Thekla
6

Hi I need to know what the difference between these are - Key Performance Area / Key Performance Indicator / Key Result area
From Namibia, Windhoek
leolingham2000
260

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.

regards

LEO LINGHAM

From India, Mumbai
Tania_m
2

Hi Very gud detailed information provided. Very well explained. I’m sure lot many HR professionals will gain from it. Rgds
From India, Gurgaon
puja_jhunjhunwala
:) hey Mr. Leo...
full detailed explanation.. i guess tht answers the ques.. actually i am in the process of designing JD.. including KRA< KPA, KPI for doctors and faculty members (i work in a teaching hospital).. so it was of great help to me.. thanks

From India, Guwahati
knarayan
1

These are two different terminology used to cul out the macro level of outcomes of jobs. These are used based on individuals experience and preference of words.
KPI - stands for Key Performance Indicators
KRA - stands for Key Result Area
Both serves the same purpose. It comprises of following :
Major outcomes of a job handled by an individual
Measurement Unit and Criteria
Time Line
Linkages to other department
Hope this clarifies your query.
Regards
K Narayan

From India, Pune
Apitha Raghunathan
1

This in an Information shared by a Member of CHR before.. which help you understand KPIs and KRAs....

His name is Mr. Leo....

You can thank him for the information....

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.

THIS IS A BROAD GENERAL MIX, NOT TUNED TOWARDS

ANY PARTICULAR INDUSTRY OR ORGANIZATION.

MANAGER

LEARNING AND DEVELOPMENT

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 [ % ]

===============================================

==================================================

HR MANAGER

KEY RESULT AREAS.

KRA 1 Recruitment / Selection

KRA 2 Workforce Planning and Diversity

KRA 3 Performance Management

KRA 4 Reward Management

KRA 5 Workplace Management and Relations

KRA 6 A Safe and Healthy Workplace

KRA 7 Building Capabilities and Organisational Learning

KRA 8 Effective HR Management Systems, Support and Monitoring

================================================== =============== ===

For the management trainer, key result areas could be:

Design of solutions

Delivery of solutions

Evaluation of solutions

Budgets

Client satisfaction

Innovation

========================================

General Management or Senior Executive

KRAs include

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

=================================

Finance and Accounting

KRAs include

Credit referencing

Management information

Capital expenditure

Security

Financial analysis

Cost control

Internal audit

Regulatory reporting

Credit control

Financial records

Payroll

Cashflow forecasting

Budgeting

Costing

===================================

Sales

KRAs include

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

=====================================

Manufacturing

KRAs include

Stock control

Maintenance

Labour relations

Waste

Reworks

Productivity

Health and Safety

Quality control

Record keeping

======================================

Marketing

KRAs include

Advertising

Promotional strategy

Pricing

Market research

Field support

Marketing materials

Media relations

Sales support

Agency relations

======================================

Secretarial, Clerical and Administrative

KRAs include

Correspondence

Filing

Records management

Administrative support

Internal customer relations

Equipment maintenance

Forms administration

Scheduling

Supply maintenance and purchasing

Telephone coverage

Project support

Finally, key result areas for everyone in an organisation are:

Personal development

Professional development

Internal and external customer satisfaction

Public relations

Communication - oral and written

Interdepartmental relations

Project management

====================================

KPI FOR THE VARIOUS KRAs should be

-quantity oriented

-quality oriented

-time oriented

-cost oriented

or a combination .

Quantity

Number of units produced/published/sent/received/processed/deadlines

Calls per hour/day/week

New products introduced

Grievances per 100 employees

Staff turnover

Customer complaints and compliments

Error rate or reworks

Returned goods

Sales increased

Profit increased

Increase in market share

Cost

Variance against budget

£’s spent

Profit

Waste

Overtime incurred

Speed

Time

Reduction in number of minutes/hours/days etc.

Deadlines and schedules met

Average call response time

Projects completed per week/month etc.

Number of minutes between customers

Qualitative

Accuracy

Customer satisfaction

Repeat business

Mistakes

Reworks/repairs

Therefore:example

Key Result Area = Sales

Objective = Sell x new product to customers

KPI = Number of units sold per new customer whilst maintaining

gross profit level of 25%

ANOTHER IMPORTANT ARE IN BUSINESS IS

SUPPLY CHAIN MANAGEMENT

DEMAND PLANNING

-demand planning for core products

-demand planning for parts/accessories

-demand planning for critical items

-developing product life cycle trends

-product life cycle forecast for new products

etc

KPI could be

-remove stock shortages[ by %]

-improve inventory levels.[ 98% max]

etc

==================================

PROCUREMANT

-quicker stock replenishment

-continual stock replenishment

-reduction in lead time

etc

KPI could be

-improving stock availability [100%]

-reducing cost [ 5%]

-reduction working capital [ 7%]

etc

=======================================

SUPPLY

-better supply coordination

-more effective communication with supplier

-faster / timely communication

etc

KPI could be

-developing supplier profile [ all accounts]

-developing suppliers networking [ all accounts]

etc

===================================

RAW--INVENTORY

-quicker replenishment

-customer focused inventory building

-logistical lead time reduction

-demand based inventory

etc

KPI could be

-better material availability[100%]

-good/ usable inventory levels [ 98% satisfaction]

etc

=======================================

MANUFACTURING

-elimination of wastages in production

-improving throughput effiiciency

-process efficiency

etc

KPI could be

-reducing back orders[ nil %]

-improving targeted delivery date [ 98%]

etc

=================================

FINISHED --INVENTORY

-reduction in logical leadtime

-full stock availability

etc

KPI could be

-full total inventory[ 100%]

-full stock / range availability [ full range]

etc

=================================

ORDER SERVICE

-short--response time to query

-shortening order cycle time

etc

KPI could be

-making targeted delivery date [ 100%]

-providing order status [ at all times]

etc

==================================

DISTRIBUTION

-order fill rate

-ontime delivery

-backorder by age

-service/ parts availability

-targeted delivery date

-order completeness

-delivery reliability

etc

KPI could be

-improve order fill rate [ 98%]

-improve on-time delivery [ 98%]

-reduce shipment delays[ 0%]

etc

=============================

CUSTOMER SERVICE

-order status

-delivery reliabilitty

-documentation integrity

etc

KPI could be

-timely order status [ 100%]

-timely delivery status.[ 100%]

etc

================================================== =====

THE SUPPLY CHAIN MANAGEMENT KPIs

could include

-IMPROVING MATERIAL FLOWS

-REDUCE RAW MATERIAL INVENTORY LEVELS

-REDUCING PURCHASING COST

-REDUCE FREIGHT COST

-REDUCE OBSOLETE STOCK LEVELS

-IMPROVING WAREHOUSING OPERATIONS EFFICIENCY

-OPTIMISE STOCK LEVELS

-REDUCE LEAD TIME

-REDUCE TOTAL INVENTORY LEVELS

-REDUCE FINISHED STOCKS

-IMPROVE DEMAND FORECASTING

-IMPROVE MATERIAL RESOURCE PLANNING

================================================== ===

===================================

OTHER KPIs could be as follows

2.MANUFACTURING

- Unit volume level

- unit cost target

-production efficiency improvement

-productivity improvement

-quality improvement index

-capacity utilization

etc etc

==================================== MARKETING

-market share %

-new product launches success

-profit contribution by productlines

etc etc

=====================================

SALES

-sales against last year

-sales against target

-sales coverage improvement

etc etc

======================================

DISTRIBUTION

-market coverage

-customer coverage

-channel coverage

=======================================

CUSTOMER SERVICE

-CUSTOMER SERVICE IMPROVEMENT

-CUSTOMER SATISFACTION ACHIEVEMENT

ETC ETC

======================================

WAREHOUSING / TRANSPORTATION

-%ACHIEVED AGAINST ORDERS

-PICKING / PACKING RATE

-FINISHED GOODS INVENTORY LEVEL

-STOCK TURNOVER

====================================

FINANCE

-Cost of Capital USED

- Receivables leveL / against sales

-Bad debt level

-Debt equity ratio

=====================================

PROCUREMENT / SUPPLY

-raw material inventory levels

-cost saving target

From India, Mumbai
ash.pgdm
2

Hi Leo!
Nice, detailed information!
wanted to add one thing.
KRAs and KPAs are the same thing, the only difference is like this-
In some cases, even if the employee does his best to achieve his KRA successfully, he may fail because of certain unavoidable circumstances, beyond his control. IF we go by KRA, he will not achieve results. But , if we go by KPA, he has performed. He should not be made to loose because of certain problems beyond his control.
take an example of a salesman in seeds industry. If the region is flooded, he will not be able to reach targets of selling seeds. but, this does not mean that he will be considered a poor performer.
because of this, the inclination is shifting from KRAs to KPAs.
Regards,
Ashwini Kumar

From India, Hyderabad
leolingham2000
260

Sunitha

AS the first step to build KRAs for HR,

YOU must visit

YOUR COMPANY'S

*VISION STATEMENT

*MISSION STATEMENT

*CORPORATE OBJECTIVES

*CORPORATE STRATEGY

*CORPORATE BUSINESS UNITS/ DEPARTMENTAL PLANS/STRATEGY.

AND COULD CHANGE YEAR BY YEAR AS PER THE BOARD DIRECTIVES.

-------------------------------------------------------------------------------

Then review your own job description.

-------------------------------------------------------------------------------

UNDERSTAND THAT THE ,

KRA AND KPA

Key Result Areas

“Key Result Areas” or KRAs refer to general areas of outcomes or outputs for which a role is responsible. A typical role targets three to five KRA.

------------------------------------------

Value

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

Key result areas (KRAs) capture about 80% of a 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 griptionood of the organisation).

-----------------------------------------------------------

EXAMPLE

HR [ KRAs]

CORE KRAs

-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

----------------------------------------------------------------

KEY PERFORMANCE AREAS [ KPA ]

These are the areas within the ORGANIZATION FUNCTIONS, where an

individual or group, is logically responsible / accountable

for the results.

To manage each KRA, a set of KPA / KPI are set .

KPA and hence KPI is attributed to the person who

can have effect on the business results and is

self measured where applicable

EXAMPLE OF HR

KRA = RECRUITMENT / SELECTION

KPA 1 = RECRUITMENT

KPA 2= SELECTION

KPi for KPA 1= reduce the recruitment cost per head by 10%.

KPi for KPA 2 = finalize selection in 5 weeks for each individual position.

--------------------------------------------------------------

.THE CHOICE OF HR KPI WILL VARY FROM YEAR TO YEAR,

SUBJECT TO COMPANY'S

-STRATEGIC PLANNING

-CORPORATE STRATEGIES

-CORPORATE OBJECTIVES

WHICH IN TURN AFFECTS THE HR'S

-HR STRATEGIC PLANNING

-HRM STRATEGIES

-HRM OBJECTIVES

-------------------------------------------------------

The HR Balanced Scorecard is the measurement tool. It provides the management with a tool and a process to measure the performance of people practices and the HR function from multiple perspectives:

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

All four components of the scorecard are used to define and measure the effectiveness of people-management activities and how the HR function executes them. This provides a strategic measurement and management process to show the connection between a company’s business strategies and goals and its HR strategies, activities, and results. The Balanced Scorecard can provide an ideal approach to measure the contribution that human resource management makes to business success.

With the HR Balanced Scorecard in place, it can assist organizations to easily monitor the workforce indicators that are key to their business success. Such solutions enhance HR’s ability to provide counsel to line management and deliver results that make a difference to the achievement of their goals and strategy and thereby to shareholders.

The apparent and inherent values that the HR Balanced Scorecard brings include:

Measurement provides the data and facts to support business decisions, giving credibility to HR recommendations and initiatives;

Collecting and using data to make decisionsregarding retaining and motivating the

workforce, giving the organization a competitive advantage in the marketplace;

The right mix of lead and lag measures helps the business assess its strategic

alignment and progress towards its objectives;

HR will be proactive in identifying potential improvements and bringing suggestions

to the business that improve bottom-line results; and

A business and linked measurement framework focuses activity on those tasks

that contribute to organizational success. This process lifts the role of HR from being viewed purely as a cost centre to that as strategic business partner.

================================================== ===============

HR Key Performance Indicators

Frequently used HR Key Performance Indicators include:

[[ FTE = full time employees ]]

Revenue per Employee (FTE)

Assets per FTE

Training Hours per FTE

Training Costs per FTE

HR Department Cost per FTE

FTEs per HR Department FTE

Acceptance Rate

Average Cost per Hire

Absence Rate

Turnover Rate

Resignation Rate

Human Investment Ratio

Compensation & Benefits/Revenue

Average Remuneration

Time taken per recruitment

Cost per recruitment

============================================

EXAMPLES of KRAs / KPAs / KPIs

KRA 1 -RECRUITMENT/ SELECTION

KPA 1- RECRUITMENT [KPI= average time taken per employee 2 months]

KPA 2 -SELECTION [ KPI = average cost per new employee RS 10,000]

====================================

KRA 2 - WORKFORCE PLANNING/ DIVERSITY

KPA 1 - ANSENTEEISM [ KPI = absent rate at 5%]

KPA 2- TURNOVER [ KPI = turnover rate at 7%]

KPA 3- DIVERSITY [ KPI = 3 FEMALES TO BE INDUCTED INTO MANAGEMENT CADRE]

=====================================

KRA 3- PERFORMANCE MANAGEMENT

KPA 1 - PERFORMANCE APPRAISALS [KPI = all staff to be appraised at least once annually]

KPA 2 -SUCCESSION PLANNING [ KPI = 8 POTENTAL staff to be identified and talent managed]

===================================

KRA 4 - REWARD MANAGEMENT

KPA 1- MARKET ORIENTED SALARY STRUCTURING [ KPI = total compensation to sales 12%]

KPA 2 -BENEFITS PLANNING [ KPI = 6% of total salary bill]

============================================

KRA 5 - WORKPLACE MANAGEMENT AND RELATIONS

KPA 1 -JOB EVALUATIONS [ KPI = 600 lower staff , below grade 4 to be evaluated]

KPA 2 - EMPLOYEE COMMUNICATIONS [ KPI = 4 newsletter on intranet,one per quarter ]

===========================================

KRA 6 - SAFETY AND HEALTH WORKPLACE

KPA 1 - SAFETY [ KPI = accident safety ratings, benchmark with industry]

KPA 2 - HEALTH [KPI = actual health expenditure vs budget ]

========================================

KRA 7 - BUILDING CAPABILITIES AND ORGANIZATION LEARNING

KPA 1 - TRAINING [ KPI = average training hours per employee annually= 24 hours]

KPA 2 - MANAGEMENT DEVELOPMENT [ KPI =average MD cost per employee annually= 16000 RS]

============================================

KRA 8 - EFFECTIVE HR MANAGEMENT SYSTEMS , SUPPORT AND MONITORING

KPA 1- HRIS [ KPI = finalize the software . RS 1.2 million capital budget]

regards

LEO LINGHAM

From India, Mumbai
leolingham2000
260

Ashwini Kumar,

KRA = KEY RESULT AREAS

KPA = KEY PERFORMANCE AREAS.

IT IS NOT OFTEN POSSIBLE TO EVALUATE KRA,

AND HENCE IT IS SPLIT INTO KPAs.

KPAs are more focused and easy to monitor/evaluate

with KPI.

THE KPAs are weighted to make up the KRA.

===============================================

AS for the external factors affecting the performance,

the line managers do take into consideration this factor

while conducting the performance appraisal.

--------------------------------------------------------------------------------------------

In case of sales, this is a common problem where sales target

are set 12 months ahead on certain assumptions.

When these assumptions fail, the sales manager has to take

these factors into consideration while conducting sales

appraisal.

-this changes could take place , nationally.

-these changes could be in some few territories, and not all.

HENCE THE SALES MANAGER APPLIES , WHAT WE CALL

''MANAGING BY EXCEPTION''.

regards

LEO LINGHAM

From India, Mumbai
gk
Hi
I am a new member and would like to know what the difference is between KRA and KPI - if there is a difference. I did see some kind of an explanation while browsing on the site but it was confusing.
Would be nice if someone could give me clarity on this.
Thanx
gk

From India, Mumbai
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.






Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2024 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.