Dear Members!
I am in a fix. I am giving a presentation on KRAs with clearly defined KRA's for the finance, marketing, and HR departments. I am not very familiar with the topic. Can anyone assist me with this matter so that I can complete my task with ease and confidence? I hope the members will help me out. I am waiting for your replies. Please help me out.
Regards,
Prachi Jain
From India, Delhi
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3I am in a fix. I am giving a presentation on KRAs with clearly defined KRA's for the finance, marketing, and HR departments. I am not very familiar with the topic. Can anyone assist me with this matter so that I can complete my task with ease and confidence? I hope the members will help me out. I am waiting for your replies. Please help me out.
Regards,
Prachi Jain
From India, Delhi
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Hi Prachi,
KRAs are the functions required for that particular department. They are defined on the basis of three perspectives:
1. Functional
2. Organizational
3. Personal
You are required to design the same based on these three perspectives.
Regards,
Amit Seth
From India, Ahmadabad
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KRAs are the functions required for that particular department. They are defined on the basis of three perspectives:
1. Functional
2. Organizational
3. Personal
You are required to design the same based on these three perspectives.
Regards,
Amit Seth
From India, Ahmadabad
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Dear Amit Thank you so much for the prompt reply but can you examplify the same so that it becomes more clear. Kindly help me in the same. Regards Pachi Jain
From India, Delhi
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From India, Delhi
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Dear Amit,
Thank you so much for the prompt reply. Could you help me with some examples that indicate about KRAs and KPIs for the same, so that this becomes more clear and simple? Please assist me in the matter concerned.
Regards,
Prachi Jain
From India, Delhi
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Thank you so much for the prompt reply. Could you help me with some examples that indicate about KRAs and KPIs for the same, so that this becomes more clear and simple? Please assist me in the matter concerned.
Regards,
Prachi Jain
From India, Delhi
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Hi,
Check out the following example; I hope it will help you in understanding KRAs.
KRA stands for Key Result Area. Key Result Areas are a set of activities derived from short-term objectives. KRAs refer to general areas of outcomes or outputs for which the department's role is responsible.
How KRA works:
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 the fulfillment of KRAs will lead to the fulfillment of the objective set by the BOD. Hence, if one person fails, it will hamper the attainment of the desired result.
Example:
Company Name: XYZ
Business of 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 the CEO is to attain a 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 KRA of improving the productivity cycle and producing PCs by which 400 crores can be achieved. The Chief Finance Officer will have to look after investing in stocks and providing finance for the purchase of raw materials, machinery, and others so that both Operations and Marketing can achieve their KRAs.
Chief People Officer (HR) – Generally KRAs are 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 responsibilities: provide for manpower and maintain harmonious industrial relationships so that there is no disruption in production or marketing, provide training to improve skills for better productivity, and frame a compensation benefit structure to retain efficient employees.
The Chiefs then divide the KRAs further to their subordinates. For example, the KRA of the Manager (Training) under CPO will be to provide adequate training to the workforce. If the Manager (Training) fails, it will be reflected in the KRAs of CPO, COO, and CEO. Similarly, if the KRA of the Assistant Manager (Training) is to locate the training institutes that can impart quality training and they are unable to achieve it, it will reflect in the KRAs 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 the funds for training that were supposed to be arranged by the Deputy Manager (Finance) could not be arranged. This failure will reflect in the KRAs of Deputy Manager (Finance), Manager (Finance), CFO, Deputy Manager (Training), Manager (Training), and CPO, COO, and CEO.
Regards,
Shree
From India, Hyderabad
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Check out the following example; I hope it will help you in understanding KRAs.
KRA stands for Key Result Area. Key Result Areas are a set of activities derived from short-term objectives. KRAs refer to general areas of outcomes or outputs for which the department's role is responsible.
How KRA works:
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 the fulfillment of KRAs will lead to the fulfillment of the objective set by the BOD. Hence, if one person fails, it will hamper the attainment of the desired result.
Example:
Company Name: XYZ
Business of 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 the CEO is to attain a 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 KRA of improving the productivity cycle and producing PCs by which 400 crores can be achieved. The Chief Finance Officer will have to look after investing in stocks and providing finance for the purchase of raw materials, machinery, and others so that both Operations and Marketing can achieve their KRAs.
Chief People Officer (HR) – Generally KRAs are 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 responsibilities: provide for manpower and maintain harmonious industrial relationships so that there is no disruption in production or marketing, provide training to improve skills for better productivity, and frame a compensation benefit structure to retain efficient employees.
The Chiefs then divide the KRAs further to their subordinates. For example, the KRA of the Manager (Training) under CPO will be to provide adequate training to the workforce. If the Manager (Training) fails, it will be reflected in the KRAs of CPO, COO, and CEO. Similarly, if the KRA of the Assistant Manager (Training) is to locate the training institutes that can impart quality training and they are unable to achieve it, it will reflect in the KRAs 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 the funds for training that were supposed to be arranged by the Deputy Manager (Finance) could not be arranged. This failure will reflect in the KRAs of Deputy Manager (Finance), Manager (Finance), CFO, Deputy Manager (Training), Manager (Training), and CPO, COO, and CEO.
Regards,
Shree
From India, Hyderabad
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Thank you so much, Shree, for the example. It is indeed of great help.
Can anyone tell me about the KRAs and KPIs to be taken care of for the Finance Manager and Manager-Commercials? Please help me in this matter.
Regards,
Prachi Jain
From India, Delhi
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Can anyone tell me about the KRAs and KPIs to be taken care of for the Finance Manager and Manager-Commercials? Please help me in this matter.
Regards,
Prachi Jain
From India, Delhi
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Thank you so much, Shreem, for such an example. It is of great help. Can you assist me with an example for KRAs and KPIs for Manager-Finance and Manager-Commercials? This will provide insight into what should be kept in mind while deciding the KRAs for people who would be reporting to them. Please help me.
Regards,
Prachi Jain
From India, Delhi
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Regards,
Prachi Jain
From India, Delhi
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Hi Shreem,
Thank you so much for the example. It is indeed of great help. Could you assist me in setting the KRA and KPI for the Manager-Finance and Manager-Commercials? This will help me establish the KRA's and KPI's for the juniors who will be reporting to these managers.
Please assist me in this matter.
Regards,
Prachi Jain
From India, Delhi
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Thank you so much for the example. It is indeed of great help. Could you assist me in setting the KRA and KPI for the Manager-Finance and Manager-Commercials? This will help me establish the KRA's and KPI's for the juniors who will be reporting to these managers.
Please assist me in this matter.
Regards,
Prachi Jain
From India, Delhi
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Hello, Can you please help me out in tframing the KRA’s / KPA’s & the measurement of KPI’s especially for HR Dept. Sumana
From India, Bangalore
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From India, Bangalore
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Dear Mr. Amit, Mr. Shree,
Can either of you help me with a project on performance appraisal? I am an MBA student interested in working on this topic. Currently, I am employed at the Container Freight Station. However, there is no existing Key Result Areas (KRA) or Key Performance Indicators (KPI) for any role within the organization. The departments here include Finance/Accounts, Operations (CFS - handling of export/import cargo), and General Administration (PRO, electricians, admin, HR, etc.). The company was established in November of last year.
I would appreciate your guidance on developing effective KRAs/KPIs and implementing a robust appraisal system. I am looking forward to your response or any suggestions on where to find more information on this subject.
Thank you for your assistance.
Regards,
Raji
From India, Kollam
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Can either of you help me with a project on performance appraisal? I am an MBA student interested in working on this topic. Currently, I am employed at the Container Freight Station. However, there is no existing Key Result Areas (KRA) or Key Performance Indicators (KPI) for any role within the organization. The departments here include Finance/Accounts, Operations (CFS - handling of export/import cargo), and General Administration (PRO, electricians, admin, HR, etc.). The company was established in November of last year.
I would appreciate your guidance on developing effective KRAs/KPIs and implementing a robust appraisal system. I am looking forward to your response or any suggestions on where to find more information on this subject.
Thank you for your assistance.
Regards,
Raji
From India, Kollam
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KRA KPI-.xls
KRA & KPI.doc
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