KPI-for Individuals?????? - CiteHR
Leolingham2000
Management Consultant
Reenadey
Hr Professional
Vani.cs
Student
+2 Others

Cite.Co is a repository of information created by your industry peers and experienced seniors sharing their experience and insights.
Join Us and help by adding your inputs. Contributions From Other Members Follow Below...
Hi everyone im new to this community,
it looked very helpful and interesting so i joined up.
im preparing a training module for an organistion, one of the topics is KPI( Key performance Indicators)
Whatever material that i can find refers to KPI of organisations.However i need KPI for individuals with examples for my understanding.
thanx
masha

masha

First, let us understand the difference in

''KRA'' AND ''KPA'' AND ''KPI''

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).

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

KRAs [ KEY RESULT AREAS are managed by

-KPAs [ KEY PERFORMANCE AREAS]

AND -KPIs [KEY PERFORMANCE INDICATORS]

KEY PERFORMANCE AREAS

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 COMPANY'S



*VISION STATEMENT

*MISSION STATEMENT

*CORPORATE OBJECTIVES

*CORPORATE STRATEGY

*CORPORATE BUSINESS UNITS/ DEPARTMENTAL PLANS/STRATEGY.

FOR THE BUDGET PERIOD, WHICH IS USUALLY 12 MONTHS.

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

Now I will use HR department as a case study for our purpose.

THE CORE KRAs of HR DEPARTMENT ARE

-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

============================================-=======

EVALUATION OF HR DEPARTMENT

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 AN EXAMPLE OF KRAs, KPAs and KPIs FOR HR DEPT.,

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.

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

FOR INDIVIDUALS WITH HR DEPARTMENT,

-you should take the job description of the individual

-determine the KRAs for the year

-identify the KPAs for the year [ which could change yearly]

-determine the KPI for each KPA, which depends on the company annual

objectives.

HERE IS THE EXAMPLE for a recruitment officer

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%

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

FOR OTHER DEPARTMENTS, YOU SHOULD REVIEW

Typical key result areas at the corporate and some functional levels.

JUST LIKE HR DEPARTMENT'S KRAs AND KPIs,

A COMPANY CAN DEVELOP KRA AND KPI

FOR OTHER FUNCTIONAL DEPARTMENTS.

SOME EXAMPLES

1. CORPORATION AS A WHOLE

-corporate objective / actual results

-sales growth %

-gross profit % of sales

-market share growth %

-return on assets

-return on investment

-corporate image index improvement

etc etc

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

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

etc etc

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

HERE IS ANOTHER EXAMPLE OF AN INDIVIDUAL

IN SALES

JOB TITLE: Sales Representative

JOB PURPOSE: SERVES CUSTOMERS

by selling products; meeting customer needs.

ESSENTIAL JOB RESPONSIBILITIES

1. SERVICES EXISTING ACCOUNTS, OBTAINS ORDERS, AND ESTABLISHES NEW ACCOUNTS by planning and organizing daily work schedule to call on existing or potential sales

outlets and other trade factors.

2. ADJUSTS CONTENT OF SALES PRESENTATIONS

by studying the type of sales outlet or trade factor.

3. FOCUSES SALES EFFORTS

by studying existing and potential volume of dealers.

4. SUBMITS ORDERS

by referring to price lists and product literature.

5. KEEPS MANAGEMENT INFORMED

by submitting activity and results reports, such as daily call reports, weekly work plans, and monthly and annual territory analyses.

6. MONITORS COMPETITION by gathering current marketplace information on pricing, products, new products, delivery schedules, merchandising techniques, etc.

7. RECOMMENDS CHANGES IN PRODUCTS, SERVICE, AND POLICY by evaluating results and competitive developments.

8. RESOLVES CUSTOMER COMPLAINTS

by investigating problems; developing solutions, preparing reports; making recommendations to management.

9. PREPARES SALES OUTLET PERSONNEL, CONTRACTORS, AND OTHER TRADE FACTORS WITH PRODUCT KNOWLEDGE AND SELLING SKILLS by conducting and/or participating in

sales promotion and educational meetings.

10. MAINTAINS PROFESSIONAL AND TECHNICAL KNOWLEDGE

by attending educational workshops‑, reviewing professional publications; establishing personal networks; participating in professional societies.

11. PROVIDES HISTORICAL RECORDS by maintaining records on area and customer sales.

12. CONTRIBUTES TO TEAM EFFORT

by accomplishing related results as needed.

BASED ON THE ABOVE JOB DESCRIPTION, THE

KRAs / KPAs / KPIs ARE

KRA 1 TERRITORY MANAGEMENT

KPA 1 --no. of accounts

KPI 1 ---100% of target in the top 10 accounts.

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

KRA 2 CUSTOMER SERVICING

KPA 1 CUSTOMER COMPLAINTS

KPI 1 REDUCE CUSTOMER COMPLAINTS TO '0' LEVEL

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

KRA 3 SALES RESULTS

KPA 1 SALES [ ACTUAL / TARGET]

KPA 2 PRODUCTLINE SALES [ SALES BY TARGET]

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

hope this is useful to you

REGARDS

LEO LINGHAM

Hello Leo, Can you help me with the KPI for Software developer, Team Leader & Project Manager. Regards, Reena
REENA,

AS I DID'NT HAVE THE JOB DESCRIPTIONS OF BOTH

NOR THE ROLE OF THESE TWO POSITIONS.

I HAVE LISTED A BROAD CONCEPT OF KPIs

FOR BOTH.

YOU CAN MODIFY AS PER THE JOB DESCRIPTIONS.

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

TEAM LEADER KPIs

*DELIVERY TARGETS

*COST TARGETS

*QUALITY TARGETS

*PRODUCTION OUTPUT TARGET

*NO. OF TRAINING SESSIONS PLAN/ ACTUAL

*NO. OF IMPROVEMENT PROGRAMS

*CUSTOMER COMPLAINTS [ ACTUAL ]

*ABSENTEEISM RATE.

*STAFF TURNOVER RATE

*ATTRITION RATE

*PERFORMANCE APPRAISALS [ ACTUAL / PLANNED ]

*SERVICE LEVELS

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

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

PROJECT MANAGER KPIs

*DELIVERY TARGETS

*COST TARGETS

*QUALITY TARGETS

*PROJECT DELIVERABLES TARGET

*TIMELINESS OF PROJECT

*NO. OF PROJECTS PLANNED/ACTUAL

*PROJECT OBJECTIVES ACHIEVEMENTS

*PROJECT MILESTONES ACHIEVEMENTS

*RESOURCES MANAGEMENT [ ACTUAL / PLANNED]

*BUDGET [ ACTUAL / PLAN]

*QUALITY ACHIEVEMENTS

*CONTROL SYSTEMS [ EFFECTIVENESS]

*BEST PRACTICES ACHIEVEMENTS

*TASK ALLOCATION EFFECTIVENESS

*RISK MANAGEMENT EFFECTIVENESS

*CONFLICT RESOLUTION EFFECTIVENESS

*PEOPLE MANAGEMENT EFFECTIVENESS

REGARDS

LEO LINGHAM

hi this is vani.cs
i am student of mba 2nd sem i am doing project in car showroom cum service station on title "impact of job satisfaction on productivity of the employees" so i want the crityerias to measure the productivity which i can measure by questionnaire. plz assist me in this regard i will be very greatfull to you.
thank you,
vani.c.s


LEO LINGAM, THAT WAS AN AWESOME EFFORT TO GIVA AWAY SUCH A USEFUL INFORMATION ON THE KPIs. Thanks a lot. Please mail me your contacts to my email for further discussions on variour HR activities and issues.

regards,
Raj

Brother

Kindly mail me details of software vikramtnj at gmail dot com

We are Intrested

regards

vikramtnj at gmail dot com


This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.






About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2020 Cite.Co™