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The Relationship between an Organization's Cultures


And its Leadership, and the Impact on Employee
Performance and Satisfaction.
Submitted To:

Miss Nadia Nasir


By:

Muhammad Fakhir
B.Com-6
BCH-14205
Session 2013-17

Department of Management Sciences

Superior University
Riwand Road Lahore
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Table of Contents
Tittle:....................................................................................................................... 3
Introduction:.......................................................................................................... 3
Purpose Statement:............................................................................................... 5
Philosophical Foundations:..................................................................................... 6
Literature Review:.................................................................................................. 6
Methodology and Methods:.................................................................................. 13
Potential Ethical issues:....................................................................................... 13
Reference and Appendixes:................................................................................. 13

Tittle:
The Relationship between an Organization's Cultures
And its Leadership, and the Impact on Employee
Performance and Satisfaction.
Introduction:
This study is practicality seemed to complete the present rank of the organizational
culture about leadership and respect; what must modification~ and if the change is feasible.
There are several factors that are enclosed in associate organization's culture; however~ there
are some that are additional powerful than others corresponding to leadership, trust, reward
and recognition, and feelings of safety and security. Once these factors are vulnerable, staff
begin to lose morale and performance and satisfaction rates will decrease, inflicting Associate
in nursing inefficient and ineffective organization. The survey instrument, developed and
employed by the investigator, was created to see that of these factors might be known
because the most vital, and what are often done to revive the culture to one that's satisfying
and effective, if attainable.
Company XYZ could be a drug/retail store chain. At intervals the Eau Claire space,
there are foul' XYZ stores - one in Chippewa Falls, one in Menomonie, and two in Eau Claire
(identified as A and B). Every store employs roughly 30-40 associates, although Eau Claire
store A is busier than the opposite three and is on the upper facet of the dimensions. Similarly,
the Menomonie store is slower than the opposite three and has fewer staff than the opposite
three. Every of the shops contains a management team of a minimum of three assistant
managers and the store manager. The staff aim age from regarding eighteen years to sixty five
years, and are available from totally different backgrounds as well as faculty students and
retirees.
Recently, these specific stores have knowledgeable quite a little bit of turnover rate.
Factors contributory to the current turnover most frequently relates to inappropriate behavior
on the behalf of the leaders, feelings of mistrust, and feeling unappreciated. Thanks to the
character of the problems, there has been a major quantity of mistrust, anxiety, and worry on
the part of workers the staff} and additionally a scarcity of employee performance and
happiness.
The consequences that have developed owing to these problems have created a
wounded structure culture. Staff in any organization should be able to feel that they'll trust the
individuals in leadership roles, and in these stores, that element is seriously lacking. If the
problems don't seem to be addressed and a few changes created, the stores can expertise
larger turnover, which is able to increase prices (for recruiting, hiring and coaching new
employees) and reduce performance and productivity (until, and probably long once,
coaching is completed).
Another issue is that at intervals XYZ Company there's not a particular policy
concerning recognition and rewards, therefore, typically speaking three of the four stores
don't participate in several celebrations or prize openhanded events. This lack of recognition

might cause staff to feel as if they're taken without any consideration and should result in a
decrease in worker performance and/or satisfaction.
Therefore, this study is being conducted to see the present standing of the structure
culture, what has to modification, and if the modification is feasible.
The objectives of this study are:
1. To see to what extent the leadership impacts the organization's culture.
2. To see the extent the organization's culture impacts its employees' performance and
satisfaction.
3. To see that attributes of the organization's culture have the best impact on associate
employee's satisfaction and performance.
4. To see to what extent the direct leadership impact's worker performance and
satisfaction.
5. To see if a recognition and reward system would increase worker performance and
satisfaction.

Significance of the Study


The significance of this study is to see the extent that associate organization's culture
has on the staff that perform inside it, and what factors contribute to the general culture.
supported the climate study conducted of XYZ Company, those factors are going to be
known and determinations created concerning the standing of these factors in regard to the
staff concerned.
Leadership:

An noticeable set of skills and talents that square measure helpful


whether or not one is within the govt. suite or on the line ... And any ability may
be reinforced, honed, and increased, given the motivation and need, the observe
and feedback, and therefore the role models and training".
Culture:

A design of shared basic traditions that was learned by a bunch because it


solved its issues of external adaptation and internal integration, that has worked
to an adequate degree to be thought of valid and, therefore, to be tutored to new
members because the correct thanks to understand, think, and feel in relevancy
those problems".
Performance:

Utilization of the word performance because it applies during this case


suggests that to
A: Execution of associate action,
B: One thing accomplished;
C: Fulfillment of a claim, promise, or appeal, execution.
Satisfaction:

Utilization of the word satisfaction because it applies during this case


suggests that to
A: Fulfillment of a desire or wish,
B: Standard or state of being happy,
C: Supply or suggests that of enjoyment.

Recognition:
An associate external inducement that applies to everybody. Recognition could be a
mind-set; it's some way of regarding your staff on a daily basis".

Purpose Statement:
The purpose of this study is to recognize, maintained an environment assessment
directed of XYZ Company, the impression of associate organization's leadership and its
culture on worker performance and satisfaction. As many studies transcribed causes such as
the decision-making strategies, the performance of the executives toward the employees and
their hardly chances and information break might have main effect on the effect of
organizational culture on employee performance. The organizational culture has great effect
on the multiplicity of organizations process, employees and its performance. So that when
employees are dedicated and having the same standards and worth as per organizations have,
might increase the performance to attaining the whole organizational objectives as argued. A
considerably positive association between organizational culture and employees
performance, and create that an organizations and its staffs were not acting and working
together very well because of pathetic culture. The organizations pathetic culture may basis
lack of participation, reliability, flexibility, and mission.

Philosophical Foundations:
Literature Review:
Organizational culture, leadership, worker performance, recognition, and reward ...
these area unit all vital factors in determinant however well an organization perform and the
way happy the workers area unit. Over the years, there are several books written concerning
every of those completely different concepts. Enclosed during this literature review area unit
excerpts and ideas from those varied resources discussing the factors associated parts that
contribute to an organization's culture and worker satisfaction?

Organizational Culture:
An organization's culture is actually the temperament of the organization. it's
comprised of the many factors together with however not restricted to leadership style(s),
skilled growth, internal communication, life/work balance, worker satisfaction, reward
programs, and therefore the presentation of the association. Though culture is troublesome to
explain, it are often felt -by the staff, by the leadership, and by the patrons or purchasers of
the organization. Once any of the factors that contribute to the culture square measure
compromised, the reflection are often seen throughout the organization - productivity slumps,
profits decrease, and worker morale, plummets. The values and behaviors that contribute to
the distinctive social and psychological atmosphere of a company.
Organizational culture includes associate organization's expectations, experiences,
philosophy, and values that hold it along, and is expressed in its self-image, inner workings,
interactions with the skin world, and future expectations. Its supported shared attitudes,
beliefs, customs, and written and unwritten rules that are developed over time and are thought
of valid. Conjointly referred to as company culture, it's shown in

(1) The ways in which the organization conducts its business, treats its staff, customers, and
also the wider community,
(2) The extent to that freedom is allowed in higher cognitive process, developing new
concepts, and private expression,
(3) However power and data flow through its hierarchy, and
(4) However committed staff are towards collective objectives.
It affects the organization's productivity and performance, and provides tips on client
care and repair, product quality and safety, attending and promptness, and concern for the
atmosphere
Organizational culture could be an advanced development (Dubkvis &
Barbars, 2010). This idea will be terribly broad and strive against several aspects. Whereas
conducting analysis the man of science will bump into several definitions of structure culture.
But several outline structure culture as a price system that determines angle (Schein, 1985,
1990; Peters & worker, 1982). Twelve the foremost well-liked structure culture
definition was given by Edgar Schein (1985). He outlined structure culture as (a) a pattern of
shared basic assumptions, (b) fictional, discovered, or developed by a given cluster, (c)
because it learns to wear down its issues of external adaption and internal integration, (d) that
has worked to a tolerable degree to be thought of valid and, thus (e) is to be instructed to new
members because the (f) correct thanks to understand, assume and feel in relevance those
problems. Schein (1990) and kooky (2005) mentioned that there are 3 levels of culture
manifestation namely: one. The discernible values (artifacts): this can be the amount which
will be determined, the visible structure structures and processes. This level continues to be
laborious to understand; two. The espoused values: on this level a picture of the organization
is made. The methods, goals and philosophies are developed through answered bound
queries, to form that image; three. Basic underlying assumptions: these are deep beliefs that
kind the essence of culture. During this analysis the subsequent definition for structure
culture are applied: Organizational culture is that the shared understanding of the beliefs,
values, norms and philosophies of however things work (Wallach, 1983) consistent with
Wallach (1983) in a different way to investigate culture is by dividing culture into 3 classes
namely:
(1) Officialdom,
(2) Innovative or
(3) Corroborative cultures.
An officialdom culture could be a terribly organized and systematic culture supported
power and management with clearly outlined responsibilities and authority. Organizations
with this culture are mature, stable, structured, procedural, stratified, and regulated and power
oriented.
An associate innovative culture incorporates an inventive, result familiarized, difficult
work atmosphere and is represented as being entrepreneurial bold, stimulating, driven and
risk-taking.

A corroborative culture displays cooperation and could be a people-oriented,


encouraging, and incorporates a trusting work atmosphere. This culture is open harmonious,
trusting, safe, equitable, sociable, humanistic and cooperative. Wallach (1983) conjointly
expressed that associate worker is more practical in doing the appointed job and realizes his
or her full potential once the individual motivation and also the structure culture match. This
can be important in recruiting, managing, motivating developing and retentive staff.
According to Schein (1999) culture contains of three stages. The foremost visible of
that is artifacts, the noticeable level of culture that consists of what's seen, heard, and felt in
an exceedingly cluster.
This level includes things equivalent to the physical surroundings, language,
technology, interactions between members, manner of dress, ritual, ceremonies, and printed
values, visions, and missions. " ... At the amount of artifacts culture is incredibly clear and
has an on the spot emotional impact. however you do not extremely apprehend why the
members of the organization square measure behaving as they are doing and why every
organization is built because it is" (Schein, 1999 p. 16-17).
At following level square measure espoused values. The' not truly noticeable, values
mostly verify behavior. once a gaggle people} close sure individuals can create suggestions
concerning what's right or wrong, and what is going to and will not work, however those
suggestions square measure merely that till the cluster acts along and validates those
suggestions as productive. Then and solely then will the cluster begin to form its shared
values. The beliefs and values at this level square measure typically what dictate the behavior
within the 1st level.
At the deepest level of associate degree organizations culture square measure
underlying assumptions. This level includes the unconscious, taken-for-granted beliefs,
perceptions, thoughts, and feelings that were shaped and have since been shared by the
members of the culture. Anyone unaccustomed the cluster assumes that the leaders of the
organization are productive whereas in operation underneath these assumptions and thus
should be right.
According to Schein (1999), in our own way to seem at and outline culture is to think
about it in terms of visibility and simple modification. The values and beliefs of a company
square measure at terribly really awfully} deep level and not very visible to folks outside of
the cluster. This level is additionally rather more troublesome to alter. This includes such
things as what the corporate is effort to try and do, make, or invent; what reasonably rewards
and compensation square measure the foremost important; and whether or not workers square
measure thought to be disposable or not.
At the a lot of visible level square measure the behaviors of the folks inside the
organization and therefore the everyday norms that anyone, together with new members and
purchasers alike, will see and perceive. This level is way easier to alter, and infrequently
dictates however a brand new member can slot in with the established cluster merely
supported however he/she reacts thereto.
Every cluster, or culture, goes through an amount of adjustment from its starting till
its institution. In step with Bruce Tuckman (1965), the processes enclosed during this amount
square measure noted as "forming", "storming", "norming", and "performing".

In "forming," members of the cluster square measure unaccustomed each other and
thus a touch timid concerning sharing any real feeling or thoughts and stick largely to general
info. Even things equivalent to the objectives of the cluster square measure seldom
mentioned. because of the character of individuals, cliques square measure commencing to
kind however at this time they are doing not have abundant influence on the remainder of the
cluster. Some folks square measure a lot of talkative than others, however square measure
still solely collaborating normally topic areas.
In "storming," cluster members have become a lot of accustomed to one another and
square measure troubled to be detected. there's plenty of disagreement concerning the
objectives or goals of the cluster and the way to achieve them; people, similarly as cliques,
try to own their ideas detected and try to influence others so as to achieve power and respect,
others square measure sitting back and kin of expecting things to calm down. Conflict is
incredibly high throughout this method.
In "norming," cluster members square measure commencing to feel better-off with
one another and square measure a lot of inquisitive about reaching objectives and goals
along. Most of the people square measure hospitable new ideas and square measure sharing
info with each other so as to achieve understanding. Cliques square measure dissolving and
other people aren't merely having to influence one another, thus there's less conflict inside the
cluster. Finally, in "performing," the cluster is meeting their objectives and square measure
operating along, seeking out alternative people's opinions and giving their own. They work
flat out to check all sides of a difficulty and think about disagreements as some way to try and
do simply that (Tuckman, 1965 p. 396).
Once a culture has been established in a company, dynamical it are often virtually not
possible. It becomes some way of life for all current and new members, therefore, initiating
modification takes either a significant crisis, or potential for crisis, or a really important and
forward thinking leader. He/she should possess varied skills so as to persuade the others that
modification is important together with the power to check the organization from the surface,
the ability and leadership of somebody productive, the power to form and convey a brand
new vision and methods necessary for modification, the aptitude to model the specified
behavior, and a talent for motivating and inspiring others (Kotter & Heskett, 1992).

Leadership:
Leaders are available in a range of shapes and sizes, though' any sensible leader is
aware of that it's the performance of that like better to follow that determines however nice a
frontrunner he/she truly is. Leaders, in winning roles, square measure to be catalysts. Sensible
leaders offer opportunities for workers to utilize their skills and strengths, and encourage
them to try and do therefore. Leaders foster greatness, not for private gain, except for the
great of the individuals they lead. Per Jim
Collins, in his book sensible to nice (2001), refers to those individuals as "Levels
leaders." though' not each leader possesses all 5 levels of leadership, a Levels leader
possesses all of the opposite levels that square measure as follows: Level one - extremely
capable individual, Level a pair of - conducive team member, Level three - competent
manager, and Level four - a good leader.

"Level five leaders channel their ego wants removed from themselves and into the
larger goal of building a good company. It isn't that Level five leaders haven't any ego or selfinterest. Indeed, they're implausibly formidable - however their ambition is initial and
foremost for the establishment, not themselves" (Collins, 2001 p. 21).
While leaders may be found in anyone and might come back from anyplace, there
square measure sure practices and commitments that create individuals leaders. Within the
Leadership Challenge (2002), the authors, Jim Kouzes and Barry Posner, establish 5 practices
for exemplary leadership.
Embedded inside these 5 practices square measure 10 commitments that function a
guide for the way leaders get extraordinary things wiped out a corporation.
The 5 practices and corresponding commitments square measure as follows:
1. Model the manner
a. Notice your voice by informative your personal values
b. Set the examples by positioning actions with shared values
2. Inspire a Shared Vision
a. Envision the longer term by imagining exciting and ennobling potentialities
b. Enlist others in a very common vision by appealing to shared aspirations
3. Challenge the method
a. Seek for opportunities by seeking innovative ways in which to alter, grow, and
Improve
Experiment and take risks by perpetually generating tiny wins
and learning from mistakes
4. Change others to act
a. Foster collaboration by promoting cooperative goals and building trust
b. Strengthen others by sharing power and discretion
5. Encourage the guts
a. acknowledge contributions by showing appreciation for individual excellence
b. Celebrate the values and victories by making a spirit of community (p. 22).
Leaders play a very important role in associate degree organization's culture; after all,
leaders square measure one in every of the foremost crucial elements of a corporation. In a
very study conducted by the Gallup Organization (Buckingham & Coffman, 2005), an
awfully necessary discovery was created ... "the manager - not pay, benefits, perks, or an
attractive company leader - was the vital player in building a powerful work. The manager
was the key". Ultimately, staff might be a part of organizations for several reasons - nice
benefits; good hours, great pay, etc. However, the length of your time the worker stays and
the way productive she is whereas she's there's determined by her relationship together with
her immediate supervisors. If the supervisor sets clear expectations, is aware of the workers,
trusts them, and invests in them, the workers will forgive the dearth of incentives. However if
the connection between supervisor and worker is broken, no quantity of perks or advantages
can encourage the worker to remain. "It is best to figure for a good manager {in during in
associate degree exceedingly in a very} n old school company than for a terrible manager in a
company giving an enlightened, employee-focused culture" (Buckingham, & Coffman,
2005 p. 28). For as long as there was interaction between folks, leadership existed. The
subject of leadership has been the main focus of studies for the past twenty years and step by
step became a subject of nice interest. This interest sprung forth out of the very fact that
leaders give tips and that they need to encourage their followers to accomplish tasks (Gill,

1998). Early on, leadership definitions had the tendency to look at the leader because the
center or the main focus of a bunch activity. The leader restructures the issues, offers
solutions to the issues, establishes priorities and initiates organic process operations (Bass B.,
1990). Leadership was related to strength of temperament (Bass 1990; Bowden, 1926). A
frontrunner was seen as an individual with several common traits of temperament and
character (Bass, 1990; Bingham, 1927). This descriptions of leadership not regard solely
individual characteristics or variations (Avolio 2007; Yukl 2006). In Basss (1998) current
definition, leadership is associate degree interaction between one or additional members of a
bunch. In another newer definition, leadership could be a relationship between leaders and
followers wherever they influence one another and that they intend real changes and
outcomes that replicate their shared functions (Daft, 2005). In line with Northouse (2007)
leadership as a method implies that, as mentioned earlier, it's not a characteristic somebody is
born with, its associate degree interaction between leaders and their nine followers. The
leaders influence and are influenced by their followers (a group). Leadership is obtainable to
everyone; it's not restricted to the person in power (Northouse, 2007). For this analysis the
subsequent definition for leadership are applied: Leadership could be a method whereby a
private influences a bunch of people to realize common goals (Northouse, 2007) This
definition is best fitted to this analysis because of the continued interaction between leaders
and followers in SMEs because of the short communication lines and therefore the blandish
organization structure. Leadership vogue is that the combination of angle and behavior of a
frontrunner, that ends up in bound patterns in addressing the followers (Dubrin 2004). Its the
results of the philosophy, temperament and knowledge of the leader. There are many
leadership designs such as: autocratic, government officials, attractive, democratic,
participative, situational, transformational, and transactional and individualism leadership
(Mosadeghrad, 2003a). Leadership vogue has been the deciding issue of quite one aspect of
worker behavior in organizations

Employee Recognition & Performance:


For decades, companies are talking concerning their assets and what makes their firms
profitable. For plenty of firms "assets" wont to mean materials ... wood, steel, pc parts, etc.;
and for a few, it still will. Today, the term "assets" usually refers to one thing even bigger ...
people. folks square measure what run business these days, folks square measure what
generate the sales, folks square measure what build Associate develop products; folks square
measure WHO decide if they need to be an "asset" or not. Turnover in business is more than
it's ever been and in a very country wherever folks wont to keep in one job for the whole
thing of their lives the very fact that the typical employee these days solely spends
concerning 3 and a 0.5 years within the same job could be a massive pill to swallow. Firms
wont to pay little time recruiting, hiring, and retaining; currently they need very little
alternative. They need to notice the simplest way to stay the proficient folks utilized inside
their organizations, thus the event of incentive programs (monetary or otherwise), casual
dress initiatives, versatile planning, work teams, and so on. And to a degree, all of those
efforts have power-assisted in worker retention. However, financial efforts admire raises or
bonuses seldom build a lot of a bearing on worker performance on the far side the instant. A
study conducted of one, 010 Americans in could2000 for yank categorical Incentive Services
disclosed that twenty ninth of them had used their last money reward, incentive, or bonus to
pay bills. Eighteen failed to bear in mind what they did with the cash, and solely concerning

twenty fifth did one thing for themselves or their families with the extra cash(Go stick &
Elton 2001).
The other programs, admire versatile planning aren't forever on the market because of
the character of the business or the specialization of the task. And casual dress, although
comfy and nice as a modification of pace, doesn't usually build a major impact on Associate
in nursing employee's happiness inside the position.
Most firms still overlook a really powerful tool in their arsenal - recognition.
... there's a incontestable correlation between work satisfaction and worker recognition,...
that recognition is that the handiest thanks to more your company goals, ... that by making
unforgettable recognition experiences you'll be able to bond Associate in Nursing worker to
your organization"(Go stick & Elton, 2001 p. 18-19).
Recognition comes in several forms; the matter is that almost all managers assume
they're recognizing their workers once they extremely aren't. Incentives, bonuses, and perks
aren't varieties of recognition in and of themselves, they solely become recognition once they
square measure awarded for employment well done, not if you are doing this, then you get
this. So as to count as recognition, the message should be clear, managers have to be
compelled to justify why somebody is being awarded a plaque parenthetically. While not an
evidence for why and a basis for the way, workers don't perceive, then the try at recognition
becomes a wasted chance.
In his book the seven Hidden Reasons workers Leave Vivien Leigh Branham (2005),
identifies feeling low and unrecognized united of the seven reasons workers leave
organizations. The need for recognition comes from the basic human have to be compelled to
feel a way of value.
"Feeling assured that if you're employed arduous, do your best, demonstrate
commitment, and build meaningful contributions, you'll be recognized and rewarded
accordingly" (p. 20). But this is often hardly the case. Though various studies are conducted
to point out the importance of recognition on Associate in nursing employee's satisfaction,
managers still square measure reluctant, and still fail, to acknowledge their workers. Several
of the explanations managers still don't properly acknowledge their workers square measure
mentioned within the following paragraph.
Sometimes managers have worked for others whose philosophy was that if they didnt
hear something, it meant they were doing their jobs right, and conjointly that nobody ought to
be recognized for doing employment they were employed, and find paid, to do. Some
managers merely don't pay enough attention to their workers to grasp however well or
accurately they perform their jobs.
Maybe {they do square measure doing} not understand enough concerning the
employee's job to see whether or not they are acting well or not, and so cannot acknowledge.
Alternative managers square measure afraid that workers can assume they're unctuous in their
efforts at recognition or that they'll accidentally "play favorites" recognizing some whereas
forgetting others (Branham, 2005).
This doesn't mean that recognition could be a drive, or ought to be viewed united.
Managers is tutored the way to give thanks others for employment well done, and the way to

acknowledge once the thanks is important and bonded. The managers, as well as, the
organization should be receptive the thought, and should work to form and follow programs
that may foster recognition inside the organization. When done right, recognition will
enhance communication and trust, and improve worker morale. "The power of recognition
will unfold through your company like conflagration, making a culture of recognition-a place
wherever folks square measure willing to place down roots as a result of they understand
their contributions are going to be acknowledged, appreciated and rewarded" (Go stick
& Elton, 2001 p. 14).
The review of literature has known several resources that address the key parts in a
corporation, particularly culture, leadership, and worker recognition and performance. These
resources have shown that every element is vital to a corporation and also the folks with the
organization. a lot of the discussion and suggestions created by the man of science are going
to be based mostly upon the review of those resources.

Methodology and Methods:


The rest of this proposal will contain of a literature review of the constituents of
organizational cultures, and the faces of which contribute right or wrong to employee
performance and satisfaction, plus a discussion of various recognition and reward ideas as
they relate. This paper will also discuss the instrument used in conducting the study, report
the findings, and offer recommendations.
This paper is concerned with the relationship between organizational
culture and its performance. As discussed before, the organizational culture
stands out as one of the most important variables for companies sustainable
performance and competitive advantage (Madu, 2007). To construct the
methodology, the paper has employed qualitative approach. Initially the paper
has identified the critical aspects of corporate culture and its characteristics
which influence the employee performance. Through in-depth interview, the
paper has developed the essential cultural theme of the organization and its
relationship with performance. In-depth interviews were conducted in GP, the
biggest cellular operator in Bangladesh with more than 32 million subscribers. It
is a joint venture enterprise between Telenor (55.8%) and Grameen Telecom
operation (34.2%). A total of 34 interviews were conducted in Grameenphone.
Participants included top level, mid level and operational level employees. Along
with human resources department, the paper has carried out interviews in other
relevant departments such as marketing, finance, regulation affair, corporate
affairs, government and strategic relations, business and societal relations, and
strategy and planning. The researcher interviewed employees during their
convenient times. The researcher also attended some corporate social events
and dinners to get an understanding of organizational culture. During these
events, the researcher noted down the significant observations, comments and
insights of the employees. After data collection, the paper has accumulated all
the information in structured standing to weigh significance of each record. Main
objective in this phase is to locate down all the fundamental elements of GPs
organizational culture that have impacted on corporate performance. These
factors of organizational culture then cross checked with existing literature and
critically evaluated the factors.

Potential Ethical issues:


Reference and Appendixes:

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