Hi All
Greetings
I am working in a service industry for the past one year. Recently I have completed my performance appraisal system with our director and I have submitted full list of my achievement during the said year. [I have streamlined basic HR/IR activities]
Now my director asking my KRA/Plan for next year [i.e.2006-07]. In this regard I need
help from you.
As a HR Person what I have to write for my KRA for the coming year. Please guide me
Regards
MKS
From India, Madras
2Greetings
I am working in a service industry for the past one year. Recently I have completed my performance appraisal system with our director and I have submitted full list of my achievement during the said year. [I have streamlined basic HR/IR activities]
Now my director asking my KRA/Plan for next year [i.e.2006-07]. In this regard I need
help from you.
As a HR Person what I have to write for my KRA for the coming year. Please guide me
Regards
MKS
From India, Madras
I presume you report directly to the Director. Your KRA/Plan should be the result of a dialog between you and your manager. It starts with looking at the strategic objectives of the company to find out what is important to the company for the coming year. A more detailed picture for your department should be in your department’s operational plan/department plan. This is the next place to look. Over the previous year, your Director will have had conversations with you about what he/she sees as important in your role and your tasks. Take these into consideration as well. Lastly, make a time with your Director to discuss what he/she sees as important for your role for the coming year.
On the basis of all of this, you can then draft your KRA/Plan. I don’t know whether you have a strategic or operational role, so I can’t guide you on what your KRAs could look like. But think about the key aspects of your role – record keeping, policy writing, counseling, planning, etc. Does your company have examples of KRAs that you can refer to, and does it have a KRA/Plan template? This will help you in structuring and formatting your KRA/Plan.
Vicki Heath
http://www.businessperform.com
From Australia, Melbourne
On the basis of all of this, you can then draft your KRA/Plan. I don’t know whether you have a strategic or operational role, so I can’t guide you on what your KRAs could look like. But think about the key aspects of your role – record keeping, policy writing, counseling, planning, etc. Does your company have examples of KRAs that you can refer to, and does it have a KRA/Plan template? This will help you in structuring and formatting your KRA/Plan.
Vicki Heath
http://www.businessperform.com
From Australia, Melbourne
Often, the role and scope of HR in service industries could be
varied. At this stage , I have no knowledge of your real role.
What I am suggesting is a general one .
Key Result Areas
“Key Result Areas” or KRAs refer to general areas of outcomes or outputs for which the department's role is responsible.
Identifying KRAs helps individuals: · Clarify their roles · Align their roles to the organisation’s business or strategic plan · Focus on results rather than activities · Communicate their role’s purposes to others · Set goals and objectives · Prioritize their activities, and therefore improve their time/work management · Make value-added decisions
---------------------------------------------------------------------------------------------------------------------------------------------------------
CORE KRAs of HR DEPARTMENT
-RECRUITMENT/ SELECTION
-WORKFORCE PLANNING/
-DIVERSITY MANAGEMENT
-PERFORMANCE MANAGEMENT
-REWARD MANAGEMENT
-WORKPLACE MANAGEMENT
-INDUSTRIAL RELATIONS
-SAFETY AND HEALTH WORKPLACE
-BUILDING CAPABILITIES AND ORGANIZATION LEARNING
-EFFECTIVE HR MANAGEMENT SYSTEMS , SUPPORT AND MONITORING
============================================-=======
KRAs [ KEY RESULT AREAS are managed by
-KPAs [ KEY PERFORMANCE AREAS]
-KPIs [KEY PERFORMANCE INDICATORS]
KEY PERFORMANCE AREAS
These are the areas within the HR DEPARTMENT, where an
individual or group, is logically responsible / accountable
for the results.
To manage each KRA/ KPAs, a set of KPI are set .
KRA and hence KPI is attributed to the department which
can have effect on the business results and is
self measured where applicable.
THE IMPORTANCE AND WEIGHTAGE OF THESE ELEMENTS
KRAs/KPAs/ KPIs ARE GUIDED BY THE
*VISION STATEMENT
*MISSION STATEMENT
*CORPORATE OBJECTIVES
*CORPORATE STRATEGY
*CORPORATE BUSINESS UNITS/ DEPARTMENTAL PLANS/STRATEGY.
FOR THE BUDGET PERIOD, WHICH IS USUALLY 12 MONTHS.
---------------------------------------------------------------------------------------
SO FROM YOUR POINT, CHECK WITH YOUR BOSS
THE ABOVE LISTED 5 CORPORATE STATEMENTS,
WHICH WILL HELP YOU TO DEVELOP YOUR KRAs
for the next 12 months.
=============================================
================================================== ====
The evaluation of HR DEPARTMENT can have four levels of
perspective.
1. Strategic Perspective — the results of strategic initiatives managed by the HR group. The strategic perspective focuses on the measurement of the effectiveness of major strategy-linked people goals. For instance, the business strategy called for major organizational change programs as the business faced major restructuring and multiple mergers and acquisitions. In this context, the organization’s change management capability will be a key factor in the success or failure of its execution. Therefore, measuring the ability of the business to manage change effectively is the core measure of the effectiveness of HR and will be a key strategic contribution to the future success of the business.
EXAMPLES
-change management capability of the organization
-organization compensation and benefit package with respect market rate.
-organization culture survey
-HR BUDGET / ACTUAL
-HR COSTS BENCHMARK EXTERNALLY
-HR annual resource plan.
-skills/ competency level
etc
2.Operational Perspective — the operational tasks at which HR must excel. This piece of the Balanced Scorecard provides answers to queries about the effectiveness and efficiency in running HR processes that are vital to the organization. Examples include measuring HR processes in terms of cost, quality and cycle time such as time to fill vacancies.
EXAMPLES
-time taken to fill vacancies
-cost per recruitment promotions
-absenteeism by job category
-accident costs
-accident safety ratings
-training cost per employee
-training hours per employee
-average employee tenure in the company
-lost time due to injuries
-no. of recruiting advertising programs
-no. of employees put through training.
-turnover rate
-attrition rate
etc
3.Financial Perspective — this perspective tries to answer questions relating to the financial measures that demonstrate how people and the HR function add value to the organization. This might include arriving at the value of the human assets and total people expenses for the company. HR
EXAMPLES
-compensation and benefits per employee
-sales per employee
-profit per employee
-cost of injuries
-HR expenses per employee
-turnove cost
-employee '' workers compensation costs''
etc
4.Customer Perspective — this focuses on the effectiveness of HR from the internal customer viewpoint. Are the customers of HR satisfied with their service; are service level agreements met; do the customers think they can get better service elsewhere? Conducting an HR customer survey might typically arrive at this.
EXAMPLES
-employee perception of the HRM
-employee perception of the company , as an employer
-customer/market perception of the company, as an employer.
etc
================================================== ======
HERE IS SOME EXAMPLES, WHICH YOU CAN USE TO DEVELOP
OTHERS FOR YOUR ORGANIZATION.
CORPORATE OBJECTIVE / STRATEGY
-improve the company competitive positioning and productivity
by 10%.
HR DEPARTMENT'S OBJECTIVE
-Achieve high productivity level in all activities [ say by 10%]
KRA 1
-RECRUITMENT/ SELECTION
========================
KPA 1 --RECRUITMENT
KPI ----reduce average time taken to fill vacancies by 15%
KPI ----reduce average cost per recruit by 10%
----------------------------------------------------------------
KRA 2
-WORKPLACE MANAGEMENT
========================
KPA 1-labour turnover
KPI ---reduce the labor turnover by 20%
KPI ----benchmark total HR COSTS externally.
------------------------------------------------------------------
KRA 3
-SAFETY AND HEALTH WORKPLACE
==============================
KPA 1 ---workplace accidents
KPI ----reduce workplace accidents by 10%
-------------------------------------------------------
KRA 4
-BUILDING CAPABILITIES AND ORGANIZATION LEARNING
==============================================
KPA 1 ----TRAINING
KPI --- ALL WORKFORCE below middle management should
receive a minimum of 4 days of training.
--------------------------------------------------------------------------
=========================================
THIS IS , ROUGHLY, HOW HR DEPARTMENTS
KRAs / KPAs / KPIs ARE SET , MONITORED AND
EVALUATED.
SO, NOW WHAT YOU HAVE TO DO IS,
-FIRST , CHECK WITH YOUR BOSS, THE CORPORATE
STATEMENTS
----------------------------------------------------------------
-SECOND, LIST THE KRAs - 10 of them as shown below
CORE KRAs of HR DEPARTMENT
-RECRUITMENT/ SELECTION
-WORKFORCE PLANNING/
-DIVERSITY MANAGEMENT
-PERFORMANCE MANAGEMENT
-REWARD MANAGEMENT
-WORKPLACE MANAGEMENT
-INDUSTRIAL RELATIONS
-SAFETY AND HEALTH WORKPLACE
-BUILDING CAPABILITIES AND ORGANIZATION LEARNING
-EFFECTIVE HR MANAGEMENT SYSTEMS , SUPPORT AND MONITORING
------------------------------------------------------------------
-THIRD, FOR EACH KRA, indentify the KPA [ key performance areas]
THE SELECTION OF THESE KPAs will be guided by your
corporate objectives / strategies.
-------------------------------------------------------------------------
-FOURTH , DEVELOP KPI [key performance indicators]
for each KPAs.
THIS COMPLETE SET UP IS YOUR NEXT 12 MONTH
PERFORMANCE CRITERIA.
-----------------------------------------------------------------------------
IF YOU HAVE OTHER KRAs , OTHER THAN HR
EXAMPLE
-ADMINISTRATION
-OPERATION
-COMMUNICATION
-QUALITY
ETC ETC
YOU MUST INCLUDE THEM TOO.
HOPE THIS IS USEFUL TO YOU
REGARDS
LEO LINGHAM
From India, Mumbai
varied. At this stage , I have no knowledge of your real role.
What I am suggesting is a general one .
Key Result Areas
“Key Result Areas” or KRAs refer to general areas of outcomes or outputs for which the department's role is responsible.
Identifying KRAs helps individuals: · Clarify their roles · Align their roles to the organisation’s business or strategic plan · Focus on results rather than activities · Communicate their role’s purposes to others · Set goals and objectives · Prioritize their activities, and therefore improve their time/work management · Make value-added decisions
---------------------------------------------------------------------------------------------------------------------------------------------------------
CORE KRAs of HR DEPARTMENT
-RECRUITMENT/ SELECTION
-WORKFORCE PLANNING/
-DIVERSITY MANAGEMENT
-PERFORMANCE MANAGEMENT
-REWARD MANAGEMENT
-WORKPLACE MANAGEMENT
-INDUSTRIAL RELATIONS
-SAFETY AND HEALTH WORKPLACE
-BUILDING CAPABILITIES AND ORGANIZATION LEARNING
-EFFECTIVE HR MANAGEMENT SYSTEMS , SUPPORT AND MONITORING
============================================-=======
KRAs [ KEY RESULT AREAS are managed by
-KPAs [ KEY PERFORMANCE AREAS]
-KPIs [KEY PERFORMANCE INDICATORS]
KEY PERFORMANCE AREAS
These are the areas within the HR DEPARTMENT, where an
individual or group, is logically responsible / accountable
for the results.
To manage each KRA/ KPAs, a set of KPI are set .
KRA and hence KPI is attributed to the department which
can have effect on the business results and is
self measured where applicable.
THE IMPORTANCE AND WEIGHTAGE OF THESE ELEMENTS
KRAs/KPAs/ KPIs ARE GUIDED BY THE
*VISION STATEMENT
*MISSION STATEMENT
*CORPORATE OBJECTIVES
*CORPORATE STRATEGY
*CORPORATE BUSINESS UNITS/ DEPARTMENTAL PLANS/STRATEGY.
FOR THE BUDGET PERIOD, WHICH IS USUALLY 12 MONTHS.
---------------------------------------------------------------------------------------
SO FROM YOUR POINT, CHECK WITH YOUR BOSS
THE ABOVE LISTED 5 CORPORATE STATEMENTS,
WHICH WILL HELP YOU TO DEVELOP YOUR KRAs
for the next 12 months.
=============================================
================================================== ====
The evaluation of HR DEPARTMENT can have four levels of
perspective.
1. Strategic Perspective — the results of strategic initiatives managed by the HR group. The strategic perspective focuses on the measurement of the effectiveness of major strategy-linked people goals. For instance, the business strategy called for major organizational change programs as the business faced major restructuring and multiple mergers and acquisitions. In this context, the organization’s change management capability will be a key factor in the success or failure of its execution. Therefore, measuring the ability of the business to manage change effectively is the core measure of the effectiveness of HR and will be a key strategic contribution to the future success of the business.
EXAMPLES
-change management capability of the organization
-organization compensation and benefit package with respect market rate.
-organization culture survey
-HR BUDGET / ACTUAL
-HR COSTS BENCHMARK EXTERNALLY
-HR annual resource plan.
-skills/ competency level
etc
2.Operational Perspective — the operational tasks at which HR must excel. This piece of the Balanced Scorecard provides answers to queries about the effectiveness and efficiency in running HR processes that are vital to the organization. Examples include measuring HR processes in terms of cost, quality and cycle time such as time to fill vacancies.
EXAMPLES
-time taken to fill vacancies
-cost per recruitment promotions
-absenteeism by job category
-accident costs
-accident safety ratings
-training cost per employee
-training hours per employee
-average employee tenure in the company
-lost time due to injuries
-no. of recruiting advertising programs
-no. of employees put through training.
-turnover rate
-attrition rate
etc
3.Financial Perspective — this perspective tries to answer questions relating to the financial measures that demonstrate how people and the HR function add value to the organization. This might include arriving at the value of the human assets and total people expenses for the company. HR
EXAMPLES
-compensation and benefits per employee
-sales per employee
-profit per employee
-cost of injuries
-HR expenses per employee
-turnove cost
-employee '' workers compensation costs''
etc
4.Customer Perspective — this focuses on the effectiveness of HR from the internal customer viewpoint. Are the customers of HR satisfied with their service; are service level agreements met; do the customers think they can get better service elsewhere? Conducting an HR customer survey might typically arrive at this.
EXAMPLES
-employee perception of the HRM
-employee perception of the company , as an employer
-customer/market perception of the company, as an employer.
etc
================================================== ======
HERE IS SOME EXAMPLES, WHICH YOU CAN USE TO DEVELOP
OTHERS FOR YOUR ORGANIZATION.
CORPORATE OBJECTIVE / STRATEGY
-improve the company competitive positioning and productivity
by 10%.
HR DEPARTMENT'S OBJECTIVE
-Achieve high productivity level in all activities [ say by 10%]
KRA 1
-RECRUITMENT/ SELECTION
========================
KPA 1 --RECRUITMENT
KPI ----reduce average time taken to fill vacancies by 15%
KPI ----reduce average cost per recruit by 10%
----------------------------------------------------------------
KRA 2
-WORKPLACE MANAGEMENT
========================
KPA 1-labour turnover
KPI ---reduce the labor turnover by 20%
KPI ----benchmark total HR COSTS externally.
------------------------------------------------------------------
KRA 3
-SAFETY AND HEALTH WORKPLACE
==============================
KPA 1 ---workplace accidents
KPI ----reduce workplace accidents by 10%
-------------------------------------------------------
KRA 4
-BUILDING CAPABILITIES AND ORGANIZATION LEARNING
==============================================
KPA 1 ----TRAINING
KPI --- ALL WORKFORCE below middle management should
receive a minimum of 4 days of training.
--------------------------------------------------------------------------
=========================================
THIS IS , ROUGHLY, HOW HR DEPARTMENTS
KRAs / KPAs / KPIs ARE SET , MONITORED AND
EVALUATED.
SO, NOW WHAT YOU HAVE TO DO IS,
-FIRST , CHECK WITH YOUR BOSS, THE CORPORATE
STATEMENTS
----------------------------------------------------------------
-SECOND, LIST THE KRAs - 10 of them as shown below
CORE KRAs of HR DEPARTMENT
-RECRUITMENT/ SELECTION
-WORKFORCE PLANNING/
-DIVERSITY MANAGEMENT
-PERFORMANCE MANAGEMENT
-REWARD MANAGEMENT
-WORKPLACE MANAGEMENT
-INDUSTRIAL RELATIONS
-SAFETY AND HEALTH WORKPLACE
-BUILDING CAPABILITIES AND ORGANIZATION LEARNING
-EFFECTIVE HR MANAGEMENT SYSTEMS , SUPPORT AND MONITORING
------------------------------------------------------------------
-THIRD, FOR EACH KRA, indentify the KPA [ key performance areas]
THE SELECTION OF THESE KPAs will be guided by your
corporate objectives / strategies.
-------------------------------------------------------------------------
-FOURTH , DEVELOP KPI [key performance indicators]
for each KPAs.
THIS COMPLETE SET UP IS YOUR NEXT 12 MONTH
PERFORMANCE CRITERIA.
-----------------------------------------------------------------------------
IF YOU HAVE OTHER KRAs , OTHER THAN HR
EXAMPLE
-ADMINISTRATION
-OPERATION
-COMMUNICATION
-QUALITY
ETC ETC
YOU MUST INCLUDE THEM TOO.
HOPE THIS IS USEFUL TO YOU
REGARDS
LEO LINGHAM
From India, Mumbai
Dear Leo lingham, Can you provide me KRA for different departments like- Sales & Marketing IT Professionals, Finance, Admin etc. Regards, Rubina Ansari
From India, Delhi
From India, Delhi
RUBINA,
HERE IS SOME USEFUL MATERIAL.
REGARDS
LEO LINGHAM
“Key Result Areas” or KRAs refer to general areas of outcomes or outputs for which the department's role is responsible. A typical role targets three to five KRA.
-------------------------------------------------
Value of KRAs.
Identifying KRAs helps individuals: ·
- Clarify their roles
-· Align their roles to the organisation’s business or strategic plan
-· Focus on results rather than activities
-· Communicate their role’s purposes to others
-· Set goals and objectives
-· Prioritize their activities,
-and therefore improve their time/work management
-· Make value-added decisions
--------------------------------------------------------------------------
Description of KRAs
Key result areas (KRAs) capture about 80% of the department's work role. The remainder of the role is usually devoted to areas of shared responsibility (e.g., helping team members, participating in activities for the good of the organisation).
================================================== ===============
BEFORE YOU DEVELOP ''KRAs'', you must review the current the corporate
*VISION STATEMENT
*MISSION STATEMENT
THEN YOU MUST REVIEW
The senior management team's , based on the vision/ mission
*CORPORATE OBJECTIVES
*CORPORATE STRATEGY
THEN YOU MUST REVIEW THE RESPECTIVE DEPARTMENT'S
OBJECTIVES / STRATEGIES which are based on the established
*CORPORATE OBJECTIVES
*CORPORATE STRATEGY
which in turn is converted into
DEPARTMENTAL PLANS/STRATEGY
================================================== ====
BASED ON THE
the DEPARTMENTAL OBJECTIVES /STRATEGY.
the job descriptions are written/re written/reviewed or revised
as the situation may be.
=====================================
BEFORE YOU DEVELOP INDIVIDUAL'S KRAs
YOU MUST WRITE DOWN THE JOB DESCRIPTIONS.
==================================================
FROM THE JOB DESCRIPTIONS / DEPARTMENT OBJECTIVES
WE DEVELOP
KRA AND KPA
=======================================
HERE ARE TWO EXAMPLES
Position: HRM
Position reports to:
Chief Executive
Primary objective
Plan, develop and direct Human Resource policies for the organisation and implement procedures to achieve the most effective use of human resources to acl‑iieve profitability and business objectives.
Specific accountabilities/ responsibilities
Plan, make recommendations and devise personnel and industrial relations policy, in consultation with other senior management.
Establish and direct the organisation's HR procedures and strategies, taking account of the operating environment.
Develop, and direct the setting of performance targets, and participate in business planning and strategy determinations to ensure HR specifications meet the business objectives. Prepare budgets, and other management plans.
Monitor industrial relations developments to prevent and settle disputes. Direct negotiations with unions, industry groups and industrial authorities to determine agreements and minimise the possibility of industrial dispute.
Control and co‑ordinate activities such as personnel administration, staff selection and training, employee relations, wage and salary administration, security, health and safety, employee benefits and remuneration strategy.
Direct and maintain a corporate workforce plan and initiate appropriate action in relation to the organisation's use and development of employees.
Represent and direct the organisation in dealings with other organisations, employer groups, industry associations, unions, government authorities and other relevant bodies as required.
Control the collection, maintenance and interpretation of management information and records to monitor performance, control the preparation of reports (including Affirmative Action) and authorise the release of information.
Ensure the organisation's training activities are planned to meet current and future organisation and employee needs, and satisfv
government training requirements.
Review regularly the organisation's remuneration policy, including its market competitiveness, benefit and reward structures, and internal relativity and equity.
Make policy decisions as appropriate, and accept responsibility for operations, performance of staff, achievement of objectives and adherence to budgets.
Establish lines of control and delegate responsibilities to subordinate staff; control the selection and training of staff. May train and advise other managers in Human Resources or industrial relations matters.
Ensure all activities undertaken by Human Resource department employees comply with relevant Acts, legal demands and ethical standards.
========================================
THE KRAs for HR [ weightage of importance %]
1.RECRUITMENT/ SELECTION [ 20%]
2.WORKFORCE PLANNING/ DIVERSITY [ 20%]
3.PERFORMANCE MANAGEMENT [ 25%]
4.REWARD MANAGEMENT [20%]
5.WORKPLACE MANAGEMENT AND RELATIONS [ 10%]
6.BUILDING CAPABILITIES AND ORGANIZATION LEARNING [ 5%]
TOTAL [ 100% ]
====================================
THE KPI OF HR [ 2007 ]
KRA 1 -RECRUITMENT/ SELECTION
[KPI= average time taken per employee 2 months MAXIMUM]
====================================
KRA 2 - WORKFORCE PLANNING/ DIVERSITY
ABSENTEEISM [ KPI =maintain absent rate at 5%]
TURNOVER [ KPI = control turnover rate at 7%]
=====================================
KRA 3- PERFORMANCE MANAGEMENT
PERFORMANCE APPRAISALS [KPI = all staff to be appraised at least once annually]
===================================
KRA 4 - REWARD MANAGEMENT
MARKET ORIENTED SALARY STRUCTURING [ KPI = total compensation to sales 12%]
============================================
KRA 5 - WORKPLACE MANAGEMENT AND RELATIONS
JOB EVALUATIONS [ KPI = 600 lower staff , below grade 4 to be evaluated]
===========================================
KRA 6 - BUILDING CAPABILITIES AND ORGANIZATION LEARNING
TRAINING [ KPI = average training hours per employee annually= 3 days or 24 hours]
============================================
################################################## ##########
Position: Marketing Manager
Position reports to:
Chief Executive
Primary objective
Develop, direct and control the orgardsation's marketing business strategies and activities to achieve revenue, sales and profit targets.
Specific accountabilities/responsibilities
Direct all marketing activities for the achievement of short and long term business objectives, increased profit, and market control.
Establish and co‑ordinate the marketing objectives, policies and programmes within the context of the overall corporate plan and, where appropriate, recommend standards and set targets and quotas.
Liaise with the sales group in the preparation of the reports, budgets, and forecasts and ensure they are compatible with support sales plans.
Appraise the activities of the staff according to overall marketing strategies. Monitor and evaluate the performance, and the efficiency of staff and procedures.
Co‑ordinate subordinate staff to optimise the use of human and material resources to achieve goals. Consult with subordinate staff and review recommendations and reports.
Direct marketing activities by setting product mix.
Control and monitor marketing methods, key customer strategies and other arrangements.
Direct and control marketing by planning or co‑ordinating advertising campaigns and promotional activities, product management, market analysis and research and other consulting work.
Direct the development of initiatives such as new products, new marketing techniques, new advertising campaigns, incentive bonus schemes and the dropping of unprofitable products.
Maintain necessary contact with major suppliers, customers, industry associations and government representatives to achieve the objectives of marketing.
May direct merchandising methods and distribution policy.
Select, or approve the selection and training of senior staff. Establish lines of control and delegate responsibilities to staff.
Ensure all the activities of the sales and marketing group comply with relevant Acts, legal demands and ethical standards.
================================================== ==
MARKETING KRAs [ weightage of importance %]
1.market share . [ 20% ]
2.new product launches success [ 25% ]
3.Gross profit contribution [ 20%]
4.Pricing [ 20%]
5.Promotions [15 %]
TOTAL [ 100 % ]
==================================================
THE KPI OF MARKETING [ 2007]
KRA 1 - MARKET SHARE
[KPI= improve market share by 15% MINIMUM]
====================================
KRA 2 - NEW PRODUCT LAUNCHES
[ KPI =AT LEAST 3 NEW PRODUCTS]
=====================================
KRA 3- GROSS PROFIT CONTRIBUTION
[KPI = IMPROVE GROSS PROFIT BY 20%]
===================================
KRA 4 - PRICING
MARKET ORIENTED PRICING [ KPI = INCREASE BY NET 12%]
============================================
KRA 5 - PROMOTIONS
EFFECTIVENESS [ KPI = improve effectiveness by 15%]
===========================================
##################################################
Key Result Areas
Once the job purpose is clear, you can then identify five or six areas in which results must be
achieved if the job purpose is to be fulfilled. These are the broad areas within a job that change little
from year to year. Everyone’s job can be broken into key result areas.
1.MANAGEMENT TRAINER
key result areas could be:
Design of solutions
Delivery of solutions
Evaluation of solutions
Budgets
Client satisfaction
Innovation
----------------------------------------------------
2.HUMAN RESOURCE SPECIALIST
key result areas could be:
Employee relations
Employee development
Compensation planning and administration
Policy development
Benefits administration
Career development
Statutory compliance
Human Resource information systems
------------------------------------------------------------------
3.GENERAL MANAGER OR SENIOR MANAGER
KEY RESULT AREAS COULD BE:
Internal operations
Market development
Profitability
Organisational structure
Organisational vision and mission
Asset and liability management
Board of directors relationship
Productivity
Financial strategy
Business development
Technology
Customer satisfaction
Community relations
Regulatory compliance
------------------------------------------------
4.SALES
key result areas could be:
New business acquisition
Territory management
Customer care
Lead generation
Lead follow up (internal and external)
Account management
Customer retention
Interpersonal skills
Negotiating skills
Product knowledge
Sales forecasting
--------------------------------------------------
5. MANUFACTURING
Key result areas could be :
Stock control
Maintenance
Labour relations
Waste
Reworks
Productivity
Health and Safety
Quality control
Record keeping
---------------------------------------------------------
6.MARKETING
key result areas could be:
Advertising
Promotional strategy
Pricing
Market research
Field support
Marketing materials
Media relations
Sales support
Agency relations
-----------------------------------------
7. HUMAN RESOURCES
key result areas could be :
-RECRUITMENT/ SELECTION
-WORKFORCE PLANNING/ DIVERSITY
-PERFORMANCE MANAGEMENT
-REWARD MANAGEMENT
-WORKPLACE MANAGEMENT AND RELATIONS
-SAFETY AND HEALTH WORKPLACE
-BUILDING CAPABILITIES AND ORGANIZATION LEARNING
-EFFECTIVE HR MANAGEMENT SYSTEMS , SUPPORT AND MONITORING
------------------------------------------------------------------------------
8.GENERAL ADMINISTRATION
key result areas could include:
Correspondence
Filing
Records management
Administrative support
Internal customer relations
Equipment maintenance
Forms administration
Scheduling
Supply maintenance and purchasing
Telephone coverage
Project support
--------------------------------------------------------------
TRAINING AND DEVELOPMENT MANAGER
KRAs and KPIs.
KRA 1-deliver relevant and targeted programs to the
organization employees.
KPI 1--EMPLOYEE SATISFACTION FEEDBACK THROUGH SURVEY
SATISFACTION LEVEL MINIMUM 70%.
KPI 2--% INCREASE INCREASE IN TRAINING PROGRAMS
KPI 3--% INCREASE IN EMPLOYEE PARTICIPATION.
===============================================
KRA 2-promote the programs/learning culture
KPI 1--EMPLOYEE SATISFACTION FEEDBACK THROUGH SURVEY
SATISFACTION LEVEL MINIMUM 70%.
KPI 2--NUMBER OF DEPARTMENTS SATISFACTION LEVEL.
KPI 3--% INCREASE IN TYPES OF ACTIVITIES
===============================================
KRA 3-provide lead in the provision of
organization learning and development service
KPI 1--NO. OF TRAINING DAYS % INCREASE
KPI 2--NO. OF EMPLOYEES PARTICIPATING % INCREASE
KPI 3--NO. OF INHOUSE PROGRAMS % INCREASE
KPI 4--NO. OF EXTERNAL PROGRAMS ATTENDED %INCREASE.
KPI 5--NO. OF EXTERNAL TRAINING PACKAGES BOUGHT %INCREASE.
KPI 6--% INCREASE IN COST.
KPI 7--% INCREASE IN RESOURCE REQUIREMENTS.
================================================
KRA 4-improvements in capabilities/capacities
to deliver L&D.
KPI 1--PROGRAMS IMPLEMENTED ON TIME [ % ]
KPI 2--PROGRAMS IMPLEMENTED WITHIN BUDGET [ %]
KPI 3--EFFECTIVE USE OF PERFORMANCE MANAGEMENT
SYSTEM FOR DEVELOPMENT [ % ]
================================================== =============
From India, Mumbai
HERE IS SOME USEFUL MATERIAL.
REGARDS
LEO LINGHAM
“Key Result Areas” or KRAs refer to general areas of outcomes or outputs for which the department's role is responsible. A typical role targets three to five KRA.
-------------------------------------------------
Value of KRAs.
Identifying KRAs helps individuals: ·
- Clarify their roles
-· Align their roles to the organisation’s business or strategic plan
-· Focus on results rather than activities
-· Communicate their role’s purposes to others
-· Set goals and objectives
-· Prioritize their activities,
-and therefore improve their time/work management
-· Make value-added decisions
--------------------------------------------------------------------------
Description of KRAs
Key result areas (KRAs) capture about 80% of the department's work role. The remainder of the role is usually devoted to areas of shared responsibility (e.g., helping team members, participating in activities for the good of the organisation).
================================================== ===============
BEFORE YOU DEVELOP ''KRAs'', you must review the current the corporate
*VISION STATEMENT
*MISSION STATEMENT
THEN YOU MUST REVIEW
The senior management team's , based on the vision/ mission
*CORPORATE OBJECTIVES
*CORPORATE STRATEGY
THEN YOU MUST REVIEW THE RESPECTIVE DEPARTMENT'S
OBJECTIVES / STRATEGIES which are based on the established
*CORPORATE OBJECTIVES
*CORPORATE STRATEGY
which in turn is converted into
DEPARTMENTAL PLANS/STRATEGY
================================================== ====
BASED ON THE
the DEPARTMENTAL OBJECTIVES /STRATEGY.
the job descriptions are written/re written/reviewed or revised
as the situation may be.
=====================================
BEFORE YOU DEVELOP INDIVIDUAL'S KRAs
YOU MUST WRITE DOWN THE JOB DESCRIPTIONS.
==================================================
FROM THE JOB DESCRIPTIONS / DEPARTMENT OBJECTIVES
WE DEVELOP
KRA AND KPA
=======================================
HERE ARE TWO EXAMPLES
Position: HRM
Position reports to:
Chief Executive
Primary objective
Plan, develop and direct Human Resource policies for the organisation and implement procedures to achieve the most effective use of human resources to acl‑iieve profitability and business objectives.
Specific accountabilities/ responsibilities
Plan, make recommendations and devise personnel and industrial relations policy, in consultation with other senior management.
Establish and direct the organisation's HR procedures and strategies, taking account of the operating environment.
Develop, and direct the setting of performance targets, and participate in business planning and strategy determinations to ensure HR specifications meet the business objectives. Prepare budgets, and other management plans.
Monitor industrial relations developments to prevent and settle disputes. Direct negotiations with unions, industry groups and industrial authorities to determine agreements and minimise the possibility of industrial dispute.
Control and co‑ordinate activities such as personnel administration, staff selection and training, employee relations, wage and salary administration, security, health and safety, employee benefits and remuneration strategy.
Direct and maintain a corporate workforce plan and initiate appropriate action in relation to the organisation's use and development of employees.
Represent and direct the organisation in dealings with other organisations, employer groups, industry associations, unions, government authorities and other relevant bodies as required.
Control the collection, maintenance and interpretation of management information and records to monitor performance, control the preparation of reports (including Affirmative Action) and authorise the release of information.
Ensure the organisation's training activities are planned to meet current and future organisation and employee needs, and satisfv
government training requirements.
Review regularly the organisation's remuneration policy, including its market competitiveness, benefit and reward structures, and internal relativity and equity.
Make policy decisions as appropriate, and accept responsibility for operations, performance of staff, achievement of objectives and adherence to budgets.
Establish lines of control and delegate responsibilities to subordinate staff; control the selection and training of staff. May train and advise other managers in Human Resources or industrial relations matters.
Ensure all activities undertaken by Human Resource department employees comply with relevant Acts, legal demands and ethical standards.
========================================
THE KRAs for HR [ weightage of importance %]
1.RECRUITMENT/ SELECTION [ 20%]
2.WORKFORCE PLANNING/ DIVERSITY [ 20%]
3.PERFORMANCE MANAGEMENT [ 25%]
4.REWARD MANAGEMENT [20%]
5.WORKPLACE MANAGEMENT AND RELATIONS [ 10%]
6.BUILDING CAPABILITIES AND ORGANIZATION LEARNING [ 5%]
TOTAL [ 100% ]
====================================
THE KPI OF HR [ 2007 ]
KRA 1 -RECRUITMENT/ SELECTION
[KPI= average time taken per employee 2 months MAXIMUM]
====================================
KRA 2 - WORKFORCE PLANNING/ DIVERSITY
ABSENTEEISM [ KPI =maintain absent rate at 5%]
TURNOVER [ KPI = control turnover rate at 7%]
=====================================
KRA 3- PERFORMANCE MANAGEMENT
PERFORMANCE APPRAISALS [KPI = all staff to be appraised at least once annually]
===================================
KRA 4 - REWARD MANAGEMENT
MARKET ORIENTED SALARY STRUCTURING [ KPI = total compensation to sales 12%]
============================================
KRA 5 - WORKPLACE MANAGEMENT AND RELATIONS
JOB EVALUATIONS [ KPI = 600 lower staff , below grade 4 to be evaluated]
===========================================
KRA 6 - BUILDING CAPABILITIES AND ORGANIZATION LEARNING
TRAINING [ KPI = average training hours per employee annually= 3 days or 24 hours]
============================================
################################################## ##########
Position: Marketing Manager
Position reports to:
Chief Executive
Primary objective
Develop, direct and control the orgardsation's marketing business strategies and activities to achieve revenue, sales and profit targets.
Specific accountabilities/responsibilities
Direct all marketing activities for the achievement of short and long term business objectives, increased profit, and market control.
Establish and co‑ordinate the marketing objectives, policies and programmes within the context of the overall corporate plan and, where appropriate, recommend standards and set targets and quotas.
Liaise with the sales group in the preparation of the reports, budgets, and forecasts and ensure they are compatible with support sales plans.
Appraise the activities of the staff according to overall marketing strategies. Monitor and evaluate the performance, and the efficiency of staff and procedures.
Co‑ordinate subordinate staff to optimise the use of human and material resources to achieve goals. Consult with subordinate staff and review recommendations and reports.
Direct marketing activities by setting product mix.
Control and monitor marketing methods, key customer strategies and other arrangements.
Direct and control marketing by planning or co‑ordinating advertising campaigns and promotional activities, product management, market analysis and research and other consulting work.
Direct the development of initiatives such as new products, new marketing techniques, new advertising campaigns, incentive bonus schemes and the dropping of unprofitable products.
Maintain necessary contact with major suppliers, customers, industry associations and government representatives to achieve the objectives of marketing.
May direct merchandising methods and distribution policy.
Select, or approve the selection and training of senior staff. Establish lines of control and delegate responsibilities to staff.
Ensure all the activities of the sales and marketing group comply with relevant Acts, legal demands and ethical standards.
================================================== ==
MARKETING KRAs [ weightage of importance %]
1.market share . [ 20% ]
2.new product launches success [ 25% ]
3.Gross profit contribution [ 20%]
4.Pricing [ 20%]
5.Promotions [15 %]
TOTAL [ 100 % ]
==================================================
THE KPI OF MARKETING [ 2007]
KRA 1 - MARKET SHARE
[KPI= improve market share by 15% MINIMUM]
====================================
KRA 2 - NEW PRODUCT LAUNCHES
[ KPI =AT LEAST 3 NEW PRODUCTS]
=====================================
KRA 3- GROSS PROFIT CONTRIBUTION
[KPI = IMPROVE GROSS PROFIT BY 20%]
===================================
KRA 4 - PRICING
MARKET ORIENTED PRICING [ KPI = INCREASE BY NET 12%]
============================================
KRA 5 - PROMOTIONS
EFFECTIVENESS [ KPI = improve effectiveness by 15%]
===========================================
##################################################
Key Result Areas
Once the job purpose is clear, you can then identify five or six areas in which results must be
achieved if the job purpose is to be fulfilled. These are the broad areas within a job that change little
from year to year. Everyone’s job can be broken into key result areas.
1.MANAGEMENT TRAINER
key result areas could be:
Design of solutions
Delivery of solutions
Evaluation of solutions
Budgets
Client satisfaction
Innovation
----------------------------------------------------
2.HUMAN RESOURCE SPECIALIST
key result areas could be:
Employee relations
Employee development
Compensation planning and administration
Policy development
Benefits administration
Career development
Statutory compliance
Human Resource information systems
------------------------------------------------------------------
3.GENERAL MANAGER OR SENIOR MANAGER
KEY RESULT AREAS COULD BE:
Internal operations
Market development
Profitability
Organisational structure
Organisational vision and mission
Asset and liability management
Board of directors relationship
Productivity
Financial strategy
Business development
Technology
Customer satisfaction
Community relations
Regulatory compliance
------------------------------------------------
4.SALES
key result areas could be:
New business acquisition
Territory management
Customer care
Lead generation
Lead follow up (internal and external)
Account management
Customer retention
Interpersonal skills
Negotiating skills
Product knowledge
Sales forecasting
--------------------------------------------------
5. MANUFACTURING
Key result areas could be :
Stock control
Maintenance
Labour relations
Waste
Reworks
Productivity
Health and Safety
Quality control
Record keeping
---------------------------------------------------------
6.MARKETING
key result areas could be:
Advertising
Promotional strategy
Pricing
Market research
Field support
Marketing materials
Media relations
Sales support
Agency relations
-----------------------------------------
7. HUMAN RESOURCES
key result areas could be :
-RECRUITMENT/ SELECTION
-WORKFORCE PLANNING/ DIVERSITY
-PERFORMANCE MANAGEMENT
-REWARD MANAGEMENT
-WORKPLACE MANAGEMENT AND RELATIONS
-SAFETY AND HEALTH WORKPLACE
-BUILDING CAPABILITIES AND ORGANIZATION LEARNING
-EFFECTIVE HR MANAGEMENT SYSTEMS , SUPPORT AND MONITORING
------------------------------------------------------------------------------
8.GENERAL ADMINISTRATION
key result areas could include:
Correspondence
Filing
Records management
Administrative support
Internal customer relations
Equipment maintenance
Forms administration
Scheduling
Supply maintenance and purchasing
Telephone coverage
Project support
--------------------------------------------------------------
TRAINING AND DEVELOPMENT MANAGER
KRAs and KPIs.
KRA 1-deliver relevant and targeted programs to the
organization employees.
KPI 1--EMPLOYEE SATISFACTION FEEDBACK THROUGH SURVEY
SATISFACTION LEVEL MINIMUM 70%.
KPI 2--% INCREASE INCREASE IN TRAINING PROGRAMS
KPI 3--% INCREASE IN EMPLOYEE PARTICIPATION.
===============================================
KRA 2-promote the programs/learning culture
KPI 1--EMPLOYEE SATISFACTION FEEDBACK THROUGH SURVEY
SATISFACTION LEVEL MINIMUM 70%.
KPI 2--NUMBER OF DEPARTMENTS SATISFACTION LEVEL.
KPI 3--% INCREASE IN TYPES OF ACTIVITIES
===============================================
KRA 3-provide lead in the provision of
organization learning and development service
KPI 1--NO. OF TRAINING DAYS % INCREASE
KPI 2--NO. OF EMPLOYEES PARTICIPATING % INCREASE
KPI 3--NO. OF INHOUSE PROGRAMS % INCREASE
KPI 4--NO. OF EXTERNAL PROGRAMS ATTENDED %INCREASE.
KPI 5--NO. OF EXTERNAL TRAINING PACKAGES BOUGHT %INCREASE.
KPI 6--% INCREASE IN COST.
KPI 7--% INCREASE IN RESOURCE REQUIREMENTS.
================================================
KRA 4-improvements in capabilities/capacities
to deliver L&D.
KPI 1--PROGRAMS IMPLEMENTED ON TIME [ % ]
KPI 2--PROGRAMS IMPLEMENTED WITHIN BUDGET [ %]
KPI 3--EFFECTIVE USE OF PERFORMANCE MANAGEMENT
SYSTEM FOR DEVELOPMENT [ % ]
================================================== =============
From India, Mumbai
Dear Leo,
I am really grateful to you. This is really very helpful to me.I expect the same from you in future that you will guide me as well as other people like this with your immense knowledge.
Regards,
Rubina Ansari
From India, Delhi
I am really grateful to you. This is really very helpful to me.I expect the same from you in future that you will guide me as well as other people like this with your immense knowledge.
Regards,
Rubina Ansari
From India, Delhi
Dear Leo, Will you be able to help me out wid the KRA’s for IT professionals..Like JAVA developer , Programmer, Tester etc... please add your thoughts.... Regards Kady
From China
From China
For service industry following are most commom KRAs for HR people:Recruitment 30%Training & Development 10%Admin & Legal compliances 30%Salary Management & Performance Management 10%Joining & Exit formalities 10%Retaining Employees / Counseling / Grievance Handling 10%
From India, Aurangabad
From India, Aurangabad
Dear Leo Lingham, Your article realy helped me to enhance my knowledge in KRA. Please provide me KRA for Production, Finance, Store & Maintanance. Thanks, Debrishi
From India, Mumbai
From India, Mumbai
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