The Effects of Organizational Culture and Transformational Leadership on Worker Performance at the Lebak Regency Ministry of Religious Affairs Office with Job Satisfaction as an Intervening Variable
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This study uses job satisfaction as an intervening variable to examine how corporate culture and “transformational” leadership affect employee performance. The Civil Servant of the Lebak Regency’s Ministry of Religious Affairs is the subject of this study. The survey was completed by 105 people in total. A sample of 140 government officials working at the Office of the Ministry of Religious Affairs of Lebak Regency and KUA of Lebak Regency was selected using the Slovin formula. Purposive sampling is the method of sampling that is employed. The partial least squares method, or SmartPLS, was used to analyze the data using path analysis. The study’s findings demonstrate that employment satisfaction has a positive and significant relationship with transformational leadership, organizational power has a positive and significant relationship with job satisfaction, and employee performance has a positive and significant relationship with organizational culture. In the meantime, organizational culture through work happiness has a favorable and significant impact on employee performance, as does transformational leadership through job satisfaction. Additionally, job happiness and corporate culture through transformational leadership have a stronger impact on worker performance than employee performance is directly impacted by company culture and transformational leadership without having to. Meanwhile, transformational leadership has a favorable and significant effect on employee performance through work satisfaction, and organizational culture has a positive and significant effect on employee performance through job satisfaction. Furthermore, the influence of transformational leadership and organizational culture on employee performance through job satisfaction is greater than the influence of transformational leadership and organizational culture directly on employee performance without going through the variable of job satisfaction.
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Introduction
Every institution now relies heavily on its human resources to accomplish its aims. The firm culture and individual employee character or behavior influence the strength of human resources. Great attention to the development of human resources is expected to be a process to maintain and improve quality, thus having an impact on improving performance and service where the employee is located (Moeheriono, 2012). Performance has become the center of attention from various circles both government and companies or organizations in general.
Today, in addition to business institutions that focus on improving the quality of human resources, government institutions are also very focused on improving the performance of their employees. One of them is the Ministry of Religious Affairs. A government institution that assists the community with socio-religious matters pertaining to all facets of society is the Ministry of Religious Affairs. The ministry of religion’s office in Lebak district is one of the ministry’s offices in Banten province. One of the religious districts in the province of Banten is Lebak. Of course, the Lebak District Ministry of Religion’s services need to be excellent and comprehensive.
In this case the understanding of good and effective government administration is when the government can quickly and precisely achieve the desired goals/work plans by obtaining good performance. Table I presents a recapitulation of employee performance at the Lebak Regency Ministry of Religion Office in the last 5 years.
No | Year | Performance appraisal | |||||||
---|---|---|---|---|---|---|---|---|---|
SKP (60%) | Work behavior (40%) | Total | |||||||
Key performance | Additional performance | Service orientation | Integrity | Commitment | Discipline | Collaborate | |||
1 | 2017 | 87.20 | 87.22 | 85.60 | 86.68 | 86.50 | 86.50 | 87.80 | 86.97 |
2 | 2018 | 85.29 | 88.35 | 84.00 | 84.00 | 85.00 | 86.00 | 83.00 | 84.93 |
3 | 2019 | 87.95 | 87.65 | 81.60 | 82.28 | 82.10 | 82.25 | 81.90 | 85.58 |
4 | 2020 | 84.78 | 83.48 | 80.00 | 81.00 | 82.00 | 81.00 | 80.00 | 83.19 |
5 | 2021 | 83.78 | 84.14 | 85.15 | 82.67 | 82.48 | 83.00 | 82.29 | 83.52 |
It can be seen that the average employee performance in 2017 was 86.97, while in 2018, there was a decrease to 84.93, which means 2.02% from the previous year. Furthermore, in 2019, employee performance increased by 85.58, which is 0.65% compared to the previous year. In 2020, employee performance decreased again by 83.19, which is 2.39% compared to the previous year. Then, in 2021, employee performance has increased slightly to 83.52, which means 0.33% from the previous year. It can be seen that employee performance fluctuated, which tends to decrease, which means that there has been a significant decrease in performance from 2017 to 2021.
Employee performance at the Ministry of Religion Office of Lebak Regency is believed to be impacted by the Job Satisfaction Variable. According to Muchlas (2005), satisfied employees will be able to increase customer satisfaction and loyalty, which will result in an increase in the quality of institutional/company performance. Furthermore, to see employee job satisfaction in the Lebak Regency Ministry of Religion Office environment, researchers conducted a pre-survey of 21 employee respondents in terms of job satisfaction.
Pre-survey data results can be used to explain why employee job satisfaction in the Lebak district Ministry of Religion office environment is so low. Several indicators already exist, and over 50% of respondents indicate that they agree with the statements made, indicating that job satisfaction is still very low.
Employee performance at the Ministry of Religion in Lebak Regency is believed to be influenced by organizational culture and transformational leadership in addition to job satisfaction. According to Handoko (2012), transformational leadership is a visionary leader who can overcome ambiguity, is able to encourage subordinates, and dare to take risks, and is an agent of change. Meanwhile, according to Handoko (2012), organizational culture is the organizational personality that shapes how people behave within organizations. In other words, it means that organizational culture establishes a structure for achieving high performance and organizational objectives.
Literature and Hypothesis Development
Employe Performance
Performance is the outcome of work in the form of input or output, or it can also be referred to as the outcome of work in quantity and quality to meet the goals set by the business for performance within the business to succeed. Al-Ghazali (2012) and Gliem (2003) define performance as the outcome attained by workers in their tasks in accordance with standards that are relevant to a job. In contrast, employee performance is the difference between an employee’s actual and expected achievements (Avolio, 2011). Mangkunegara (2015) explains that performance refers to the actions or inactions of employees.
According to Bernardin (2010), dimensions and indicators of employee performance has several aspects of employee performance measurement, namely quality, quantity, timeliness, cost effectiveness, need for supervision, and interpersonal impact.
Transformational Leader
A transformative leader provides individualized intellectual stimulation and attention to their followers or subordinates. Transformational leadership is characterized by a leader who inspires followers to put aside their personal interests and has a great deal of influence (Robins, 2016).
According to Avolio (2011), a leadership approach known as transformational leadership improves human resources and makes it possible to gauge how much of an influence a leader has on their followers. uses four characteristics to define transformational leadership: intellectual stimulation, individual concern, inspiring drive, and idealization of impact.
Organizational Culture
Organizational power is a pattern or system made up of attitudes, values, behavioral norms, language, beliefs, and rituals that are established, created, and passed down to members of the organization in order to overcome difficulties with both internal and external adaptability. It differs from other organizations due to its organizational personality (Dessler, 2015). Organizational culture, according to, is an organizational personality that influences how people behave within the organization.
Augusta (2003) defines organizational culture as a shared system of meaning that employees of the company share. According to Augusta (2003), there are seven crucial traits that serve as a crucial point of reference for comprehending and evaluating.
Job Satisfaction
An employee’s attitude or sentiment toward the good or bad parts of their work that correspond with their individual judgment is known as job satisfaction. Mathis (2016) a favorable emotional assessment of one’s work experience leads to a statement about job satisfaction.
According to Lock in Luthans (2006), an emotional expression that is positive or pleasant as a result of an evaluation of a job or pleasant because of an evaluation of a job or work experience is job satisfaction. According to Waridin (2004), the aspects of work itself, compensation, advancement, supervision, and workers are frequently employed to quantify employee job satisfaction.
Hypothesis Development
Transformational Leadership’s Impact on Job Satisfaction
Job satisfaction is determined by leadership aspects; if a leader behaves arbitrarily in carrying out leadership, it will immediately affect the level of employee satisfaction, causing the level of productivity to fall. This is consistent with the findings of various research (Lusigita, 2017) that indicated a favorable influence of leadership elements on employee work satisfaction. This is also consistent with research conducted by Lusigita (2017), who discovered that the leadership factor has a favorable influence on employee work satisfaction.
H1: Transformational leadership aspects affect employee job satisfaction.
Organizational Culture Impact on Job Satisfaction
Robins (2016) defined as a person’s overall attitude toward their work the more aspects that meet the person’s preferences, the higher the job satisfaction; based on this definition, it can be concluded that job satisfaction is a person’s feelings about their work by taking into account aspects that exist in his work so that a feeling of pleasure or displeasure arises in him about the work situation and overall, organizational culture is defined as a value system acquired and developed by the organization as well as the fundamental habit patterns and philosophies of its founders.
H2: Aspects of organizational culture affect job satisfaction.
Transformational Leadership Impact on Employee Performance
Since leadership style essentially provides a procedural flow of change in a company’s performance, it can be argued that leadership style influences and/or depends on employee performance. The quality of work produced by employees is greatly influenced by the leadership style of the individual. Therefore, the organization’s leadership style plays a crucial role in its capacity to successfully complete its various tasks, and this is especially visible in how well its people perform.
H3: Transformational leadership aspects affect employee performance.
Organizational Culture Impact on Employee Performance
Performance inside the organization is impacted by a strong organizational culture. An organization’s culture serves as a framework for members’ behavior, decision-making, and action planning in order to accomplish corporate objectives. Scientifically speaking, the study of organizational culture as one facet of organizational behavior is significant. According to research by Harwiki (2013), organizational culture has a favorable impact on worker performance.
H4: The ways that organizational culture influences worker performance.
Impact Satisfaction on Employee Performance
According to Waridin (2004), employee attitudes toward a variety of work-related factors—such as work environments, social influences at work, rewards, and leadership, among others—are highly correlated with job satisfaction. A person’s common attitude regarding his or her work is one of job satisfaction. Lawler and Morishima (1998) stated that the equity or balance (fit) between expectations and reality determines how satisfied one is with one’s job (Robins, 2016). Indicators of workplace satisfaction are typically linked to work discipline, absenteeism, and labor turnover rates.
H5: Aspects of job satisfaction affect employee performance.
The Impact of Transformative Leadership on Employee Performance through Mediating Variables, Specifically Job Satisfaction
An effective leader can motivate and inspire their team members, which will affect performance. Mangkunegara (2015) asserts that leaders have a significant impact on the attitudes, behaviors, and performance of their subordinates. The efficacy of a leader is influenced by the characteristics of his followers and is related to the communication process that occurs between the leader and followers. A leader is deemed ineffective if they are unable to motivate, sway, and meet the needs of employees in a certain role and environment. A competent leader can create a comfortable work environment for their team members, which will surely improve job satisfaction and performance.
H6: Job satisfaction mediates transformational leadership variables on employee performance.
The Impact of Organizational Culture through Mediating Variables, Namely Job Satisfaction on Employee Performance
According to Muchlas (2005), Schein’s definition of organizational culture is sufficiently relevant to be regarded as accurate for perception, thought, and feeling about those problems. It is a pattern and fundamental presumptions established by a particular group to learn how to deal with group issues through effective internal integration and outward adaption. While job happiness is a means of developing a positive company culture that can provide comfort to the surrounding area, if employees experience job satisfaction, their performance will automatically enhance.
H7: Job satisfaction mediates organizational culture variables on employee performance.
Research Methods
A theoretical framework (Fig. 1) was integrated with quantitative research methods in this study. The core data for this study were gathered through a survey technique and questionnaire instrument. In this experiment, personality administered questionnaires were used. Five categories were created from the responses provided by survey participants. employing the Likert scale.
Fig. 1. The Conceptual framework.
The participants in this study are government servants employed at the Lebak Regency’s Ministry of Religious Affairs Office, which is split up into 5 sections and 28 KUA. When collecting data through purposeful sampling (purposive sampling). The State Civil Servants, specifically civil servants and PPPK in the Lebak Regency’s Ministry of Religious Affairs, serve as the basis for the sampling criteria. Using the Slovin technique to determine sample size (Kuncoro, 2013). There were 10.5 research samples in total.
From a total population of 140, 10.5 respondents made up the research samples, with a 95% confidence level and a 5% fault tolerance limit. One of the most crucial instruments in quantitative research is the instrument test. The validity test and reliability test are the two procedures that make up the instrument test in this study. Structural Equation Modeling-Partial Least Square (SEM-PLS) is used for data analysis since it can do path analysis using latent variables to generate hypotheses (Augusta, 2003).
Research Result
Results and Discussion
The replies from 105 respondents are shown in Table II. According to demographic data, 6.6 employees answered in the male category, accounting for 6.3% of the total, and 39 employees answered in the female category, representing 3.7% of the total. Then, respondents with the status of civil servants numbered 88 people, a percentage of 84%, while respondents with the status of PPPK State Civil Apparatus amounted to 17 people, with 16%. Then, with 91 respondents and 87% percentage rate, respondents with a bachelor’s education level predominate, followed by 13 respondents with a magister education level (1.2% of the total respondents) and 1 respondent with a high school education level (1.2% of the total respondents). Additionally, responders with a working period of 2–4 years, totaling 18 people with a level of employment, were dominated by those with >5 years of service, totaling 66 people with a percentage rate of 63%. Of the total respondents, 17% are under the age of two, and up to 21 of them have a percentage rate of 20%.
No | Question | Number of people | Missed count | Precentage (%) | Indicator |
---|---|---|---|---|---|
1 | Lack of interest in the work done | 21 | 18 | 85% | Work it self |
2 | Lack of wage/salary given that does not match the workload | 21 | 19 | 90% | Pay |
3 | Lack of opportunities to develop and expand expertise | 21 | 16 | 76% | Promotion |
4 | Lack of support and care from superiors | 21 | 12 | 57% | Supervision |
5 | Lack of cooperation and support from colleagues | 21 | 18 | 85% | Workers |
Evaluation of Measurement Model (Outer Model)
Convergent validity testing, which verifies that the loading factor value is greater than 0.5 and the extracted average variance is greater than 0.50, is the first step in the validity testing process (Ghozali, 2015; Harnanto, 2017). The loading factor will be eliminated from the model if it is less than 0.50. Table III indicates that the AVE section already has an AVE value of >0.50. Convergent validity is satisfied by the study’s conclusion. Variable R2 (Y) is 0.784, Goodness of Fit model is 0.65, and mediation variable (Z) is 0.563. The next stage in the validity testing method is to verify discriminant validity using the square root value of AVE, which must have the greatest construct value in its own group by looking at the Fornell-Larcker value (Table IV).
Variable | Dimension | Indicator | Outher loading | Mean | AVE | Composite reability | Cronbatch’s alpha |
---|---|---|---|---|---|---|---|
Transformational leadership (X1) | Idealized influence | Respect given by employees | 0.618 | 4.30 | 0.548 | 0.827 | 0.721 |
Employee trust in leaders | 0.677 | ||||||
Can be a role model | 0.632 | ||||||
Inspirational motivation | Motivator | 0.756 | |||||
Clear goal and task setting | 0.828 | ||||||
Intellectual simulation | Creative ideas | 0.771 | |||||
Problem solver | 0.834 | ||||||
Individualized consideration | Creating a good work environment | 0.567 | |||||
Organizational culture (X2) | Innovation and decision making | Organizations value action | 0.627 | 4.24 | 0.554 | 0.827 | 0.722 |
The environment encourages employees to be innovative | 0.785 | ||||||
Stability | Ability to emphasize maintenance | 0.626 | |||||
Decision making and action | 0.776 | ||||||
Aggressivenes | Work initiatives | 0.792 | |||||
Capacity to inspire cooperation and competition among organization members | 0.674 | ||||||
Team orientation | Ability of members to work together | 0.654 | |||||
The ability of team members to complete tasks | 0.710 | ||||||
Team members’ ability to solve problems | 0.725 | ||||||
Human orientation | Consider the human factor (employees) in decision making | 0.681 | |||||
Job satisfaction (Z) | Work it self | Work assigns interesting tasks | 0.598 | 4.15 | 0.503 | 0.834 | 0.765 |
Work provides satisfaction for learning | 0.678 | ||||||
Work stimulates progress for employees | 0.518 | ||||||
Supervision | Pointing to the superior’s concern for employees | 0.704 | |||||
Co-workers (Workes) | Pointing to the extent to which co-workers are friendly and competent | 0.850 | |||||
Promotion | Opportunity to advance and excel | 0.833 | |||||
Pay | Refers to the amount received and the perceived state of wages or salaries | 0.786 | |||||
Employee performance (Y) | Quality | Get the job done quickly, precisely and efficiently | 0.519 | 4.47 | 0.590 | 0.920 | 0.900 |
To work according to personal will and desire | 0.562 | ||||||
Work hard to achieve the goals desired by the work unit | 0.703 | ||||||
Quantity | Complete the quantity of work that the company requests | 0.779 | |||||
Mastering the work with the skills possessed by each individual | 0.709 | ||||||
Timelines | Work based on working time standards set by the company | 0.688 | |||||
Get work done effectively and efficiently | 0.682 | ||||||
Coss effective | Effective and efficient use of resources from the company | 0.703 | |||||
Save on costs incurred by the company | 0.628 | ||||||
Interpersonal impact | Have high self-esteem towards their work | 0.763 |
Variable | Organizational culture | Employee performance | Job satisfaction | Transformational leadership |
---|---|---|---|---|
Organizational culture | 0.738 | |||
Employee performance | 0.326 | 0.768 | ||
Job satisfaction | 0.430 | 0.178 | 0.709 | |
Transformational leadership | 0.553 | 0.317 | 0.479 | 0.740 |
A construct’s reliability is measured using Cronbach’s alpha and composite reliability values; a construct is considered dependable if its value is greater than 0.7. Because the study’s conclusion has a value of >0.7, it already has a dependable construct.
Structural Model Testing Results (Inner Model)
The adjusted employee performance variable has R2 value of 0.777, as seen in Table V. With an adjusted R2 value of 0.777, construct variability accounts for 77.7% of the variability in employee performance constructs, with other study-related factors accounting for the remaining 22.3%. Additionally, the job satisfaction variable has an R2 adjusted value of 0.554.
Variable | R 2 | GOF |
---|---|---|
Employee performance (Y) | 0.784 | 0.65 |
Work occupation (Z) | 0.563 |
It is possible to explain the variability of the work satisfaction construct according to the R2 adjusted value of 0.554.
The construct variability is 55.4%, with other factors outside the research accounting for the remaining 44.6%. The GoF value of the model is substantial, indicating that it is a better fit for describing the research sample. The present study’s Goodness of Fit (GoF) value is 0.65, which falls within the range of Godness of Fit > 0.36.
Model I equation: Z=b0+0.220X1+0.621X2,=0.43,R2=0.56
Model II equation: Y=b0+0.204X1+0.364X2+0.453Z,=0.21,R2=0.78
H1 is recognized as a variable. Job satisfaction (Z) is positively and significantly impacted by transformational leadership (X1). The dimensions of intellectual stimulation and the problem solver indicator were found to be the most dominant dimension values in the transformational leadership variable based on the study’s findings. This indicates that, in order to increase job satisfaction through transformational leadership, you can reflect on and increase the dimensions of intellectual stimulation by identifying and coming up with work-related solutions (Problem Solver) (Nachrowi, 2006). The findings of this study support those of research Bernardin (2010), which found that transformational leadership significantly and favorably affects job satisfaction.
It is acknowledged that job satisfaction (Z) is positively and significantly impacted by the organizational culture variable (X2). In light of the study’s findings, the most dominant dimension value on the organizational culture variable is the dimension of aggressiveness and is reflected through the work initiative indicator, meaning that if the Lebak district ministry of religion wants to increase job satisfaction through organizational culture, it can provide a stimulus for work aggression by always giving encouragement and motivation, and work initiatives that are used as work references for employees. This demonstrates how the work initiative’s culture can serve as an unconscious behavioral guide for its members as they go about their daily business. The results of this study support those of research by Bernardin (2010), which found that organizational culture significantly and favorably affects work satisfaction.
Transformational leadership variable (X1) has a favorable and significant impact on employee performance (Y), as per H3. Ttransformational leadership variable’s most dominating dimension value was determined by the study’s findings, namely the dimension of inspirational motivation, which is reflected through indicators of clear goal and task setting, which shows that if the Lebak district religious ministry office wants to improve employee performance through leadership directly transformational, it can be reflected and enhanced by setting clear goals and tasks in the duties and functions of its employees. So, that employees can easily carry out priority management at work, and employee performance will increase. This indicates that a leader’s transformational leadership style will directly correlate with how well their team members perform.
H4 is accepted as an organizational culture variable (X2), which has a significant and positive effect on employee performance (Y). Based on the results of this study, the value of the most dominant dimension was obtained, namely the dimensions of innovation and decision making which were reflected through indicators of the organizational environment’s drive to be innovative. This means that if the Lebak district Ministry of Religion wants to improve employee performance directly through organizational culture, it can increase employee innovation and decision-making with cultural activities of mutual encouragement and support between employees to be innovative in the workplace environment. His demonstrates how organizational culture becomes a set of rules for members’ behavior that are implemented instinctively while conducting business. The conduct of organizational culture at the Lebak district religious ministry office demonstrates the presence of a relationship between that culture and the output of workers or employees.
H5 is accepted Job Satisfaction Variable (Z) has a positive and significant effect on employee performance (Y). According to the study’s findings, the most important dimension value was obtained for the variable of job happiness, which is the characteristics of workers or employees that are expressed in the indications of knowledgeable and cordial coworkers. This demonstrates that the more adeptly Lebak Regency Ministry of Religion office staff members collaborate with communications, the more likely it is that job satisfaction will increase. However, in order to ensure that staff performance will continue to rise, staff competency needs to be further enhanced.
H6 acknowledged that there is a favorable and significant impact on employee performance (Y) from the variable Transformational Leadership (X1), which is mediated by work satisfaction (Z). Based on the study’s findings, the most significant dimension value in the transformational leadership variable was found to be Intellectual Stimulation, which is reflected in the problem solver indicator. This indicates that leaders provide intellectual stimulation by recognizing and coming up with work-related obstacles and coming up with workable solutions (Problem Solver), which raises employee job satisfaction and impacts employee performance. This demonstrates the critical role that transformational leaders play in the lives of their employees, as their presence will boost job happiness and foster accomplishment and excellent work habits. Compared to transformational leadership directly on employee performance, the influence of transformational leadership on employee performance through the mediation of job satisfaction can be seen to have a greater effect, indicating that the mediation variable of job satisfaction can have a better impact on employee performance.
Employee performance (Y) is positively and significantly impacted by the H7 acceptable organizational culture variable (X2), which is mediated by job satisfaction (Z). The study’s findings indicate that the organizational culture variable’s most dominant dimension value was found to be aggressiveness, which was reflected in the Work Initiative indicator. This means that the Lebak district Ministry of Religion office hopes to enhance employee performance through organizational culture, as it is mediated by job satisfaction. Then it can act as a catalyst for work aggression by consistently offering support and inspiration in addition to work efforts that are used for work. references for employees, which will lead to employee job satisfaction, and influence on employee performance. This shows that a good organizational culture is very important for employees to have because if employees have a good organizational culture, job satisfaction will increase and encourage good achievement, and performance will also increase (Hasibuan, 2002). It can be observed that job satisfaction serves as a better mediating variable between organizational culture and employee performance than does culture itself. This suggests that job satisfaction has a stronger effect on employee performance than does organizational culture directly (Fig. 2).
Fig. 2. Relationships between constructs. Source: Author, 2023.
Conclusion
The results of this study demonstrate that transformational leadership significantly and favorably affects job happiness, as evidenced by traits of intellectual stimulation and problem-solving skills. This conclusion is based on the analysis and discussion in the previous section. An important and favorable impact is provided by organizational abilities. Employee performance is positively and significantly impacted by transformational leadership, as evidenced by the aspects of inspiring motivation and metrics related to clearly defined objectives and tasks. Positive and significant effects are seen in employee dimensions and organizational environmental support for innovation indicators. Favorable and noteworthy impact on innovation performance, as evidenced by innovation. Furthermore, the traits and measures of amicable and cooperative conduct between workers and their employers demonstrate that job satisfaction has a positive and noteworthy influence on worker performance (Table VI).
Relationships between constructs | Original sample | T-statistics (|O/STDEV|) | P-value | Influence |
---|---|---|---|---|
Direct | ||||
Leadership job → Satisfaction transformation | 0.220 | 2.457 | 0.014 | Significant |
Organizational culture → Job satisfaction | 0.621 | 8.210 | 0.000 | Significant |
Leadership transforms → Employee performance | 0.204 | 3.849 | 0.000 | Significant |
Organizational culture → Employee performance | 0.364 | 4.949 | 0.000 | Significant |
Job satisfaction → Employee performance | 0.453 | 5.585 | 0.000 | Significant |
Indirect | ||||
Leadership transforms → Job satisfaction → Employee performance | 0.247 | 2.914 | 0.004 | Significant |
Organizational culture → Job satisfaction → Employee performance | 0.491 | 4.085 | 0.000 | Significant |
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