View Poll Results: KRA?
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Thread Started by #mani.ragi

Hi all , I wish to know what is KRA
27th October 2009 From India, Nizamabad
What is the meaning of "I wish to know", first of all make sure that you would like to have knowldege about KRA or just you heard the word and get spark of this.
KRA-"key result area "
KPI-"key production interest", Hr manager always thinks abt hw to enhance the result n production through human resource available to them
27th October 2009 From India, Delhi
To add more to the above points KRA is based on the KRA of the company , dept, Reporting senior. The KRA will contain the Roles & Responsibilities & the weightage measures. Actually KRA will be decided along with the employee. I am attaching a format of KRA sheet.
27th October 2009 From India, Madras

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File Type: doc KRA Format.doc (42.5 KB, 7628 views)

When u join an organisation ... Hr discussyour job role in the company (i.e. KRA) according to which the evaluation is done during specified tenure (six month or one year). Performance appraisal is done accordingly.
27th October 2009 From India, Pune
KPA: Key Performance Area (Typical Job Description) KRA: Key Result Area (expected outcome from tasks done) KPI: Key Performance Indicator (Set standard of best performance)
28th October 2009 From Bangladesh, Dhaka
KRA means "Key Result Area". Simply, Identify the pain or critical areas in your process and connect them to your Appraisal system. You can arrive at point sysem by allotting weightage for each KRA to calculate the rating of your team or process.
Eg., if productivity and quality is a issue in your process, give the weightage to both as per your requirement (may be 60% for quality and 40% for productivity) and communicate to your teams about the same. Based on this you can calculate weighted average and arrive at rating as mentioned above.
28th October 2009 From India, Hyderabad
Dear All,
I am have been watching this site quite some time and want to add few suggestion.
We HR professional must know how to express our thought / views /ask question.We should never use " I want to know" or "what is it".Always it is good to use "May some one can help me with details of ------------".
Further it recent times I found that many people choose the HR profession even with out
knowing the fundamentals of HR department- ESI /EPF / Bonus.All these are basic points which we know before taking the role.
Our Role in a company is wider and we need to act as MIS and act as link between management and employees.
Hope let site may be used for discussing core of HR.
28th October 2009 From India, Madras
hi all,
i understand KPI- to mean Key performance indicators. in relation to KRA- Key result areas, what is the distinction btw both? or are they the same? pls need answers from the experts here....tnx
28th October 2009 From Nigeria
Hi Akil As far as I know KPI is not KEY PRODUCTION INTEREST - it stands for Key Performance Indicator which are indicators against your accountabilities .....Daman
28th October 2009 From United Arab Emirates, Dubai
Dear friends, KPIs means Key Performance Indicators; I do not heard about 'Key production interest'. Can any seniors clarify on this
28th October 2009 From India, Tiruppur
Dear Mani,

KRA stands for Key Result Area while KPI stands for Key Performance Indicator

KRA: Any reference to KRA has to be understood from the point of view of the difference between 'Deliverables' and 'Doables'. While the former stand for the main results expected out of a role, the latter stand for the key tasks / activities that the role comprises of. While some of these tasks / activities are instrumental to realize the expected deliverables (the key results) from the role, not all of them are crticial or core. Some of them may be peripheral. For example, an HR Generalist's KRAs could include employee engagement, training & development and performance management. These would then, constitute the key areas where the role holder's performance will have a significant impact on the success or failure of the role to contribute to the overall business sucess of the company.

KRAs and KPIs need to be connected. For example, in any performance appraisal evaluation / management system, one would typically have a section describing or listing KRAs, the performance goal / target which is to be achieved and the KPI.

For example, lets say the KRA is hiring. The KPI or the metric by which the individual's performance will be evaluated could be '% of Exceptions'. With this KRA and KPI framework (please note that this is only illustrative for clarification purposes), the performance goal could be quantified or laid down as: Not more than 15% in the fiscal year. What does this mean? This means that if the recruiter makes 100 offers in the fiscal year, not more than 15 out of these 100 offers should be deviating from the salary range budgeted for these positions. If the recruiter is below the 15% mark at the end of the fiscal year, his / her performance could be rated as 'Meets Expectations'. If there are no exceptions, it could be rated as 'Consistently Exceeds Expectations'. On the other hand, if the number of exceptions are more than 15%, his / her performance could be rated as 'Inconsistently Meets Expectations' or ' Below Expectations' depending on whether the organization is using a '5' or '3' point rating scale.

I hope I have been of some help in clarifying these concepts which I find, to my concern, fuzzy concepts for most HR managers despite their seniority / position - things that they do refer to from a point of view of sounding knowledgable but of which, they have only a superficial knowledge.

I would recommend anyone who is interested in learning more about KPIs to read Parmenter's book entitled 'Key Performance Indicators' - you can do a Google search for the exact title.


28th October 2009 From India, Ghaziabad
Please go to the following link. You will get fair idea about KRA and how it is linked to Performance management.

29th October 2009 From India, Kochi
Following link also will help you in understanding how KRA is linked to reward system. regards, shijit.
29th October 2009 From India, Kochi
Dear Aakil, KRA means Key Responsible Area, it means that for what someone is responsible.
29th October 2009 From India, Delhi
KRA : Key Responsible Area
we recruit the employee, before this work done by HR Dept & Concern Dept.
ever new employee what work done in compnay.
KRA is done carefully & must completed.
every six month HR dept review the KRA & actual work done by employee.
Malay Kothari
29th October 2009 From India, Cochin

I went through the above mentioned discussion over KRA and could not stop myself to express my views. I would like to throw some light.

KRA stands for key Result Area, A set of responsibilities which are required to perform any specific role.
when companies do the manpower planning, they create the positions as per the requirement and set the responsibilities which are required to perform for that specific position. Suppose a Marketing company got a sales project from its client and it requires 200 Sales Executives to work on that project. Now, to handle such a huge manpower and its entire processes, A HR Person is required. Now it will be defined what sort of responsibilities are required to carry the project efficiently and would be synchronized under various areas such as Recruitment, Induction, Orientation & Integration,Payroll,Training,Grievance handling, Exit formalities...

In other words, it is required to define what set of responsibilities he/she will handle under recruitment, induction, integration and so on. These are called KRAs. On the basis of these KRAs we can also identify that what sort of skill sets are required to handle these responsibilities.Also useful for Training and Appraisal.
herewith i am enclosing a KRA sheet for reference.

Best regards,

Manish Kujur
Sr. Executive HR
29th October 2009 From India, New Delhi

Attached Files
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File Type: doc KRAs.doc (44.0 KB, 697 views)

As other friendshave described the terms KRA and KPI, the simple explanation is KRA is core areas of job responsibilities while KPI is the measurement of how your fullfilling the responsibilities or how is your performance ?
For a recruitment executive, Hiring is KRA while how many recruitments he has done and how much time he has taken to fill the positions, and the quality of hires all are KPI.
KPI should be formulated and agreed between you and your manager.
Hope it helps.
29th October 2009 From Qatar
To ad more to the above points Key Result Area is the critical areas for the company. If the coy failed to achieve the target in that area, the coy will not survive. Usually, we point out what are the KRA for our business before we do a business plan. EG Profitability. The coy has to be profitable enough to maintain its business.
Others are : Market Standing, Productivity, Human Resources and Financial Resources etc.
Hope it helps.
29th October 2009 From Indonesia, Jakarta
Dear Mclean sir, You given nice example & your style to saying is very impressive. Thanks for sharing your valuable view with us. Thanks & regards, Reshma
29th October 2009 From India, Mumbai
Dear All, Please guide me how to find out KRA for other Department like ,SALES & MKTG,GP,TECHNICAL STAFF,A/C & FINANCE its very urgent
29th October 2009 From India, Mumbai
hey the format of KRA that you have submitted is useful, but could u plz let me know which sector could it be used for?
29th October 2009 From India, Mumbai
hey rajani, the format you have attached is useful but could you let me know which sector can it be applied to...
29th October 2009 From India, Mumbai
Dear Mani ,


KRA stands for Key Result Areas . These are the tasks / core responsibilities which an employee has to perform as per his role specifications . There may be a number of KRAs assigned to a perticular role/ position but the weightage assigned to each may or may not vary depending upon the criticality of each KRAs. If we go in details then each KRA must also be specified with the action plan in order to accomplish that task. The KRAs may be qualitative or quantitative depending upon the various aspects of the job on which it may have its implication !.e Financial aspect, customer aspect etc..

Recently the practise is to quantify the KRAs so that it becomes easy to measure the productivity of an employee and also all this goes in review of an employee's performance during the appraisal cycle of a company. KRAs of an employee may change and as per the change in targets / goal setting which may be monthly/ quarterly or even biannual depending upon the target setting of the business .

Individual KRAs of a person cascades from the business planning. KRAs of each member of a team cascades from the KRAs of the reporting manager/ Lead . KRAs of all the Leads has been cascaded from the the KRAs of the functional Head( Designation/ nomenclature of position may vary from company to company) and so on.

KRA always cascades from Top to bottom.


29th October 2009 From India, Mumbai
Dear Akhil, In your posting KRA is given correctly but not KPI. KPI is "Key Perfromance Indicators" Please provide correct meanings to readers Regards Shyam Kumar
30th October 2009 From India, Ernakulam
I don't know, now I feel I had wrong notion about KRA (Key Result Areas). I thought KRA meant The Areas that impct the business performance and devised KPI (Key Performance Indicators) based on the business processes that impact the business performance directly. Kindly help me to rectify my concept.
30th October 2009 From Bhutan, Phuntsholing
I don't know, now I feel I had wrong notion about KRA (Key Result Areas). I thought KRA meant The Areas that impact the business performance and devised KPI (Key Performance Indicators) based on the business processes that impact the business performance directly. Kindly help me to rectify my concept.
30th October 2009 From Bhutan, Phuntsholing
Hi Rave,
First you need to identify the Job purpose. Suppose you are hiring a Finance guy( Manager Finance) in your company.Before hiring you would have decided a role for him.You will have to do Job analysis and find out the purpose of hiring the Finance Manager. why this particular position is required in the company and what set of responsibilities he will be handling as a Finance Manager. e.g. Invoicing, billing..... you can keep it under Sales Accounting.
Likewise you can set the KRAs for other positions. KRAs for different positions and levels would differ from each other as each role has its own purpose in the company.
Best regards,
Manish Kujur
Sr. Executive HR
30th October 2009 From India, New Delhi
ISN’T KPI "KEY PERFORMANCE INDICATORS". this seems more relevant to hr than key production interest. thanx
30th October 2009 From Pakistan, Lahore
You have written a caption is superb and fabulous. I hope that the company is getting loses means you can easily say that there is no proper HR activites implentation. This is absolutely correct and proved. My feeling is now a days developing companies are begining they are maintaining without proper HR then they are realising to take hr persons so they are understanding after some time the problem of HR. This is my personal experience if it wrong please pardon me, my City HR team.
Thanks and Regards,
31st October 2009 From Bahrain
Hi, I am in the conviction for the following.Please confirm in case I am incorrect. KPI - Key Performance Indicators KRA - Key Responsibility Areas Soumita
11th April 2010 From India, Calcutta
Hi Key Result Areas are the goals or targets set by an entity in their strategic plan. Also known as KPIs (Key Performance Indicators). AVS
29th October 2010 From India, Madras
may i know much eloborated i.e on fra and kpi does experts guide on this
1st March 2013 From India, Visakhapatnam
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