Dear Mani,
KRA stands for Key Result Area while KPI stands for Key Performance Indicator
KRA: Any reference to KRA has to be understood from the point of view of the difference between 'Deliverables' and 'Doables'. While the former stand for the main results expected out of a role, the latter stand for the key tasks / activities that the role comprises of. While some of these tasks / activities are instrumental to realize the expected deliverables (the key results) from the role, not all of them are crticial or core. Some of them may be peripheral. For example, an HR Generalist's KRAs could include employee engagement, training & development and performance management. These would then, constitute the key areas where the role holder's performance will have a significant impact on the success or failure of the role to contribute to the overall business sucess of the company.
KRAs and KPIs need to be connected. For example, in any performance appraisal evaluation / management system, one would typically have a section describing or listing KRAs, the performance goal / target which is to be achieved and the KPI.
For example, lets say the KRA is hiring. The KPI or the metric by which the individual's performance will be evaluated could be '% of Exceptions'. With this KRA and KPI framework (please note that this is only illustrative for clarification purposes), the performance goal could be quantified or laid down as: Not more than 15% in the fiscal year. What does this mean? This means that if the recruiter makes 100 offers in the fiscal year, not more than 15 out of these 100 offers should be deviating from the salary range budgeted for these positions. If the recruiter is below the 15% mark at the end of the fiscal year, his / her performance could be rated as 'Meets Expectations'. If there are no exceptions, it could be rated as 'Consistently Exceeds Expectations'. On the other hand, if the number of exceptions are more than 15%, his / her performance could be rated as 'Inconsistently Meets Expectations' or ' Below Expectations' depending on whether the organization is using a '5' or '3' point rating scale.
I hope I have been of some help in clarifying these concepts which I find, to my concern, fuzzy concepts for most HR managers despite their seniority / position - things that they do refer to from a point of view of sounding knowledgable but of which, they have only a superficial knowledge.
I would recommend anyone who is interested in learning more about KPIs to read Parmenter's book entitled 'Key Performance Indicators' - you can do a Google search for the exact title.
Thanks,
Snoopypryer.
From India, Ghaziabad
6KRA stands for Key Result Area while KPI stands for Key Performance Indicator
KRA: Any reference to KRA has to be understood from the point of view of the difference between 'Deliverables' and 'Doables'. While the former stand for the main results expected out of a role, the latter stand for the key tasks / activities that the role comprises of. While some of these tasks / activities are instrumental to realize the expected deliverables (the key results) from the role, not all of them are crticial or core. Some of them may be peripheral. For example, an HR Generalist's KRAs could include employee engagement, training & development and performance management. These would then, constitute the key areas where the role holder's performance will have a significant impact on the success or failure of the role to contribute to the overall business sucess of the company.
KRAs and KPIs need to be connected. For example, in any performance appraisal evaluation / management system, one would typically have a section describing or listing KRAs, the performance goal / target which is to be achieved and the KPI.
For example, lets say the KRA is hiring. The KPI or the metric by which the individual's performance will be evaluated could be '% of Exceptions'. With this KRA and KPI framework (please note that this is only illustrative for clarification purposes), the performance goal could be quantified or laid down as: Not more than 15% in the fiscal year. What does this mean? This means that if the recruiter makes 100 offers in the fiscal year, not more than 15 out of these 100 offers should be deviating from the salary range budgeted for these positions. If the recruiter is below the 15% mark at the end of the fiscal year, his / her performance could be rated as 'Meets Expectations'. If there are no exceptions, it could be rated as 'Consistently Exceeds Expectations'. On the other hand, if the number of exceptions are more than 15%, his / her performance could be rated as 'Inconsistently Meets Expectations' or ' Below Expectations' depending on whether the organization is using a '5' or '3' point rating scale.
I hope I have been of some help in clarifying these concepts which I find, to my concern, fuzzy concepts for most HR managers despite their seniority / position - things that they do refer to from a point of view of sounding knowledgable but of which, they have only a superficial knowledge.
I would recommend anyone who is interested in learning more about KPIs to read Parmenter's book entitled 'Key Performance Indicators' - you can do a Google search for the exact title.
Thanks,
Snoopypryer.
From India, Ghaziabad
Please go to the following link. You will get fair idea about KRA and how it is linked to Performance management.
https://www.citehr.com/132536-kra-pe...nt-system.html
regards,
shijit.
From India, Kochi
https://www.citehr.com/132536-kra-pe...nt-system.html
regards,
shijit.
From India, Kochi
Following link also will help you in understanding how KRA is linked to reward system. regards, shijit.
From India, Kochi
From India, Kochi
Dear Aakil, KRA means Key Responsible Area, it means that for what someone is responsible.
From India, Delhi
From India, Delhi
KRA : Key Responsible Area
we recruit the employee, before this work done by HR Dept & Concern Dept.
ever new employee what work done in compnay.
KRA is done carefully & must completed.
every six month HR dept review the KRA & actual work done by employee.
Regards,
Malay Kothari
From India, Cochin
we recruit the employee, before this work done by HR Dept & Concern Dept.
ever new employee what work done in compnay.
KRA is done carefully & must completed.
every six month HR dept review the KRA & actual work done by employee.
Regards,
Malay Kothari
From India, Cochin
Hi,
I went through the above mentioned discussion over KRA and could not stop myself to express my views. I would like to throw some light.
KRA stands for key Result Area, A set of responsibilities which are required to perform any specific role.
when companies do the manpower planning, they create the positions as per the requirement and set the responsibilities which are required to perform for that specific position. Suppose a Marketing company got a sales project from its client and it requires 200 Sales Executives to work on that project. Now, to handle such a huge manpower and its entire processes, A HR Person is required. Now it will be defined what sort of responsibilities are required to carry the project efficiently and would be synchronized under various areas such as Recruitment, Induction, Orientation & Integration,Payroll,Training,Grievance handling, Exit formalities...
In other words, it is required to define what set of responsibilities he/she will handle under recruitment, induction, integration and so on. These are called KRAs. On the basis of these KRAs we can also identify that what sort of skill sets are required to handle these responsibilities.Also useful for Training and Appraisal.
herewith i am enclosing a KRA sheet for reference.
Best regards,
Manish Kujur
Sr. Executive HR
Solutions|Digitas
From India, New Delhi
I went through the above mentioned discussion over KRA and could not stop myself to express my views. I would like to throw some light.
KRA stands for key Result Area, A set of responsibilities which are required to perform any specific role.
when companies do the manpower planning, they create the positions as per the requirement and set the responsibilities which are required to perform for that specific position. Suppose a Marketing company got a sales project from its client and it requires 200 Sales Executives to work on that project. Now, to handle such a huge manpower and its entire processes, A HR Person is required. Now it will be defined what sort of responsibilities are required to carry the project efficiently and would be synchronized under various areas such as Recruitment, Induction, Orientation & Integration,Payroll,Training,Grievance handling, Exit formalities...
In other words, it is required to define what set of responsibilities he/she will handle under recruitment, induction, integration and so on. These are called KRAs. On the basis of these KRAs we can also identify that what sort of skill sets are required to handle these responsibilities.Also useful for Training and Appraisal.
herewith i am enclosing a KRA sheet for reference.
Best regards,
Manish Kujur
Sr. Executive HR
Solutions|Digitas
From India, New Delhi
As other friendshave described the terms KRA and KPI, the simple explanation is KRA is core areas of job responsibilities while KPI is the measurement of how your fullfilling the responsibilities or how is your performance ?
Eg.
For a recruitment executive, Hiring is KRA while how many recruitments he has done and how much time he has taken to fill the positions, and the quality of hires all are KPI.
KPI should be formulated and agreed between you and your manager.
Hope it helps.
Thanks,
From Qatar
Eg.
For a recruitment executive, Hiring is KRA while how many recruitments he has done and how much time he has taken to fill the positions, and the quality of hires all are KPI.
KPI should be formulated and agreed between you and your manager.
Hope it helps.
Thanks,
From Qatar
To ad more to the above points Key Result Area is the critical areas for the company. If the coy failed to achieve the target in that area, the coy will not survive. Usually, we point out what are the KRA for our business before we do a business plan. EG Profitability. The coy has to be profitable enough to maintain its business.
Others are : Market Standing, Productivity, Human Resources and Financial Resources etc.
Hope it helps.
From Indonesia, Jakarta
Others are : Market Standing, Productivity, Human Resources and Financial Resources etc.
Hope it helps.
From Indonesia, Jakarta
Dear Mclean sir, You given nice example & your style to saying is very impressive. Thanks for sharing your valuable view with us. Thanks & regards, Reshma
From India, Mumbai
From India, Mumbai
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Kra format.doc