Dear Mr.shaik, what is KRA(key reposiblity area)/kPI, can you explain this please. thanks Sekar
From United Arab Emirates, Sharjah
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From United Arab Emirates, Sharjah
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KPI is Key Performance Incentive. It is usually implemented for back office staff. A freezed incentive will be fixed by the management and will be given to the employee on basis of his performance.
From India, Thiruvananthapuram
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From India, Thiruvananthapuram
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Dear Sekar, Kindly click on the links in the sidebar at the right of this box and you will find your answer. Also, kindly tell us what you do and why you are seeking an explanation.
From United Kingdom
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1639From United Kingdom
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Hi,
KRA = Key Result Area
At first, the Board of Directors (BOD) decides upon the objectives of the company and sets a period-specific target. This target becomes the KRA of the CEO. Then it gets divided until it reaches the bottom-most rung. The KRA of each person is linked, and fulfillment of KRA will lead to the fulfillment of the objectives set by the BOD. Hence, if one person fails, it will hamper the attainment of the desired result.
Let me give you an example:
The company sells PCs. Suppose the objective decided by the Board is to make a profit of 500 crores in 3 years. The KRA of CEO is to attain 500 crore profit in 3 years. The CEO decides to attain this by making 400 crores by selling PCs, 50 crores by investing in stocks, and 50 crores by improving the productive cycle.
Now, the KRA of the Chief Marketing Officer will be to sell PCs that will give the company 400 crore profit in 3 years. He will then set the KRAs for his subordinates in such a way that this target is achieved. The Chief Operating Officer has the KRA of improving the productivity cycle and producing PCs by which 400 crores can be achieved. The Chief Finance Officer will, as KRA, have to look after investing in stock and providing finance for the purchase of raw materials, machinery, and others so that both Operation and Marketing can achieve their KRAs.
Chief People Officer (HR) [Generally KRA is difficult or not done for HR since they are essentially a support function, but in some cases it is done]
CPO, as his KRA, will have the following tasks: providing for manpower and maintaining a harmonious industrial relationship so that there is no disruption in production or marketing, providing training to improve skills to attain a better productivity cycle, and framing a compensation benefit structure by which efficient employees can be retained.
The Chiefs then divide the KRA further to their subordinates. For example, the KRA of the Manager (Training) under CPO will be to provide adequate training to the workforce. Hence, if the Manager (Training) fails, that will be reflected in the KRA of both CPO and COO and CEO. Similarly, if the KRA of the Assistant Manager (Training) is to locate the training institutes which can impart quality training, and he is not able to achieve it, it will reflect in the KRA of Manager (Training), CPO, COO, and CEO.
Suppose the Deputy Manager (Training) is supposed to conduct the Training Programs, which could not be carried out since funds for training, which were supposed to be arranged by the Deputy Manager (Finance), could not be arranged. Now, you can see this failure will reflect in the KRA of Deputy Manager (Finance), Manager (Finance), CFO, Deputy Manager (Training), Manager (Training), and CPO, COO, and CEO.
Key Result Areas - The measure of an employee's main positive results.
KPI = Key Performance Indicator
Key business statistics such as the number of new orders, cash collection efficiency, and return on investment (ROI), which measure a firm's performance in critical areas. KPIs show the progress (or lack of it) toward realizing the firm's objectives or strategic plans by monitoring activities which, if not properly performed, would likely cause severe losses or outright failure.
From Singapore, Singapore
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KRA = Key Result Area
At first, the Board of Directors (BOD) decides upon the objectives of the company and sets a period-specific target. This target becomes the KRA of the CEO. Then it gets divided until it reaches the bottom-most rung. The KRA of each person is linked, and fulfillment of KRA will lead to the fulfillment of the objectives set by the BOD. Hence, if one person fails, it will hamper the attainment of the desired result.
Let me give you an example:
The company sells PCs. Suppose the objective decided by the Board is to make a profit of 500 crores in 3 years. The KRA of CEO is to attain 500 crore profit in 3 years. The CEO decides to attain this by making 400 crores by selling PCs, 50 crores by investing in stocks, and 50 crores by improving the productive cycle.
Now, the KRA of the Chief Marketing Officer will be to sell PCs that will give the company 400 crore profit in 3 years. He will then set the KRAs for his subordinates in such a way that this target is achieved. The Chief Operating Officer has the KRA of improving the productivity cycle and producing PCs by which 400 crores can be achieved. The Chief Finance Officer will, as KRA, have to look after investing in stock and providing finance for the purchase of raw materials, machinery, and others so that both Operation and Marketing can achieve their KRAs.
Chief People Officer (HR) [Generally KRA is difficult or not done for HR since they are essentially a support function, but in some cases it is done]
CPO, as his KRA, will have the following tasks: providing for manpower and maintaining a harmonious industrial relationship so that there is no disruption in production or marketing, providing training to improve skills to attain a better productivity cycle, and framing a compensation benefit structure by which efficient employees can be retained.
The Chiefs then divide the KRA further to their subordinates. For example, the KRA of the Manager (Training) under CPO will be to provide adequate training to the workforce. Hence, if the Manager (Training) fails, that will be reflected in the KRA of both CPO and COO and CEO. Similarly, if the KRA of the Assistant Manager (Training) is to locate the training institutes which can impart quality training, and he is not able to achieve it, it will reflect in the KRA of Manager (Training), CPO, COO, and CEO.
Suppose the Deputy Manager (Training) is supposed to conduct the Training Programs, which could not be carried out since funds for training, which were supposed to be arranged by the Deputy Manager (Finance), could not be arranged. Now, you can see this failure will reflect in the KRA of Deputy Manager (Finance), Manager (Finance), CFO, Deputy Manager (Training), Manager (Training), and CPO, COO, and CEO.
Key Result Areas - The measure of an employee's main positive results.
KPI = Key Performance Indicator
Key business statistics such as the number of new orders, cash collection efficiency, and return on investment (ROI), which measure a firm's performance in critical areas. KPIs show the progress (or lack of it) toward realizing the firm's objectives or strategic plans by monitoring activities which, if not properly performed, would likely cause severe losses or outright failure.
From Singapore, Singapore
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Dear all,
KPI stands for Key Performance Indicator, as mentioned by Mr. Netaji. These are generally derived from the entire scope of the activity assigned for a role. They are in metrics of measurable results through which an employee's rating is determined to ascertain increments, bonuses, or other benefits as decided by management. For example, if you are an HR professional handling employees, then the KPIs may include attrition control, counseling results compared to resignations, employee attendance, number of programs involving employees initiated by you, etc.
I hope I have at least made the idea clear.
Thank you.
From India, Madras
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KPI stands for Key Performance Indicator, as mentioned by Mr. Netaji. These are generally derived from the entire scope of the activity assigned for a role. They are in metrics of measurable results through which an employee's rating is determined to ascertain increments, bonuses, or other benefits as decided by management. For example, if you are an HR professional handling employees, then the KPIs may include attrition control, counseling results compared to resignations, employee attendance, number of programs involving employees initiated by you, etc.
I hope I have at least made the idea clear.
Thank you.
From India, Madras
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