Jhuma Tiwade
Manager- Human Resources
Ash Mathew
Recruitments, Training`
Swati Saxena
Hr Professional
Hai_its_Raj
Hr Personnel
Adnanalam2
Hr Professional
Mnj.tiwari
Service
Chitraa
Salaried
Vijayavailable
Mba Student
+2 Others

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Dear Friends,

Please give your valuable time to my query & Guide me!

My Management asked to draft KRA & KPIs for all existing deptts.

As Job Descriptions are mandatory for KRAs but all JDs need to be updated as per changing role & responsibility,

With JDs, first of all
1.Goals of the organization,
2.deptt's KRAs and then
3.Individual KRA & KPI should be formulated.

Please correct me if I am wrong.

And for formulation of the same I need to undersatand all deptt work flow through discussion with each deptt head.

Here I do have few queries please guide me for clarification:-

1. Is it possible to develop KRAs without deptts KRA ?
2. What is Key performance Area and how it is different from KRA & KPI?
3. The sequence of developing PMS is setting KRA,KPI and than Goals and than Deadlines.
What is the role of Goals here and how to set goals.

One more problem I am facing that line managers as well as top management is not interested to give time to discuss the same.

They just give me work to do but don’t cooperate.

And whatever JDs has been formulated by me are not upto the mark as per my understanding because of the lack of information provided to me by deptt. head.
As I analyzed that all employees doing lot of work than written in the jds.
So if I draft kRAs on the basis of JDs these would be inaccurate.

Plz guide me? How to handle the issue...........

Hi...I saw ur post .....I think below content wil be helpful for u...

“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).
================================================== ===============
BEFORE YOU DEVELOP ''KRAs'', you must review the current the corporate
*VISION STATEMENT
*MISSION STATEMENT

THEN YOU MUST REVIEW
The senior management team's , based on the vision/ mission
*CORPORATE OBJECTIVES
*CORPORATE STRATEGY

THEN YOU MUST REVIEW THE RESPECTIVE DEPARTMENT'S
OBJECTIVES / STRATEGIES which are based on the established
*CORPORATE OBJECTIVES
*CORPORATE STRATEGY

which in turn is converted into
DEPARTMENTAL PLANS/STRATEGY
================================================== ====
BASED ON THE
the DEPARTMENTAL OBJECTIVES /STRATEGY.

the job descriptions are written/re written/reviewed or revised
as the situation may be.
=====================================
BEFORE YOU DEVELOP INDIVIDUAL'S KRAs
YOU MUST WRITE DOWN THE JOB DESCRIPTIONS.
==================================================
FROM THE JOB DESCRIPTIONS / DEPARTMENT OBJECTIVES
WE DEVELOP

KRA AND KPA
=======================================
HERE ARE TWO EXAMPLES
Position: HRM

Position reports to:
Chief Executive

Primary objective

Plan, develop and direct Human Resource policies for the organisation and implement procedures to achieve the most effective use of human resources to acl‑iieve profitability and business objectives.

Specific accountabilities/ responsibilities

Plan, make recommendations and devise personnel and industrial relations policy, in consultation with other senior management.

Establish and direct the organisation's HR procedures and strategies, taking account of the operating environment.

Develop, and direct the setting of performance targets, and participate in business planning and strategy determinations to ensure HR specifications meet the business objectives. Prepare budgets, and other management plans.

Monitor industrial relations developments to prevent and settle disputes. Direct negotiations with unions, industry groups and industrial authorities to determine agreements and minimise the possibility of industrial dispute.

Control and co‑ordinate activities such as personnel administration, staff selection and training, employee relations, wage and salary administration, security, health and safety, employee benefits and remuneration strategy.

Direct and maintain a corporate workforce plan and initiate appropriate action in relation to the organisation's use and development of employees.

Represent and direct the organisation in dealings with other organisations, employer groups, industry associations, unions, government authorities and other relevant bodies as required.

Control the collection, maintenance and interpretation of management information and records to monitor performance, control the preparation of reports (including Affirmative Action) and authorise the release of information.

Ensure the organisation's training activities are planned to meet current and future organisation and employee needs, and satisfv
government training requirements.

Review regularly the organisation's remuneration policy, including its market competitiveness, benefit and reward structures, and internal relativity and equity.

Make policy decisions as appropriate, and accept responsibility for operations, performance of staff, achievement of objectives and adherence to budgets.

Establish lines of control and delegate responsibilities to subordinate staff; control the selection and training of staff. May train and advise other managers in Human Resources or industrial relations matters.

Ensure all activities undertaken by Human Resource department employees comply with relevant Acts, legal demands and ethical standards.

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

THE KRAs for HR [ weightage of importance %]

1.RECRUITMENT/ SELECTION [ 20%]
2.WORKFORCE PLANNING/ DIVERSITY [ 20%]
3.PERFORMANCE MANAGEMENT [ 25%]
4.REWARD MANAGEMENT [20%]
5.WORKPLACE MANAGEMENT AND RELATIONS [ 10%]
6.BUILDING CAPABILITIES AND ORGANIZATION LEARNING [ 5%]
TOTAL [ 100% ]
====================================
THE KPI OF HR [ 2007 ]

KRA 1 -RECRUITMENT/ SELECTION
[KPI= average time taken per employee 2 months MAXIMUM]
====================================
KRA 2 - WORKFORCE PLANNING/ DIVERSITY
ABSENTEEISM [ KPI =maintain absent rate at 5%]
TURNOVER [ KPI = control turnover rate at 7%]
=====================================
KRA 3- PERFORMANCE MANAGEMENT
PERFORMANCE APPRAISALS [KPI = all staff to be appraised at least once annually]
===================================
KRA 4 - REWARD MANAGEMENT
MARKET ORIENTED SALARY STRUCTURING [ KPI = total compensation to sales 12%]
============================================
KRA 5 - WORKPLACE MANAGEMENT AND RELATIONS
JOB EVALUATIONS [ KPI = 600 lower staff , below grade 4 to be evaluated]
===========================================
KRA 6 - BUILDING CAPABILITIES AND ORGANIZATION LEARNING
TRAINING [ KPI = average training hours per employee annually= 3 days or 24 hours]
============================================
################################################## ##########
Position: Marketing Manager

Position reports to:
Chief Executive

Primary objective

Develop, direct and control the orgardsation's marketing business strategies and activities to achieve revenue, sales and profit targets.

Specific accountabilities/responsibilities

Direct all marketing activities for the achievement of short and long term business objectives, increased profit, and market control.

Establish and co‑ordinate the marketing objectives, policies and programmes within the context of the overall corporate plan and, where appropriate, recommend standards and set targets and quotas.

Liaise with the sales group in the preparation of the reports, budgets, and forecasts and ensure they are compatible with support sales plans.

Appraise the activities of the staff according to overall marketing strategies. Monitor and evaluate the performance, and the efficiency of staff and procedures.

Co‑ordinate subordinate staff to optimise the use of human and material resources to achieve goals. Consult with subordinate staff and review recommendations and reports.

Direct marketing activities by setting product mix.

Control and monitor marketing methods, key customer strategies and other arrangements.

Direct and control marketing by planning or co‑ordinating advertising campaigns and promotional activities, product management, market analysis and research and other consulting work.

Direct the development of initiatives such as new products, new marketing techniques, new advertising campaigns, incentive bonus schemes and the dropping of unprofitable products.

Maintain necessary contact with major suppliers, customers, industry associations and government representatives to achieve the objectives of marketing.

May direct merchandising methods and distribution policy.

Select, or approve the selection and training of senior staff. Establish lines of control and delegate responsibilities to staff.

Ensure all the activities of the sales and marketing group comply with relevant Acts, legal demands and ethical standards.

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

MARKETING KRAs [ weightage of importance %]

1.market share . [ 20% ]
2.new product launches success [ 25% ]
3.Gross profit contribution [ 20%]
4.Pricing [ 20%]
5.Promotions [15 %]

TOTAL [ 100 % ]

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

THE KPI OF MARKETING [ 2007]

KRA 1 - MARKET SHARE
[KPI= improve market share by 15% MINIMUM]
====================================
KRA 2 - NEW PRODUCT LAUNCHES
[ KPI =AT LEAST 3 NEW PRODUCTS]
=====================================
KRA 3- GROSS PROFIT CONTRIBUTION
[KPI = IMPROVE GROSS PROFIT BY 20%]
===================================
KRA 4 - PRICING
MARKET ORIENTED PRICING [ KPI = INCREASE BY NET 12%]
============================================
KRA 5 - PROMOTIONS
EFFECTIVENESS [ KPI = improve effectiveness by 15%]
===========================================
##################################################
Key Result Areas
Once the job purpose is clear, you can then identify five or six areas in which results must be
achieved if the job purpose is to be fulfilled. These are the broad areas within a job that change little
from year to year. Everyone’s job can be broken into key result areas.

1.MANAGEMENT TRAINER
key result areas could be:
Design of solutions
Delivery of solutions
Evaluation of solutions
Budgets
Client satisfaction
Innovation
----------------------------------------------------
2.HUMAN RESOURCE SPECIALIST
key result areas could be:
Employee relations
Employee development
Compensation planning and administration
Policy development
Benefits administration
Career development
Statutory compliance
Human Resource information systems
------------------------------------------------------------------
3.GENERAL MANAGER OR SENIOR MANAGER

KEY RESULT AREAS COULD BE:
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
------------------------------------------------
4.SALES
key result areas could be:
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
--------------------------------------------------
5. MANUFACTURING

Key result areas could be :
Stock control
Maintenance
Labour relations
Waste
Reworks
Productivity
Health and Safety
Quality control
Record keeping
---------------------------------------------------------
6.MARKETING

key result areas could be:
Advertising
Promotional strategy
Pricing
Market research
Field support
Marketing materials
Media relations
Sales support
Agency relations
-----------------------------------------
7. HUMAN RESOURCES

key result areas could be :
-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
------------------------------------------------------------------------------
8.GENERAL ADMINISTRATION
key result areas could include:
Correspondence
Filing
Records management
Administrative support
Internal customer relations
Equipment maintenance
Forms administration
Scheduling
Supply maintenance and purchasing
Telephone coverage
Project support
--------------------------------------------------------------
TRAINING AND DEVELOPMENT MANAGER
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 [ % ]


But dear Asha & Ravi please read my post and check few queries are still required your reply..............
  1. The sequence of developing PMS is setting KRA,KPI and than Goals and than Deadlines.
    What is the role of Goals here and how to set goals.

click for performance mangement
Dear All, would request to please see my post and reply to get me clear picture.:idea::idea::idea::idea::idea::idea::idea:
Swati,
see this is a problem of every organisation,You will have to learn how to take out work from these kind of persons.If you have read or if i talk in terms of management by indian values you have to use sham,dam,dand ,bhed as required.
Other than this if department heads are not cooperating ask your management to resolve the issue.
For KRA's,KPI's I sended you a live example if any problem discuss on those.

Dear Swati,

Mr Ravi Shankar has given good examples. Let me put my points as well regarding ur queries, this will help a bit:

U have put 3 points with JD, but JD comes at later stage.

1. as mentioned above, 1st comes vision then
2. mission
3. goals
4. objectives (more specific)

After having organisation's objectives / target/ strategy then comes the department's goals & objectives or strategy. Though, origin of departments happens as per structural analysis over a period of time (lets not go there as of now).

Now, as u rightly said since roles are changing and expanding JD needs to be changed. But JD is outcome of job evaluation and there are certain methods to evaluate jobs, which even many outside consultants do for the organisation. Or one can do by having a committe within the organisation. Growing organisation may need to do this exercise every 2-3 yrs.

I am bit skeptical about differences between, KFA/KRA/KPI/KFA though Ravishankar has given some insight. These are related to JD but also with department's objectives of particular year.

As far as setting up objectives is comcerned it also depends upon organisations way of setting the objectives as well as managing style of managers. Also, you alone can not decide or set objectives/KFA/KRA/KPI for others, being an HR we can be facilitator and process the activity and get it done in time with complete parity in the system. Its more a matter between subordinate and supervisor and they only have to do. For ex. is it possible to decide a Marketing executive's KRA by you who is working under National sales manager???? I think no. You can do it based on ur capacity but its neither accurately feasible nor a correct process.

I dont know appraisal cycle of ur organisation, as KPIs may get changed also. And how much weightage to be given to which activity this better b expalined n decided between supervisor & subordinate.

Please let ur management know its a joint & deliberate exercise u lone will get in huge pressure if doing alone and the whole whole year will end with lot of confusions...even this depends upon the size of ur organisation.

Pleases keep discussing on this and inform us the progress...as its alearning for me also..

Reagards,
Rahul

Sry that will be quite unproffesional at my end. I will do some changes than I will post it.as its some confidential stuuf of one of my client. I will post it within few days,after certain changes.
thats ok. i can understand. i thought if u have sent it to Swati then can send it to us as well if possible. nyways plz try to post it after required changes.
dear Rahul
Thanks for your reply really helpful...
could you please tell me that
The sequence of PMS is to formulat KRAs KPIs and goals and deadlines for the position.
so could you please give me one example of KRA,KPI,Goal and deadline of any deptt.
Thankyou


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