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726 ❚ Rewarding peopleGain sharingGain sharing is a formula-based company or factory-wide bonus plan that providesfor employees to share in the financial gains resulting from increases in added valueor another measure of productivity. The link between their efforts and the payout canusefully be made explicit by involving them in analysing results and identifyingareas for improvement.Profit sharingProfit sharing is the payment to eligible employees of sums in the form of cash orshares related to the profits of the business. The amount shared may be determinedby a published or unpublished formula or entirely at the discretion of management.Profit sharing differs from gain sharing in that the former is based on more thanimproved productivity. A number of factors outside the individual employee’scontrol contribute to profit. Gain sharing aims to relate its payouts much more specificallyto productivity and performance improvements within the control ofemployees. It is not possible to use profit-sharing schemes as direct incentives as formost employees the link between individual effort and the reward is so remote. Butthey can increase identification with the company and many managements operateprofit-sharing schemes because they believe that they should share the company’ssuccess with its employees.Share ownership schemesThere are two main forms of share ownership plans: Share Incentive Plans (SIPS) andSave-As-You-Earn (SAYE) schemes. These can be Inland Revenue-approved and if so,produce tax advantages as well as linking financial rewards in the longer term to theprosperity of the company.Share incentive plansShare incentive plans must be Inland Revenue-approved. They provide employeeswith a tax-efficient way of purchasing shares in their organization to which theemployer can add ‘free’, ‘partnership’ or ‘matching’ shares and which can also beissued as shares. There is a limit to the amount of free shares that can be provided toemployees (£3,000 a year in 2004). Employees can use up to £1,500 a year (in 2004) outof pre-tax and pre-National Insurance Contributions pay to buy partnership shares,and employers can give matching shares at a ratio of up to two matching shares foreach partnership share.
Contingent pay ❚ 727Save-As-You-Earn schemesSAYE schemes must be Inland Revenue-approved. They provide employees with theoption to buy shares in the company in three, five or seven years’ time at today’sprice, or a discount of up to 20 per cent of that price. Purchases are made from asavings account to which the employee pays an agreed sum each month. Themonthly savings must be between £5 and £250. Income tax is not chargeable when theoption is granted.
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A Handbook ofHUMANRESOURCEMANAGEMEN
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ContentsList of figuresList of tabl
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Contents ❚ vii9 Developing and im
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Contents ❚ ix20 How organizations
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Contents ❚ xi31 Release from the
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Contents ❚ xv53 Employee voice 80
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List of figures0.1 Route map xxvi0.
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List of figures ❚ xix43.6 Integra
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xxii ❚ List of tables42.1 Economi
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PrefaceThis tenth edition of A Hand
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Part IManaging peopleThis part unde
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1Human resource managementThe terms
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Human resource management ❚ 5Huma
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Human resource management ❚ 9Huma
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12 ❚ Managing peoplemanaging huma
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14 ❚ Managing peoplethe HRM syste
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16 ❚ Managing peopleGuest (1991)
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18 ❚ Managing peopleContradiction
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20 ❚ Managing peopleThe differenc
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22 ❚ Managing peopleTable 1.2cont
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Human resource management ❚ 251.
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Human resource management ❚ 27●
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30 ❚ Managing peopleThe Accountin
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32 ❚ Managing peopleHowever, rese
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34 ❚ Managing peopleThe choices t
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36 ❚ Managing peoplepractice; it
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38 ❚ Managing peoplethe firm crea
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40 ❚ Managing peopleThe organizat
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42 ❚ Managing peopleNationwide to
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44 ❚ Managing peoplepredominantly
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46 ❚ Managing peopleIn more detai
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48 ❚ Managing peoplemanaged, but
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50 ❚ Managing people●●set out
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3Role of the HR functionHR function
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Role of the HR function ❚ 55facil
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Role of the HR function ❚ 57pract
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Role of the HR function ❚ 59which
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Role of the HR function ❚ 61stand
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Role of the HR function ❚ 63monit
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Role of the HR function ❚ 651. De
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Role of the HR function ❚ 67●
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Role of the HR function ❚ 69The m
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72 ❚ Managing peoplequalified, ar
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74 ❚ Managing peopleThe innovatio
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76 ❚ Managing peopleprocedures ar
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78 ❚ Managing people4. Innovative
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80 ❚ Managing people●●●●
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84 ❚ Managing peopleETHICAL CONSI
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86 ❚ Managing peoplecompetence re
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88 ❚ Managing peopleClassical per
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90 ❚ Managing peopleTable 4.1Comp
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92 ❚ Managing people●●●(whe
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96 ❚ Managing peopleaspects like
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98 ❚ Managing peopleto carry out
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100 ❚ Managing peoplethe need to
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102 ❚ Managing peopleHowever, Bre
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104 ❚ Managing peopleweights betw
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106 ❚ Managing peopleRole specifi
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108 ❚ Managing peoplefactors. The
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Part IIHuman resourcemanagement pro
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114 ❚ HRM processesorganization
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116 ❚ HRM processes1. the use of
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118 ❚ HRM processesand HR policie
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120 ❚ HRM processes●●●●th
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8HR strategiesStrategic HRM leads t
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HR strategies ❚ 125the organizati
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HR strategies ❚ 127●●●●
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HR strategies ❚ 129CRITERIA FOR A
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132 ❚ HRM processesPROPOSITIONS A
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134 ❚ HRM processesprocess of dev
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136 ❚ HRM processesTable 9.1Linki
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138 ❚ HRM processeswhich focuses
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140 ❚ HRM processesmutually reinf
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142 ❚ HRM processesAnalysis:● W
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144 ❚ HRM processesOne principal
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10HRM policiesWHAT HUMAN RESOURCE P
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HRM policies ❚ 149they could dist
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HRM policies ❚ 151Managing divers
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HRM policies ❚ 153Involvement and
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HRM policies ❚ 155Substance abuse
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HRM policies ❚ 1579. Consult, dis
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160 ❚ HRM processes●●●●
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162 ❚ HRM processesTable 11.1Inci
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164 ❚ HRM processesCOVERAGE OF CO
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166 ❚ HRM processesemployee’s d
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168 ❚ HRM processesbehaviour. Thi
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170 ❚ HRM processes●●●●
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12Knowledge managementKnowledge man
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Knowledge management ❚ 175THE CON
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Knowledge management ❚ 177various
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Knowledge management ❚ 179The pac
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Knowledge management ❚ 1813. Advi
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Knowledge management ❚ 183Resourc
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Knowledge management ❚ 185Organiz
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13Analysing roles, competenciesand
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Analysing roles, competencies and s
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14The nature of workIn this chapter
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The nature of work ❚ 207mechanism
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The nature of work ❚ 2091998b), f
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The nature of work ❚ 211(working
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The nature of work ❚ 213Table 14.
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216 ❚ Work and employmentParties
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218 ❚ Work and employmentSIGNIFIC
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220 ❚ Work and employment●●
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222 ❚ Work and employmentClearly,
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16The psychological contractThe emp
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The psychological contract ❚ 227o
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The psychological contract ❚ 229a
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The psychological contract ❚ 231T
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The psychological contract ❚ 233H
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The psychological contract ❚ 235r
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Part IVOrganizationalbehaviourPeopl
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17Characteristics of peopleTo manag
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Characteristics of people ❚ 241In
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Characteristics of people ❚ 243On
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Characteristics of people ❚ 245de
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Characteristics of people ❚ 247RO
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Characteristics of people ❚ 249
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252 ❚ Organizational behaviourUnf
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254 ❚ Organizational behaviourThe
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256 ❚ Organizational behaviourTab
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258 ❚ Organizational behaviour2.
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260 ❚ Organizational behaviourmor
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262 ❚ Organizational behaviourAs
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264 ❚ Organizational behaviourJOB
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266 ❚ Organizational behaviourtha
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268 ❚ Organizational behaviourare
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19Organizational commitment andenga
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Organizational commitment and engag
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20How organizations functionBASIC C
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How organizations function ❚ 285
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How organizations function ❚ 287M
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How organizations function ❚ 289O
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How organizations function ❚ 291T
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How organizations function ❚ 293I
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How organizations function ❚ 295G
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How organizations function ❚ 297
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How organizations function ❚ 299A
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How organizations function ❚ 301C
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304 ❚ Organizational behaviourThe
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306 ❚ Organizational behaviourpar
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308 ❚ Organizational behaviourthe
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310 ❚ Organizational behaviourHar
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312 ❚ Organizational behaviourOrg
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314 ❚ Organizational behaviourgoo
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316 ❚ Organizational behaviourtha
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22Organization designThe management
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Organization design ❚ 321●●
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Organization design ❚ 323consider
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Organization design ❚ 325new acti
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328 ❚ Organization, design and de
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24Organizational development,change
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Organizational development, change
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360 ❚ People resourcingcharacteri
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25Human resource planningDefinition
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Human resource planning ❚ 365func
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Human resource planning ❚ 367(199
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Human resource planning ❚ 369circ
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Human resource planning ❚ 371Obje
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Human resource planning ❚ 373what
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Human resource planning ❚ 375●
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Human resource planning ❚ 377empl
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Human resource planning ❚ 379Half
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Human resource planning ❚ 381fort
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Human resource planning ❚ 383the
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Human resource planning ❚ 385It s
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Human resource planning ❚ 387Over
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26Talent managementTalent managemen
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Talent management ❚ 391Attraction
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Talent management ❚ 393increasing
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Talent management ❚ 395Creating a
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Talent management ❚ 397as their a
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Talent management ❚ 399●●●
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Talent management ❚ 401GrowthProg
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Talent management ❚ 403This infor
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Talent management ❚ 405It is poss
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Talent management ❚ 407Formal car
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27Recruitment and selectionTHE RECR
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Recruitment and selection ❚ 411
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Recruitment and selection ❚ 4135.
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Recruitment and selection ❚ 415ca
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Recruitment and selection ❚ 417ey
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Recruitment and selection ❚ 421on
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Recruitment and selection ❚ 423OU
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Recruitment and selection ❚ 425AP
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Recruitment and selection ❚ 427Ad
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Recruitment and selection ❚ 429we
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Recruitment and selection ❚ 4331.
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Recruitment and selection ❚ 435(r
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Recruitment and selection ❚ 437st
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440 ❚ People resourcingcandidate
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442 ❚ People resourcingrequiremen
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444 ❚ People resourcingidentify t
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446 ❚ People resourcinggoes on in
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448 ❚ People resourcingLISTENINGS
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450 ❚ People resourcinginterview
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452 ❚ People resourcingThe follow
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454 ❚ People resourcingQuestions
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456 ❚ People resourcingQuestions
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458 ❚ People resourcingsaying. Wh
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460 ❚ People resourcing●●make
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462 ❚ People resourcingindividual
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464 ❚ People resourcingand measur
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466 ❚ People resourcingprocedure,
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468 ❚ People resourcingCHOOSING T
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30Introduction to the organizationI
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Introduction to the organization
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31Release from the organizationGENE
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Release from the organization ❚ 4
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32The basis of performancemanagemen
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The basis of performance management
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33The process of performancemanagem
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The process of performance manageme
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522 ❚ Performance managementManag
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524 ❚ Performance management●be
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526 ❚ Performance managementActio
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528 ❚ Performance management●
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Part VIIIHuman resourcedevelopmentH
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534 ❚ Human resource developmentS
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536 ❚ Human resource developmentS
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36Organizational learning and thele
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Organizational learning and the lea
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550 ❚ Human resource developmentA
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552 ❚ Human resource developmentL
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556 ❚ Human resource developmentE
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558 ❚ Human resource developmentT
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560 ❚ Human resource developmentT
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562 ❚ Human resource developmente
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564 ❚ Human resource developmentI
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568 ❚ Human resource development
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570 ❚ Human resource developmentB
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574 ❚ Human resource development5
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576 ❚ Human resource developmente
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578 ❚ Human resource developmenti
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580 ❚ Human resource developmentw
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582 ❚ Human resource developmentp
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588 ❚ Human resource developmentD
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594 ❚ Human resource developmentN
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598 ❚ Human resource developmentF
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602 ❚ Human resource developmentD
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604 ❚ Human resource developmentw
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608 ❚ Human resource developmentr
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610 ❚ Human resource developmentI
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612 ❚ Human resource developmentp
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620 ❚ Human resource developmentt
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42Reward managementThis chapter pro
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Reward management ❚ 625The philos
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Reward management ❚ 627Reward pol
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Reward management ❚ 629Performanc
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Reward management ❚ 631Base payTr
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Reward management ❚ 633MODEL OF T
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Reward management ❚ 635Elements o
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Reward management ❚ 637Table 42.2
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Reward management ❚ 639Payment-by
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Reward management ❚ 641Table 42.3
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644 ❚ Rewarding peopleprocesses t
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646 ❚ Rewarding peopleWhat should
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648 ❚ Rewarding peopleExamples of
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650 ❚ Rewarding peopleReward phil
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652 ❚ Rewarding people1. They hav
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654 ❚ Rewarding peopleAs stated i
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656 ❚ Rewarding peopleOther examp
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44Job evaluationJob evaluation is o
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Job evaluation ❚ 661elements are
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Job evaluation ❚ 663‘matched’
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Job evaluation ❚ 665receives one
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Job evaluation ❚ 667A ‘propriet
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Job evaluation ❚ 669Table 44.1Com
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Job evaluation ❚ 671Making the ch
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Page 671 and 672: 45Market rate analysisPURPOSETo ens
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Page 679 and 680: 690 ❚ Rewarding peoplePAY STRUCTU
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Page 693 and 694: 704 ❚ Rewarding peoplePay range o
Page 695 and 696: 47Contingent payThis chapter starts
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Page 699 and 700: Contingent pay ❚ 711●●●●
Page 701 and 702: Contingent pay ❚ 713CRITERIA FOR
Page 703 and 704: Contingent pay ❚ 715Basis of sche
Page 705 and 706: Contingent pay ❚ 717The case for
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Page 709 and 710: Contingent pay ❚ 721The arguments
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Page 717 and 718: 730 ❚ Rewarding peoplenormal bene
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Page 723 and 724: 49Managing reward systemsManaging r
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Page 731 and 732: Managing reward systems ❚ 745REWA
Page 733 and 734: Managing reward systems ❚ 747Devo
Page 735 and 736: Managing reward systems ❚ 749What
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Page 739 and 740: 754 ❚ Employee relationsdescripti
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Page 745 and 746: 760 ❚ Employee relationsEmployees
Page 747 and 748: 762 ❚ Employee relationsGuest not
Page 749 and 750: 764 ❚ Employee relationswere that
Page 751 and 752: 766 ❚ Employee relations‘Manage
Page 753 and 754: 768 ❚ Employee relationsThe Trade
Page 755 and 756: 770 ❚ Employee relationsInstituti
Page 757 and 758: 51Employee relations processesEmplo
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52Negotiating and bargainingCollect
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Negotiating and bargaining ❚ 797c
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Negotiating and bargaining ❚ 799U
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Negotiating and bargaining ❚ 801%
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Negotiating and bargaining ❚ 803C
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Negotiating and bargaining ❚ 805t
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808 ❚ Employee relationsINVOLVEME
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810 ❚ Employee relationsFACTORS A
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812 ❚ Employee relationstrained,
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814 ❚ Employee relationsSUGGESTIO
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54CommunicationsOrganizations funct
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Communications ❚ 819very much abo
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Communications ❚ 821Communication
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Communications ❚ 823BulletinsBull
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Communications ❚ 825A team briefi
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55Health and safetyHealth and safet
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Health and safety ❚ 831the over-r
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Health and safety ❚ 833for the he
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Health and safety ❚ 835●●●W
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Health and safety ❚ 837Procedures
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Health and safety ❚ 839●●●
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Health and safety ❚ 841ACCIDENT P
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Health and safety ❚ 843informatio
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56Welfare servicesWelfare services
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Welfare services ❚ 847effect, pla
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Welfare services ❚ 849part-time s
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Welfare services ❚ 851GROUP WELFA
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Welfare services ❚ 853discuss per
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57Employment practicesEmployment pr
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Employment practices ❚ 859●●
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Employment practices ❚ 861The pol
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Employment practices ❚ 863The Wor
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Employment practices ❚ 867ETHNIC
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Employment practices ❚ 8692. allo
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Employment practices ❚ 871Solutio
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Employment practices ❚ 873SUBSTAN
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Employment practices ❚ 875unsuita
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880 ❚ Employment and HRM services
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908 ❚ AppendixHow to complete the
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ReferencesACAS (1982) Developments
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References ❚ 913Armstrong, M and
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References ❚ 915Bessant, J, Caffy
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References ❚ 917Brown, D (1998) P
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References ❚ 919Chartered Institu
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References ❚ 921Digman, L A (1990
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References ❚ 923Fein, M (1970) Ap
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References ❚ 925Gratton, L, Haile
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References ❚ 927Hall, L and Torri
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References ❚ 929Hoyle, E (1995)
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References ❚ 931IRS Employment Tr
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References ❚ 933Kessler, S and Un
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References ❚ 935Littler, C and Sa
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References ❚ 937Mayo, A and Lank,
Page 915 and 916:
References ❚ 939Nielsen, N H (200
Page 917 and 918:
References ❚ 941Porter, M (1980)
Page 919 and 920:
References ❚ 943Rodger, A (1952)
Page 921 and 922:
References ❚ 945Sims, R R (1994)
Page 923 and 924:
References ❚ 947Tannenbaum S I, B
Page 925 and 926:
References ❚ 949Walker, N (2004)
Page 927 and 928:
References ❚ 951Wright, D S and T
Page 929 and 930:
954 ❚ Subject indexattraction pol
Page 931 and 932:
956 ❚ Subject indexdefining techn
Page 933 and 934:
958 ❚ Subject indexunitary view 7
Page 935 and 936:
960 ❚ Subject indexgrade structur
Page 937 and 938:
962 ❚ Subject indexlinking HR wit
Page 939 and 940:
964 ❚ Subject indexinternational
Page 941 and 942:
966 ❚ Subject indexlearning needs
Page 943 and 944:
968 ❚ Subject indexinfluence of t
Page 945 and 946:
970 ❚ Subject indexand role analy
Page 947 and 948:
972 ❚ Subject indexreward systems
Page 949 and 950:
974 ❚ Subject indexstand-by allow
Page 951 and 952:
976 ❚ Subject indexvoice see empl
Page 953 and 954:
978 ❚ Author indexBradley, P 107-
Page 955 and 956:
980 ❚ Author indexLeventhal, S 22
Page 957:
982 ❚ Author indexUndy, R 215-16U
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