Human Resource Management Report: Wordsmiths Acquisition Analysis
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This report delves into the complexities of human resource management within the context of a company acquisition. It begins by addressing legal issues surrounding employee termination, emphasizing the need for valid reasons, contract reviews, and adherence to notice periods to avoid legal discrepancies. The report then explores the use of Human Resource Information Management Systems (HRIMS) for selecting candidates for termination, highlighting the importance of accurate, precise, and relevant data, including both quantitative and qualitative metrics, and the application of data mining and business intelligence tools. Furthermore, the report examines the HR process planning during an acquisition, discussing key activities such as policy creation, performance assessment, employee retention, and compensation strategies. It also evaluates the advantages and disadvantages of outsourcing operational and administrative functions, recommending in-house IT teams and careful consideration of outsourcing contracts to maintain control and data security. The report concludes by offering recommendations for Gemma, the HR manager, to navigate the challenges of the acquisition and make informed decisions regarding employee management and outsourcing strategies.

Running head: HUMAN RESOURCE MANAGEMENT
Human resource management
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Human resource management
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1.0 Legal issues
It is difficult for various organizations to maintain their sustainability in the market
and due to the shortage of capital within the organization; the human resource department
generally makes redundancy approaches, which will help in reducing the costs of the
organization. In this case, Wordsmiths is a retailer for selling books in the market who has
acquired the company named Mainly bookstores that is going through a period of loss and is
unable to maintain their sustainability in the market (Taylor, 2017). Even though Wordsmiths
is making an acquisition, the company will have to curtail their operational cost, which will
help in turning the company in to a profitable position. This is the very reason that the human
resource manager of the company Gemma has made a proposition that suggest that the
organization will have to reduce the number of full time employees so that they minimize the
human resource cost of the company. However, there are some legal issues, which will have
to be addressed so the company does not have to face any discrepancies. Gemma will have to
determine the valid reason for terminating the employees and provide them with a valid
reason, which will ensure that the company does not have to face legal forms. The contracts
of each of the employees will have to be checked so that all the procedures can be fulfilled in
a correct way. The employees will have to be provided with a notice period so that the
employees will have the time to find a new job if they require (Golden, 2015). The clause
within the contract set for the employees will determine what will be their status after the
termination and whether they will be forced to serve their notice periods or will they provide
with the payment for the notice period of they are working. The employees experience and
their tenure will determine the compensation they will receive and it vary with their
respective positions. There are lot of claims that can be made on dismissal of employees so
Gemma will have to be prepared for every possibility and make sure that no employee can
1.0 Legal issues
It is difficult for various organizations to maintain their sustainability in the market
and due to the shortage of capital within the organization; the human resource department
generally makes redundancy approaches, which will help in reducing the costs of the
organization. In this case, Wordsmiths is a retailer for selling books in the market who has
acquired the company named Mainly bookstores that is going through a period of loss and is
unable to maintain their sustainability in the market (Taylor, 2017). Even though Wordsmiths
is making an acquisition, the company will have to curtail their operational cost, which will
help in turning the company in to a profitable position. This is the very reason that the human
resource manager of the company Gemma has made a proposition that suggest that the
organization will have to reduce the number of full time employees so that they minimize the
human resource cost of the company. However, there are some legal issues, which will have
to be addressed so the company does not have to face any discrepancies. Gemma will have to
determine the valid reason for terminating the employees and provide them with a valid
reason, which will ensure that the company does not have to face legal forms. The contracts
of each of the employees will have to be checked so that all the procedures can be fulfilled in
a correct way. The employees will have to be provided with a notice period so that the
employees will have the time to find a new job if they require (Golden, 2015). The clause
within the contract set for the employees will determine what will be their status after the
termination and whether they will be forced to serve their notice periods or will they provide
with the payment for the notice period of they are working. The employees experience and
their tenure will determine the compensation they will receive and it vary with their
respective positions. There are lot of claims that can be made on dismissal of employees so
Gemma will have to be prepared for every possibility and make sure that no employee can

2HUMAN RESOURCE MANAGEMENT
make any valid claims. Unlawful discrimination and the unfair dismissal are few examples,
which can be made during the redundancy process. Thus, Gemma will have to be prepared
for these legal reforms so the company can face these claims at that particular time (Sims &
Sauser Jr, 2014).
The suggestion given by Alan has two perspectives and has its share of pros and cons.
It will be easier for the company to terminated employees who are on the verge of their
retirement so the complications will be less. However, the company will have to keep some
of their experience employees who will have to provide guidance to the new employees. The
new employees will need knowledge about the work they will be doing so the companies will
have to make sure that they have experienced employees to look after important operations of
the organization (Johnstone, 2016). Thus, it can be said that the suggestion proposed by Alan
is not fully feasible for the company and Gemma will have to establish different criteria for
terminating their employees.
2.0 HRIMS and workforce data
Gemma will have to make use of the human resource information management
system for the selecting the candidates for termination. The HRIMS system will include the
data about the activities of the employees in the past few years. Gemma will have to focus on
the production report and the efficiency of the employees. This will help to determine which
employees should be done away and which are the employees that are making positive
contribution to the workforce of the organization (Islam & Al Mamun, 2016). Gemma will
have to make sure to check the attendance of each of the employees to find out the employees
who are more dedicated to their work and can still contribute to the productivity of the
organization. Thus, the data should consist of thorough data of each of the employees in the
past couple of years, which will help to analyze the underperformers in the organization. The
make any valid claims. Unlawful discrimination and the unfair dismissal are few examples,
which can be made during the redundancy process. Thus, Gemma will have to be prepared
for these legal reforms so the company can face these claims at that particular time (Sims &
Sauser Jr, 2014).
The suggestion given by Alan has two perspectives and has its share of pros and cons.
It will be easier for the company to terminated employees who are on the verge of their
retirement so the complications will be less. However, the company will have to keep some
of their experience employees who will have to provide guidance to the new employees. The
new employees will need knowledge about the work they will be doing so the companies will
have to make sure that they have experienced employees to look after important operations of
the organization (Johnstone, 2016). Thus, it can be said that the suggestion proposed by Alan
is not fully feasible for the company and Gemma will have to establish different criteria for
terminating their employees.
2.0 HRIMS and workforce data
Gemma will have to make use of the human resource information management
system for the selecting the candidates for termination. The HRIMS system will include the
data about the activities of the employees in the past few years. Gemma will have to focus on
the production report and the efficiency of the employees. This will help to determine which
employees should be done away and which are the employees that are making positive
contribution to the workforce of the organization (Islam & Al Mamun, 2016). Gemma will
have to make sure to check the attendance of each of the employees to find out the employees
who are more dedicated to their work and can still contribute to the productivity of the
organization. Thus, the data should consist of thorough data of each of the employees in the
past couple of years, which will help to analyze the underperformers in the organization. The
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3HUMAN RESOURCE MANAGEMENT
HRIMS data should consist of templates where the data can be easily analyzed to reduce the
complexity of the procedure.
The quality of the data that has been produced is the main aspect and should consist of
both quantitative and qualitative data, which will help, in analyzing all the aspects of the
employee dynamics. Quality Assurance and Quality control are the two important factors that
the system should maintain. The system Gemma will be using should be accurate, precise,
relevant, consistent and complete. The data will have to be accurate otherwise, the proper
judgement cannot be made; The data will have to precise as it will ensure that the data is
consist for all the employees which will help in making a fair judgment and avoid
controversies (Pridmore & White, 2017). The dataset will have to be restricted so that only a
few can access the data, as it is important to maintain security of the company. The data will
have to be transparent so the management can justify the termination of the employees. The
report should include data on the performance, behaviour and tenure. This will help find the
candidates who are not suitable for working in this type of company. Gemma will have to big
use of Big data and data mining to collect all the data in one place to analyze the data using
different Business intelligence tools. These tools will include statistical techniques, which
will help in grouping the underperformers in the organization. Gemma would have to set
some criteria for the choosing the candidates for the termination and depending upon that the
system will provide results of the list of candidates who are not maintaining their level of
production and quality in the work they do. Cluster analysis is an useful techniques which can
make clusters of employees who are not meeting their targets and is not suitable for working
in this organization (Al-Dmour, Love, and Al-Debei, 2015).
HRIMS data should consist of templates where the data can be easily analyzed to reduce the
complexity of the procedure.
The quality of the data that has been produced is the main aspect and should consist of
both quantitative and qualitative data, which will help, in analyzing all the aspects of the
employee dynamics. Quality Assurance and Quality control are the two important factors that
the system should maintain. The system Gemma will be using should be accurate, precise,
relevant, consistent and complete. The data will have to be accurate otherwise, the proper
judgement cannot be made; The data will have to precise as it will ensure that the data is
consist for all the employees which will help in making a fair judgment and avoid
controversies (Pridmore & White, 2017). The dataset will have to be restricted so that only a
few can access the data, as it is important to maintain security of the company. The data will
have to be transparent so the management can justify the termination of the employees. The
report should include data on the performance, behaviour and tenure. This will help find the
candidates who are not suitable for working in this type of company. Gemma will have to big
use of Big data and data mining to collect all the data in one place to analyze the data using
different Business intelligence tools. These tools will include statistical techniques, which
will help in grouping the underperformers in the organization. Gemma would have to set
some criteria for the choosing the candidates for the termination and depending upon that the
system will provide results of the list of candidates who are not maintaining their level of
production and quality in the work they do. Cluster analysis is an useful techniques which can
make clusters of employees who are not meeting their targets and is not suitable for working
in this organization (Al-Dmour, Love, and Al-Debei, 2015).
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3.0 Planning of the HR process in acquisition
Human Resources of an organization play an important role in process of acquisition.
Purce (2014) stated that not only the HR tends to be proactive but they are also liable to
bridge the workforce management with the aligned organizational objectives of the two
companies. In this context, Gemma has to take decision that is best suited for HR and
includes five major activities- creation of new policies in order to provide guidance to all the
employees, assessing the performance of all the employees so that the bets can be retained,
retention of the key employees, selection of the employees and downsizing, development of
compensation strategies and formulating comprehensive employee benefits program
(Vazirani, 2012). The major requirement according to that case study illustrated that
Wordsmith desire to reduce the number of staffs from fulltime to casual employee from
Mainly Books, developing the technological aspects of the organization, designing new job
roles and outsourcing the payroll management.
Thus, in this case, quantitative methods should be focused more as every organization
intends to attain higher profitability. Thus, all the performance and productivity of each
employee are assessed properly and discussion with the managers should also be considered
so that capabilities of every individual can be obtained. This approach allows the organization
to retain their key employee, who can endure the transition period. According to the case
study, Wordsmith planned to terminate those people, who are close to their retirement.
However, in this case, business ethics should be followed and the people should be assured of
getting compensation or an assurance to get new job roles and opportunities after
acquisition. Meanwhile, training session can also be conducted so that the employees also
leader about new approaches so that they can survive the transition period. In addition to that,
rather than outsourcing the online business functions, Wordsmith can formulate in-house IT
team in order to save financial resources that they planned to invest for outsourcing. Hoch
3.0 Planning of the HR process in acquisition
Human Resources of an organization play an important role in process of acquisition.
Purce (2014) stated that not only the HR tends to be proactive but they are also liable to
bridge the workforce management with the aligned organizational objectives of the two
companies. In this context, Gemma has to take decision that is best suited for HR and
includes five major activities- creation of new policies in order to provide guidance to all the
employees, assessing the performance of all the employees so that the bets can be retained,
retention of the key employees, selection of the employees and downsizing, development of
compensation strategies and formulating comprehensive employee benefits program
(Vazirani, 2012). The major requirement according to that case study illustrated that
Wordsmith desire to reduce the number of staffs from fulltime to casual employee from
Mainly Books, developing the technological aspects of the organization, designing new job
roles and outsourcing the payroll management.
Thus, in this case, quantitative methods should be focused more as every organization
intends to attain higher profitability. Thus, all the performance and productivity of each
employee are assessed properly and discussion with the managers should also be considered
so that capabilities of every individual can be obtained. This approach allows the organization
to retain their key employee, who can endure the transition period. According to the case
study, Wordsmith planned to terminate those people, who are close to their retirement.
However, in this case, business ethics should be followed and the people should be assured of
getting compensation or an assurance to get new job roles and opportunities after
acquisition. Meanwhile, training session can also be conducted so that the employees also
leader about new approaches so that they can survive the transition period. In addition to that,
rather than outsourcing the online business functions, Wordsmith can formulate in-house IT
team in order to save financial resources that they planned to invest for outsourcing. Hoch

5HUMAN RESOURCE MANAGEMENT
and Dulebohn (2013) stated that in-house teams provides a benefit that all the operation can
be customized and designed to obtain the business objectives that is to handle the online
operations. However, after the acquisition, Wordsmith should not adopt the concept of
outsourcing. Dulebohn and Johnson (2013) stated that the business leaders already see the
potential to add value through a larger/combined entity. And they are capable of handling all
the necessary business operation of the organization. In such case, quantitative method
should be used again that can compare the difference in the payroll system of the two
organizations. The prime advantage of the quantitative approach is that is does not include
any biasness in the decision and allow the managing authorities to select an effective decision
for the company. Thus, the HR of Wordsmith should have to evaluate the duplicacy in the
system and application for human resources, sales and marketing, finance and customer
relationship management. Teerikangas (2012) portrays that this business operation can be
successfully accomplished by the in-house IT department. HR can hire some professionals or
experts during the transition period for aligning the platforms of the two different systems of
the two companies.
4.0 Advantage and disadvantage of outsourcing the operational and administrative function
Advantage of outsourcing the operational and administrative function
The advantage of outsourcing operational and administrative function can be
witnessed through the ease in focusing on the main business objectives (Massini & Miozzo,
2012). However, in this case, selling and publishing books is the major function of
Wordsmith. Another advantage is in some case, outsourcing save cost of operation and
labor. The third party also assesses all the market risk and demands based on which
Wordsmith can perform their key job roles. Taken for instance, outsourcing of payroll system
not only allows the system to be accomplished timely but it will be the liability of the third
and Dulebohn (2013) stated that in-house teams provides a benefit that all the operation can
be customized and designed to obtain the business objectives that is to handle the online
operations. However, after the acquisition, Wordsmith should not adopt the concept of
outsourcing. Dulebohn and Johnson (2013) stated that the business leaders already see the
potential to add value through a larger/combined entity. And they are capable of handling all
the necessary business operation of the organization. In such case, quantitative method
should be used again that can compare the difference in the payroll system of the two
organizations. The prime advantage of the quantitative approach is that is does not include
any biasness in the decision and allow the managing authorities to select an effective decision
for the company. Thus, the HR of Wordsmith should have to evaluate the duplicacy in the
system and application for human resources, sales and marketing, finance and customer
relationship management. Teerikangas (2012) portrays that this business operation can be
successfully accomplished by the in-house IT department. HR can hire some professionals or
experts during the transition period for aligning the platforms of the two different systems of
the two companies.
4.0 Advantage and disadvantage of outsourcing the operational and administrative function
Advantage of outsourcing the operational and administrative function
The advantage of outsourcing operational and administrative function can be
witnessed through the ease in focusing on the main business objectives (Massini & Miozzo,
2012). However, in this case, selling and publishing books is the major function of
Wordsmith. Another advantage is in some case, outsourcing save cost of operation and
labor. The third party also assesses all the market risk and demands based on which
Wordsmith can perform their key job roles. Taken for instance, outsourcing of payroll system
not only allows the system to be accomplished timely but it will be the liability of the third
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party to utilize all the attest technology so that they can deliver a quality work. Thus, it can be
said that outsourcing frees an organization from investments in technology.
Disadvantage of outsourcing the operational and administrative function
Tho (2012) depicted that outsourcing results in loss of managerial control. It might
be the case that the other company does not have the required tools through which data of
prior company can be manipulated. This result in misalignment of understanding and can lead
to conflict that on the other hand impacts the business relations and overall productivity. Thus
orgniaztion with same business beliefs, ethics and aims should be chosen before making
contract for outsourcing (Mukherjee et al., 2013) highlight another disadvantage that is not
all the details are mentioned in the contacts. Thus, it can be said that Wordsmith may be
affected by the hidden conditions from third party. This on the other hand results in hiring a
lawyer to review all the contacts signed with third party. In addition to that, outsourcing the
operational and administrative function also leads in threat to security and confidentiality
of the organizational data (Fapohunda, 2013). Payroll system contains all the crucial data of
the staffs and sharing these details with another company may affect the security and
confidentiality especially when some conflict arises.
Recommendation made by Gemma
Thus, in this case, rather than outsourcing, Gemma should recommend to hire some
finance experts or professional having knowledge in handling financial data. This will save
the organization from quality issues and responsibility for financial well-being of the third
party. In addition to that, latest technology should e incorporate in case, some business
operation mend to be outsourced. Latest technology like cloud services allow both the
companies to manipulate same datasheet and in this way transparency can be maintained.
Additionally, communication system should be enhanced so that real-time conversation can
party to utilize all the attest technology so that they can deliver a quality work. Thus, it can be
said that outsourcing frees an organization from investments in technology.
Disadvantage of outsourcing the operational and administrative function
Tho (2012) depicted that outsourcing results in loss of managerial control. It might
be the case that the other company does not have the required tools through which data of
prior company can be manipulated. This result in misalignment of understanding and can lead
to conflict that on the other hand impacts the business relations and overall productivity. Thus
orgniaztion with same business beliefs, ethics and aims should be chosen before making
contract for outsourcing (Mukherjee et al., 2013) highlight another disadvantage that is not
all the details are mentioned in the contacts. Thus, it can be said that Wordsmith may be
affected by the hidden conditions from third party. This on the other hand results in hiring a
lawyer to review all the contacts signed with third party. In addition to that, outsourcing the
operational and administrative function also leads in threat to security and confidentiality
of the organizational data (Fapohunda, 2013). Payroll system contains all the crucial data of
the staffs and sharing these details with another company may affect the security and
confidentiality especially when some conflict arises.
Recommendation made by Gemma
Thus, in this case, rather than outsourcing, Gemma should recommend to hire some
finance experts or professional having knowledge in handling financial data. This will save
the organization from quality issues and responsibility for financial well-being of the third
party. In addition to that, latest technology should e incorporate in case, some business
operation mend to be outsourced. Latest technology like cloud services allow both the
companies to manipulate same datasheet and in this way transparency can be maintained.
Additionally, communication system should be enhanced so that real-time conversation can
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7HUMAN RESOURCE MANAGEMENT
be made. Gemma should suggest a managing authority to supervise all the business activity
during the acquisition period so that any adversity can be overcome. Gemma should also
suggest of provide training on the business function that they have planned to outsources to
those employees, who are targeted being terminated. In this way, new talent can be found and
retain during the acquisition period.
be made. Gemma should suggest a managing authority to supervise all the business activity
during the acquisition period so that any adversity can be overcome. Gemma should also
suggest of provide training on the business function that they have planned to outsources to
those employees, who are targeted being terminated. In this way, new talent can be found and
retain during the acquisition period.

8HUMAN RESOURCE MANAGEMENT
Reference
Al-Dmour, R.H., Love, S. and Al-Debei, M.M., 2015. Measuring the effectiveness of HRIS
practice in business organisations: a study in the context of a developing
country. International Journal of Business Innovation and Research, 9(5), pp.507-525.
Dulebohn, J. H., & Johnson, R. D. (2013). Human resource metrics and decision support: A
classification framework. Human Resource Management Review, 23(1), 71-83.
Fapohunda, T. M. (2013). Towards successful outsourcing of human resource functions.
International Journal of Human Resource Studies, 3(3), 39.
Golden, J. M. (2015). Redundancy: When Law Repeats Itself. Tex. L. Rev., 94, 629.
Hoch, J. E., & Dulebohn, J. H. (2013). Shared leadership in enterprise resource planning and
human resource management system implementation. Human Resource Management
Review, 23(1), 114-125.
Islam, M. S., & Al Mamun, M. A. (2016). Perception of Management on Outcomes of
Human Resource Information System (HRIS). International Journal of Business and
Social Research, 6(2), 29-37.
Johnstone, R. (2016). Using legal research methods in human resource management research.
In Handbook of Qualitative Research Methods on Human Resource Management:
Innnovative Techniques (pp. 61-73). Edward Elgar.
Massini, S., & Miozzo, M. (2012). Outsourcing and offshoring of business services:
challenges to theory, management and geography of innovation. Regional Studies,
46(9), 1219-1242.
Reference
Al-Dmour, R.H., Love, S. and Al-Debei, M.M., 2015. Measuring the effectiveness of HRIS
practice in business organisations: a study in the context of a developing
country. International Journal of Business Innovation and Research, 9(5), pp.507-525.
Dulebohn, J. H., & Johnson, R. D. (2013). Human resource metrics and decision support: A
classification framework. Human Resource Management Review, 23(1), 71-83.
Fapohunda, T. M. (2013). Towards successful outsourcing of human resource functions.
International Journal of Human Resource Studies, 3(3), 39.
Golden, J. M. (2015). Redundancy: When Law Repeats Itself. Tex. L. Rev., 94, 629.
Hoch, J. E., & Dulebohn, J. H. (2013). Shared leadership in enterprise resource planning and
human resource management system implementation. Human Resource Management
Review, 23(1), 114-125.
Islam, M. S., & Al Mamun, M. A. (2016). Perception of Management on Outcomes of
Human Resource Information System (HRIS). International Journal of Business and
Social Research, 6(2), 29-37.
Johnstone, R. (2016). Using legal research methods in human resource management research.
In Handbook of Qualitative Research Methods on Human Resource Management:
Innnovative Techniques (pp. 61-73). Edward Elgar.
Massini, S., & Miozzo, M. (2012). Outsourcing and offshoring of business services:
challenges to theory, management and geography of innovation. Regional Studies,
46(9), 1219-1242.
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9HUMAN RESOURCE MANAGEMENT
Mukherjee, D., Gaur, A. S., & Datta, A. (2013). Creating value through offshore outsourcing:
An integrative framework. Journal of International Management, 19(4), 377-389.
Pridmore, J., & White, S. (2017). Integrating Technology into a Management of Human
Resources Course.
Purce, J. (2014). The impact of corporate strategy on human resource management. New
Perspectives on Human Resource Management (Routledge Revivals), 67.
Sims, R. R., & Sauser Jr, W. I. (2014). AN INTRODUCTION TO LEGAL ISSUES IN
HUMAN RESOURCES MANAGEMENT. Legal and Regulatory Issues in Human
Resources Management, 1.
Taylor, S. (2017). Contemporary issues in human resource management. Kogan Page
Publishers.
Teerikangas, S. (2012). Dynamics of acquired firm pre-acquisition employee reactions.
Journal of management, 38(2), 599-639.
Tho, I. (2012). Managing the risks of IT outsourcing. Routledge.
Vazirani, N. (2012). Mergers and Acquisitions Performance Evaluation-A Literature Review.
SIES Journal of Management, 8(2).
Mukherjee, D., Gaur, A. S., & Datta, A. (2013). Creating value through offshore outsourcing:
An integrative framework. Journal of International Management, 19(4), 377-389.
Pridmore, J., & White, S. (2017). Integrating Technology into a Management of Human
Resources Course.
Purce, J. (2014). The impact of corporate strategy on human resource management. New
Perspectives on Human Resource Management (Routledge Revivals), 67.
Sims, R. R., & Sauser Jr, W. I. (2014). AN INTRODUCTION TO LEGAL ISSUES IN
HUMAN RESOURCES MANAGEMENT. Legal and Regulatory Issues in Human
Resources Management, 1.
Taylor, S. (2017). Contemporary issues in human resource management. Kogan Page
Publishers.
Teerikangas, S. (2012). Dynamics of acquired firm pre-acquisition employee reactions.
Journal of management, 38(2), 599-639.
Tho, I. (2012). Managing the risks of IT outsourcing. Routledge.
Vazirani, N. (2012). Mergers and Acquisitions Performance Evaluation-A Literature Review.
SIES Journal of Management, 8(2).
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