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Benefits of HRM Practices for Employees and Employers

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Added on  2023/01/11

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This report discusses the benefits of different HRM practices for both employees and employers in Merrill Lynch. It explores the impact of HRM practices on creating a positive work culture, employee development, recruitment and retention, and conflict resolution. The report highlights the importance of HRM in maximizing employee efficiency and achieving organizational goals.

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RECRUITMENT
PROCESS
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Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Nature & purpose of HRM for various steps of workforce planning...............................3
P2: Strength & Weaknesses associated with the different approaches related to recruitment &
selection..................................................................................................................................6
TASK 2............................................................................................................................................9
P3: Benefits of different HRM practices for both the employee & employer........................9
P4 : Effectiveness of different HRM practices for generation of organisational profit & overall
productivity...........................................................................................................................12
TASK 3..........................................................................................................................................13
P5: Importance of employee relation in influencing HRM decision making.......................13
P6 : Elements of the process of employment legislation and its overall impact on HRM
decision making....................................................................................................................14
TASK 4..........................................................................................................................................15
P7: Application of Different HRM practices in work related context..................................15
CONCLUSION..............................................................................................................................19
REFERNCE...................................................................................................................................20
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INTRODUCTION
HRM is regarded as important function of every organisation as it is related with managing
the workforce of organisation. This is a function that is responsible for selection and recruitment
of individuals and then retaining them for longer duration of time what different activities such
as compensation and benefits for such human resource functions is basically consisting of
different application of tools such as 360 degree feedback and different training programs that
have to be adopted by organisation to maximize the contribution level towards the goal of
organisation. This report is based on Merrill Lynch that is a management company (Boella and
Goss-Turner., 2019). It belongs to financial services and was founded in the year 1914 and is
serving worldwide. The report is based on facilitating the HR Department of this organisation to
achieve competitive advantage by of different functions of Human Resource Management.
Along with it, the strength & weakness approaches of recruitment & selection are discussed.
Benefits of Human Resource practices for employee & employer are discussed and techniques of
such practices are discovered for organisations profits. Apart from this there is importance of
employee relation for decision making process of HR and application of Hr practices in
organisation is done.
TASK 1
P1. Nature & purpose of HRM for various steps of workforce planning.
HR management is function that is concerned with effective leader the human resources in
organisation by way of proper planning of all their activities.
Nature of strategic HRM:
Strategic human resource management is applicable to all Enterprises
it focuses on utilisation of employee potential for organisation and their personal development
(Bratton, and Gold, 2017).It is basically for motivating and inspiring people for achievement of
targets.
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SCOPE of strategic HRM:
1) HRM is related of different functions of planning of procurement process compensation
decision etc.
2) It is concerned with facilitating & improvement of overall working situation of employees
3) It is used for maintaining the overall relations consultancies And Labour unions by the
organisation.
Purpose and function of HRM:
The point of HR Department is managing the overall requirement of employees in organisation
with the aim of maximizing the employees’ efficiency & achievement of goals. Falling discuss
some of the Human Resource Department functions that help in Merrill Lynch in Planning they
work force and various human resource management decisions:
1) Job analysis designing:
It is a function that is related with analysing and describing the details of a job in relation with
qualifications, set, potential knowledge abilities of a individual in relation with organisations
requirement of responsibilities this going to help Merrill Lynch in planning of their overall
workforce (Chowhan., Pries and Mann, 2017).
2) Training and development:
It is also a HR management function that is dealing with increasing the present level of
knowledge of their personnel in organisation (Delery and Roumpi, 2017). In Merrill Lynch this
function is going to assist employees in increasing and preparing the overall work for hire job
responsibilities.
3) Performance management
This is the function that is related with evaluating the employee performance according to
different set standard for measuring the present as well as those standards of performance it has
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managers to plan the overall incentives for their employees (Jabbour, and de Sousa Jabbour,
2016).
4) Recruitment and selection:
It is a function where for achievement of organisational objectives required personal is hired by
employees different vacancies of job profile that are occurring in the Merrill Lynch.
5) Benefits and compensation:
It is a function that is associated with overall controlling of cost so that there can be
efficiency in procedure of hiring of employees and planning of fair remuneration according to
their contribution which they are making towards organisation. in Merrill Lynch human resource
managers are planning compensation and different benefits for their overall workforce.
There are two approaches to HRM that is approaches for managing different functions these
approaches are discussed below:
1) Hard approach:
This is an approach where employees are treated as one of the most useful resources for
achievement of organisational objectives. In Merrill Lynch, this approach is applied for
achievement of some specific objectives and in this only some employees are selected who are
competent enough to work for search specific objectives for a period of time.
2) Soft approach:
It is a process where employees are treated as individual resource most important the
source of organisation for achievement of high competitive advantage. In Merrill Lynch, efforts
are made for the purpose of empowerment of employees at different levels and also make plans
for their benefits and retaining them for a longer duration of time (Jewell, Jewell and Kaufman.,
2020)
.
Assessment of HRM functions:
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Human resource management has to perform different operational and managerial
function in order to manage the Human Resource Department. Based on employee performance
there is various compensation and overall benefits are planned so that employees are able to
maximize their contribution level towards organisations objectives.
P2: Strength & Weaknesses associated with the different approaches related to recruitment &
selection
Recruitment is basically a process for inviting different individuals to apply for vacant
positions in organisation. There are basically 2 sources of recruitment data internal sources of
recruitment & external sources of recruitment with their strengths and weakness are discussed
below:
Internal source of recruitment:
Internal recruitment of recruitment is basically a process in which a company wants to fill
the vacancy with the help of their internal source by promotion for transfer of existing employees
(Marlerand Parry, 2016). It is a very effective method that helps in saving lot of time and efforts
by human resource manager as there is no need of long processes of interview:
Strengths of Internal
Recruitments
1) Adaptability is very high in case of internal sources as
employees are already familiar with overall organisation
environment and all the policies. That is very difficult in case
of external sources of recruitment.
2) Accurate selection is also very high in case of internal sources
of recruitment has employees are completely aware of overall
capabilities and skills of an employee.
3) encouraging hard work on part of employees as they feel
highly motivated and being valued in organisation and helps in
Putting more efforts towards their high responsibility that are
being assigned to them
Weaknesses of Internal 1) Promotes favouritism as it can lead unfair treatment of
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Recruitments different employees and they might have more dissatisfaction
and create some amount of internal conflicts.
2) There is limited choice that is available with the
organisation as employees may have different set of skills and
requirement for a particular position May require some
necessity skills that may or may not present in the existing
workforce
External sources of recruitment:
It is referred to as a process where vacancies in organisation of from different outside
sources which means there is hiring of new talent with the help of different employment
agencies, campus recruitment, walk-in processes etc. It is a source that helps in bringing a new
talent in organisation with enthusiasm and innovative ideas that is again a very expensive process
and is also very time consuming but helps in hiring of competent individuals.
Strengths of
External
Recruitments
1) External sources help in better understanding of
Technology and skills in organisation.
2) It helps in selecting qualitative candidates as there are
large numbers of options that are available and bring in
some new set of skills that can aid in increasing overall
productivity in the organisation.
Weaknesses of
External
Recruitments
1) Internal sources of recruitment and involve high cost that
may consist of training employees orientation of
employees etc.
2) There can be some adaptability issues that can be faced
by candidates who are completely new to the
organisation as they may take time for adjusting with
overall new culture of organisation that can lead to
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affecting their performance level.
Analysis:
It can be analysed that in case of recruitment in Merrill Lynch there can be different types of
internal and external sources that can be used by the human resource management according to
the staff requirement. If they organization fees that they have competent workforce and internal
sources can be used and if there is requirement of some new talent and external sources can be
use.
selection:
It is basically a process where are suitable candidates are selected for different vacancies by
putting these candidates for different process such as screening, interviews and various group
activities for analysing the specific qualities required for a job. Some of the basic techniques that
are used for the purpose of collection along with their strength and weaknesses are discussed
below:
Interview: . It is a process there right candidate is selected by face to face interview that takes
place between the candidate and the interviewer to analyse the skills and knowledge of a person
Strengths of
Interviews
1) It helps in selection of a suitable candidate as interview or can assess a
candidate for asking them all the relevant questions regarding the job role
2) it is a very effective method in terms of saving time as patient can take
place very fast and it leads to Depth analysis in a very short period of time.
Weaknesses
of
Interviews
1) There can be biasness of interview that can influence overall process of
selection and in appropriate candidate can also select that can affect the
functioning of organisation.
2) the process can be incomplete information provided by candidate is not
right and they are not able to provide exact information for which the
interviewer is looking for that can lead to deliver situations of interviewer
and ambiguity in the overall selection process.
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Assessment and selection test:
It is a selection approach that can be used for analysis of the abilities, skills, specific
technical set and personality of individual that can be objective and subjective at same time.
These are usually conducted for specific job that requires high amount of Technical competence
and capability so that individual does not face for the difficulties when hired in the organisation.
Strengths of
Assessment and
selection test
1) It helps in uniform basis of selection of candidates on based of course
that they have attained in the written test.
2) It helps in detailed assessment of abilities of a candidate based on
quantitative and qualitative questions and also some time situation
questions are asked in case of jobs that require high interpersonal skills.
Weaknesses of
Assessment and
selection test
1) There can be situation of some and reliable conclusion that have been
drawn from a test and is not exact according to the candidate personality.
2) There can be wrong criteria of assessing for wrong job and this
Misinterpretation might lead to business in the overall selection
procedure and incompetent individual can be selected for different job
profile.
Analysis:
While selecting a individual in Merrill Lynch the decision rest for the management to select a
individual based on interview or any other method that is suitable for department and has to be
according to the required job position.
TASK 2
P3: Benefits of different HRM practices for both the employee & employer
Human resource management is focusing on management of people in such a manner that
it can help in improvement of overall efficiency of individuals and achievement of goals in the
organisation. The function is very important for motivating people and providing them various
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communities and for the identification of employees that can help in smooth functioning of the
organisation.
Basis Benefits of HRM practices to
Merrill Lynch
Benefits of HRM practices to the
employees
Organisational
Culture
The overall organisation culture that
has been established by various
regulations rules and procedures will
help employees in controlling the
overall behaviour of employees and
maintaining a positive working
environment (Hassan, 2016).
Organisation culture is very helpful
for employees to contribution level as
positive work culture will help in
enhancement of overall productivity
of employees (Wilton, 2016)
.
Training and
Development
In Merrill Lynch, there can be
identification of requirements of
training and skill development
requirements of individual that can
help Merrill Lynch as an
Organisation in achievement of high
competitive advantage (Wilton,
2016).
There are different training programs
that help in enhancement of the
present level of competence of
employees in Merrill Lynch that in
turn leads to their individual
development that can help in
developing more career prospects in
coming future period of time (Shen,
and Benson, 2016).
Recruitment and
Retention
This practice helps Human Resource
Department Merrill Lynch to
obtaining right individual for a right
profile and retaining such individuals
for a longer duration of time in the
organisation (Guerci, Longoni, and
Luzzini, 2016)
recruitment; practices helps in
recruitment of employees and also in
increasing the satisfaction level of
present staff in Merrill Lynch by
providing them more opportunities of
getting promoted and different job
responsibilities according to their
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level of competence in Merrill Lynch
(Morgeson, Brannick,and Levine,
2019).
Conflict
Resolution
In Merrill Lynch human resource
practices help in resolving various
issues that are occurring in the
organisation and formulation of
certain procedures and guidelines for
the purpose of solving of conflict.
There are large number of employees
that are working together for
achievement of a common object is
then there is requirement of some
healthy competition that is beneficial
for organisation but many times high
competition can lead to negativity
and lot of internal conflicts that takes
place between employees working at
same level and same position. In
Merrill Lynch, this can lead to
negative environment and affect the
mental state of a employee lead to
non achievement of David laid down
objective. Human Resource
Department in Merrill Lynch, will
help in handling such internal
conflicts and maintaining overall
positive environment.
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P4 : Effectiveness of different HRM practices for generation of organisational profit & overall
productivity
In every organisation, there is requirement of affecting human resource practices that can
help in achievement of high competitive advantage (Tzabbar, Tzafrir. and Baruch, 2017).
Human Resource Department actually helps in increasing the profitability by improvement of
efficiency and HR practices are becoming board considerable for improvement of growth and
profitability in any organisation. In Merrill Lynch, usage of a 360 degree feedback approach
that is supplied by human resource manager in the beginning of every financial year then this
approaches review throughout the year and at the end of financial year a feedback approach is
prepared by each employee that helps in analysing a all around analysis data used for analysing a
particular employee as a individual based on views provided by the superior subordinates and
colleagues (Heilmann, Forsten-Astikainen and Kultalahti, 2020). This helps in assessment of
individual with a 360 degree approach. Further, use of certain training programs for the purpose
of analysing the productivity and profitability of organisation.
Different methods related to HRM Practises:
Organisations have to follow different human resource practices according to their nature
and objective they are willing to achieve (Stewart. and Brown, 2019). Human resource practices
such as various leadership systems, feedback approaches, mentoring programs are some of the
initiatives that have been taken by Merrill Lynch in order to increase the effectiveness of the
workforce and performance monitoring system are used for analysing and evaluating the
performance level of employees according to some specific standard that have been set in the
initial stages of analysis of a individual.
Evaluation:
Practices are very helpful for Organisation in many different ways such as it helps in recruitment
of new and planning overall benefits and compensation programs for such workforce. It also
helps in conflict management programs and different set can help in the employees are
contributing towards their job responsibility (Bos-Nehles, Renkema, and Janssen, 2017). 360
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degree feedback is a process very helpful for this organisation in analysing different benefits
that can be provided to employees increase and maintain their level of motivation.
TASK 3
P5: Importance of employee relation in influencing HRM decision making
Employee relations are the effort that is made by organisation for creation and managing
positive relationship with their employees. In Merrill Lynch, there are efforts made by the
organisation and Human Resource Department meaning positive relations by discouraging all the
disputes and developing more understanding between employees and employers. Importance of
these relations for both employers and employees are discussed below:
1) Such positive and healthy relations helps in reducing the employee absenteeism at the
workplace and creating a comfortable and positive environment that helps in facilitation of
employees to focus on their overall job responsibilities (Shenand Benson, 2016).
2) It can also lead towards increasing productivity of employees as there is more cooperation
and reduction of internal conflict which will help in enhancing overall revenue as production is
directly linked with productivity of employees in every organisation.
3) There will be increase in employee engagement and overall participation when they have a
positive mindset of increasing their contribution towards organisations objective.
Employee engagement is a great tool that can help Organisation in making their employees free
as one of the most important part of their organisation it is basically a strategy that can be
adopted by organisation for management of their employees. Some of the strategies used by
Merrill Lynch are mentioned below:
1) More encouragement of flexible working practices as employees can time according to their
comfort and it helps in maintaining a flexible environment at organisation.
2) Resource managers in Merrill Lynch helps in taking timely feedback from their employees so
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that they can understand what the level of satisfaction is and if there are some common issues
that are faced by every employee than those have to be solved as early as possible and reported
to top management of organisation.
P6 : Elements of the process of employment legislation and its overall impact on HRM decision
making
Employment legislation refers to rights of employees and their relationship with
employees. Major aim of employment legislation is maintain different individual employment
relationship and healthy working conditions. There is Impact of employment legislation on
human resource process of decision making some of this employment legislation prevailing in
UK is discussed below:
1) Anti discrimination law:
It is a law of UK status promoting that there must not be any kind of discrimination that should
be prevailing in the organisation based on discrimination basis of sex, race, gender, culture
colour, marital status, education, nationality or any other such factor (Primecz, 2020). This act is
influencing the procedure of human resource decision making in Merrill Lynch, all the decisions
are made in considering with no discrimination policies taking place in the organisation.
2) Data protection act:
It is also an Act Passed by the government of UK that is controlling the personal information of
employees that is to be protected by organisation (Morgeson, Brannickand Levine, 2019). In
Merrill Lynch, it is the responsibility of organisation to ensure that all the personal data that they
have of their employees are protected and there is maintaining of overall quality of data.
Responsibility of the organisation is to manage such personal data of their employees.
3) Equality Act 2010:
This act is based on the concept that employees have to be treated equally apart from their
background, caste, creed and colour. Employees must be treated positively apart from their
designation like agency workers, part time staff and fixed term contract for their permanent staff.
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This act is used by Merrill Lynch in their policy formulation and providing equal treatment to
their employees.
4) Employment rights act 1996:
It is an Act that has been passed by the parliament of UK actors with individual’s right in the
labour law of UK. It is very important that all the different laws that are mentioned in this act
have to be adopted in every organisation as it is the fundamental labour legislation that is present
in UK. It is covering maturity of employees and defines employee as a person who is adhered to
a contract of employment. There are certain individual rights that have been provided to every
employee under this act and are related with the safety security and different types of powers that
are provided to employee that can be exercised by them in some situations.
Evaluation:
Employee relations are very important in every organisation both for employer and employees.
Such as in Merrill Lynch, the viral culture of organisation has to be made comfortable enough so
that there can be increase in employee engagement and employee involvement for increasing the
overall quality of environment. Planet legislation can sometimes lead to increase and restrictions
in affecting the flexibility but it is very important to follow such policies all the rules and
regulations that are being passed by government of the country.
TASK 4
P7: Application of Different HRM practices in work related context
There are many practises that can be used for purpose of HRM practises for hiring of competent
staff in Merrill Lynch. HRM practices have to be adopted in every work related concept such as
it is explain as below:
Human resource practices are related with preparation of job advertisement that help human
Resource Department of organisations to determine the by making them aware of the different
vacant positions in the Merrill lynch.
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Job description is a very useful approach that can be used for the purpose of understanding the
requirements of job. In the present scenario, there is discussion for a post for a marketing
manager. It is also a part of the overall HRM practices that is used for the purpose of describing
the available position in organisation with respect to the roles and responsibilities information
related with working hours salary compensation and all the details are mentioned in the job
description that helps a employee or a prospective employee to understand in detail What are the
basic requirements of a particular within position in a organisation.
Further, offer letter is also a part of HRM practices that is used for the purpose of informing
employees related to their selection according to the other selection process that has been done
for purpose of assessment of an employee. All these are part of the overall employee practices
that have been adopted for the purpose of table employee in organisation according to the
different vacant positions.
Job Advertisement:
It is used for purpose of informing various potential candidates about vacant positions in an
organisation. Present report there is discussion of for the post of a senior marketing manager
for Merrill Lynch is mentioned below:
Job Advertisement
Merrill Lynch is an American bank that is dealing in investment and wealth management
divisions. Presently there is vacancy of post of a senior marketing manager. Certain job roles for
the post of marketing manager are discussed below:
ï‚· Manage all functions of marketing department
ï‚· Organise and lead teams for specific marketing campaigns.
There are certain specific skill requirements:
ï‚· Effective communication skills
ï‚· Interpersonal skills
ï‚· Managing and leading team
ï‚· Appropriate market Researching skills
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Salary is competitive enough and is in relation with the experience of a particular candidate.
Kindly send your applications:
HrmanagerMerrillLynch@gmail.com
Application deadline: 10 May, 2020
Job commencement date: as soon selection will take place.
Job description: it is basically a written document that consists of the detail description
of overall responsibilities and roles of a particular job profile. That can help a candidate in
getting a detailed idea about the profile and various responsibilities associated with it so that a
candidate can make a self evaluation whether to apply for a position or not (Bank of America
Corporation, 2019).
Below discussed is the job description of post of a marketing manager required in Merrill Lynch.
Job Description
Company Name Merrill Lynch
Title of the Job Senior Marketing Manager
Location of the Job London
Reporting person Head of the Department (Principal)
Roles, duties and responsibilities ï‚· Researching all the marketing trends and making
detailed analysis for developing and
customisation of services
ï‚· After making a detailed examination further
decisions have to be made by taking into
consideration of the time to launch such new
services in their target market.
Working Hours 9.30 am to 6:30 pm
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Salary 7500 Pound per month
Working Facilities for employees Healthy & a Safe working environment for all the
employees. There are flexible timings of job and further
more incentives & benefits are offered to employees
according to their performance level.
Offer letter: It is a document with respect to the recruitment and selection rounds that have taken
place in an organisation. A candidate is providing information regarding their selection decision
and further details are mentioned in such offer letters. Below discussed is the offer letter by
human resource manager of Merrill lynch with respect to vacancy of their position of senior
marketing manager.
Offer letter
Merrill Lynch,
New York, UK
May 21, 2020
Mr. XYZ,
We are glad to inform that you have been selected for the position of senior marketing manager
for our organisation Merrill Lynch, with respect to your interview conducted on 15 May, 2020.
The employment will start by 1st June, 2020. We request you to revert to this offer letter so that
further details of your job can be specified to you within 2-3 working days.
Please revert to this initial offer letter by 24 May, 2020.
Human resource manager,
Merrill Lynch
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CONCLUSION
It can be concluded from above discuss that Human Resource Department is one of the most
crucial department and has to be managed more proper manner. There are many different
functions and responsibilities that are part of human resource managers that are crucial to be
addressed in appropriate way so that overall workforce is manage properly. There are different
recruitment and selection procedure that can be adopted according to requirements of
organisation and there are all the HR practices being beneficial both for employers and
employees. The importance of employee relation is it lead to creating a environment and
increasing level of understanding that helps in controlling of any resistance that can take place on
part of employees and affect their overall performance level.
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REFERNCE
Books and Journals
Boella, M.J. and Goss-Turner, S., 2019. Human resource management in the hospitality
industry: A guide to best practice. Routledge.
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Delery, J. E. and Roumpi, D., 2017. Strategic human resource management, human capital and
competitive advantage: is the field going in circles?. Human Resource Management
Journal. 27(1). pp.1-21
Jewell, D.O., Jewell, S.F. and Kaufman, B.E., 2020. Designing and implementing high-
performance work systems: Insights from consulting practice for academic
researchers. Human Resource Management Review, p.100749.
Morgeson, F.P., Brannick, M.T. and Levine, E.L., 2019. Job and work analysis: Methods,
research, and applications for human resource management. Sage Publications.
Primecz, H., 2020. Positivist, constructivist and critical approaches to international human
resource management and some future directions. German Journal of Human Resource
Management, p.2397002220909069.
Stewart, G.L. and Brown, K.G., 2019. Human resource management. John Wiley & Sons.
Wilton, N., 2016. An introduction to human resource management. Sage.
Hassan, S., 2016. Impact of HRM practices on employee’s performance. International Journal
of Academic Research in Accounting, Finance and Management Sciences, 6(1), pp.15-
22.
Heilmann, P., Forsten-Astikainen, R. and Kultalahti, S., 2020. Agile HRM practices of
SMEs. Journal of Small Business Management, pp.1-16.
Bos-Nehles, A., Renkema, M. and Janssen, M., 2017. HRM and innovative work behaviour: A
systematic literature review. Personnel review.
Tzabbar, D., Tzafrir, S. and Baruch, Y., 2017. A bridge over troubled water: Replication,
integration and extension of the relationship between HRM practices and
organizational performance using moderating meta-analysis. Human Resource
Management Review, 27(1), pp.134-148.
Online
Bank of America Corporation, 2019 [online] Available through : <https://www.ml.com/about-
merrill-lynch.html>
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