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HRM3704 Assignment 3 (366456) Due 16 September 2024

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The Question SAFSI is a financial services company that specialises in providing insurance services to companies and individuals in the form of retirement annuities, and investments. They also have a section that offers car, home and life insurance. SAFSI boasts of good profits yearly. SAFSI’S HR Director, Reinhard was appointed two years ago after senior management and the board realised that there were challenges caused by the absence of a full HR representative at the senior management level. Reinhard sits at senior management meetings but also heads the HR function of SAFSI. HRM3704: Assignment 03 Semester 02 (2024) 6 He has proven to be a good choice. He holds degrees in HR and general business management, apart from his vast experience in HR, he has also led supply chain and finance units in various organisations. The senior management sees Reinhard as relevantly qualified as he is not only an HR generalist but also a business generalist. This has been witnessed in his advice to senior management on matters related to finance and SCM, however, the finance manager has not always been happy with his suggestions related to matters of finance, in his words, he said “Reinhard, kindly keep in your lane finance matters are mine and I am specialist in that field”, but other managers have always welcomed Reinhard’s ideas on finance. He has been well supported by senior management in his initiatives like the establishment of a proper employee development unit which includes talent management as its subunit. Employee development was not done properly because many employees struggled to attend training on relevant courses and workshops that would assist them in their performance because of poor or inadequate funding. The excitement of senior management about the establishment saw them asking Reinhard to infuse the internal training of leaders in his employee development portfolio. They wanted it to be internal because it would be led by senior management and the CEO. They would be fully involved in training othe

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HRM3704

Assignment 3

Semester 2

Unique No: 366456

DUE 16 September 2024

, 1.1 Leadership Competencies Required for HR Leaders at SAFSI
To effectively address the challenges posed by the former majority union at SAFSI,
HR leaders and senior management must possess several essential leadership
competencies. These include conflict resolution, strategic communication, empathy,
and negotiation skills.


▪ Conflict Resolution: HR leaders need to excel at managing conflicts. For
instance, SAFSI’s HR Director and senior management engaged the former
majority union through calm discussions and multiple meetings, which helped
de-escalate tension and clarified the situation for the union.


▪ Strategic Communication: The ability to communicate effectively is vital. The
HR Director’s skill in transparently presenting data and assuring the union that
management was fair built trust and countered accusations of bias, facilitating
better relations.


▪ Empathy: Understanding different viewpoints is crucial. Reinhard and the
senior management team showed empathy by addressing the union's
concerns and encouraging a reflection on leadership styles. This helped
reduce grievances and fostered a more collaborative environment.


▪ Negotiation Skills: Dealing with discord often requires strong negotiation
abilities. When Reinhard engaged with the union and presented relevant data,
his balanced approach was vital in reaching a peaceful resolution.


For example, by sharing accurate statistics about the union's decreasing numbers
and prompting them to investigate the reasons, Rein hard showcased these
competencies, ultimately allowing SAFSI to proceed without disruption.


1.2 Relationship Between Strategic Management and SHRM at SAFSI
Strategic management and strategic human resource management (SHRM) are
closely linked in organizations like SAFSI. Strategic management focuses on
defining and implementing the organization's major goals based on resource
assessment and environmental analysis, while SHRM ensures that HR practices
align with these strategic objectives.


At SAFSI, the HR Director plays a key role in influencing strategic decisions.
Reinhard’s involvement ensures that HR practices such as employee development

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