The Subject Of Employee Relations Management Essay

The Subject Of Employee Relations Management Essay
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Executive summary
This report provides an understanding of the subject of Employee Relations. In this report we have explore the context of employee relations against changing background of organizations. in the first part of the report it has been explain the unitary and pluralists frames of reference, along with the development of trade unions and nature of industrial relations, although the effective contribution of trade union s to industry as well as the main actors of employee relations have been identified.

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In the second part of report it has been clearly examine the nature of industrial conflict which arise in the organization and methods of resolving conflicts were identified based on the union and the senior managers perspective. analysis were made to investigate the different types of dispute, and dispute procedures and the resolution for conflicts . at the same time, the importance of collective bargaining and negotiation process for union leaders and for mananagement of a company was explore in the middle of the report.

In the final part of the report the concept of employee participation And involvement was investigated. Along with that the influence of the EU on democracy in the UK were analysed and the effectiveness of employee involvement techniques , impact of human resource management on employee relations were evaluated.

Table of Contents

In industry , workers play an important role in producing goods. Labour is one of the factors of production. Labour comes into direct contact with the management by whom the labour is engaged. Labour demands a fair share in the goods produced. The management may not concede to their demands. This may lead to strikes on the part of the workers. thus there will be industrial disputes and unrest and steps are to be taken to resolve the conflict in order to keep the wheels of industry moving. Sometimes government also steps in helps in resolving the dispute either through legislation or through negotiation.

In this report we have examine the Employee relations concept and the interrelationship , both formal and informal , between the management and the union representatives. And in the last 25 years have seen increased product and labour market competition, reductions in international trade barriers , the imposition of public sector financial constraints , pressure for better value for money, the implementation of rapidly changing and easily transferable technologies and increasing demands by customers that products and services are customized to their needs. in this changed environment , the focus of employee relations has changed. There is now greater focus on the individual employee rather than on the employees as a collective body. Collective relationships are now based on relatively more cooperation in which both parties are motivated to add value to the orgnisation.

Task 01
Unitary and Pluralistic frames of reference
The unitary perspectives
With the unitary perspective the organization is viewed as an integrated and harmonious whole with managers and other staff sharing common interests and objectives. There is an image of the organization as a team with a common source of loyalty, one focus of effort and one accepted leader and each and every employee from the top level to bottom level work towards the common goal of the organization . Conflict is perceived as disruptive and unnatural and can be explained by , for example poor communications, personality clashes or the work of agitators. Trade unions are seen as an unnecessary evil and restrictive practices outmoded or caused by trouble makers. If the organization allow a union to be formed that is only for the purpose of communication among the employees and the organization and also it allow the employees to take part in decision making process as well, simply unitary perspective is give priority to employee personal development as well as professional development.

The pluralistic perspective
An alternative view suggested by fox is the pluralistic perspective which view the organization as made up of powerful and competing sub groups management and trade unions, with their own legitimate loyalties, objectives and leaders. simply pluralistic approach view encounter the disagreements and concern over the sharing of profits and organization matters of the employees and the managers. Disputes are normally managed by collective bargaining process and not necessarily be a bad thing but can be an agent for evolution, and internal and external change. The role of the manager would be less commanding and enforcing , and more persuading and co coordinating. Trade unions play a major role in this approach .

1.2 Development of Trade unions and the nature of Industrial relations
Trade unions are associations of workers and are formed with the intention of protecting the workers against exploitation of the employers and also to improve the workers conditions. The industrial revolution in England and in other countries and the advent of the factory system of production are greatly responsible for the emergence of trade unions. The modern industrial establishment employs the workers in conditions, which make them helpless in bargaining individually for improving their working conditions. The workers are unorganized , and are subject to exploitation , by the employers.

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The working class resents this exploitation of the employers. Hence they form unions to protect themselves against exploitations of the employers . thus the trade union movement arose for the purpose of defending their rights, for improving their living and working conditions and for protecting their interest. In UK , trade union organization is characterized by a large number of small unions co-existing with a very small number of large trade unions. They have different recruitment strategies. Occupationally based unions (for example BALPA and ASLEF) focus on recruiting employees who perform certain jobs. Other unions confine their recruitment to all grades of employees employed in a particular industry.

Labour relation is the most broadly inclusive term. It describe the relationship between management and industrial employee, and in that light it is sometimes called employer employee relations, it also embraces relationship between management and trade union. Industrial relations are the product of relationship between employees and employer in an industrial enterprise and it develop the skills of adjusting to and cooperating among employees as well as between employer and employees. Labour relations are primarily designed to protect the interest of workers and the management through mutual understanding and relationship and further to improve the quality of work, to avoid industrial disputes so as to develop a healthy work environment .

With the development of trade union, organization could maintain a better industrial relationship to ensure the continuity of production and to reduce industrial disputes. It helps in promoting cooperation in between the management and employees.

1.3 Role of Trade Unions and its contribution
The main object of the trade union’s development was to protect the interest of its members against the exploitation of employers. Now they not only safeguard the interest of the members against any industrial hazards but they also the representative spokesmen of organized labour and may be organized to achieve several objects to further the course of their members.

When we look at the function of trade unions relating to industrial organization it clearly state how TR contribute to the effective employee relations. The following examples will clearly emphasis the outcomes of better industrial relation by the involvement of trade unions.

To highlight industrial organization as a joint enterprise between workers and management and to promote identity of interests

To increase production quantitatively and qualitatively , by laying down the norms of production and ensuring their adequate observance

To help in the maintenance of discipline

To promote cordial and amicable relations between the workers and management

To facilitate communication with the management

To impress upon the management the need to adopt reformative, and not punitive approach towards workers faults

1.4 Main Actors of Employee Relations
The major parties to employee relations are primarily individual employees and their managers. However, there are other important stakeholders in management – employee relations.

Each of the above parties has a particular perspective to bear on the interrelationship between management and managed.

Managers tend to see employee relations in terms of one or more of the following activities
Creating and maintaining employee motivation

Obtaining commitment from the workforce

Negotiating terms and conditions of employment with employee representatives

Sharing decision making with employees

Trade unionists tend to see
Collective bargaining about terms and conditions of employment

Regulating relations with other trade unions

Representing individuals and groups of individuals in conflict with their management

Improve the ability of employees to influence the events in the workplace

Individual employees tend to see
Improve their conditions of employment

Voice any grievances

Exchange views and ideas with management

Share in decision making

Third parties, such as government ministers, arbitrators, judges and civil servants may see employee relations in
Creating and maintaining harmonious relationship at work

Creating a framework of rules of fair conduct in employer employee relations

Establishing peace making arrangements to deal with repercussions of internal conflicts or decisions made within individual organizations.

Achieving a prosperous society with justice

Task 02
2.1 Nature of industrial conflict and the resolution of collective disputes
Industrial Dispute means a conflict or unrest or dispute or any sort of difference between employees and employers which may relate with the employment or the terms of employment or working conditions. Example if the employees demand for increase in remuneration, reduction in working hours, demand for payment for bonus, demand for more facilities in leave rules etc .at the same time if the employer is not willing accomplish the demands of the employees there is a some sort of difference between two parties. This is simply called as an industrial dispute. In order to find a solution to the collective disputes generally made during the collective bargaining or other non unionized negotiated agreements.

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As a first step based on the nature of dispute a meeting should arranged between the representatives of the organisation, for example if the employees demand for salary increment they can call for a meeting with the management to bargain and negotiate percentage of salary settlement and try to enter into agreements. If agreement cannot be reached in collective bargaining process and negotiations breakdown, there are number of choices available to the employer and the employees. This is called as the dispute procedure , which sets out several stages available to attempt to resolve the dispute. employee may go on with an industrial action such as strike to bargain for salary agreement. Employee may provide a third party intervention in the form of conciliation,

2.2 Ideological frame work of industrial relations
As a Union leader
The selected organisation consist of different political individuals and groups so all their ideas needs to be taken into consideration by the management. This is simply called as the pluralistic approach which prevails in between the trade union and the management. Since trade unions plays a major role in the pluralistic approach disputes can be resolved through collective bargaining and negotiations.

2.3 Type of collective dispute
if the management fail to agree to the least expectations of the employees , the different types of industrial actions could be used by them. Example work to rule or go slow, overtime ban, redundancy sit in and strikes. In this case The ultimate sanction used by trade union against employers is the strike or industrials stoppage . stoppage at work are normally connected with terms and conditions of employment. Strikes can be official or unofficial . official strikes are where a union officially supports its members in accordance with union rules during a dispute after a ballot for action has been carried out and agreed by union members. Unofficial strikes have no union backing or support. Such strikes are likely to be short term, local, unpredictable and disruptive for a business.

2.4 Dispute procedure and the resolution of conflict
As a Senior Manager
Pluralists consider conflict as both rational and an inevitable consequence of the different roles of managers and employees. Therefore it is the role of the manager to recognise conflict in the workplace and to resolve it through consulting the parties involved. Unlike the unitary approach, coercion is not an acceptable method of eliminating conflict. First of all the senior manager could arrange a meeting in between the union representatives and middle management. Or Arbitration is often used in collective disputes. For example, if a trade union is considering strike action because they simply can't agree with an employer, then they may agree to get an independent arbitrator in (usually from the Labour Relations Agency) to look at the situation and make a reasoned decision.

2.5 effectiveness of dispute procedure in resolving conflict
The pluralist approach is the basis of the Sophisticated modern (SM) strategy of management. Managers utilising this strategy firstly accept the presence of unions. This is despite the fact that unions may limit the manager prerogative. The reason for this differing attitude is that a union presence and voice is believed to positively contribute to facilitating communication and change in the employee relationship Breakdown of communication is one of the major causes of . Thus this strategy works not to abolish the existence of conflict, but to encourage methods of resolving conflict soon after it arises. Unions are just one of the instruments in this solution A practical manifestation of the SM management strategy are employee participation programs. These programs are diverse and range from anything as small as simple consultation of employees about their ideas, to implementing work councils where employees have direct input into decisions that directly affect their workplace. Through programs such as these, the interests of employees are expressed and taken seriously. The end result is increased work satisfaction and workplace harmony .

Task 03
3.1 nature and scope of collective bargaining
Collective bargaining is one way of minimizing conflict in workplace. It involves determining conditions of work and terms of employment through negotiations between employers and employees representatives, such as trade unions. These bodies represent the views of all their members and try to negotiate in their interests. As a union , the union leader could have more strength and influence and can negotiate for its membership. Without such a bargaining ,the employers and managers would be able to set wages and conditions without taking into account employees’ interests. Collective Bargaining is facilitated by the Industrial Disputes Act No. 56 of 1999

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The Industrial Disputes Act defines Collective Bargaining as bargaining between any employer or employers and workers, or trade unions of workers on terms and conditions of employment and other related matters.

The Government intervenes in deadlock situations in Collective Bargaining to conciliate on issues in dispute.

The results of collective bargaining is a collective agreement. These agreements are usually written and are signed by the parties and will be binding. here the collective agreement is going to be a substantive agreement where the union leader is going to talk about the salary increment from the management. This bargaining is going happen within the company level where the union leader will represent on behalf of the staff as well as by the representatives of management. since the company has recognized one union for collective bargaining purposes it is going to be a single union agreement.

3.2 process of negotiation
Negotiation involves two parties coming together to confer with a view to concluding a jointly acceptable agreement.

Negotiation process
Data gathering and analysis
Referring to the case the union leader and the staff representatives and the management are the negotiators who involved in this negotiation process. First of all the union must be clear about their objective that they going to make to the management. Once the union leader to announce the negotiation objectives as salary increment, both management and the union must collect familiar source of information relevant to the situation such as pay rate, unit labour cost, total sales figure etc.

Identifying key issues
After gaining a fair idea of what management would predict and the demands they made the union must decide and predict tradable items and non tradable items from the negotiations that would be bring forth to the union.

Planning strategy and tactics
Once the union identified the least settlement of the management, and if the fall back position cannot be achieved , the union will prefer to enter into a dispute situation with the management . ex:- strike, work to slow etc. once they decide the bargaining strategy and tactics, the union will announce to the management to have a meeting.

Preparing the meeting
In this stage The union must decide before meeting with the management who is to speak , in what order and on what issue and also anticipating arguments and counter arguments.

Since the union has decided to request a salary increment , the union leader will make initial presentation by addressing the proposal to be made to the management.

In this stage the union leader will address the proposal with the supporting facts and figures emphasizing the rationale behind the proposals and trying to suggest its strength towards each of them

Identifying common ground
After the presentation the management and the union concentrate on differences to identifying points of common ground. We could see the management can use "if & then" techniques for example . they could tel the union leader that if you are prepared to move closer to our position on increasing labour cost , then we are prepared to give salary increments, so this could be identified as a tradable item.

Making concessions
In this stage the union leader trying to summaries and use neutral language . based on the offers made by both parties, there could be an opportunity to withdraw & review progress among themselves or consider proposal tabled by the other side.

Final offer
Finally based on the arguments the management could make an offer based on whether the price they offer would make changes in the working practice and worth it for the the same time the union leader can make a considered decision on whether the proposal pay increase offer is adequate compensation.

When concluding the negotiation process the management must satisfied that all the issues have been discussed & agreed and that both parties understood. And once they conclude it is important to have a written agreement with all the conditions to ensure that the management is following or offering the conditions that they agreed on.

3.3 Negotiation strategy and the effectiveness
Before bargain a salary increment from the management the union must set objectives and parameters which are achievable and it should in line with the industrial policy. A detailed analysis should be made by the union about the current trend, pay rates, salary increments in the similar industries, and also must find fact and figures to support their arguments. Once the union has recognized the facts, they must know what kind of conditions that the management would bring forth, if they could not meet up their demand, the union can go on with an industrial action such as strike or work to slow, to accomplish their bargaining. Or on the other hand if the management is willing to compensate their salary increment conditions, certain concession could be made to have successful negotiation process.

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The following dialog made by a union leader will illustrate how they have made the negotiation strategy.

Our 5% wage increase is a justifiable claim on behalf of our members. Since the wages and condition settlement last year the rate of inflation, as shown by the Index Retail Prices, has increased by 1.5%. Our members therefore require an increase of 1.5% in wage to maintain their real purchasing power. You have been expererincing difficulty in recruiting labor over the last 12 months and the number of people leaving your employment has increased. This reflects the fact that your pay and conditions are out of line with those of your labor market competitors. The company forecasts continuing growth over the coming year and has reported to its shareholders an average 4.5% increase in sales , so it is a justifiable request that is from our union to increase the wages.

Task 04
4.1 effectiveness of Employee involvement in decision making
Employee involvement and participation covers a wide range of practices. As defined by Marchington (1992) these practices are initiated principally by management and are designed to increase employee information about, and commitment , to the organization.

According to the changing nature of organizational culture and industrial democracy , many organization in srilanka applying the concept of employee involvement practices in their organization for the continuous improvement and performance ,for example

Employees have the right to receive information and give opinion on matters of general economic importance, which will simply improve the productivity of the organizations

Offering employees a direct stake in the ownership and prosperity of the business for which they work is one of the most direct and tangible financial participation in the decision making process

A quality circle aims to identify work related problems that are causing low quality of service or productivity in a section of the workplace , and to recommend solutions to those problems. It provide opportunities for employees to meet on regular basis to suggest ways to management in their decision making process’

Joint consultation and work councils in organizations in srilanka allow employees in the form of representatives participation , it is a process by which management and employees or their representatives jointly examine and discuss issues of mutual concern. It involves seeking acceptable solutions to problems through a genuine exchange of views and information. Ex :- health and safety issues.

Task and work group involvements is to tap employees knowledge of their jobs, either at the individual level or through the mechanism of small groups. this encourage employees to extend the range and type of tasks they undertake at work.

4.2 difference between Industrial Relation and Employee Relation
Industrial Relations

The concept of industrial relations means the relationship between employees and management in day to day working of industry. The field of industrial relations came into existence with the advent of the industrial revolution as an important tool to understand the complex relations between employers and employees.IR creates complex rules and regulations to maintain harmonious relations and develop skills and methods of adjusting to and cooperating with each other. The government involves to shape the industrial relations through laws, agreements, awards etc. the important factors of industrial relation are employees an their organisation, employers and their associations. An employee would defiantly relate with IR for better salary, good working conditions, job security and training at workplace , on the other hand IR means better productivity, conflict resolution and employment laws for an employer .

Employee relations
Employee relation is concerned with the relationship between the policies and practices of the organisation and its staff , and the behaviour of work groups. Because "employee relation " concept is mostly preferred over the industrial relation concept, because it cover wide range of activities more than a workplace activities. Generally it is a study of the relationship between the employees as well as the employers of the organisation and find ways to resolve industrial conflict and at the same time improve the productivity of the organisation by creating a good working environment and significantly increase the motivation of the employees. In this field employees are made clear of the goals and objectives to be achieved and protect the interest of workers and the management through mutual understanding and relationship through collective bargaining, negations, induction actions and the establishment of trade unions.

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4.3 Effectiveness of Employment involvement techniques
Many organisations in srilanka have reported that voice of the employee in contributing to mananagement decision making because they believed it contributed to business performance. Employee voice and involvement was perceived to contribute to business performance via better employee contributions, improved management systems, and productivity gains.

The outcomes of employee involvement and participation
generate commitment of all employees to the success of the organisation

enable the organisation better to meet the needs of its customers and adapt to changing market requirements

help the organisation to improve performance and productivity , and new methods of working to match new technology

improve the satisfaction employees get from their work

provide all employees with the opportunity to influence and be involved in decisions which are likely to affect their interests

if the business awareness of employees can be improved , they are more likely to be better and more accurately informed , the rumour grapevine will be reduced and there is a higher probability that they will have greater job interest, improved knowledge and understanding of the reasons for the management decisions and provide greater support. employee involvement practices are thus an important means by management can bring about organisational culture change, and the management can achieve a positive change in employee attitudes through employee involvement practices

4.4 Impact of Human resources management on employee relations
Human resource management consist of all the employee relations activities such as the relationship between the employer as well as the employee. Simply sound HRM policies help to foster good employee relations. This could be achieved by the formation of collective agreements within the organisations and the establishment of trade unions or through policies and procedures for the commitment and communication between the two parties.

Human resource management deals with human relationships. It moulds and develops the human behaviour and attitude towards the work. The human resource manager is concerned with the admistration of a social system. In this process, the manager has to see that the economic satisfaction of working together as members of a group and individual job satisfaction of a worker is attained. And also human relations represent the interaction among people in work situations in such a manner to motivate them to work together productively. cooperatively and with economic , psychological and social satisfaction. This function suffers from two drawbacks, one is poor communication system and the other is discipline. Many a time industrial dispute arises out of poor communication system. To overcome this drawback, the personnel manager should develop and maintain an efficient system of communication so that two way traffic of personnel programme and policies can be ensured. He should also be in close and regular contact with the personnel and the trade union to know their grievances and should try to remove in order to maintain harmony and discipline in the organisation.

There is a need for changing role of HR practices due the increased growth in workforce diversity. Managers are facing great challenge in today’s organisations context as to how to manage the human relation in an effective way. Collective bargaining, industrial actions, employee grievances, has made the organisations to revise their HR policies to change the attitude of the workforce.

Further more in related to human relation practices, the Human resource management of the organisations have made the strategies to overcome the HR problems these strategies define the organisational objectives to manage the relationship of the employees as well as the organisation.

Task 05
Influence of the EU on democracy in the UK
The EU was partly developed as "single market" or a trading bloc, removing barriers to trade and competitive bias, standardizing technical regulations and creating a convergence of condition between European markets. The main statement of European social policy is the ‘community Charter of the fundamental social rights of workers ’(known as social charter)

The Social Chapter in practice. There are four areas of employee relations management in which EU laws have had , and will continue to have a direct impact on the work of the UK personnel/HR specialist.

Equal opportunities

Employment protection/ working conditions

Employee relations

Health and safety at work

This was brought, having in mind improving living and working conditions and ensuring effective use of human resources across EU. it intended to guarantee human rights in the areas of Freedom of movement, Fair remuneration, Improvement of living and working conditions, Freedom of association and collective bargaining, Access to vocational training, Equal treatment for men and women

The influence of the European union (EU) on personal /HR management in the UK cannot be overstated. Its power to determine the rules and regulations which govern workplace relations between employers and employees have grown dramatically since the mid 1990s. examples of where the UK has had to take on board EU initiatives in the employment law field include collective redundancies , transfer of undertakings, acquired rights, "burden of proof" in equality cases, information and consultation, part time work, fixed term contract, pregnancy, and maternity leave rights, parental leave, working time and equal opportunities,. These are all the areas where EU legislation has affected directly the everyday work of the UK personnel professional.

In the first part of the assignment it has been discussed for effective relations and a common commitment to the goals of the organization, consideration should be given to contrasting approaches which present two major ways of perceiving work organizations; the unitary perspective and the pluralistic perspective. While neither of the approaches can be seen as "right or wrong" these contrasting views will influence the nature of employee relations and the management of human resources.

Also importance of trade union contribution to effective employee relations were evaluated. Based on a given situation appropriate ideology frame work was identified and two different ways of resolving industrial conflict was identified from the point of view of an union leader as well as the senior manager of the organization. In that scenario it has been explore the effectiveness of different methods of resolving industrial dispute and it consequence towards the other part.

In the second part of the report, it has been identified the importance of collective bargaining was explored ,and procedure of conducting a negotiation process and how a negotiation strategy could be prepared by an union leader to overcome the employee issue.

Finally the idea of employee involvement and employee voice in the decision making process of the organization was establish, the effectiveness of employee involvement techniques were explained with relevant examples.

In the light of the above conclusions, the organizations, and the situation we have investigated must adopt effective HRM policies for the effective employee relations.

Sound HRM policies help to foster good employment relations. It is necessary to take account of the institutions and parties involved , and their ideologies and motives. There are two major and contrasting perspectives of work organizations, and the explanation and outcome of conflict- the unitary and the pluralistic perspectives. These contrasting views influence the nature of employee relationships and the management of human resources. Good managerial strategies are important for effective employment relations that are founded on a combination of legal and behavioral dimensions.

Industrial harmony presupposes the existence of understanding , cooperation, smooth and cordial relationship between employers and employee, in order to safeguard interest of the employee it is important establish trade unions to protect the rights . and also trade resort to the devise called collective bargaining for promoting industrial harmony.

Involving employee in decision making is very important , thus we can conclude from the report that participation provides an opportunity for every member of the organization to contribute his brain and ingenuity. As well as physical efforts for the improvement of organizational effectiveness as well as enhancing his own economic welfare.

CS ,Venkataratnem. BK Srivastava ,2006, Personnel Management and Human resource Management, 14 ed, 7 West Patel Nagar, New Delhi 110 008.

Mick Marchington and Adrian Wilkinson, 2005, Human resource management at work, 3rded, charted institute of personnel and development

Michael Armstrong & Angela Baron, 1998, Performance Management, The , New realities , Reprinted 2000, Charted Institute of Personal Development, London SW19 4UX

Dr.V. Radha,2007,Human Resource management, 2nd Ed, Prasanna & Co,Chennai-5

John Gennard and Graham Judge ,2005, Employee Relations,4th ed,Charted institute of Personnel and Development, 151, The Broadway, London , SW19 1JQ
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