The International Journal of Psychosocial Rehabilitation
 

Effect of job satisfaction on employee productivity in selected
manufacturing companies in Oyo state, Nigeria

Foluso Philip Adekanmbi1
Wilfred I Ukpere1
Steve O Adegoke2


1Department of Industrial Psychology and People Management, Johannesburg Business School, College of Business & Economic,
University of Johannesburg, South Africa
2Department of Psychology, Faculty of The Social Sciences, University of Ibadan, Nigeria
Email: wiukpere@uj.ac.za

 

Citation:
Ukpere WI (2020)  Effect of job satisfaction on employee productivity in selected manufacturing companies in Oyo state, Nigeria.
International Journal of Psychosocial Rehabilitation. Vol 23 (1)



Abstract

Research purpose: The reason for this paper is to investigate the effect of job satisfaction on employee productivity in selected manufacturing companies in Oyo state, Nigeria.

Research approach/design and method: The present paper adopted a quantitative research approach, as well as a survey research design.

Main findings: The empirical outcomes of the current paper showed that the stages of job satisfaction (high and low) strongly predict employee productivity in the manufacturing industry in Oyo State, Nigeria. Also, the current investigation showed that work experience has a significant influence on employee productivity in the manufacturing industry in Oyo State. Furthermore, the study revealed that there is a significant gender influence on employee productivity in the manufacturing industry in Oyo State, Nigeria.

Practical implications: The outcomes of the present investigation have major inference for positive employee behaviour management, employee productivity, and economic growth within the Nigerian manufacturing industry.

Originality/Value: This investigation is distinctive, as it significantly contributes to the entity of knowledge regarding appropriate management strategies to achieve a significantly high level of job satisfaction, and employee productivity, not merely in the world of production work, but specifically in Oyo state, Nigeria. Hence, the study highlighted the aiding potentials of job satisfaction, age, work experience, level of education, and gender when increasing employee productivity.

Key words: Job satisfaction, employee productivity, manufacturing companies, Nigeria


 


Introduction

The protracted economic recession which was a consequence of the crash experienced by the world oil-market since the beginning of the 1980s, as well as the associated severe reduction in the income from foreign exchange, have both unfavourably caused a decline in Nigeria’s economic growth and development (Anyanwu, 2000). Further economic challenges include extreme reliance on importation for both capital and consumption goods, a distinctive crash in the rate of capacity utilisation in industry, dysfunctional economic and social infrastructure, and the relinquishment of the agricultural sector, among other things; hence, the reduced productivity pattern in the manufacturing companies operating in the Nigerian markets. (Anyanwu, 2000). When explaining the concept of productivity, it is important to state that different enterprises produce goods and services for sale, with an emphasis on making significant earnings from their investments. Hence, in the production process an organisation depends on and uses factors such as land, capital, and labour. Therefore, contributors or investors of these inputs (factors) are compensated from the earnings that are made by the organisation. However, a significant challenge of productivity is how to master the combination of these factors to achieve an extreme and a determined result, that is, utmost output (Anyanwu, 2000).

The reaction of an unhappy worker extends to significantly influence the work performance of his or her co-workers (Wright & Cropanzano, 2007). Hence, the connection between job satisfaction and job performance has received extensive examination by the literature (Böckerman & Ilmakunnas, 2012). Furthermore, Böckerman and Ilmakunnas (2012) noted several conduits through which job satisfaction can influence job productivity: First, having a direct effect on an employee’s calculated and obvious productivity (for instance, ratings from his/her supervisor). Second, satisfied workers may also show additional organisational citizenship and less workplace deviant behaviour, as well as a lower propensity to strike and take other industrial action. Third, high and consistent productivity as a result of reduced employee absenteeism. This is because dissatisfied employees may have an additional inclination to develop an illness or even stay away from work even when they are not ill. Obviously, an employee’s productivity is highly reduced while absent, and although other employees might make up for the absent one productivity is likely to significantly decrease. Lastly, there is a debate that job satisfaction is significantly associated with a reduced rate of accidents, which in turn results in increased productivity because accidents on their own leads to a direct loss of production, as well as an extensive interruption in the production process.

Meanwhile, there is minimal data on the productivity index showing the levels of production in the Nigerian economy, especially within her manufacturing sector. As stated by Anyanwu (2000), there has been a recorded decline in the productivity levels of the manufacturing industry in Nigeria. Hence, quite a large number of organisations have realised the important role that employee satisfaction plays with regard to performance, which ensures organisational success and productivity (Ajila & Awonusi, 2004). Also, a study by Adegoke (2016) showed that job satisfaction among workers can significantly play a vital role in improving employee productivity and invariably leads to organisational total productivity. Therefore, besides highlighting the influence of job satisfaction on employee productivity in the Nigerian manufacturing industry, the current research specially focuses on investigating the effect of job satisfaction on employee productivity in certain manufacturing companies in Nigeria.

The aim of the present research is to investigate the effect of job satisfaction on employee productivity in selected manufacturing companies in Oyo state, Nigeria. Therefore, the objectives of the current paper are listed below:

  • To look at the influences of job satisfaction on employee productivity in selected manufacturing companies in Oyo state;
  • To look into the relationship that exist between age, work-experience, education and employee productivity in certain manufacturing companies in Oyo state, Nigeria;
  • To investigate if employee productivity differs according to employees’ gender among the selected manufacturing companies in Oyo state, Nigeria.
Literature Review

The following sections expatiate on a few theories of job satisfaction and employee productivity, and the concepts of job satisfaction and employee productivity.

The Two-Factor Theory

As said by Koys (2001), the 2-factor theory relies on two groups of factors, namely, the motivating factors and the hygiene factors. The motivating factors are made up of constructive essentials that add towards motivation and job satisfaction, while hygiene factors are made up of negative essentials that are capable of causing displeasure at work. Hence, to achieve employee job satisfaction within an organisation or industry, employers are encouraged to increase the provision of motivating factors. As elaborated by Hulin (1991), the Cornell model of job satisfaction indicated that job satisfaction comes as a result of an equilibrium between employees’ work inputs and what he/she receives as outcomes (for instance, intrinsic factors, work conditions, pay and status). As further stated by Hulin (1991), the Cornell model suggests that the past experiences of an individual regarding the outcomes that he or she has received affect how he/she perceives the present outcomes. Another theory of job satisfaction is the social exchange theory.

Social exchange theory

The origin of this theory comes from the research of Thibaut and Kelley (1959), and it states that, every human relationship is formed after conducting a personal analysis of reward-cost, as well as conducting an evaluation of changes or substitutes. They posited that “for a dyadic relationship to be viable it must provide rewards and/or economies in costs which compare favourably with those in other competing relationships or activities available to the two individuals” (Thibaut & Kelley, 1959, p. 49). Blau (1964) indicated that social exchange is unlike economic exchange, as it is based on an individual’s decision; because people at some point in life, expect their friends or others who have benefited from their goodness to repay their favours in any other significant ways. The main functional principle of the social exchange is that, a mutual favour of equal value is to be returned for the same favour received. Hence, Blau (1964) noted that social rewards are exclusively reliant on personal relationships. However, Molm (1991) noted that the modern social exchange theory shows that employee productivity could be traced back to the motivation that employees perceive, as well as the leadership styles adopted in the workplace. This implies that the nature of the social exchange component could not be undervalued when clarifying the productivity and satisfaction of employees. Hence, it is pertinent to understand employer-employee relationships, motivational processes, leadership styles, and employees’ intra-relationships, as they are all important when evaluating the productivity and satisfaction of workers in the manufacturing industry. In addition, human capital theory is another theory of job satisfaction.

Organisational role theory

One of the theories of employee productivity is the organisational role theory (ORT), which was developed in the 1960s, which can provide some insights into the procedures affecting the emotional and physical state, as well as the workplace behaviour of an individual within the organisation (Kahn, Wolfe, Quinn & Rosenthal, 1964). According to Welbourne (2015), an individual’s characteristics as well as their reason for existence influences their role expectancy. This proposes that employees’ productivity is both a function of organisations and the individuals as the theory combines both sociological and psychological viewpoints when explaining job performance. Thus, if employees’ skills are impeccably matched to his/her assigned tasks there would definitely be a high delivery with expectations resulting in productivity. However, companies differ in terms of the roles they consider significant for individuals’ success, which makes it difficult to generalise the measurement of productivity related to them. Hence, employee productivity measures cannot use the linearity concept but should rather be multi-dimensional, that is, employee productivity should be measured using multiple measures such as self-reports, observation, appraisals, and so on (Thoits, 1992).

The concepts of job satisfaction and employee productivity are reviewed in the sections below.

Job satisfaction is considered as a multifaceted as well as a complex concept, having different meanings. However, satisfaction is not the same as motivation, as it speaks or indicates more of an internal and subjective state of feelings, such as a subjective feeling of quantitative and qualitative accomplishments (Mullins, 2005). Job satisfaction depends on the nature of job, attitude and behaviour of the said employee in relation to the assigned job assessment of the employee by colleagues at the workplace (Rane, 2011). Also, job satisfaction is considered as a worker’s on-the-job beliefs about success and achievement, which largely seemed to be directly related to personal well-being and productivity (Rane, 2011). Furthermore, Rane (2011) suggested job satisfaction as individuals’ clusters of feelings and beliefs about the present job, ranging from one end of satisfaction to another end of dissatisfaction. Also, they established that individuals can have various attitudes about a lot of things regarding the job, namely, subordinates, supervisors, and their pay.

With regard to employee productivity, economists have referred to productivity as the volume of output that has been achieved by individuals’ unit of input. Business managers understand productivity beyond a measure of efficiency, but rather as a measure of effectiveness and organisational performance. Hence, they see productivity as adherence to standards, workmanship, quality of output, absence of complaints, and many more (Udo-Aka, 1983; Anyanwu, 2000; Adegoke, 2016). Moreover, an administrator, in terms of productivity, worries more about the effectiveness of an organisation, whereas an industrial engineer looks at productivity in terms of factors which are more operational, as well as the standards of performance (Anyanwu, 2000). Productivity’s true measure can be noted as the relation of outputs to the entire amount of inputs and factors of production utilised (Anyanwu, 2000; Adegoke 2016). Furthermore, productivity in organisations is an important factor without which organisational goals and objectives cannot be achieved. As stated by Greguras et al. (1996), employee productivity is the extent to which a member of an organisation helps in attaining the organisation’s aims or objectives. Consequently, productivity problems may occur as a result of individual input, job context and other work environment factors.

In their study, Al-Ahmadi (2009) noted a substantial relationship between employee productivity and job satisfaction. Similarly, Albulhadi (2009) observed the effect of job satisfaction levels on the productivity of manufacturing workers in Malaysia, and he revealed that employees who reported higher job satisfaction were more motivated in their jobs and therefore had high productivity levels and were also less likely to leave the profession; while de-motivated employees negatively affected the organisation’s performance. Also, Hilda (2006) carried out a study on the factors affecting employee productivity in Namibia. This study identified poor working conditions such as non-availability of equipment, employee dissatisfaction with their jobs, and poor managerial skills as predictors of productivity. The study further emphasised that poor remuneration, inadequate staff development programmes, among others, are factors affecting the productivity of employees in developing nations. Furthermore, in their study, Awosusi and Jegede (2011) studied the levels of job satisfaction and workers’ productivity amid workers (nurses) in Ekiti state, Nigeria. The results of their investigation established the fact that, employees are poorly motivated as well as remunerated, there are poor working environments and conditions, and the occurrence of job dissatisfaction which negatively affects the level of employee productivity in Ekiti State, Nigeria. Additionally, they made a recommendation to the Nigerian state government, to improve the general remuneration and welfare of employees in the study area. In addition, Adegoke (2016) noted a more significant relationship between employees’ job performance and satisfaction, specifically for professional jobs.

Also, Akintayo (2010) established that employees’ work environment, as well as their morale, had a significant influence on perceived productivity in the Nigerian industrial companies. This finding corroborates Collins (2003) and Gould-Williams (2003), who established that good work conditions, interpersonal relationships, suitable retirement benefits, and opportunities for training and development had a significant influence on workers’ productivity. Hence, this information has inspired the following hypothesis:

H1: The levels of job satisfaction significantly influence employee productivity among employees in selected manufacturing companies in Oyo state, Nigeria.

The research methodology of the present paper is discussed next.

Research Methodology

A research design responds to inquiries that would decide the route that a researcher should take in his/her research trip (Kumar, 2010). Thus, a research design needs to correlate with the purpose of the research (Denscombe, 2010; De Vaus, 2001). In the current research, a survey research design was adopted, and a quantitative research approach was utilised to explore the effect of job satisfaction levels on employee productivity in selected manufacturing companies in Oyo state, Nigeria.

Research methods involve techniques of collecting data. Therefore, a survey research method was exploited in the present investigation. A questionnaire, which is an official list of questions, designed to collate responses from participants on a definite topic of study (Babbie & Mouton, 2001), was self-administered and utilised as the instrument for gathering data.

Furthermore, in the present study, the participants included 250 workers from selected manufacturing factories sampled in Ogbomoso (Sofak Pharmaceutical Company and Hekky Pure Water factory), and in Ibadan (Sumal Foods Industry, 7up Bottling Company, Zartech Nigeria limited, and Yale Foods Limited) in Oyo State, Nigeria.

Research instruments

The present researcher adopted a structured questionnaire to measure the variables under investigation. Hence, this questionnaire has three (3) segments, that is, section A, B, and C.

Section A: Demographic questions

This section deals with the respondents’ demographic data (for instance, job status, age, religion, educational qualifications, number of years spent in the organisation, and gender).

Section B: Job satisfaction scale

This scale is a 20-item scale, namely, Minnesota Satisfaction Questionnaire (MSQ), developed by Weiss et al. (2015) to assess job satisfaction. For this scale, respondents are required to respond to three (3) classes of job satisfaction. The Cronbach’s alpha of these items was 0.94. The response format for the scale consisted of a 5-point Likert type scale ranging from quite unsatisfied (1) to quite satisfied (5) to which the respondents expressed their degree of satisfaction. A high score on the scale indicates a high level of satisfaction, whereas a low score suggests a low level of satisfaction. In this study, the Cronbach’s alpha coefficient for the reliability of this scale is 0.90.

Section C: Employee productivity

This is measured by a scale developed by William and Anderson (1991). Scores above the mean score is considered as high job performance while scores below this cut -off point is categorised as low job performance. It is a 20-item scale and has a reliability coefficient of r= .89 which was established in the current study. A Cronbach’s reliability alpha of .79 was reported by the developer of the scale.

Research procedure

Before questionnaires were administered, participants’ informed consent was sought and was indicated by participants signing the informed consent form on the front page of the questionnaire. Questionnaires were handed out to 250 workers across the selected manufacturing companies. An introduction letter/cover note was made available, showing the details describing the aim of the investigation, confidentiality of responses and contact of the researcher. Data collected was analysed and presented. The present researcher considered the ethical issues related to collecting, assessing and storing confidential data. Hence, voluntary partaking was strictly encouraged. Also, all efforts were made to be sure every prospective participant was aware of the reason for the investigation, as well as guaranteeing confidentiality with regard to all their information shared. Furthermore, the current researcher acted reliably and in a professional manner when distributing the questionnaires and ensured the safety of the data.

The data retrieved from the participants was analysed, using the statistical package for social sciences (SPSS v 24). However, the data was cleaned just before analysis. Inferential statistics such as a t-test for independent samples was adopted when testing the stated hypothesis, as well as to achieve the third objective, while a Pearson correlation analysis was done to achieve the second objective. Reliability analyses were conducted to analyse the local reliability of the research instrument, in this research.

Results

The following sections show the results of the analysed data:

Inferential statistics (hypothesis testing)

Table 1: T-Test Summary that shows the influence of job satisfaction on employee productivity.

DV

Job Satisfaction

N

Mean

SD

df

t

P

Productivity

High

114

62.17

7.018

223

2.482

<.05

Low

111

59.8

7.272

 

 

 

Table 1 above indicates a significant difference in scores between the two levels of job satisfaction among employees t(223)=2.48; p=<.05 in certain manufacturing companies in Oyo state, Nigeria. It indicates that employees with a high level of job satisfaction (M = 62.17, SD = 7.018) score higher on productivity than employees with a low level of job satisfaction (M = 59.80, SD = 7.272). This result further shows that job satisfaction levels have a significant effect on employee productivity in selected manufacturing companies in Oyo state, Nigeria. Hence, the stated hypothesis which says that levels of job satisfaction significantly influence employee productivity in selected manufacturing companies in Oyo State, Nigeria, is statistically supported and accepted.

Furthermore, the results above have achieved the first objective of the current investigation which was to examine the effects of the levels of job satisfaction on employee productivity in chosen manufacturing companies in Oyo state, Nigeria. The results in table 2 below show the relationship between age, work-experience, education, and employee productivity in selected manufacturing companies in Oyo state, Nigeria.

Table 2: Relationship among age, education, work experience, and employee productivity.

 

Age

Education

Work-experience

Employee productivity

Age

Pearson Correlation

1

-.212**

.257**

-.003

Sig. (2-tailed)

 

.000

.000

 

N

225

225

225

225

Education

Pearson Correlation

-.212**

1

-.064

-.039

Sig. (2-tailed)

.000

 

 

 

N

225

225

225

225

Work-experience

Pearson Correlation

.257**

-.064

1

0.46**

Sig. (2-tailed)

.000

 

 

.000

N

225

225

225

225

Employee productivity

Pearson Correlation

-.003

-.039

0.46**

1

Sig. (2-tailed)

 

 

.000

 

N

225

225

225

225

**. Correlation is significant at the 0.01 level (2-tailed).

Table 2 shows that only work experience had a significant positive relationship with employee productivity at (r= 0.46, P<0.01) while age and educational qualifications did not significantly relate to employee productivity at P >0.01. This result suggests that employee productivity increases in proportion to an increase in work-related experiences, regardless of the fact that the strength of the relationship is weak. Hence, the second objective of the research which is to find out the relationship between age, work-experience, education, and employee productivity in selected manufacturing companies in Oyo state, Nigeria has been achieved.

Figure 1: Relationship model of age, education, work experience, and employee productivity in selected manufacturing companies in Oyo state, Nigeria.

Furthermore, a t-test analysis of independent samples was carried out, in order to achieve the third objective of the present study. The results are revealed in table 3 below:

Table 3: T-Test summary showing the influence of gender on employee productivity.

DV

Gender

N

Mean

SD

df

t

P

Productivity

Male

125

60.04

6.937

223

2.482

<.05

Female

100

62.2

7.433

 

 

 

Table 3 above shows that female participants reported higher (mean=62.20) on employee productivity than their male counterparts (mean=60.04) at t(223) = -2.248; P <.05 in in selected manufacturing companies in Oyo state, Nigeria. This shows that differences in gender have significant influence on employee productivity among employees in selected manufacturing companies in Oyo state, Nigeria. Hence, the results above have achieved the last objective of the current investigation, which is to examine if there are any gender differences in employee productivity among the selected manufacturing companies in Oyo state, Nigeria.

Figure 2: Model showing the factors that have a higher effect on employee productivity among employees of manufacturing companies in Oyo state, Nigeria.

Discussion

The following sections present the study’s findings, which stemmed from the data analysis, as outlined in the previous section.

First, the hypothesis of the current study which states that levels of job satisfaction significantly influence employee productivity among employees in selected manufacturing companies in Oyo state, Nigeria, was verified with a t-test for independent measures. The results indicate that participants with more job satisfaction reported significantly higher on employee productivity than their colleagues with a lower level of job satisfaction. Similarly, the results confirm that the levels of job satisfaction have a significant effect on employee productivity among employees working in the manufacturing industry in Oyo state, Nigeria. This result adds to the position of the studies of Stajkovic and Luthans (1998) and Adegoke (2016) that showed that job satisfaction levels significantly influence employee productivity. However, this is peculiar, as the result was within the manufacturing industry in Oyo state, Nigeria. Consequently, a high level of job satisfaction increases employees’ productivity in the manufacturing industry in Oyo state, Nigeria.

Second, in achieving the current investigation’s second objective which was finding out about the relationship between age, work-experience, education and employee productivity in certain manufacturing companies in Oyo state, Nigeria a Pearson correlation matrix was conducted. The results indicate that only work experience significantly positively relates to employee productivity, whereas age and educational qualification did not significantly relate to employee productivity in the manufacturing industry in Oyo state, Nigeria. However, these results suggest that employee productivity increases with an increase in work-related experience. These results support the claim of Locke and Cooper (2000) who reported that the level of employees’ experience in the organisation has implications for organisational productivity. A reasonable explanation for this is that, more experienced employees who have served an organisation for many years may begin to develop a sense of psychological ownership of the organisation, thereby having a feeling of belongingness in the organisation, which may have a positive effect on their performance, as well as increasing organisational effectiveness (Locke & Cooper, 2000). Also, some researchers with similar results have suggested other reasons for this positive relationship between length of service and employee productivity such as employees’ attainment of higher status and unavailability of other work options (Fajana 2002; Ogbonnikan, 2012). However, the results are unlike other sited studies, as it suggests conclusions not just within the manufacturing industry, but in Oyo state, Nigeria.

In regard to the third objective, which was to investigate if employee productivity has anything to do with gender difference among the selected manufacturing companies in Oyo state, Nigeria, a t-test analysis for independent measures was conducted. The result of the analysis indicates that female employees report higher on employee productivity than their male counterparts in the manufacturing industry in Oyo state, Nigeria. Hence, it shows that gender differences have a significant influence on employee productivity in the manufacturing companies in Oyo state, Nigeria. This result supports the affirmation of Avery, McKay and Wilson (2007) that female employees report significantly higher in organisational effectiveness than their male colleagues. Nevertheless, the results of this investigation with regard to gender differences and employee productivity remains distinct within the manufacturing industry in Oyo state, Nigeria.

Practical implications

According to the results stated above, there are useful practical implications for a pertinent work-related field. The management of the Nigerian manufacturing companies, especially the ones in Oyo state, should ensure and promote a healthy employer-employee relationship in ensuring employee job satisfaction, which will improve employee productivity. Also, managers should come up with several compensation and benefits policies that will motivate employee from time to time, which is capable of ensuring satisfaction. Furthermore, managers in the Nigerian manufacturing companies need to ensure an appropriate and impartial assessment of employees’ work, an exercise which promotes job satisfaction. In addition, organisations in the Nigerian manufacturing industry, especially in Oyo state, should come up with suitable employee promotion strategies, within a realistic period. Career development programmes, as well as training programmes inspired by training needs, should be regularly conducted. Adding to these, the management of work organisation within the Nigerian manufacturing industry should create a pleasant work environment, and working conditions, which in turn increase productivity. Hence, suitable safety management and occupational health programmes should be adopted to building employees wellness.

Limitations

The present investigation encountered a few limitations. These should be well-thought-out when interpreting and generalising the study’s findings. For example, the results cannot be generalised to other sectors in Nigeria, because the investigation was conducted only with employees from Nigeria’s manufacturing industry. Another limitation is that the study adopted only a quantitative approach, and not a mixed method approach. The mixed method approach could have generated results through the triangulation of data and could also have shed more light on the phenomenon under study.

The next section, shows the paper’s conclusion and recommendations.

Conclusion and Recommendation

This current investigation concludes that levels of job satisfaction (high and low) strongly predict employees’ productivity in the manufacturing industry in Oyo State, Nigeria. Very satisfied employees will achieve high productivity at their places of work. Also, the study has shown that work experience is a determinant of employee productivity in the manufacturing industry in Oyo State. Therefore, employee productivity can be enhanced when employers recruit workers with a lot of work experience, as well as when employee training is well embraced by human resource management. Furthermore, the current study suggests that there is a significant gender influence on employee productivity in the manufacturing industry in Oyo State, Nigeria. Hence, employee productivity levels differ by gender and employers should therefore be mindful of the positions and roles assigned to various employees in the manufacturing industry in Oyo State, Nigeria.

The present investigation concludes that job satisfaction ensures employee productivity in the manufacturing industry; so, organisations should ensure employees are well managed and motivated in order to increase their job satisfaction which positively influences their productivity. Consequently, failure to maintain a moderate job satisfaction level among workers will result in their poor productivity. Also, this study shows that work experience is a significant predicator of employee productivity. Hence, this study recommends that employers, human resource managers and business owners ensure adequate and continuous employee training, in order to maintain high employee delivery and productivity. Furthermore, although the present study has offered recommendations based on the empirical results found regarding organisational productivity in the manufacturing industry in Oyo state, Nigeria; an extensive qualitative study is still needed to elicit recommendations for performance improvement from employees within this industry. Moreover, although this study has added knowledge with regard to employee productivity in the manufacturing industry in Oyo State, Nigeria; there is also a need to conduct the same study in other cosmopolitan states (such as Lagos state, Kanu state, Ogun state among others) in Nigeria. Still, the issue of employee productivity in Nigeria should also receive some attention in other economic industries in Nigeria.


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