examination? Describe management in a new perspective (e.g.
management means “being in changer”).

Answer:

Management:
The term “management” refers to the activities and the group of
people that worked together to plan, organise, lead/motivate and
control/coordinate resources, according to McNamara. As stated “the
four functions recur throughout the organisation and are highly
integrated” (Introduction to Management, 2007). The trends that are
now developing in management include the idea that management
and leadership are different and that the four functions of planning,
organising, leading/motivating and coordinating/controlling must
change so that they can “accommodate a "new paradigm" in
management” (Introduction to Management, 2007).

Perspectives of Management:
Over the years, three perspectives of management have arisen.
These are the Classical, Behavioural and Quantitative. Each
perspective includes several theories of management in which there
are contributors. In the Classical perspective, we include the
Scientific Management Theory in which Frederik W. Taylor, the
Gilbreths, Henry Gantt and Harrington Emerson contributed their
views and the Administrative/ Bureaucratic Management Theory in
which we include Henri Fayol, Lyndall Urwick, Max Weber and
Chester Bamard. In the Behavioural perspective, we include the
Hawthorne Studies, the Human Relations Movement and
Organisational Behaviour. In the Quantitative perspective, we have
the Management Science Theory, the Operations Management
Theory, the Systems Theory, the Contingency Theory and the
Popular Management Theory.

Scientific Management Theory


Firstly, the Scientific Management Theory (1890-1940) was
developed by Frederik Taylor in a time when most of the
organisations were large and industrialised. InVery Brief History of
Management Theories it states that “Often they included ongoing,
routine tasks that manufactured a variety of products. The United
States highly prized scientific and technical matters, including careful
measurement and specification of activities and results” (McNamara,
2007). As noted by Croft “Frederick W. Taylor saw workers soldiering
or deliberately working beneath their potential and designed a 4-step
method to overcome this problem. It begins with breaking the job into
its smallest pieces. “The second step is to select the most qualified
employees to perform the job and train them to do it. Next,
supervisors are used to monitor the employees to be sure they are
following the methods prescribed.
Administrative Bureaucratic Management Theory
Secondly, the Administrative/Bureaucratic Management Theory
(1930-1950) was established by Henri Fayol. He is also the pioneer
to what today is universally known as the four functions of
management that I analysed in the beginning of this paper. Fayol also
identified 14 principles of management. As Kuyper states, these
include
1. Division of Work - Better known as division of labor. Increases
production and quality through specialization.
2. Authority and Responsibility - Authority is the right to give orders
and responsibility is its counterpart. Where authority is exercised,
responsibility must also given, and vice-versa.
3. Discipline - Obedience and respect for the agreements between
the firm and the employees. It also involves sanctions judiciously
applied.
4. Unity of Command - A subordinate receives instructions from only
one superior and not multiple superiors with different intentions.
5. Unity of Direction - Each group of activities should have unity with
one plan and one head.
6. Subordination of Individual Interest to General Interest - The
interest of the employee or group of employees should not prevail
over the interest of the business.
7. Remuneration of Personnel - Fair wages must be distributed to
employees in order to receive their loyalty and support.
8. Centralization - Obtaining the economy of scales necessary for
optimum return, yet focusing on reducing bureaucracies.
9. Scalar Chain - The general order of communication through the
chain of ultimate authority to the lowest rank, which should not be
followed at times, if it hinders the general interest of the business.
10. Order - A place for everything and everything in its place.
11. Equity - The combination of kindness and justice.
12. Stability of Tenure of Personnel - High turnover increases
inefficiency.
13. Initiative - Thinking out a plan and ensuring its success with zeal
and energy.
14. Espirit de Corps - Harmony of the personnel brings a strong
union.

Contingency Theory
Thirdly, in the Contingency Theory, the idea that making a decision
depends on the situation a person is faced with is very important.
In Very Brief History of Management Theories, it gives two examples
of what is meant by this. Therefore, “if one is leading troops in the
Persian Gulf, an autocratic style is probably best....If one is leading a
hospital or university, a more participative and facilitative leadership
style is probably best”( McNamara, 2007).

Systems Theory
Finally, the theory which I will analyse in more detail due to its
importance in management is the Systems Theory proposed by
Ludwig Von Bertalanffy. According to McNamara in Very Brief
History of Management Theories, “A system is a collection of part
unified to accomplish an overall goal. If one part of the system is
removed, the nature of the system is changed as well. For example, a
pile of sand is not a system. If one removes a sand particle, you’ve
still got a pile of sand. However, a functioning car is a system.
Remove the carburettor and you’ve no longer got a working car. A
system can be looked at as having inputs, processes, outputs and
outcomes. Systems share feedback among each of these four
aspects of the systems” (2007). Inputs are things like raw materials,
money, technologies and people. Outputs are things like products or
services to a market. Outcomes could be, for example, better quality
of life or development for the customers or clients. Feedback includes
the information from human resources carrying out the process. This
overall system framework applies to any system (McNamara, 2007).
This system has just recently been introduced into organisations and
has brought about a shift in the way management works in different
organisations. Most importantly, it does no longer try to separate the
pieces in an organisation but tries to show the connection between
pieces. In Very Brief History of Management Theories, McNamara
gives examples of this link “e.g. the coordination of central
administration with its programs, engineering with manufacturing,
supervisors with workers, etc.” (2007).

In Conclusion
I will quote something that Ervin Laszlo wrote in 1972,so as to
demonstrate the importance of the Systems Theory, Ludwig Von
Bertalanffy proposed. He states that “when von Bertalanffy spoke of
Allgemeine Systemtheorie, it was consistent with his view that he was
proposing a new perspective, a new way of doing science. It was not
directly consistent with an interpretation often put on "general system
theory," to wit, that it is a (scientific) "theory of general systems." To
criticize it as such is to shoot at straw men. Von Bertalanffy opened
up something much broader and of much greater significance than a
single theory (which, as we now know, can always be falsified and
has usually an ephemeral existence): he created a new paradigm for
the development of theories.

Q. 2 Describe the managerial skills you need to develop to


be an effective manager, and suggest how you can achieve these
skills.

Answer:

Classification of Managerial Skills


At all levels, Managers require three types of skills. They are:

1.Technical Skills

2.Human Skill

3.Conceptual Skills

Technical Skill:
It is the ability of a manager to use the equipments, methods and
techniques involved in performing specific tasks. Technical skill is
required more at the lower level of management I.e. at the
supervisory level. At higher levels, the technical skill is less important
as managers can rely upon others for technical information.

Human Skill:

The ability of a manager to work with, understand, and motivate


people in the organization is known as human skill. It also involves
the ability to build effective work teams. The human aspect of
management requires individual as well as group relations to be
maintained and developed for achieving maximum efficiency.
Human skills are important at all levels of management.

Conceptual Skill:

This consists of the manager's ability to coordinate all organizational


activities and varied interests involved in it. It involves viewing the
organization in its totality and understanding the inter-dependence of
its individual parts. Of all the skills, this conceptual skill is the most
difficult skill to acquire. Conceptual skill is very important for top
management in formulating long-range plans, broad policies and
relating the business enterprise to the industry and economy.

Managerial Skills in a Manager:

The following are tips for developing coaching skills of effective


managers:
Practice Active Listening:

Why would this make a difference?


Active listening means that you are attentively focused on what is
being said. Repeating back what you thought was said gives the
employee to correct or clarify what they just said. Seek to
understand first, then seek to be understood.
What usually happens when/if you follow these suggestions?
You can recommend a solution that addresses the real concern of the
other party. Additionally it builds trust between employee and their
manager. Communication should be two-way where ideas and
opinions are openly shared and received.
Master Communication Styles:

This is important because communication is more than vocal. Your


gestures, tone and pitch of voice, and even appearance send a
message to your audience even without vocal words. Knowing
when to appear calm and when to be enthusiastic are important skills
for conveying the right message.
And it can be very important because a good coach practices asking
the right questions and does not always give answers. These
guiding questions can help the receiver find the right answers by
themselves which reinforces the value of the lessons that are
learned.
Recognize and Appreciate Accomplishments:

The primary reason behind this is positive recognition of desired


behaviors will encourage them to be repeated. Additionally, it sets the
proper atmosphere for delivering more negative feedback on
opportunities for improvement.
It’s also a good idea because recognition is a strong motivator for
others within the group as well. Most people want to get better in
their jobs. Seeing others being recognized and appreciated for their
accomplishments will serve as an example for others to follow..
Be a Self-Improvement Role Model:

And just exactly why is this a good idea?


A manager who seeks his own opportunities for additional training
and other value added experiences sets a climate where others will
strive for continuous improvement as well.
Are there more reasons?
Yes, people are more receptive to advice from others who don’t
appear to “know it all”. It is okay to share stories of how you learned
and developed throughout your career and to let other know areas
that you are still working on to improve your own skill set.
Practice Visionary Leadership:

And what makes this important?


An effective coach shares a clear vision of what is possible to his
team.
By setting expectations for himself and his staff he sends a strong
message of what behaviors and actions are needed to achieve
success. This is critical in building the confidence of the team so that
they can see themselves attaining the goal.
What other significant reasons will there be?
Managers who celebrate the small improvements (wins) re-energizes
his staff to push further. It is very important that progress is tracked
and acknowledged to keep the team motivated.
As you follow these 5 tips carefully you are more likely to have very
satisfactory results with developing your coaching skills. You can
expect great results and a more efficient, dedicated, productive and
energized staff.
As always you comments below are welcomed and appreciated.

Listed here are my five best ways for "Effective Employee


Performance Feedback".

Start and End Feedback Session Positively:

The reason behind this is it eases the tension to begin a session with
a positive observation. Ending on a positive note sends the message
that you are confident in the employee's abilities to achieve success.
Remember, it is always easy to find the negatives, but don't skip the
positives. If you go to the negatives first, the positives will never get
remembered. .

Always Give Negative Feedback In Private:

You should be careful with this because it is easy to have employees


become embarrassed and even defensive in a public setting. The
purpose of feedback is to encourage positive behaviors and change
negative behaviors. Once a person becomes defensive he will
defend his position and not be open to change.

Focus on Behaviors and Actions:

Why is it advisable to do this?

Because it is easy to describe personality and not actions. Instead


focus on behaviors and actions that are working properly and others
that need to be improved. Give specific examples of both and
reasons why they are in each category and what could have been
better or more appropriate choices. This helps clarify the manager's
perceptions for the employee.

Develop SMART Corrective Action Plans:

There are various ways to get this done, including agreeing for both
the manager and employee to develop them together or letting the
employee develop them alone after the session and getting back
together. Whatever method is chosen, it is important that agreement
is reached by both parties.

As a manager, don't just give your opinions on how to solve issues.


Make this a joint effort.

Each action plan should have goals that are SMART ( Specific,
Measurable, Attainable, Realistic, and Time-based). These type
goals are easier to manage accountability.

Remember Feedback Is a Two-Way Communication:

This may include a portion of the feedback session for each party to
discuss their concerns. Action planning as discussed in Rule
#4 should be a joint effort.

Additionally it is important for the manager to be open to ways he


can improve as well. Sometimes he may discover better ways to
communicate priorities, provide status updates, or even improve
working conditions. Things that he did not even think about may be
brought to his attention. His willingness to change also will facilitate
his employee's attitude to take suggestions more favorably as well..

As you follow these golden rules to "effective employee performance


feedback", you'll find life easier for you, your staff's progress more
rapid as well as your business successes more pronounced and
frequent.

Keep them in mind before and during your next employee


performance feedback session.
Q. 3 Pick a country of your choice and study its resources,
government, political and legal systems and physical infrastructure.
What type of business would thrive in such a country and why?

Answer:

CHINA:

Resources of China:
It was just reported that China expects their GDP to grow by 10.2% in
2010. China has been providing economic growth figures like that for
a very long time. Although many people feel that China's economy
has been obviously growing for the last 20 years, 10% GDP growth
every year seems unbelievable. Those who know the political nature
of China also know that it is a Central Government run by a single
party, the communist party, which is very pragmatic and utilitarian.
What does that mean? It means that the ends justify the means.

That means that they may be inflating their GDP growth to attract
foreign investment. They can do this because they are a totalitarian
regime that can manipulate their economic numbers however they
want. Even democratic governments do this to a certain extent. And
these glamorous reports of rapid economic growth is working.
Investors are looking at China as the next big thing, and they may get
burned by their naivete and ignorance. Many experts now feel that
there is a growing economic bubble looming in China that may burst
at any moment.

Government of China:
All power within the government of the People's Republic of China is
divided among three bodies: the Communist Party of China, the state, and
the People's Liberation Army (PLA).

Political Systems:
The primary organs of state power are the National People's
Congress (NPC), the President, and the State Council. Members of the
State Council include the Premier, a variable number of vice premiers (now
four), five state councilors (protocol equal of vice premiers but with
narrower portfolios), and 29 ministers and heads of State Council
commissions. During the 1980s there was an attempt made to separate
party and state functions, with the party deciding general policy and the
state carrying it out. The attempt was abandoned in the 1990s with the
result that the political leadership within the state are also the leaders of
the party, thereby creating a single centralized focus of power.

Legal Systems:
Under the Constitution of the People's Republic of China, the NPC is the
highest organ of state power in China. It meets annually for about two
weeks to review and approve major new policy directions, laws, the
budget, and major personnel changes. Most national legislation in the PRC
is adopted by the Standing Committee of the National People's Congress.
Most initiatives are presented to the NPCSC for consideration by the State
Council after previous endorsement by the Communist Party's Politburo
Standing Committee. Although the NPC generally approves State Council
policy and personnel recommendations, the NPC and its standing
committee has increasingly asserted its role as the national legislature and
has been able to force revisions in some laws. For example, the State
Council and the Party have been unable to secure passage of a fuel tax to
finance the construction offreeways.

Physical Infrastructure:
The governors of China's provinces and autonomous regions and mayors
of its centrally controlledmunicipalities are appointed by the central
government in Beijing after receiving the nominal consent of the National
People's Congress (NPC). The Hong Kong and Macau special
administrative regions (SARs) have some local autonomy since they have
separate governments, legal systems, and basic constitutional laws, but
they come under Beijing's control in matters of foreign affairs and national
security, and their chief executives are handpicked by the central
government. Below the provincial level in 2004 there were 50 rural
prefectures, 283 prefecture-level cities, 374 county-level cities, 852 county-
level districts under the jurisdiction of nearby cities, and 1,636 counties.
There also were 662 cities (including those incorporated into the four
centrally controlled municipalities), 808 urban districts, and 43,258
township-level regions. Counties are divided into townships and villages.
While most have appointed officials running them, some lower-level
jurisdictions have direct popular elections. The organs of self-governing
ethnic autonomous areas (regions, prefectures, and counties)—people's
congresses and people's governments—exercise the same powers as
their provincial-level counterparts but are guided additionally by the Law on
Regional Ethnic Autonomy and require NPC Standing Committee approval
for regulations they enact "in the exercise of autonomy" and "in light of the
political, economic, and cultural characteristics of the ethnic group or
ethnic groups in the areas."

Business in China:
China’s cheap labors and resource give the chance for lots of people
to have their own business. And the market in China is large. As
China has the largest population of the whole world, so the demand
in China is big. If you have a good idea, and add to the cheap labors
and resource in China, the success of your business will not be so
far.
I prefer Export of toys business in China.

Reason for choosing this Business:


With the opening of special economic zones since 1978, China has
transformed its sluggish planned economy system into a lively
socialist market economy system. China has maintained strong and
steady growth over recent years. With its gross domestic product
(GDP) growing at an annual rate of 9.9% in 2005 to about US$2.26
trillion in 2005, China has become the sixth largest economy in the
world and is expected to rank second by 2030. Meanwhile, China has
successfully maintained a low inflation rate -
its consumer price index (CPI) grew by a modest 0.9% in September
2005 from a year earlier. China is opening her arms not only to
tourists, but also international entrepreneurs.
Over 15 million foreigners enter China every year for leisure,
business or to attend conferences. Among the world’s 500 biggest
multinational enterprises, 450 have started operations in China. By
2005, about 550,000 foreign investmententerprises (FIEs) had set up
operations in China. Foreign Direct Investment (FDI) exceeded
US$60.3 billion in 2005. Domestic investments are relatively paltry as
Chinese citizens are avid savers, leaving FDI to generate a
substantial part of the country’s economic activities. Imports and
exports soared by 23.2% to US$1,422.1 billion. Trade surplus for
2005 jumped to US$101.9 billion from $32 billion in 2004 mainly
because of surging exports of mobile phones, textile products and
steel.
Like many other Asian countries, China’s foreign reserves have
exceeded their optimum level in recent years. According to the
International Monetary Fund, China now has about US$840 billion of
foreign reserves (including Hong Kong), surpassing Japan to become
the country with the highest foreign reserves in the world. In July
2005, China decided to peg its currency, the renminbi (RMB) or yuan,
to a variety of currencies instead of linking it exclusively
to the US dollar. The landmark policy change was made in order to
ease the pressure China faced from its large foreign reserves and
record trade surpluses.
Q. 4 Explain in detail the different types of decisions
managers take at different levels in an organization.

Answer:

Managers have to take decisions at diffret stages. So the role which


managers play to take these decisions are known as Decisional roles.
In decisional roles the manager must undertake strategic planning.
• In an entrepreneurial role he/ she is expected to solve
problems, make improvements and act upon information
received.
• As a disturbance handler he/ she must act upon unpredictable
events and take charge of the situation. Shareholders and
stakeholders will expect the manager to correct the situation and
handle it well.
• In a resource allocator role the manager decides how to make
the most efficient and profitable use of the organisations
materials.
• Finally in a negotiator role the manager must take part in
discussions with trade unions, competitors, suppliers and
customers.

Decisional Roles
Roles that revolve around making choices.

- Entrepreneur – Seeks opportunities. Basically they search for


change, respond to it, and exploit it.
- Negotiator – Represents the organization at major
negotiations.

- Resource Allocator – Makes or approves all significant


decisions related to the allocation of resources.

- Disturbance Handler – Responsible for corrective action when


the organization faces disturbances.

Different levels of organization:

There are three specific categorization schemes to explain what


managers do, result of many years of research and study:

• Functions (Henry Fayol)

• Roles (Henry Mintzberg)

• Skills (Robert L. Katz)

Mintzberg Management Roles

Henry Mintzberg is a well know researcher, and the results of his


studies about the work of managers were published in The Nature of
Managerial Work (New York: Harper & Row, 1973). The term
management roles refers to specific categories of managerial
behaviour, and Mintzberg concluded that what managers do, can be
described by studying ten different and interrelated roles, grouped
around interpersonal relationships, transfer of information, and last,
but not least, decision making. For a more in depth description you
should probably check Mintzberg’s work, but I’ll try to provide a
general outline of his conclusions.
Interpersonal Roles
The ones that, like the name suggests, involve people and other
ceremonial duties.

- Leader – Responsible for staffing, training, and associated


duties.

- Figurehead – The symbolic head of the organization.

- Liaison – Maintains the communication between all contacts


and informers that compose the organizational network.

Informational Roles
Related to collecting, receiving, and disseminating information.

- Monitor – Personally seek and receive information, to be able


to understand the organization.

- Disseminator – Transmits all import information received from


outsiders to the members of the organization.

- Spokesperson – On the contrary to the above role, here the


manager transmits the organization’s plans, policies and actions to
outsiders.

Decisional Roles
Roles that revolve around making choices.

- Entrepreneur – Seeks opportunities. Basically they search for


change, respond to it, and exploit it.
- Negotiator – Represents the organization at major
negotiations.

- Resource Allocator – Makes or approves all significant


decisions related to the allocation of resources.

- Disturbance Handler – Responsible for corrective action when


the organization faces disturbances.

It’s worth to mention that Mintzberg also considered that as managers


perform the roles described above, their activities include reflection
and action. Reflection (also called thoughtful thinking) because
managers think, ponder and contemplate about their decisions.
Action (or practical doing) because everytime they act, they are doing
something, they are applying their decisions.

Mintzberg’s approach is debatable, but several studies that tested the


Management Roles categories in different types of organizations
support the idea that managers do perform similar roles. What does
change, is the emphasis given to each role, that may vary depending
on the organizational level.

Conclusion:

The overall determination of whether a decision is a good or bad one


is by the sum or judgment of the factored quality by its acceptance.
So why do we make decisions, management or not? I believe it’s to
cause an effect. A decision of cause is incomplete if there were no
overall factor to be its effect. In the nature of life, each decision must
be critiqued by others than ourselves, in order to feel and establish
that form of acceptance. We make decisions for the opinion of others.
We make decisions to be recognized. And we make decisions for a
sense of sensibility and awareness. Any and every management
decision we generate will always affect someone or something at
some point. As a consequence, we can never say that our decisions
will never affect someone. If you do firmly believe that a decision, in
general, will not affect others, it will most positively affect yourself.

Although we are the overall deciding factor, with any decision we


make, its effects are based on the quality/qualities we put into that
decision. Therefore, if the quality of a decision were deficient and
factored into the lack of acceptance from its audience and/or peers, it
reflects on the overall deficient decision itself. On the other hand, if
the management decision were a respectable decision, based on
valued quality, the factored acceptance level would be high, in turn,
displaying the effectiveness of that specific decision.

A good example of this phrase is the voting process. The voting


process has been with us since the earliest of mankind. From the
courthouse to television shows, it is used in almost every
occupational environment present. In current day, an affecting
management decision is brought before a panel of individuals.
Amongst this panel, a decision or prospective decision is judged
based on the qualities and advantages, or lack thereof. The overall
acceptance of that decision will be determined by the numbered
panel, who will decide on its overall effectiveness, practice, and
running.
Overall, the better the quality in management decision making, the
greater in superior results and consequences. Alternatively, if
management decision is poor in quality, the more inferior the results
and consequences will be.

Q. 5 Planning and control at Apple computer

Apple computer inc. enjoyed a phenomenal early success after it was


founded in 1977 by Steve Wozmak, a technical expert, and Steve Jobs, the
marketing genius.
However, success did not last for very long, partly because of the
introduction of the IBM Personal Computer. In the early 1980s, in the view
of some observers, Apple needed a tighter control and a more professional
approach to managing. John Sculley was lured from Pepsi Cola Company to
give Apple a new direction.

To bring the company under control, Sculley employed cost-cutting


measures to improve its profitability. At the same time, however, research
and development expenditures were increased so that the company could
remain a technological leader in the field. However, later he was accused of
spending not enough on research and development and too much on
advertising. The firm was also recognized to reduce duplication of efforts, to
lower the break-even point, and to reduce friction among the departments.
To improve its effectiveness and efficiency, Apple introduced new reporting
procedures. Furthermore, considerable efforts were made to control the
inventory level, which is a serious problem in the personal computer
industry. These measures, combined with a successful strategy and helped
by the popularity of desktop publishing, resulted in an increase of over 150
percent in earning in the 1986 fiscal year.
1.What is the relationship between planning and controlling?
2.What other types of plan can be used for controlling the organization?
3.“Planning is looking ahead and controlling is looking back”. Comment.

Answer:

1: Relationship between Planning and controlling:


Control and planning are interrelated so closely that they cannot be separated
from each other. Without control all the planning is fruitless because control
consists of the steps taken to ensure that the performance of the organization
conforms to the plans.

In other words control is concerned with the actual performance in relation


to the standards set in advance and the correction of deviations to ensure
attainment of objectives. Planning is required at the very outset of
management whereas control is required at the last stages.
2: Controlling the Organization:
Control is a fundamental management function that ensures work
accomplishment according to plans. The purpose of control is to ensure that
everything in an organization occurs in conformity with pre-determined
plans. Control also ensures that there is no kind of indiscipline and
incompetence in the organization and employees are not able to put undue
pressure on the management.

Some people are not in favor of control because they feel that control is
always used against the employees. They advocate automatic control rather
than forced one. But a balanced viewpoint is that both the management and
the employees should be put under some kind of control. Control should be
engrained in the basic policies of any type of business organization.
3: .“Planning is looking ahead and controlling is looking
back”:
“Planning is required at the very outset of management whereas control is
required at the last stages. If planning is looking ahead, control is looking
back.”

If planning is looking ahead, control is looking back. In fact, control is the


process of checking to determine whether or not proper progress is being
made towards the objectives and goals set by management while doing
planning.

Often it is said that planning is the basis, action is the essence, delegation is
the key, information is the guide and control is the lifeblood of the success
of any business enterprise. Organizational objectives cannot be achieved
without planning and planning alone cannot be successful. If extra efforts
are put in planning and control is ignored, a business may suffer from a
number of administrative problems. These difficulties may be highly
detrimental for the business in the long run.
Effective control through efficient superiors can only be a guarantee for
success. The control system must be appropriate to the needs and
circumstances of the enterprise.

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