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Table of Contents
Contents
1. Introduction
2. Methodology
3. Literature review
3.1 Characteristic and management of international hotels
3.2 Leadership Style
3.3 Defining leadership
3.4 Leadership Theories
3.5 Organizational Commitment
3.6 Definition of organization commitment
3.7 Theoretical model of organization commitment
4. Results
5. Findings
5.1 The Differentiation of employees’ background in manager’s leadership
approaches
5.2 The Differences in Organizational Commitment by Employees Background
5.3 The Relationship between Leadership Style and Organizational Commitment
6. Conclusion
7. Recommendations
7.1 Implications for further research
8. Reflection
9. References & Bibliography
1. Introduction
According to Huang (1996) the international hotel come under the purview of traditional
service based businesses. Further, the hospitality industry is promoted by local
governments in each country since the industry requires massive employee strength
and therefore creates employment opportunities.
Typically, in the industry, for the low level employees, job characteristics are similar
across all kinds of enterprises wherein the salaries are lower and work hours are
extended. This has led to a high attrition rate in the industry. Further, with the labor and
human resource laws and regulations intensifying in various nations (Yang, 2000),
finding the right kind of employees and retaining them has become a major issue for the
international hotels. This also implies that in the coming years a considerable amount of
part time and non regular employees may be required to be trained and they may take
the role of the permanent employees and be absorbed in the industry.
Thus, the international hotels will have to face along with the present challenge of
intensifying competition, the confrontation of inconsistent workforce availability.
The imperative for retaining competitive edge in the existing state of affairs is the
consistency of the critical; aspect of the business, which is the workforce of the
business unit of the organization. According to Steers (1997), the likely reason for the
high attrition rate is management commitment. Further, Chen (1995) has purported that
Management commitment is majorly influenced by the leadership attitude of the
managerial unit of the organization. The present assignment analyzes the connection
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between the leadership approach of managers and the commitment of the managers
towards the company in the international hotel industry.
The study has utilized the case of Four Seasons, Hotel UK. The company is facing
issues with its quality of services and retention of employees.
Four Seasons Hotel, UK
Four seasons group was established in 1960 by Isadore Sharp who is currently serving
as the CEO of the company. In UK the company has more than 16 hotels ranging
between three to Five stars services (Four seasons, 2012).
The company is a huge brand in the hotel industry and is currently running more than
seventy hotels in 36 countries all over the world (Four seasons, 2012).
Issue with Four Seasons Hotel
Four seasons hotel which is facing issues with quality of services and retaining employees. This issue has been attributed towards the leadership and organizational management at the hotel (Telegraph. 2012; Legalweek , 2012;I4U News, 2012). Despite the fact that international hotel is a flourishing sector, it is hard to retain the quality of service and thus sustainability due to the attrition rate of the employees in the hotel, which is related to the leadership style of managers (RBC, 2012). The focus of this report will therefore be to recognize the pattern of leadership approach of managers in Four Seasons Hotels, UK. Further, the report will also scrutinize the variation among employees regarding commitment towards management. The focus of the report will also be directed towards evaluation of the link between leadership approach of managers and commitment of employees and how it influences the attrition rate.
2. Methodology
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The present report is based on the literature review and a documentary analysis has
been consulted to analyze the theories, past research works and studies regarding
leadership, organizational commitment and their current state of affairs in the
International Hotel industry. Hence, this report is based on the secondary research.
There exist different benefits and drawbacks of utilizing secondary data. The primary
benefit to the researcher was the cost effectiveness and time benefit. The study
conducted by the International consortium of Hotels as well as numerous other studies
on the international hotel industry provided insights at no expenditure to the researcher.
This report has extracted these insights and information from these past studies to
understand the organizational structure, the present state of affairs in the international
hotel industry and issue of attrition that is a growing phenomenon in the sector. The
time and resources that were required by the researcher in accessing and utilizing the
secondary data for the research was nominal when compared to the time and resources
that would have been necessary for the researcher to conduct their own surveys
collecting first hand information. On the other hand, there are also some disadvantages
to using secondary data. One major disadvantage is that someone other than you
designed the surveys. Therefore, the questions and available information are not always
coded or worded exactly as you might like them to be. Although I did not have to spend
time creating a research instrument, I did have to spend time fine-tuning and adjusting it
to fit my needs. This is why it is critical to have a strong literature base. However, there
are also limitations and drawbacks of utilizing secondary research for the report. One of
the primary drawback is that every past work has been conducted for a different context
and its nature and design is not as desired by the researcher for the present report.
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Although, it provided the advantage of saving time over conducting research through
specific research instruments but it needed to be redesigned as per the requirements of
the present study. To overcome this limitation the researcher synthesized and carefully
chose and collected only that literature that was extensively and critically relevant to the
present study. Further, the researcher also used extensive theoretical literature as it
forms the underpinning for justifying and relating it to the present context and also for
analyzing and framing recommendations. Further, decision making regarding the
inferences in the absence of a theoretical base can deteriorate. The theoretical literature
provides the scope for conceivable explanation for every important or unimportant and
inferences from the collected data.
3. Literature review
3.1 Characteristic and management of international hotels
According to Medik (1961), the term hotel is derived either form the ancient Latin word
“Hospitalis” which means showing care for guest or the French term “hostel” which
means a building to provide refreshment and enjoyment to travelers. Subsequently,
over the years any building that is rented by travelers came to be known as hotel
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The organization of the various departments and the overall work culture of a hotel can
be broadly classified into two categories based on the root operations and task
specifications. These two categories are the frontage operations and the support
operations. The various departments comprise of the room service department, restraint
and café departments, and the marketing unit and so on. These comprise of the front
end operations of the business, the back end operations constitute the management
decision making, human resource management, financial operations and accounting
and other core operations of the Company (Wu, 2000)
Relatively, the organization of the medium scale hotels is not as complex. In these
hotels, a single unit of the company handles several fields of business operations and a
single employee handles multiple job responsibilities. Comparatively, international
hotels comprise of a management culture that his highly complex.
Nevertheless, varied kinds of business provide for varied level in management
structure. International hotel typically comprise of superior degree of task orientation.
Depending upon the organizational need the management structure is popularly of two
types. The first structure is uncomplicated structure with lesser number of departments
and broad scope of administration and the second one is a narrow pyramid structure
wherein there are multiple layers in the corporation, more managers and more
departments.
The organization of an international hotel depend upon the various factors like scale of
operations of the hotel, the range of services that it provides and also the number of
departments that the company has organized in its company.
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3.2 Leadership Style
According to Drucker (1993) efficiency and results produced by managers are the chief
determinants of gauging the performance of any organization. Any corporation that is
deficient in strong leadership oriented managers cannot ensure that their core
competencies and resources can be transformed into the factor for gaining competitive
edge. Hence, it is apparent that leadership quality of management is intimately linked
with the growth of any corporation. Another research conducted by Brass in 1990
presented that more than half of the variables influencing the prospects on any
corporation are determined by the leaders.
3.3 Defining leadership
Leadership has been described by Robbins (1993), as the competency to impact any
particular section or assortment of employees toward accomplishment of specified
objectives. Leadership has also been termed as an assortment of human associations
(Tannenbaum, 1964). Through specific style of interactions leadership can lead the
disciples to accomplish desired organizational goals. This implies that leadership is a
type of association that can implicate energy and push the individuals to conduct
operations with close association with one another and achieve a common set of
objectives. Hence leadership can be understood as the method of impacting a specific
group in the direction of achieving specific objectives that are imperative for any
organization.
3.4 Leadership Theories
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From the early twentieth century, different models and theories were put forward by
theorists and researchers having different view regarding leadership. On a broad basis
these theories can be categorized as under:
(1) Trait model: These theories were purported by Stogdill (1963) and Davis (1972) and
they focused upon the individual traits and attitudes that a competent leader should
possess.
(2) Behavior Theories:
The behavioral theories focused upon the variables that commence the design and put
forward that there exists two factors that decided the commencing design and
implementation. Subsequently, Likert (1967) and Kotler (1988) too presented similar
theories of leadership based on behavioral aspects.
(3) Contingency Theories
This theory was first put forward by Feidler in 1967. Further in 1971 House presented
that derived extensively form the research of the behavioral theory in the Ohio state
university and also for the expectancy theory based on employee motivation. A major
contribution in the contingency theories were performed by Hersey and Blachard in
1977 who put forward a situational leadership model wherein the two variables namely
relationship a task behaviors were utilized that converted their attributes into four differ
leadership aspects namely, telling, selling, Participation and delegation. The
contingency theories implicated that leaders choose any specific approach of leadership
based on the willingness of the disciples. Further, the selling style was found to be
effective for reluctant employees who are not competent. The participation approach
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was found to be effective for enthusiastic but incompetent employees. The delegation
approach was found to be useful for competent as well as enthusiastic employees.
(4) Neocharismatic Theories
These speculations are essentially symbolized by leadership concerning transaction
and alteration.
Considering the attributes of global visitor holiday homes, the essential supplies
furnished by these inns consists of not only illustratable entities such as room, bistros,
amenities for free time and entertainment, but also unseen benefits.
The administration and goods production all are forced by customers’ response. The
trade of such globally identified holiday inns greatly counts on a huge measure of
workforce, whereas workers are dissimilar in capability and compliance. As a result, it is
vital for supervisors to make use of an appropriate headship pattern to fulfill an
assistant’s eagerness to achieve goals. Taking into account the motive and background
of investigation, Hersey & Blanchard’s hypothesis of conditional headship is appropriate
and employed in this research.
3.5 Organizational Commitment
According to Morris and Sherman (1981) the commitment of management can
efficiently determine the performance and competency of any organization. Hence, this
implies that commitment of management is a variable for computing the effectiveness of
any corporation. This implicates that it is imperative for leaders to focus additionally on
the commitment of employees towards management.
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3.6 Definition of organization commitment
Organizational commitment is regarded as a mental contract connecting the individual’s
identification and attribution with the organization and performing his duty (Wallace,
1995). Organizational commitment is able to facilitate voluntary cooperation within an
organization. Different theorists have varied schools of thoughts regarding the
organizational commitment of employees. However, there exists a general consensus
among the theorists that organizational commitment is the faithfulness towards
corporation. According to porter et al (1974) the organizational commitment is the level
of recognizing and contributing to the objectives of any organization. The nature of
organizational commitment has three aspects namely, understanding and accepting the
objectives and culture of organization, the willingness to create consistent efforts
towards achievement of these objectives and an inherent willingness to be part of the
organization consistently. Hence, Organizational commitment can be described as the a
readiness that associated the recognition and understanding of organizational goals and
the subsequent execution by any individual. Therefore, organizational commitment is
the competency to provide deliberate contribution to the corporation.
3.7 Theoretical model of organization commitment
Theories of organizational commitment have emerged from past research conducted by
past researchers (Sheldon, 1967; Steers, 1977; Buchanan, 1974) regarding the
organizational commitment and discovered that organizational commitment is
influenced by three major factors namely individual traits, position and job
responsibilities and experience of the employees. The results that emerge for
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organizational commitment are preservation eagerness, preservation claim, presence
rate, and job performance.
Four Seasons Hotel organizational management and leadership style
Delegating style is implemented by the majority of managers of the hotel. On the other
hand, selling and participating styles is implemented by very few managers and the
telling style is least implemented. An employee’s major subject, department, length of
service, top-level leadership style, and region, have significant influence on a manager’s
leadership style.
While selling, participating, and delegating approaches are exploited more frequently by
the managers of the company and employees have superior organizational
commitment. The employees under a participating leadership approach attain the
uppermost importance, attempt, preservation, and overall commitments. On the other
hand, a telling leadership approach employed by managers is not competent to
increase the organizational commitment of employees (Step project, 2012).
The factors, comprising age, length of service, major subject, top-level leadership
approach, and region, have a noteworthy manipulation on the organizational
commitment of employees.
It has been observed that the elder employee and the employee with a longer length of
service have a superior level of organizational commitment. Moreover, the
organizational commitment of the employees majoring in hotels is not as elevated as
those in other areas.
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Beneath independent top-level leadership, the management has the maximum level in
importance, attempt, preservation, and overall commitments. Alternatively, beneath
authoritative top-level leadership, the management performs the smallest amount of
retention and overall commitments. On the other hand, the management under
noninterference top-level leadership has the slightest attempt of organizational
commitment. This is influencing the quality of service of the organization.
5. Findings
5.1 The Differentiation of employees’ background in manager’s leadership
approaches
Regarding various aspects such as age, gender, occupational and qualification level,
designation and amount of hotels served up previously, there is no noteworthy
dissimilarity in the leadership approach of a manager. It observed that approaches of
leadership that were utilized by the managers were not considerably affected by the
background variables of employees. Therefore, by this key subject, extent of service,
there are considerable dissimilarities in the leadership approach of managers.
Moreover, there is also no noteworthy differentiation in the leadership approach
between front-end staff and back-end staff in the Hotel service.
5.2 The Differences in Organizational Commitment by Employees Background
In terms of the observation of employees to organizational commitment, the employees
of international hotels have a constructive organizational commitment. Moreover, they
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also confirm elevated attempt but low withholding commitment. Therefore, this
explained that the organizational commitment of employees of international hotels was
not considerably influenced by the age, gender, occupational and qualification level,
designation and amount of hotels served up previously.
5.3 The Relationship between Leadership Style and Organizational Commitment
Various leadership approaches adapted by the managers of international hotels such as
selling, participating and delegating approaches have a noteworthy constructive
relationship with the organizational commitment of employees.
Moreover, the relationship between the telling style and the organizational commitment
of employees is not important. Thus, this signifies that when managers utilize more
selling, participating, and delegating approaches of leadership, the organizational
commitment of employees is higher. On the other hand, the utilization of the telling
leadership style does not reinforce the organizational commitment of employees.
Therefore, when managers of international hotels implement a participating leadership
approach, the performance of employee is preeminent in the commitments of entire
significance, attempt, and withholding. On the other hand, the performance of
employees is nastiest in the four types of commitment when a telling leadership
approach is implemented. Therefore, managers with the selling approach have an
elevated scale of withholding and overall commitment than those with the delegating
style. Thus, if a delegating leadership approach is implemented by a manager, the
quantity of employees with importance and commitment is superior to the numeral of
those directed by a selling approach of leadership.
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6. Conclusion
This research has observed some of the functions of leadership and people
performance and it can be outlined that there have been spectacular transformations.
The responsibility of the leader has had to acclimatize to the change in the business
environment and establish itself cost-effectively feasible. Consequently, organizations
recognized people performance to achieve a competitive advantage by the utilization of
their workforce as a method to distinguish them from competition.
The majority of managers of hotels implement an entrusting approach, some managers
implement partaking styles. The major subject, department, length of service, top-level
leadership style, and region of employees have noteworthy persuasion on a leadership
approach of a manager as well as on organizational commitment of an employee.
Underneath independent top-level leadership, the assistants have the maximum extent
in assessment, attempt, withholding, and overall obligations. Conversely, under reliable
top-level leadership, the assistants carry out the least withholding and overall
obligations. Moreover, the assistants under noninterference top-level leadership have
the slightest attempt obligations. Therefore, while selling, contributing, and entrusting
approaches are employed more frequently by the managers of the hotels, employees
have superior organizational obligation. The employees under a contributing leadership
approach attain the maximum value, attempt, withholding, and overall obligations.
As a result, the function of the leadership will shift to a key point inside the hotels, and
will be observed as the solution to a competitive advantage construction on the
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performance of the employees when enhancing and structuring the future tactical path
of the organization.
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7. Recommendations
The decision makers of top level management should strain the principal function as a
crucial aspect in manipulating their subordinates. Therefore, it is recommended that
decision makers of top-level management should implement an independent leadership
strategy. Moreover, managers have to utilize a contributing leadership approach. It is
suggested that the leaders of the hotel should give more consideration in order to grow
proficient cooperation and articulate affectionate apprehension and reliance to
associates through contributing leadership approach. Therefore, it is vital to institute a
sound organization of reimbursement, encouragement, and growth in order to augment
the organizational obligation of employees in order to decrease labor turnover, increase
production and develop service quality. This recommendation also meets up the
perspective of Siguaw and Ens (1999), that sensible reimburse, a fine remuneration
organization and organized encouragement are the essential techniques to preserve
employees. Therefore, for international hotels, employees have conservatively been
observed as a flexible area of the company, but drawing and preserving the correct
individuals for the business is the rigid part since it is the groundwork on which the
whole lot is supported. Hence, employees have to be relocated as a prominent yield
facilitator as part of the search for gifted individuals.
According to Bluedorn (1982), satisfaction towards job can influence organizational
obligation, which manipulates the inspiration of withholding. For that reason, it is
recommended that employees should contribute in different training and workshops in
order to improve their abilities to meet up varying necessities of job. Therefore,
employees of international hotel should strain proficient improvement. Moreover, it is
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essential to smooth the progress of the collaboration among the hotels in the hospitality
industry. Leadership should be acknowledged as the driver of aims, objectives and
ethics of the corporation. Therefore, Leadership strategy and approach of the hotel has
to be assigned the role of the link between the organizational strategy and goals of the
organization with the intention to overhaul the profitability and cultivate managerial
tradition that facilitates originality and elasticity. Moreover, so as to attain competent,
proficient, and constant employees, Four Seasons hotel have to institute an elegant
sensible training curriculum with full proficient support, effectual teaching, and work-
experience with the intention of enlightening well-grounded employees with a well-built
enthusiasm to serve up in the business.
7.1 Implications for further research
For further research, it is recommended to convey the employees of industry, leisure,
and sustaining departments into the hotels. In addition, top-level management as well
as the managers can be interrogated to determine their observations concerning the
leadership approach and organizational commitment as well as people performance.
Taking into consideration of case, the stratified example by the working fashion in
international hotels is recommended for further study. It can then be utilizes in order to
evaluate the dissimilarities in the leadership approach and association among different
working fashions in terms of international hotels.
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8. Reflection
As I recap on the events of the past few weeks, I feel that while I am content that my
assignment has been completed successfully, at the same time it has verified as one of
the largest and exhaustive assignment so far. Consequently, it necessitated added
meditation, extra exploration and additional concentration relatively when compared to
other assignments. However, the very same difficulty has also become the biggest
benefit for me. The supreme profit is the amassing of all of our management knowledge
into a valuable and meaningful report and the benefit of reviewing critical literature on
the topic that greatly added to my knowledge. In the process of documenting the
multilayered assignment, assorted confrontations were in the form of doubts such as,
whether the explored facts and figures will be significant in the eye of the evaluators?
Have I ignored any essential point that had to be included? Majority of fears were
doused after a profound investigation regarding the industry through newspapers,
magazines and internet resources.
A prominent part of the report is devoted to review of past literature on leadership
strategy, role of leadership in organizations, and the modern view on leadership
planning. Selection of the appropriate theories and strategic models was a hard task. I
explored through my past modules as well as numerous journals and articles so as to
collect the right theories for the assignment.
The report has utilized the case of Four Seasons Hotel to explore the shift in the
strategic aspect of human resource management. hotel industry is a rapidly expanding
internationally and good amount of information is available in various resources.
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The assignment wanted from us to integrate all the knowledge of the critical human
resource management theories and strategic models that we have gained so far. Hence
this assignment has proved to be summary of all the Human resource management
information that we have achieved and is one of the most prominent learning outcomes
achieved from the working on the report.
While going through some theories on human resource and leadership at some stage in
my management course, I felt that a few strategies were had lesser relevance.
However, I am pleased now that I have rectified my mistake and I am now well aware of
the fact that whatever theories we were taught is of utmost relevance and can come
handy at any time during our future career.
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