Dear all Seniors, Once we set the goals/KRAs of employees for a certain period, They need to be monitored by superiors. For tracking the performance of employees for that period, what are the systems to be set?
Regards,
Padmini
From India, Thana
3Regards,
Padmini
From India, Thana
Dear All,
I would like to know more abouot KRA's. Whether this forum has discussed this earlier. Can any one explain briefly about KRA. I know that its Key Result Areas. I would like to know beyond that.
Regards
SK.
From India
I would like to know more abouot KRA's. Whether this forum has discussed this earlier. Can any one explain briefly about KRA. I know that its Key Result Areas. I would like to know beyond that.
Regards
SK.
From India
contact leolingham2000 who is a part of this forum. He has been explaning abt KRAs in details
From India, Kalyan
From India, Kalyan
Key Result Areas
“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).
================================================== =============== =
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.
================================================== ======
HERE IS AN EXAMPLE, 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 --RECRUITMENT
KPI ----reduce average time taken to fill vacancies by 15%
KPI ----reduce average cost per recruit by 10%
-------------------------------------------
KRA 2
-WORKPLACE MANAGEMENT
KPA -labour turnover
KPI ---reduce the labor turnover by 20%
KPI ----benchmark total HR COSTS externally.
------------------------------------------------
KRA 3
-SAFETY AND HEALTH WORKPLACE
KPA ---workplace accidents
KPI ----reduce workplace accidents by 10%
---------------------------------------------
KRA 4
-BUILDING CAPABILITIES AND ORGANIZATION LEARNING
KPA ----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.
================================================
THIS CAN BE APPLIED TO ALL OTHER FUNCTIONAL
DEPARTMENTS LIKE MARKETING / SALES / PRODUCTION ETC.
Typical key result areas at the corporate and some functional levels.
CORPORATE
Strategic plan
- Innovation [ KPI = 10 NOS.]
-Financial perlformance [ PROFITABILITY %]
-Corporate image [ WORLD CLASS ]
- Strategic market position [ NO.2 IN 3 YEARS]
- Service [ WORLD CLASS]
- Quality [ WORLD CLASS ]
-------------------------------------------
MANUFACTURING
- Unit volume [ 20% OVER THE PREVIOUS YEAR]
- Service level [ 98% ]
- Raw material supply [ 100% EFFICIENCY]
- Cost [ 10% IMPROVEMENT ]
- Efficiency [ 5% IMPROVEMENT ]
- Safety [ 0 TOLERANCE ]
- Quality [ WORLD CLASS ]
- Capacity UTILIZATION [ 90% ]
--------------------------------------------------------
MARKETING/SALES
Sales [ 20% OVER THE PREVIOUS YEAR]
Long‑term marketing performance
Market penetration [ 15% MARKET SHARE IN 3 YEARS]
New products [ 5 NEW PRODUCTS IN THIS 12 MONTHS]
Pricing [ NET PRICE RISE 10% OVER THE PREVIOUS YEAR]
Contribution margin [ 35% ]
Distribution [ 100% COVERAGE ]
Customer satisfaction [ 99% LEVEL ]
---------------------------------------------------------
FINANCE
-Cost of Capital [ 5% ]
- Receivables level [ 90% LEVEL ]
- Reporting ‑
Timeliness/ Quality [ 100% ]
-Capital
availability [ 100% ]
-Bad‑debt level [ 10% BELOW LAST YEAR]
-Debt‑equity ratio [ 85% ]
----------------------------------------------------------------
ETC ETC ETC for all other departments.
================================================== =
FOR MONITORING PURPOSES,
1.YOU CAN USE '' PERFORMANCE MANAGEMENT '' SOFTWARE.
THERE ARE A NUMBER OF THEM AVAILABLE, YOU CAN PICK
YOUR CHOICE.
OR DESIGN ONE INTERNALLY TO SUIT YOUR NEEDS.
-------------------------------------------------------------------------------------------------
2. YOU CAN USE ''BALANCED SCORECARD'' SOFTWARE.
THERE ARE A NUMBER OF THEM AVAILABLE, YOU CAN PICK
YOUR CHOICE.
OR DESIGN ONE INTERNALLY TO SUIT YOUR NEEDS.
----------------------------------------------------------------------------------------------
3. YOU CAN DEVELOP / USE AN ECONOMICAL METHOD
EXCEL FORMAT.
WHERE
-COL 1 = NOS.
-COL 2 = DEPARTMENTS [ HR, MARKETING,SALES ETC]
-COL 3 = KRAs [ nominated KRAs of 4/5 maximum ]
-COL 4 = KPAs [ for each KRAs-- not more than 2 KPAs for each KRAs]
-COL 5 = KPI [ ONE KPI FOR EACH KPAs.]
-COL 6 = ACTUAL [ achieved during the period ]
-COL 7 = VARIANCE [ POSITIVE/NEGATIVE ---COL 5 AND COL 6]
-COL 8 = COMMENTS ON VARIANCE.
-COL 9 = ACTION PLAN FOR THE VARIANCE
-COL 10 = NEW KPI [ IF REQUIRED ]
THIS IS A USEFUL / ECONOMICAL WAY OF MAINTAINING/
MONITORING/ ACTIONING OF KRAs / KPAs / KPIs.
regards
LEO LINGHAM
From India, Mumbai
“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).
================================================== =============== =
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.
================================================== ======
HERE IS AN EXAMPLE, 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 --RECRUITMENT
KPI ----reduce average time taken to fill vacancies by 15%
KPI ----reduce average cost per recruit by 10%
-------------------------------------------
KRA 2
-WORKPLACE MANAGEMENT
KPA -labour turnover
KPI ---reduce the labor turnover by 20%
KPI ----benchmark total HR COSTS externally.
------------------------------------------------
KRA 3
-SAFETY AND HEALTH WORKPLACE
KPA ---workplace accidents
KPI ----reduce workplace accidents by 10%
---------------------------------------------
KRA 4
-BUILDING CAPABILITIES AND ORGANIZATION LEARNING
KPA ----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.
================================================
THIS CAN BE APPLIED TO ALL OTHER FUNCTIONAL
DEPARTMENTS LIKE MARKETING / SALES / PRODUCTION ETC.
Typical key result areas at the corporate and some functional levels.
CORPORATE
Strategic plan
- Innovation [ KPI = 10 NOS.]
-Financial perlformance [ PROFITABILITY %]
-Corporate image [ WORLD CLASS ]
- Strategic market position [ NO.2 IN 3 YEARS]
- Service [ WORLD CLASS]
- Quality [ WORLD CLASS ]
-------------------------------------------
MANUFACTURING
- Unit volume [ 20% OVER THE PREVIOUS YEAR]
- Service level [ 98% ]
- Raw material supply [ 100% EFFICIENCY]
- Cost [ 10% IMPROVEMENT ]
- Efficiency [ 5% IMPROVEMENT ]
- Safety [ 0 TOLERANCE ]
- Quality [ WORLD CLASS ]
- Capacity UTILIZATION [ 90% ]
--------------------------------------------------------
MARKETING/SALES
Sales [ 20% OVER THE PREVIOUS YEAR]
Long‑term marketing performance
Market penetration [ 15% MARKET SHARE IN 3 YEARS]
New products [ 5 NEW PRODUCTS IN THIS 12 MONTHS]
Pricing [ NET PRICE RISE 10% OVER THE PREVIOUS YEAR]
Contribution margin [ 35% ]
Distribution [ 100% COVERAGE ]
Customer satisfaction [ 99% LEVEL ]
---------------------------------------------------------
FINANCE
-Cost of Capital [ 5% ]
- Receivables level [ 90% LEVEL ]
- Reporting ‑
Timeliness/ Quality [ 100% ]
-Capital
availability [ 100% ]
-Bad‑debt level [ 10% BELOW LAST YEAR]
-Debt‑equity ratio [ 85% ]
----------------------------------------------------------------
ETC ETC ETC for all other departments.
================================================== =
FOR MONITORING PURPOSES,
1.YOU CAN USE '' PERFORMANCE MANAGEMENT '' SOFTWARE.
THERE ARE A NUMBER OF THEM AVAILABLE, YOU CAN PICK
YOUR CHOICE.
OR DESIGN ONE INTERNALLY TO SUIT YOUR NEEDS.
-------------------------------------------------------------------------------------------------
2. YOU CAN USE ''BALANCED SCORECARD'' SOFTWARE.
THERE ARE A NUMBER OF THEM AVAILABLE, YOU CAN PICK
YOUR CHOICE.
OR DESIGN ONE INTERNALLY TO SUIT YOUR NEEDS.
----------------------------------------------------------------------------------------------
3. YOU CAN DEVELOP / USE AN ECONOMICAL METHOD
EXCEL FORMAT.
WHERE
-COL 1 = NOS.
-COL 2 = DEPARTMENTS [ HR, MARKETING,SALES ETC]
-COL 3 = KRAs [ nominated KRAs of 4/5 maximum ]
-COL 4 = KPAs [ for each KRAs-- not more than 2 KPAs for each KRAs]
-COL 5 = KPI [ ONE KPI FOR EACH KPAs.]
-COL 6 = ACTUAL [ achieved during the period ]
-COL 7 = VARIANCE [ POSITIVE/NEGATIVE ---COL 5 AND COL 6]
-COL 8 = COMMENTS ON VARIANCE.
-COL 9 = ACTION PLAN FOR THE VARIANCE
-COL 10 = NEW KPI [ IF REQUIRED ]
THIS IS A USEFUL / ECONOMICAL WAY OF MAINTAINING/
MONITORING/ ACTIONING OF KRAs / KPAs / KPIs.
regards
LEO LINGHAM
From India, Mumbai
FOR MONITORING PURPOSES,
1.YOU CAN USE '' PERFORMANCE MANAGEMENT '' SOFTWARE.
THERE ARE A NUMBER OF THEM AVAILABLE, YOU CAN PICK
YOUR CHOICE.
OR DESIGN ONE INTERNALLY TO SUIT YOUR NEEDS.
-------------------------------------------------------------------------------------------------
2. YOU CAN USE ''BALANCED SCORECARD'' SOFTWARE.
THERE ARE A NUMBER OF THEM AVAILABLE, YOU CAN PICK
YOUR CHOICE.
OR DESIGN ONE INTERNALLY TO SUIT YOUR NEEDS.
----------------------------------------------------------------------------------------------
3. YOU CAN DEVELOP / USE AN ECONOMICAL METHOD
EXCEL FORMAT.
WHERE
-COL 1 = NOS.
-COL 2 = DEPARTMENTS [ HR, MARKETING,SALES ETC]
-COL 3 = KRAs [ nominated KRAs of 4/5 maximum ]
-COL 4 = KPAs [ for each KRAs-- not more than 2 KPAs for each KRAs]
-COL 5 = KPI [ ONE KPI FOR EACH KPAs.]
-COL 6 = ACTUAL [ achieved during the period ]
-COL 7 = VARIANCE [ POSITIVE/NEGATIVE ---COL 5 AND COL 6]
-COL 8 = COMMENTS ON VARIANCE.
-COL 9 = ACTION PLAN FOR THE VARIANCE
-COL 10 = NEW KPI [ IF REQUIRED ]
THIS IS A USEFUL / ECONOMICAL WAY OF MAINTAINING/
MONITORING/ ACTIONING OF KRAs / KPAs / KPIs.
regards
LEO LINGHAM
From India, Mumbai
1.YOU CAN USE '' PERFORMANCE MANAGEMENT '' SOFTWARE.
THERE ARE A NUMBER OF THEM AVAILABLE, YOU CAN PICK
YOUR CHOICE.
OR DESIGN ONE INTERNALLY TO SUIT YOUR NEEDS.
-------------------------------------------------------------------------------------------------
2. YOU CAN USE ''BALANCED SCORECARD'' SOFTWARE.
THERE ARE A NUMBER OF THEM AVAILABLE, YOU CAN PICK
YOUR CHOICE.
OR DESIGN ONE INTERNALLY TO SUIT YOUR NEEDS.
----------------------------------------------------------------------------------------------
3. YOU CAN DEVELOP / USE AN ECONOMICAL METHOD
EXCEL FORMAT.
WHERE
-COL 1 = NOS.
-COL 2 = DEPARTMENTS [ HR, MARKETING,SALES ETC]
-COL 3 = KRAs [ nominated KRAs of 4/5 maximum ]
-COL 4 = KPAs [ for each KRAs-- not more than 2 KPAs for each KRAs]
-COL 5 = KPI [ ONE KPI FOR EACH KPAs.]
-COL 6 = ACTUAL [ achieved during the period ]
-COL 7 = VARIANCE [ POSITIVE/NEGATIVE ---COL 5 AND COL 6]
-COL 8 = COMMENTS ON VARIANCE.
-COL 9 = ACTION PLAN FOR THE VARIANCE
-COL 10 = NEW KPI [ IF REQUIRED ]
THIS IS A USEFUL / ECONOMICAL WAY OF MAINTAINING/
MONITORING/ ACTIONING OF KRAs / KPAs / KPIs.
regards
LEO LINGHAM
From India, Mumbai
Dear Padmini,
I was very curious when I read your question about "what systems are to be set" for monitoring key result areas. Systems must be driven by people and they must be coached and trained on executing unbiased performance reviews with employees on a regular basis.
Here are some systematic suggestions:
1. Don't wait for the formal performance appraisal interview to monitor KRAs. Performance reviews must be done regularly to avoid surprises.
2. Once you set KRAs, do not expect employees to deliver them without your continual support. You must maintain close contact with all your people and give them continual feedback on their job performance, while consistently measuring KRAs.
3. A big issue is the creation of KRAs for each job. Co-create KRAs with employees themselves. This leads to a heightened sense of committment to fulfill them.
4. Encourage employees to monitor their own KRAs as well so that come review time, management and employees can compare their results and identify any perceived gaps.
5. Don't forget to show appreciation and reward employees for fulfilling KRAs. This is important because KRAs will be monitored with more diligence by employees themselves.
Basically, my message would be to create an organizational culture where your systems involve employee input in terms of generating and measuring their jobs' key result areas.
Employees need to learn to take personal ownership and responsibility for the results they bring to the company, but this would only be possible if your organization has created a culture where employees are allowed to unleash their highest creative potential to realize key results.
Hope that helped.
Regards,
Mubeena Mohd
www.mubeena.net
From United Arab Emirates, Dubai
I was very curious when I read your question about "what systems are to be set" for monitoring key result areas. Systems must be driven by people and they must be coached and trained on executing unbiased performance reviews with employees on a regular basis.
Here are some systematic suggestions:
1. Don't wait for the formal performance appraisal interview to monitor KRAs. Performance reviews must be done regularly to avoid surprises.
2. Once you set KRAs, do not expect employees to deliver them without your continual support. You must maintain close contact with all your people and give them continual feedback on their job performance, while consistently measuring KRAs.
3. A big issue is the creation of KRAs for each job. Co-create KRAs with employees themselves. This leads to a heightened sense of committment to fulfill them.
4. Encourage employees to monitor their own KRAs as well so that come review time, management and employees can compare their results and identify any perceived gaps.
5. Don't forget to show appreciation and reward employees for fulfilling KRAs. This is important because KRAs will be monitored with more diligence by employees themselves.
Basically, my message would be to create an organizational culture where your systems involve employee input in terms of generating and measuring their jobs' key result areas.
Employees need to learn to take personal ownership and responsibility for the results they bring to the company, but this would only be possible if your organization has created a culture where employees are allowed to unleash their highest creative potential to realize key results.
Hope that helped.
Regards,
Mubeena Mohd
www.mubeena.net
From United Arab Emirates, Dubai
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