Functions and Practices of HRM

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This report discusses the functions and practices of HRM, including training and development, career growth, and the benefits for employers and employees. It also covers the best fit approach and the advantages and disadvantages of different methods.

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Human Resource
Management

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INTRODUCTION
HR has a predominant significance in the success of an organization. In an organization,
most of the work is done by the man power. Therefore, a separate department or management
team is crucial for controlling or managing workforce at workplace (Beer, 2015). This division
or HR professionals of the firm are responsible to handle all the queries, matters and problems
related to employees as an executive of the company.
This report covers a brief discussion on the HRM practices, practised by the
professionals of Merrill Lynch firm which is a well known business firm in central London. This
report involves all the aspects related to HRM such as objectives, purpose and functions of
HRM. Study describes recruitment and selection approaches apart from their limitations and
benefits, significance of HRM practices for employees and employers as well. It also includes
importance of employee relationship and aspects of employee legislations with significant
example.
TASK 1
P1 Agenda of HRM functions
It is the term that is used to define the process of enlisting, selecting, observing
employees and providing them orientation, appraising their performance, benefits and,
establishing decent relations with employees and their trade unions, motivating employees,
ensuring employees' health, safety and welfare measures in conformity of labour laws of the
nation (Human Resource Management, 2019). These are the major objectives of HRM that can
be divided into four categories:
Organizational objectives: The processes of hiring the correct amount of workers for a
granted task, providing training and holding high employee retention rates are included in
organizational objectives.
Personal objectives: This considers maintaining employees gratification as well as
providing the opportunity for career development.
Social objectives: These objectives include legal compliances such as equal pay for same
work and equal opportunities.
Functional objectives: Functional objectives are the provided guidelines which are used
to support the HR operations properly within the establishment.
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The human resource management team of Merrill Lynch firm, have to comply with all
the functions that help achieving all these objectives. These objectives are directly related to
workforce planning and resourcing that means examining, forecasting and designing manpower
demand and supply, assessing disparity and deciding target talent governance engagement to
make sure that an establishment has the valuable people.
HRM purpose
The main purpose of HR in the firm is to handle the various requirements of company
employees and employers as well. Human resources team also assists in accelerating the
effectiveness of an establishment in financial and legal matters. The major purpose of HRM in an
organization are described below:
Staffing Needs: Human resource division are primarily known for recruiting employees,
creating job or position announcements, defining job responsibilities and deciding the
requirements and skill level that are necessary for a post. This process includes personnel screen
individuals by finishing reference checks, interviewing potential applicants and administering
tests. Managers in the HR section continuously communicate with administration in other
divisions for the enlisting process (Filipiak and Hasiów-Jaroszewska, 2016).
Compensation and Benefits: Human resources department evaluates an organization’s
pay structure by examining compensation tendency with the goal of rendering employees with
acceptable pay. The department also measures policies and helps a company to comply with
different local, federal and state laws in respect to compensation. This practice is compulsory to
retain the valuable employees which assist in evaluating the need of workforce in future and plan
accordingly.
Law Compliance: Organizations are obligated for the equitable treatment and safety of
their workers. Human resources department keeps entities updated with laws and regulations by
staying conscious about various laws, developing processes to ensure attachment to the laws and
diffusing the proper information (Gillon and et.al, 2014). Compliance with the law is essential
for HRM as it affects the policies and planning of the managers in order to recruit the workforce
and resourcing the selected firm.
Functions of Human Resources Management:
Managerial Functions:
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Planning: Planning is future directed process with distinctly representing the desirable
path of organizational activities in future. Forecasting is one of the crucial components in the
planning procedure as it provide help in evaluating the future workforce requirements and design
the structure of the firm according to the human resources.
Staffing: Staffing is an activity by which HR personnels select, promote, train and
withdraw their inferiors. This involves hiring prospective employees, setting execution
standards, evaluating performance, and counselling to the valuable employees.
Directing/Leading: It is an operation of energizing collective efforts for attaining desired
contents or objectives. It involves actions like maintaining morale of employees and motivating
subordinates for achieving the organisational objectives. Providing direction to the workforce is
crucial in order to enhance the efficiency and reduce the cost of new recruitment.
Controlling: This is considered as essential function that ensures to have close
controlling over workforce so that they work better (Haak-Saheem, Darwish and Al-Nasser,
2017). In order to manage the workforce and resourcing skilled and qualified human resources, it
is significant for the HR managers to control over the entire HRM process.
Operative Functions:
Procurement: It includes procuring the accurate candidates in suitable number to be
arranged in the system. These functions may comprise recruitment, manpower planning,
induction or orientation, selection and placement of new employees.
Development: It consists of actions such as train employees, training sessions to evolve
managers and develop coordination among all workers
Maintenance: This function is related with promoting and protecting employees while at
workplace (John and Björkman, 2015).
The company has been facing the various issue in level of attaining the satisfaction of customer.
The company have the development of idea in order to have increase in market share in the
future which is required to have respective needs in order to have development of productivity
and improvement in satisfaction which have requirement of skilled employees. The company is
in level of hiring new employees as the efficient sources of development.
Hard skill tends to have ability with a large amount of handwork and practice and education as it
helps in increase the level of productivity and improving level of satisfaction.
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On the other hand the soft skills is considered as the qualities and traits which have the tendency
to make someone good members of the team along with trending to be new employee.
P2 Recruitment approaches, their strength and weakness
Recruitment:
It is the process that explore potential candidates and ennobling them to participate for
the existent or expected vacancy or post. The main objective of the recruitment is to invite more
and more applicants for a vacancy and the process is economic.
There are two different methods of recruitment that Merrill Lynch can adopt for inspiring
the individuals to apply for the vacancies in the establishment which are mentioned below:
Internal Method:
Transfer: When an organization choose an existing employee and send him/her in
another branch or division of the company for the same designation with same roles and
responsibilities, the process is called transfer.
Promotion: When an employee has been hired for a higher level post from the same
department with advanced roles and responsibilities, is known as promotion.
External Method:
Advertisement: Advertisement is a process of posting or advertising the potential job on
online or offline platforms such as job portals, social sites, newspapers, etc. to recruit external
potential candidates.
Referrals: When employees for a designation is recruit on the suggestions, references or
recommendation of the existing staff members, the procedure is called referrals.
Recruitment Agencies: some times organizations contact with third parties which are
known as recruitment agencies that are asked for recruiting the right person (Masum, 2015).
Selection of the method:
After analysing both the methods HR managers of Merrill Lynch can adopt the
promotion approach from internal existing employees to fill the vacancies related to upper posts
or jobs and for recruiting the people for lower level employees, online and offline advertisement
approach would be the optimum from external recruitment method.
Advantages and Disadvantages of Methods:
Approaches Advantages Disadvantages
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Internal
Method
Promotion approach does not
need any training and less time
consuming.
Other employees will be
motivated to work hard.
Fawning employees can be
promoted by the management.
Opportunities of getting more
talented employee can be lost.
External
Method
Respective firm can hire more
talented candidates for lower
posts.
Selection ratio can be increased
without any partiality.
The company may have to wait
for long time as advertisement
approach can consume time.
Advertisement approach is a cost
consuming process.
Selection:
Selection is the activity of employing candidates among the enlisted applicants and
rendering them a specific job in the establishment. Selection is a negative approach that pick up
the most suitable candidates
There are numerous selection methods available that can be used by the HR team of
Merrill Lynch in order to select the best suitable employees for the company. Some of them are
mentioned under:
Panel Interviews:. In this method, when one member is asking the question, the others
will observe the different terms such as body language, confidence, language, voice tone, etc.
Assessment Centres: Assessment Centres include a figure of various tasks as component
of the process of selection. An assessment Centre reflects the actuality of the work and the
establishment. The tasks set links with the person specification and work description. The set of
tasks is an opportunities for applicants to present various characteristics of their qualities.
Competency Based Interviews (CBI): The competency based interview is a specific
kind of integrated examination in which questioning of the interviewer is planned to bring out
the capabilities or qualities of the candidate on numerous competencies regarding the job
specification being recruited for.
Selection of the method:
With the different methods of selection, Merrill Lynch is capable to select qualified
employees but according to the nature of the business, the HR team of the company can choose
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the assessment centres method for selecting the suitable candidates. However, the method
includes some benefits as well as shortcomings that are presented as below:
Advantages and Disadvantages of Methods:
Strengths Weaknesses
This method is more effective to find out
talented individuals as the candidate is judged
by various experts.
Assessment centre method is very expensive
and also consumes a lot of time.
Assessment centre method are generally useful
for spotting talent individuals who have not
previously held management positions.
Highly knowledgeable decision makers are
needed to appraise the candidates and the
evaluators may be biased also.
Best fit approach have assurance over HR strategies over having appropriates level of
circumstance in developments of company which have inclusion of culture, operational process
and external environment n more significant manner. Advocates of this approach suggest vertical
integration where control can be achieved through human resources practices and process is
taken as the key element.
Best practices is considered to be proponents which have stating of Bushnell in rewards to the
HR policies which have major lever of inclination of rewards system in more appropriates
manner. There is major lead to have motivation ans better employee commitments interloping ter
individual.
TASK 2
P3 Benefits of functions and practices of HRM
Training and Development (T&D):
T&D is responsibility of human resource managers so that employees may be improve
their skills up-to the mark. Firm arranges some specific programs for staff so that they can gain
more information about their job role and can perform it well (Ruël and Bondarouk, 2014).
Benefits for Employers:
Economic Operations: Trained employees are able to form economical and better use of
equipment’s and materials. Additionally, the proportion of wastage, damage to machinery and
rate of accidents can be reduced to the minimum. These will decrease per unit production cost.
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Less Supervision: Properly trained employees reduce the responsibility of thorough
supervision and monitoring.
Greater Productivity: By getting proper training employees can raise their productivity
that can help business in generating more revenues.
Uniformity of Procedures: best accessible methods of performing a task can be
standardised and made available to all employees with the help of training.
Benefits for employees:
Improve knowledge and skills: Training process helps the employees in assessing their
potential and learn new skills that helps in improving their knowledge. Employees are capable to
furnish their features through training and development practices.
Career Growth: Employees can attain the adequate attributes for get the promotions
with the help of training. New skills and increased productivity can provide an extreme
opportunities to get the higher positions within as well as outside the establishment.
Enhance confidence: Employees become more updated on new & advanced technology.
By this way employees can work better and can serve consumers well.
Best fit is considered as the HR strategy such as had become more and more efficient in
making the company to have increase level of linkage to the business environment. The best fit
approach have the importance in ensuring the HR strategies which are the considered as most
appropriate of the organization, including its culture, operational processes and external
environment. HR strategies have to take account of the particular needs of both the organization
and its people.
Strength of Best Fit as it helps the company have the level of direction which have the
follow up of priorities. It tends to have the promotion n active learning along which helps in
developing the company to have successive layering as from the level of competitors. On the
other hand the weakness of suggested best fit approach is this method have the leverage level of
consumption of time which makes the competitors in ways to formulate new level of strategies.
Instructor Led Training is considered to the type of classroom training which can be leaned with
online presentation of group understanding. This aspects have inclusion of on the job coaching
and on the line training.
This method have the respective advantage and disadvantage. The former is that is can be
developed in and revised in easy manner along with having facilitation on basis in face to ace
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which tends to have saving in cost f traveling and transferring the knowledge in respective
manner. On the other hand the disadvantage are the method is considered as difficult ins
scheduling as On line training requires electronic equipment which requires huge amount of
investment by the company.
P4 Effectiveness of various kinds of HRM practices
HR professionals understand that potential man power is the driving force behind
organizational success. Human resource practices is beneficial in raising production ability of
the firm and directly connected to profit margins and revenue. Modern research shows that
companies which are extremely skilled in HR practices, experience up to 2.1 times the profit
margins and 3.5 times the revenue growth as much as of less skilled companies (Effectiveness of
HR practices, 2019). The studies indicate the sterling correlation between skilled HR practice
and optimistic economic performance in the following areas:
Employer branding.
Retention of workforce
Recruiting right person
Leadership development.
Performance rewards and management.
Managing talent
Staffing and Recruitment: The main practise of the HR professionals for which they are
known is recruiting and selecting the potential and valuable employees for the organization and
provide detailed description of job requirements through job analysis. With the help of
continuous practice of this function, HR management is capable to effectively select committed
candidates, their easy going on boarding, retention of worthy employees who are productive and
decrease employee turnover ratio that helps in preventing recruitment and selection process again
and again and saves the cost.
Training and Development: Improvement and training mentions as to formed efforts by
which an establishment alleviate the acquisition of work-related activities for a section of
employees. To accomplish skills and knowledge which head to improved personal skills in one
or more fields of expertness is the overall objective of the training process system and through
this, necessary motivating backgrounds are rendered and developed to do job with maximum
productivity (Tsao and others, 2016). The process of training and development effectively helps
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the HRM of Merrill Lynch in talent and leadership management that motivate the employees and
inspire them to work on their productivity and enhance the quality of work which helps in
increasing quality production.
Performance appraisal: The most widely accepted definition of the process of
performance appraisal is to identify, observe and assess the organizational performance of
employees. It can be described as systematic process that aids in assessing strengths as well as
the weaknesses related with the activity of an individual or a group in organization. The regular
practice of the performance appraisal process helps to improve employer branding, employees'
motivation and reward management system. It also helps the Merrill Lynch in analysing the
efforts of its employees and take the appropriate steps if productivity is not up to the standards. A
regular check of the performance push the efforts of the employees towards quality production
which increases profitability of the firm.
Compensation and Benefits: Compensation can be described as any kind of benefit or
reward which is provided as a gratitude for the employees who have done the job. Compensation
is not only paid in the form of salary or bonus to the employees but also on the basis of working
life quality including the indirect financial and non-financial benefits terms in the new approach
of HR practices (Uwizeyemungu and et.al, 2018). The planning and strategies, exercise by the
HR professionals increase the morale of the employees and improve the performance and
productivity.
The flexible working housed which is being provided by the HR companies in all about in ways
to have production of series in more effective manner. This freedom of hours have the major
level of attractions of higher level of skill of the employees as it is masking the business more
able to have attraction of the reattaining of skilled employees in more level of diverse workforce
which is developing business in more effective way. Companies that offer employees
flexibility in the form of telecommuting, Flexible schedules and unlimited PTO
help employees maintain a positive work-life balance. Flexibility has also been shown to reduce
workplace stress, boost mental well-being and encourage productivity
TASK 3
P5 Significance of managing relationship with employees at workplace
Employee relationship gives significant benefit to business unit, It has been noticed that
workers who have mutual relationships with the employers supports in making people
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loyal and happy. Unfortunately, creating such type of healthy relationship is not easy for
the employer as well as the employees. Following are some important features that
increase the positivity regarding employee relationship:
Retain Loyal Employees: It is the process through which people feel comfortable in
doing their job, this makes them loyal towards the firm. By this way entity can work better with
its loyal workers. (Van der Wal, 2017).
Fewer Workplace Conflicts: When an employee savours being around to their co-
workers and manager, their tendency is very low to search out conflicts. One of the strongest
benefit of healthy employee relationship is a working environment that is free from conflicts and
disagreements. Ambivalence cut down the efficiency and productivity. Less tendency of
disagreement and conflicts creates better communication which eventually helps the Human
Resource Managers in making decisions regarding hiring and firing of the employees on time
and effective way.
Increase Productivity: A healthy relationship with the employees helps in increasing
their morale and appraisals make them more efficient as it boosts their self esteem to work hard
and get succeed. With this boosted morale and high efficiency of productivity, management is
much more capable to make effective strategies and present impressive decision making
qualities. The HRM is capable to classify the work and job responsibilities of the employees
according to their work performance and productivity level and authorise them for taking
decisions accordingly (Wei and et.al, 2015).
Trade union have generally the role which is had the level of negotiation with the employee
which os majorly have the Afrocentrism the signification level of improvements such as
providence of better working contradistinction along with chasing compensation ans job security
decampment in more significant
The role and responsibility such as welfare of its members sach as safeguarding the interests of
its members, protecting the reliability of its trade, achieving higher wages by securing economic
benefits.
P6 employment legislations
All the business organizations must be complied with laws, regulations and other
legislations such as Equal Pay Act, Disability Discrimination Act etc. at the time of decision
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making particularly when the decisions are being made for HRM as it may entirely change
any plan or decision fixed by human resource divisional unit.
Equal employment opportunity: Equal employment opportunity is an business practice
which defines that an employer must not involve in any illegal activity regarding equality. It
defines that discrimination against an individual, person or employee on the basis of colour, sex
etc. (Zhang and et.al, 2015).
Wages and remuneration: Salaries and wages are the payments paid or payable to
workers for work performed. Employers are needful by law to subtract from wages, social
contributions, income taxes, etc. which are then directly paid to social security authority, tax
authorities, etc., on behalf of the workers.
Welfare, safety and health: The objective of considering health, safety and welfare
terms in employment laws is to provide safer environment to workers at workplace..
Sexual harassment: It is the law that restrict sexual abuse at workplace that is
humiliating, intimidating or offensive. Sexual harassment may be verbal, written or physical and
can happen in person or online (Costa and et.al, 2016).
Working time regulations, social security etc. are also basic elements that are considered
in employments law so that ethics can be maintained at the workplace. These above mentioned
key components check that contractual agreements used by the employers tally with compliance
of legislation.
Impact of these laws on HRM decisions
There are various laws that impact on overall working of human resource department to
great extent:
Leave Provisions: These employment laws protects the employees from any misbehave
or unlawful act during the leave from work. It provides job protection during leaves and health
coverage which affects decision making of the leave policies of the human resources department.
Wages and Working Hours: Employment laws consider the regulations related to
effective working hours and remuneration of the employees. They have to make their plans
regarding salary and wages in such a manner that minimum wages can be paid according to the
law.
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Compensation: The compensation and other benefits health insurance, medical facilities,
overtime, rent allowances, etc. are the legal right of the employees which are provided by the
employment law effected the policies and decisions of the HR team. The management needs to
shape their contracts according to regulations.
Development: It is vital for the HR managers to train their employees for ensuring their
efficiency. Organization's development depends upon the employees' development. Hence the
department needs to create their plan for training and development sessions accordingly (Martin-
Rios, Pougnet and Nogareda, 2017).
Labour Relations: The success of management decisions relies on the behaviour and
reactions of the employees and trade unions. It is significant for the HR management to create its
plans with the involvement and consent of union leaders and develop healthy relation with the
labours.
TASK 4
P7 Application of HRM practice
HRM practises at workplace helps HR professionals in decreasing the conflicts between
employees and management and among the employees, improves employees retention and
turnover ratio, employees' satisfaction, improving employees performance and
productivity, training and development, budget control and implementing strategies for
organizational changes.
One page CV for Human Resource Management lecturer:
DENIAL PEARSON .
34, Main Street, Brighton, England
|Contact No.- 07985894265
|Email Add.: pearsondenial@email.com
Highlights
Accomplishing researcher in Human resource management
personable and approachable
Inspiring lecturer
Accomplishments
Currently in final selection stages for the Perishing grant for HR
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managerial studies.
Recruited three previous alumni to become high-value university donors.
Experience
05/2008 to current Human Resource Management Professor
Brighton University- Brighton, England
06/2004 to 05/2008 Professor of Human Resource Management
University College London- London, England
Education
Ph.D.: Human Resource Management
Master of Business Administration
Bachelor of Business administration
Brighton University – Brighton, England
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CONCLUSION
Human Resource Management plays vital role in selecting, training, managing and
controlling man power working with the organization. HR management is beneficial for both the
employees and employer as well. HR division has its own objectives within the firm which helps
in recruitment and staffing, compliance with laws, providing compensation and benefits, training
and development and resolving employment related issues. Recruitment is essential process or
objective of HR professionals for which both internal and external sources can be chosen.
As an executive or representative of the organization, it is crucial for an HR personnel to
maintain strong and healthy relation with the workers so that conflicts and disagreements can be
reduced, employees can be motivated and their creativity and productivity can be enhanced by
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involving them in decision making prices of the organization. HR has to comply with laws and
regulations relate to employees welfare so that legal conflict can be avoided and employees can
feel attached with the company.
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REFERENCES
Books & Journals:
Beer, M., 2015. HRM at a crossroads: Comments on “Evolution of strategic HRM through two
founding books: A 30th anniversary perspective on development of the field”. Human
Resource Management. 54(3). pp.417-421.
Costa, J. and et.al, 2016. HRM analysis targeting ITS1 and matK loci as potential DNA mini-
barcodes for the authentication of Hypericum perforatum and Hypericum androsaemum
in herbal infusions. Food Control. 61. pp.105-114.
Filipiak, A. and Hasiów-Jaroszewska, B., 2016. The use of real-time polymerase chain reaction
with high resolution melting (real-time PCR-HRM) analysis for the detection and
discrimination of nematodes Bursaphelenchus xylophilus and Bursaphelenchus
mucronatus. Molecular and cellular probes. 30(2). pp.113-117.
Gillon, A. C. and et.al, 2014. Organisation development in HRM: a longitudinal study
contrasting evolutionary trends between the UK and USA. The International Journal of
Human Resource Management. 25(7). pp.1002-1023.
Haak-Saheem, W., Darwish, T. K. and Al-Nasser, A. D., 2017. HRM and knowledge-transfer: a
micro analysis in a Middle Eastern emerging market. The International Journal of
Human Resource Management. 28(19). pp.2762-2791.
John, S. and Björkman, I., 2015. In the eyes of the beholder: the HRM capabilities of the HR
function as perceived by managers and professionals. Human Resource Management
Journal. 25(4). pp.424-442.
Martin-Rios, C., Pougnet, S. and Nogareda, A. M., 2017. Teaching HRM in contemporary
hospitality management: a case study drawing on HR analytics and big data
analysis. Journal of teaching in travel & tourism. 17(1). pp.34-54.
Masum, A. K. M., 2015. Adoption Factors of Electronic Human Resource Management (e-
HRM) in Banking Industry of Bangladesh. Journal of Social Sciences/Sosyal Bilimler
Dergisi. 11(1).
Park, O., Bae, J. and Hong, W., 2019. High-commitment HRM system, HR capability, and
ambidextrous technological innovation. The International Journal of Human Resource
Management. 30(9). pp.1526-1548.
Ruël, H. and Bondarouk, T., 2014. E-HRM research and practice: facing the challenges ahead.
In Handbook of strategic e-Business management (pp. 633-653). Springer, Berlin,
Heidelberg.
Tsao, C. W. and et.al, 2016. HRM retrenchment practices and firm performance in times of
economic downturn: exploring the moderating effects of family involvement in
management. The International Journal of Human Resource Management. 27(9).
pp.954-973.
Uwizeyemungu, S. and et.al, 2018. The complementarity of IT and HRM capabilities for
competitive performance: a configurational analysis of manufacturing and industrial
service SMEs. Enterprise Information Systems. 12(10). pp.1336-1358.
Van der Wal, Z., 2017. Small Countries, Big Performers: In Search of Shared Strategic Public
Sector HRM Practices in Successful Small Countries. International Journal of Public
Administration. 40(5). pp.443-458.
Wei, L. and et.al, 2015. Screening of SNP markers tightly linked to PcDw locus determining
pear dwarf trait using HRM technology. Acta Horticulturae Sinica. 42(2). pp.214-220.
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Zhang, M. M. and et.al, 2015. Towards a research agenda on the sustainable and socially
responsible management of agency workers through a flexicurity model of
HRM. Journal of Business Ethics. 127(3). pp.513-523.
Online:
Effectiveness of HR practices, 2019. [online] Available through
<https://www.shrm.org/hr-today/news/hr-magazine/pages/1112focus.aspx>
Human Resource Management, 2019. [online] Available through
<https://www.inc.com/encyclopedia/human-resource-management.html>
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