Subject major research papertopic international human resource managementof apple inc

MINISTRY OF EDUCATION AND TRAINING NATIONAL ECONOMICS UNIVERSITY  SUBJECT: MAJOR RESEARCH PAPER TOPIC: International Human Resource Management of Apple Inc STUDENT NAME: Lê Anh Chân – 11196457 CLASS: 61A Advanced International Business TUTOR: Nguyễn Bích Ngọc Hanoi, 2022 Table of Contents INTRODUCTION TO APPLE INC .3 General information about Apple Inc Mission, Vision and Core Values of Apple Inc 2.1 Mission 2.2 Vision 2.3 Core Values 2.4 Business culture FUNCTIONS AND PURPOSES OF INTERNATIONAL HUMAN RESOURCE MANAGEMENT IN APPLE INC Functions of Human Resource Management in Apple Inc Purposes of Human Resource Management in Apple Inc INTERNATIONAL HUMAN RESOURCE MANAGEMENT OF APPLE INC IN THE GLOBAL MARKET .9 General information about Apple Inc.’s International Human Resource Management in the Global Market .9 1.1 Recruitment and Selection 1.2 Training and Development 10 1.3 Employment Benefits and Compensation 11 1.4 Diversity and Equal Employment Opportunities 11 1.5 Employee Appreciation and Recognition 12 1.6 Career opportunity 12 1.7 How Apple motivates employees .13 1.7.1 Recruit 13 1.7.2 Benefits and incentives .13 1.7.3 Job satisfaction 15 1.7.4 Use money as a motivator 17 International Human Resource Management and Apple Inc.’s Experiences 17 2.1 Components of Pre-Departure Training 17 2.1.1 Overview 17 2.1.2 2.1.3 Culture and customs of the new country 18 Language .18 2.1.4 Business etiquette in the new environment .18 2.1.5 Business management structures and decision-making techniques 18 2.2 The rationale for Utilizing the Pre-Departure Training Components 19 2.3 Recruitment and Selection Strategy for Apple Inc.’s International Assignments 19 2.4 Importance of a High-Quality Mentoring System for International Assignees 20 2.5 Measuring Return on Investment in International Assignments 21 LESSONS FOR OTHER COMPANIES 22 REFERENCES .23 Table of Figures Figure 1: An Apple Store .4 Figure 2: Current CEO of Apple Inc Figure 3: Recruitment and selection process of Apple Inc 11 Figure 4: Apple's diverse employees 13 Figure 5: Apple's staff 16 Figure 6: Apple's staff 17 Figure 7: Apple's long line of customers waiting 24 INTRODUCTION TO APPLE INC General information about Apple Inc Apple Inc is one of the Big Four tech companies with its headquarters in California The company is known globally for its innovative solutions for computer software, electronics, and online services Since its inception in 1976, the company has been a global leader in the technology industry Figure 1: An Apple Store Apple is perhaps the ultimate definition of a company that has positioned itself as a metric of quality within the niche it operates in, and this prominence associated with Apple narrows down to its mission and vision statements In fact, Apple has grown as the driving force of innovation for over 20 years now ever since it was founded by Steve Jobs, Steve Wozniak and Ronald Wayne in 1976 Today, it is seen as the single source of revolution in the designs of personal computers among other software transformations Ideally, the vision statement of a company details what it is all about with a focus on a specified range of products and quality for its customers Mission, Vision and Core Values of Apple Inc 2.1 Mission Apple’s corporate mission is “ to bring the best user experience to its customers through its innovative hardware, software, and services ” Tim Cook, Apple’s current CEO, stated this as the company’s mission statement and included it in the 2018 annual report Through their mission statement, Apple highlights that it exists to offer its clients the best service that it can The statement also describes how the company intends to achieve this Figure 2: Current CEO of Apple Inc In this current mission statement, the company highlights the scope of its operations and how it exploits these to satisfy the needs of its client base While focusing on the dynamic technological changes over time, Apple stays clear that impacting positive change through innovation is its central objective 2.2 Vision Apple Inc.’s corporate vision is “to make the best products on earth, and to leave the world better than we found it.” Through this statement, the company highlights that they are always determined to deliver quality products to its clients The statement also points out that they intend to so for quite some time It gives a detailed account of how the company approaches its operations to position itself as the dominant player in the sector it operates 2.3 Core Values Apple Inc has core values: - Accessibility - Education - Environment - Inclusion and Diversity - Privacy - Supplier responsibility These values give us a sense of what Apple holds dear and considers vital for its success as a technology trailblazer The company ensures that it aligns all its operations with its core values so that it holds on to its position as a global technology giant 2.4 Business culture Top-notch Excellence Apple’s organizational culture comes with a policy of hiring only the best of the best in the labour market Steve Jobs was known to fire employees who did not meet his expectations This tradition continues under Tim Cook Such a tradition maintains and reinforces a corporate culture that promotes, appreciates, and expects topnotch excellence among employees This cultural trait is institutionalized in Apple’s organization Creativity This cultural characteristic pertains to new ideas that help improve the business and its products Apple’s management favours creativity among employees’ knowledge, skills, and abilities This characteristic of the corporate culture enables the company to ensure sufficient creativity, especially among employees involved in product design and development processes Innovation Apple’s organizational culture supports rapid innovation The company is frequently appraised as one of the most innovative companies in the world Based on this cultural trait, the firm trains and motivates it employees to innovate in terms of individual work performance and contributions to product development processes The corporate culture facilitates rapid innovation, which is at the heart of Apple Inc.’s business Rapid Document continues below Discover more from: International Supply chain management Đại học Kinh tế Quốc dân 119 documents Go to course Supply chain International Supply chain management 100% (3) TỔNG-HỢP - Hiệp định EVFTA 16 International Supply chain management 100% (2) Tata-Motors-SC2122 - Very good 28 International Supply chain management 100% (2) chuoi-cung-ung-dich-vu-thuc-an-nhanh-tai-viet-nam supply chain International Supply chain management 100% (1) Zara Supply chain International Supply chain management 100% (1) EMQI-K61 Group Trần Hoàng Thành Midtemr SCM International Supply chain management 100% (1) innovation ensures that the company continues to introduce new products that are profitable and attractive to target customers Secrecy Steve Jobs developed Apple to have an organizational culture of secrecy This cultural characteristic continues to define the company’s human resource development Secrecy is part of the company’s strategy to minimize theft of proprietary information or intellectual property It is also a strategic management approach that enables Apple Inc to maximize its leading edge against competitors Moderate Combativeness Apple’s organizational culture has moderate combativeness This feature is linked to Steve Jobs and his combative approach to leadership He was known to randomly challenge employees to ensure that they have what it takes to work at Apple However, under Tim Cook’s leadership, the company has been changing its corporate culture to a more sociable and a less combative one Nonetheless, combativeness remains a major influence in the business Apple’s corporate culture exhibits a moderate degree of combativeness that presents challenges that aim to enhance employees’ output FUNCTIONS AND PURPOSES OF INTERNATIONAL HUMAN RESOURCE MANAGEMENT IN APPLE INC Apple is one of the largest companies in the world, it is known for its innovations and changes that have brought in past The human resource department is constantly engaged with employees so that their capabilities can be boosted It is important for the company to develop a more future-ready and capable force All the individuals are placed on the right job at the right time which enhances efficiency (Boxall and Purcell, 2011) The HR department needs to define roles and responsibilities so that different policies can be implemented in an effective way Functions of Human Resource Management in Apple Inc Planning The HR department has to make plans for recruiting new individuals fulfilling vacant places within the organisation It is an important step as it follows Apple in ensuring that every job is being undertaken under the supervision of a specialist The company can not compromise on its core competencies which are innovation, teamwork and quality Compensation and benefits Managers of human resources in Apple Inc ensure that employees receive their salaries on time and other benefits are given to them as per requirements This keeps people loyal to the company Organizing and staffing The HR department is constantly engaged with other functions asto organise resources and use them in staffing people for vacant posts This allows managers in identifying extra expenditures and cut down costs wherever they can Training and development Employees need to be trained to keep them future-ready and committed to their job It aids in improving individual skills and boosts their career prospects Employee Engagement The HR department at Apple focuses on establishing and maintaining better relationships with people (Brewster and Hegewisch, 2017) This enables managers in directing and leading people more effectively Also, their satisfaction level is improved Safety and Risk management There are different issues that can hamper an organisation’s ability to serve People are aware of their surroundings and know about safety measures Also, there are different risks that are associated with strategies that must be followed properly for achieving targets Purposes of Human Resource Management in Apple Inc Compensation and performance The company is completely focused on ensuring that people are satisfied with the incentives and pay they are receiving Also, those who are performing at par with requirements are being benefited from additional pay or a nonmonetary prize Employee relations Managers focus on ensuring that relations between employees and management remain good and they are satisfied with their job Cultural sensitivity Apple operates in numerous countries where it has to deal with different types of people (Bratton and Gold, 2012) The HR department ensures that company policies are flexible and not hurt anyone’s sentiments Laws Different policies and plans are prepared by the HR department to ensure that people follow rules and regulations to maintain discipline Micro consumer management Employees are the internal customer of the company; Apple understands that they need to be satisfied which is why it invests heavily in human resource development Apple provides competitive packages to attract talented staff The benefits are provided based on the employment status and the geographical location of the employer (Storey, 2014) Some of the benefits provided by the company include insurance cover, employee stock purchase programs and investment and savings plans Employees are also entitled to product discounts They are also given bonuses for working with experienced talents in the industry (Grant, 2016) Apple provides flex benefits where employees are required to choose the benefits that best suit their lifestyles The Economic reward has been used as the best retention strategy by Apple Employees are awarded periodical stock grants for their contribution to the company (Rees & Smith, 2017) This is a great opportunity for employees to create wealth and realize individual accomplishments at retirement The company also embraces agility This has been the major contributing factor to its success and employee retention Employees are encouraged to shift from one manufacturing department to another (Storey, 2014) For instance, an employee can shift from the music industry to the computer and then to the smartphone industry The company encourages employees to be a master of all activities as they prepare themselves for the next big thing This strategy has motivated employees to commit their effort to the organizational culture since they are in a position to enhance their skills 1.4 Diversity and Equal Employment Opportunities Apple provides equal employment opportunities to all people regardless of their gender, race, ethnicity or disability among others (Grant, 2016) The company also employs people from diverse backgrounds As such, it has been able to attract a talented workforce from different parts of the world that have contributed to its continued success and growth 12 Figure 4: Apple's diverse employees 1.5 Employee Appreciation and Recognition The company has a program known as Apple Fellows Program was created in 1995 to recognize employees who make an extraordinary contribution to the company (Rees & Smith, 2017) Employees who receive this award are appointed as leaders They provide visionary guidance to the organization in their field of expertise (Storey, 2014) This strategy motivates employees to work hard since it is also associated with economic benefits Apple appreciates and values employees who are committed to innovation As such, the firm has attracted some of the best and most committed talents in the industry 1.6 Career opportunity The recruitment policy of Apple focuses on the suitability of the candidate to fit the organizational culture as opposed to the level of skills and experience (Grant, 2016) Apple gives the employees opportunity to advance their skills while working for the organization It provides an opportunity for training and development Employees are encouraged to learn on the job Besides, the company provides on–the–job training to allow employees to advance their skills on the job Apple also absorbs employees through an internship Those who are on internship are provided with actual learning experiences that allow them to develop in their prospective careers The internship opportunity attracts the most talented students They are provided 13 with the opportunity to develop their skills to equip them for future employment opportunities (Rees & Smith, 2017) At the end of the internship, the interns who display outstanding performance are employed Besides, those who are not fortunate to get employment from the company can get jobs immediately This is because Apple provides a real learning experience that other firms cannot provide The interns from Apple are promptly employed by other companies within the industry On-the-job training provides junior staff with the opportunity to interact with the experienced and talented workforce (Storey, 2014) In this case, they can overcome challenges that they are likely to experience in the course of their duty 1.7 How Apple motivates employees 1.7.1 Recruit People who get selected to work for one of the most prestigious organizations in the world get very excited to well before their first day at work But, Apple makes sure that their first day is highly motivational from the time they step into the office Apple does this by issuing a memo to every new employee on the very first day explaining them to how they should see their efforts and contribution to the company There has been a leak of this memo in the recent past, many people say it’s not the legitimate one but the majority believes it is It goes something like this: “There’s work and there’s your life’s work The kind of work that has your fingerprints all over it The kind of work that you’ll never compromise on That you’d sacrifice a weekend for You can that kind of work at Apple People don’t come here to play it safe They come here to swim in the deep end They want their work to add up to something Something big, something that couldn’t happen anywhere else Welcome to Apple.” This boosts the energy level of the new joiners and gives them high motivation to show off their skills and talent 1.7.2 Benefits and incentives As we all know benefits package depends upon position, location, and years with the company The same is followed by Apple as well, but they provide plenty of flexibility within the organization for employees and their families Some of the Incentives that Apple provides are: 14 Health and Life insurance Long-term care insurance - Employee stock purchase plan Financial education seminars Flexible spending accounts Short and Long-term disability coverage Tuition assistance Paid vacations and holidays Onsite fitness centre Computer Programs 401(k) Plan with company match Apple also motivates all its employees by giving them discounts on the products which is very beneficial for most of them Apple allows them to use this incentive only once every three years, but it could come in very handy when it comes to Mac or IPods Employees who work at the management or corporate level can receive a free iPod shuffle or iPhone Many employees at Apple are simply motivated to see the outcome of their efforts on a particular product instead of money can sometimes be very encouraging for the employees to learn more and perform better It also proves to be good for the company as giving products is cheaper than giving them a raise Due to high sales in the recent past for Apple, they have provided the employees with more vacation days which again add up to the motivational benefits from the management’s point of view 15 Figure 5: Apple's staff While few workers have complained regarding the salary provided, many Apple employees praised the benefits provided to them – even if they only worked part-time At present, Apple provides workers who work 20 or more hours a week with 401k and health benefits Most jobs are available both full-time and part-time, besides the managerial positions Apple takes in many employees on a seasonal basis, especially during the back-to-school period or Christmas holidays starting from Thanksgiving Although they are offered these benefits, many workers say that these plans are costlier than their full-time counterparts The above indicates that there is a difference in benefits and incentives provided to fulltime employees when compared to part-time employees This is mainly because of the amount of work the full-time employee does under such immense pressure, whereas, part-time employees not necessarily work the entire week because their schedule is changed on every weekly basis Another reason could be that part-time workers don’t require the rest of the benefits as they are there only for a limited period 1.7.3 Job satisfaction 16 The “new” CEO of Apple Tim Cook has been leaving his mark on the company very firmly Recently in Wall Street Journal, it was reported that Cook is expanding the corporate benefits, such as taking some time off and the freedom to work on personal projects Although Apple still provides fewer perks compared to some other big companies like Google, Microsoft, etc Cook’s approach in the recent past has been the differentiating factor between him and Steve Jobs When Wall Street Journal interviewed certain Apple engineers last year they had many good things to share or say about Cook rather than Steve Jobs They gave examples like Cook being willing to eat with the lower level of employees at the cafeteria, being much keener to publicly recognize the work done by his employees, and him starting the charitable matching program at Apple last year They concluded by saying that he is way more approachable than Steve Jobs was Figure 6: Apple's staff All these recent activities done by Cook will lead to better job satisfaction than what Apple had earlier Steve Jobs wasn’t that much interested in the motivational sector, although he did a lot for the employees during the entire period that he served at Apple as a CEO But, Cook has shown much more concern and interest in employee welfare by adopting new techniques and making himself more accessible to the employees This 17 gives the employees much better satisfaction as they now have growing incentives and make them feel what they is known to the world through their name 1.7.4 Use money as a motivator One of the process theories which is the “goal-setting theory” applies to the firm and focuses on the motivational properties of task goals Employees within the company are highly motivated to attain task goals, which provide direction to employees in their work The proper framework & management of goals within Apple helps clear outperformance expectations in the organization They provide a base for behavioural self-management, which helps employees to improve their performance and be motivated on their job Apple applies the reinforcement theory of motivation because it focuses on the external environment and the consequences it holds for the individual The organization mostly applies the positive reinforcement strategy which strengthens or increases the frequency of desirable behaviour by making a pleasant consequence contingent on its occurrence Examples of positive reinforcement at Apple include the rewards given by Jobs as mentioned above (opening champagne, vacations, company parties) All employees are motivated to their best work to accomplish goals because of the rewards they can receive The incentive compensation system is another method that Apple uses to motivate employees This includes bonus pay, which provides payments for accomplishing the targets or goals given to the specific employee during a particular period They also have an employee stock ownership plan as mentioned earlier The performance incentive and ownership’s share of one’s employment are directly linked to each other Employees who hold stock of the company are self-motivated to work hard and perform better to raise the market value of the organization Apple Inc tries to keep a balance between both financial and non-financial motivators Although many times it indicated that Apple uses monetary terms more for the welfare of the employee mainly because then the employee can use it the way he likes it The organization also uses non-monetary means to keep its employees pumped up frequently but Apple prefers to use financial incentives This could be in wages/salary form, bonus (executives paid 3-5% of their base salary), paid leave, to be able to buy stocks at a cheaper value, different insurance policies, etc 18 International Human Resource Management and Apple Inc.’s Experiences 2.1 Components of Pre-Departure Training 2.1.1 Overview According to Avril and Magnini (2007), pre-departure training provides expatriates with the knowledge and skills required to survive following their immediate arrival at the destined country of work Essentially, employees going to work in another country require information on various aspects of the host nation before they leave home 2.1.2 Culture and customs of the new country Training in the host country’s customs is essential in ensuring that the expatriates adapt to the local culture It is noted that business operations would be negatively affected if the behaviour patterns of the new employees conflict with the cultural expectations in the host country For instance, a US citizen working for Apple Inc may be deployed to Saudi Arabia Such an employee should be aware of how Saudi nationals regard alcohol In addition, female employees would be expected to conform to societal expectations with regard to their dress code 2.1.3 Language Language is an essential component of communication in international business Expatriates and inpatriates require more than just basic knowledge of the host country’s language for effective execution of their assignments In addition, they should be aware of non-verbal communication techniques Such awareness would facilitate communication in foreign countries 2.1.4 Business etiquette in the new environment Business etiquette may vary between countries In some parts of the world, governments regulate business policies For instance, such elements as tax policies, power distance, and human resource management may differ from one country to the other (Katz & Seifer, 1996) 19 An expatriate manager at Apple Inc would be required to understand the variation of such policies Failure to comply with the new rules and regulations would most likely jeopardize the operations of the corporation in the host market 2.1.5 Business management structures and decision-making techniques Different countries adopt different approaches in relation to business structures and decision-making techniques For instance, decision-making in high-power distance cultures differs from that in low-power distance communities As such, a manager working for Apple’s branch in Korea should be aware of the best approach to adopt in directing employees The same applies to a German employee working in Africa, where decisions usually come from the top management 2.2 The rationale for Utilizing the Pre-Departure Training Components Managers are expected to effectively handle employees from different cultural backgrounds The ability of such managers as far as the employees are concerned affects the profitability of the company People from different countries express their nationality and dress codes differently The approach used by international assignees when dealing with certain problems may also differ Such issues as the need to interpret actions and comments, predict behaviours, and resolve conflicts may arise As a result, focusing on the various components of predeparture training would harmonize Apple’s operations with the reality in the host country 2.3 Recruitment and Selection Strategy for Apple Inc.’s International Assignments According to Suutari and Brewster (2000), international assignments entail three discrete phases The first is the pre-assignment stage It involves the selection and preparation of employees for deployment The second is the ‘actual’ assignment It involves the ‘actual’ 20 stay of the expatriate in the new country The last is the post-assignment stage It is also commonly known as repatriation The strategy is the most suitable recruitment and selection criteria for Apple Inc It is noted that measuring relevant cross-cultural and interpersonal abilities is a difficult task for many organizations In addition, most expatriate postings rely on personal recommendations Such recommendations are derived from either line managers or specialist personnel (Suutari & Brewster, 2000) As such, Apple should rely on the proposed recruitment and selection policy The strategy would reduce the chances of failure in the assigned job 2.4 Importance of a High-Quality Mentoring System for International Assignees Mentorship refers to a form of developmental relationship In this case, an experienced employed assists less experienced members of staff in performing their tasks The mentors can function as guides in the exploration of career interests They provide support to international assignees deployed by multinational organizations Mentoring systems for expatriates can be formal or informal The former describes established procedures and specified targets The latter, on the other hand, is initiated whenever the assignees seek advice from their superiors or from external professionals A high-quality mentoring system is very important to any multinational organization It determines the success or failure of foreign employees In most cases, the programs provide the management with an opportunity to support the assignees The support is especially important during the departure or repatriation phases of the assignment As such, the programs are powerful means of strategically retaining valuable employees with international experience High-quality mentoring programs also help the employees to adjust to their new environment It improves their productivity and overall performance in their new posts In addition, the programs provide continuous communication on changes in the company 21 and the state of affairs back at home As a result, the expatriates can effectively cope with transfers, expatriation, and repatriation The current global economic meltdown has led to cost constraints in most organizations As such, it is important for organizations to have the right people at the right place Highquality mentorship programs are very essential in the management of talent and employees To this end, Apple Inc employees should always have a mentor irrespective of their position in the foreign country The mentors should supervise the assignee with a view to supporting their development They should assist the new employee for a given period of time Prior to the assignment, the employee must undergo extensive pre-departure training The training will help them settle down in the host country 2.5 Measuring Return on Investment in International Assignments Every business undertaking requires a mechanism to determine its subsequent return on investment The same applies to international assignments in multinational organizations The companies should analyze the profitability or importance of international assignments to the parent organization Studies conducted with the aim of measuring return on investment with regards to international human resources have focused on numerical results of foreign deployments In most cases, the costs and returns associated with the investment are used to determine its profitability (Caligiuri, 1997) To determine Apple Inc.’s return on investment, one should take into consideration a number of factors The various aspects of international human resource management would help in assessing the profitability of foreign employees The factors include identification of the assignment’s purposes, cross-cultural training costs (Dowling et al., 2004), and compensation 22 In addition, performance management and repatriation outcomes should be factored in Calculation of return on investment would eventually be ascertained by analyzing the financial and non-financial costs and benefits of the venture The costs and benefits are then linked to the expenditure incurred with regard to the assignment LESSONS FOR OTHER COMPANIES According to the above information about the International Human Resource Management of Apple Inc, there are lots of valuable lessons that other companies can learn from Apple The lessons are mentioned below as the unique strategies of Apple be summarised 23 Apple focuses on the candidate who is hardworking, loyal and derives every precise detail perfectly For adhering to its working culture, Apple’s most the employee is provided with training once they joined the company This organization work in a dynamic environment and adopts innovative approaches that were later refined into selective hiring, performance reward, and 360-degree evaluation The entire team member is competing with each other to innovate highly advantageous product that makes them self-efficient The company also created a culture to identify the person who holds out-of-the-box thinking and led anyone to brainstorm and about the ideas changes This makes Apple create performance-based opportunities for their employee whose invented products inspired them to perform better than the rest Figure 7: Apple's long line of customers waiting REFERENCES Armstrong, M and Taylor, S., 2014 Armstrong’s handbook of human resource management practice Kogan Page Publishers Bau, C.V.S., Switcheasy Limited, 2013 Combination of the protective casing and stand for a portable handheld electronic device U.S Patent D678,260 24 Grant, R.M., 2016 Contemporary strategy analysis: Text and cases edition John Wiley & Sons Jackson, S.E., Schuler, R.S and Jiang, K., 2014 An aspirational framework for strategic human resource management Academy of Management Annals, 8(1), pp.1-56 Jarvis, D.W., Mittleman, A.D., Xu, M and Tam, C.Y.J., Apple Inc., 2014 Portable electronic device U.S Patent 8,731,618 Rees, G and Smith, P eds., 2017 Strategic human resource management: An international perspective Sage Sparrow, P., Brewster, C and Chung, C., 2016 Globalizing human resource management Routledge Storey, J., 2014 New Perspectives on Human Resource Management (Routledge Revivals) Routledge Girish Shah., 2020 Picking The Right Apple 2022 Introduction of Apple Company PhD Essay Boris Caesar M Bejenia Best Hr Practices of Apple Avril, A., & Magnini, V (2007) A holistic approach to expatriate successes International Journal of Contemporary Hospitality Management, 19(1), 53-64 Caligiuri, P (1997) Assessing expatriate success: Beyond just “being there” New Approaches to Employee Management, 4(1), 117-140 Dowling, P., Welch, D., & Schuler, R (2004) International human resource management: Managing people in a multicultural context (4th ed.) Cincinnati, OH: Southwestern College Publishing Katz, J., & Seifer, D (1996) It is a different world out there: Planning for expatriate success through selection, pre-departure training, and on-site socialization Human Resource Planning, 19(2), 32-47 Suutari, V., & Brewster, C (2000) Making their own way: International experience through self-initiated foreign assignments Journal of World Business, 35(4), 417-436 25 26