International Human ResourceThis paper will deal with the subject of human resource management. Across three sections it will describe a range of hard and soft goals that can be used, how these goals may be weighted or treated differently for expat employees and local employees and lastly will give examples and applications regarding the above two sections. A goal is a projected state of affairs that a system or organization plans or intends to achieve. It is an organizational end point in some sort of development. It is in essence the direction towards which effort is directed.
Many organizations aim to achieve their goals within a finite duration of time by setting deadlines (Goldratt and Cox, 1992). Goals are utilized to model agents’ relationship and subsequently to connect organizational needs to system requirements (Wimmer, 2004). Most companies follow a mixture of hard and soft goals. A goal is classified as hard when the criterion for its achievement is clearly set out and sharply defined. Hard goals are based on the traditional measures of financial performance. Soft goals are concerned with what the company wishes to achieve and where it wants to be as a social entity.
As opposed to hard goals soft goals do not have a clear cut specified criteria to decide whether the goal has been satisfied or not. For a soft goal it is up to the original goal maker or an agreement between concerned agents to decide whether the goal has been achieved (Miltenburg, 2005). Soft goals can only be partially achieved. The kind of goals sought in a business strategy depends on the organization’s internal capabilities and the opportunities and threats in its external environment.
Goals can be both short term as well as long term. Short term goals compel managers to make changes today and produce immediate results and show performance improvements. Long term goals on the other hand force managers to make changes today and for the company to improve and succeed in the future. However for a company to be successful, it goals must be consistent. Hard goals include financial goals, customer goals, operations goals, safety goals and employee goals. . The financial health of an organization needs to be focused on and for this an appropriate task would be to set specific financial goals and objectives.
Financial goals generally address overall profitability, returns on investment, revenue growth and the financial strength of the company as such. In order to set effective financial goals, first the company’s key performance issues must be identified from a financial perspective. Following this performance targets must be identified and then these must be incorporated into financial goals. Some examples of financial goals include, increasing shareholder dividends by 1%, increase market share by 10% over the next three years, increase ratio of profit to sales by 10%, reduce uncollectible debt by 20%, maintain return on equity at a minimum of 10% etc (Max and Bacal, 2004).
These goals become the company’s performance measures. By developing financial goals greater clarity is obtained on how the company is expected to perform.