Dinesh Divekar
Business Mentor, Consultant And Trainer
Leolingham2000
Management Consultant
Pavithran
Head-hrd
+1 Other

Thread Started by #dennis.kong25

Hi to everyone on CiteHR,
I am in Telco Service Provider industry and would appreciated if someone could share the knowledge on relationship between KRA & KPI and their links to PMS (Performance Management System).
Basically, I need the brief understanding on the above-mentioned topics so that I could apply them in my organisation. If possible, please e-mail to me at

Thanks.
Regards,
Dennis
11th December 2009 From Brunei Darussalam, Bandar Seri Begawan
Dear Mr Dennis Kong,
Instituting Performance Management System (PMS) is far more serious business. Very often we get queries on PMS on this forum. I have given reply to this post. Click the following link to refer the reply:
https://www.citehr.com/577456-formul...ml#post2228293
Though the heading of the heading is for IT companies, the reply is applicable to all the type of industries. In the above link, you will find several other links. Go through all the links patiently. It will improve your awareness of the subject.
Sample KPI and KRA Manual: - If you wish to know the structure of format of the KPI and KRA Manual, then you may click the following link. The Excel Workbook has multiple sheets. Each sheet has KRAs for various functions. Though these are not related to your industry, overall these will give you idea the format, structure and design of the manual.
https://www.citehr.com/520630-samle-kpi-kra-manual.html
Videos on PMS: - To clarify on PMS, I have uploaded the following videos:
https://www.youtube.com/watch?v=fTe8Pu6yioo
https://www.youtube.com/watch?v=NMEjMQzYVSs&t=1s
For further doubts, feel free to contact me.
Thanks,
Dinesh Divekar
11th December 2009 From India, Bangalore

Attached Files
Membership is required for download. Create An Account First
File Type: doc Management and Behavioural Training e-Brochure (Revised).doc (141.0 KB, 570 views)
File Type: doc Training e-Brochure for Senior Management.doc (48.5 KB, 360 views)

Dear Dinesh V Divekar,
I have to apologise to you that I am not looking for a consultant. I am posting the topics in order to out more. However, I will forward your e-brochures sent to our HR Development for further consideration. Thanks.
Regards,
Dennis
12th December 2009 From Brunei Darussalam, Bandar Seri Begawan
Hi dennis just to brief you about both:

KRA : Key Result area

KPI : Key performance Indicator

First of all, in start of year or the new joinees joining the individual need to prepare their KRA on the basis of KRA of their HOD which is prepared on the basis of his HEAD. KRA is mutually agreed and signed by both your HOD & U

KRA: to be very practical is what job you are going to do in the agreed time limit, it can always be rewritten at any time as per new project or new task or completion of any task, you can design your KRA every month.

For EG ( If pramod is handling recruitment, his target for first quarter is 100 employees for delhi region, for second quarter -50 chennai and so on and so forth.

KPI : is key performance Indicator, it basically show how you achieve the said target, like 50- first 15days, 5 next 1 day, and so on and so forth, further for healthy KPI it should always be in numbers.
i

To prepare the format, you put, Sr.No> KRA>KPI, second row can always be divided in quarters.

Once your KRA is done, at the time of appraisal either quarterly, yearly its your KPI what speaks whether you have achieved your target or not..., further if you have done something more than your KRA you are excellent,and so on.. Hence in PMS system its the measuring tool..

Any thing more do let me know...
13th December 2009 From India, Mumbai
Friends,
I think this forum, of late, is being misused by some of us as a medium of advertising & canvassing for business and to make easy money. I am sure, the purpose of this 'cite' is not that. If fellow members got doubt or want some help, what we should do is share our knowledge and give what ever information we can give. All the communication should be through this forum only.
This 'cite' should discourage using or publishing any one's personal email address.
I hope right thinking members will agree.
Best regards.
Pavithran.
13th December 2009 From India, Thanjavur
AS REQUESTED BY YOU.

DENNIS,
HERE IS SOME USEFUL MATERIAL.
REGARDS
LEO LINGHAM
 
THIS PIECE OF INFORMATION IS ALREADY
LISTED ON THIS SITE --CITEHR.
================================================== ==============
THE KRA IS DEVELOPED FROM
1.JOB DESCRIPTION.
THE KPi for each KRA
COMES FROM THE CORPORATE OBJECTIVES.
================================================
 
WHAT ARE KRA ---KPA --- KPI .

Key Result Areas [KRA]

"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).
-----------------------------------------------------------------------
KEY PERFORMANCE AREAS.[KPA]
When the key results area is large,
it is broken into manageable areas for managing/ evaluation.
these sub-sections of KRAs are called KPA
example
KRA = RECRUITMENT/ SELECTION
KPA 1= RECRUITMENT
KPA 2 = SELECTION
--------------------------------------------------------------
KEY PERFORMANCE INDICATORS [ KPi]
To manage each KRA/ KPAs, a set of KPI are set .

KRA and hence KPI is attributed to the department /INDIVIDUAL which
can have effect on the business results and is
self measured where applicable.
================================================== ===============
FIRST STEP
review 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.
================================================== ======
SECOND STEP,
TAKE EACH DEPARTMENT ----ONE AT A TIME.
review, the
*DEPARTMENT OBJECTIVES
*DEPARTMENT STRATEGIES
* DEPARTMENTAL PLANS.
FOR THE BUDGET PERIOD, WHICH IS USUALLY 12 MONTHS.
=====================================
THIRD STEP
REVIEW THE JOB DESCRIPTIONS OF THE DEPARTMENT.
START WITH THE HEAD OF THE DEPARTMENT HEAD.
-review the job description.
-from the job description, pick 5 key areas which will impact
on the results of the department.
-weightage the 5 key areas according to the importance
and the weightage must add upto 100.
-IF REQUIRED, YOU CAN BREAK THE KRAs
into KPAs---if the KRAs are large.
-then develop the KPi----which the key performance indicators
based on the corporate / department objectives.
To manage each KRA/ KPA , a set of KPI are set .

KRA and hence KPI is attributed to the person who
can have effect on the business results and is
self measured where applicable.
=============================================
AS AN EXAMPLE,
LET US NOW WORK ON HUMAN RESOURCE DEPARTMENT.
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
--------------------------------------------------------------------------
THIS IS THE JOB DESCRIPTION OF THE DEPARTMENTAL HEAD.
Human Resources Manager
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.
========================================
FOR THIS EXERCISE, WE HAVE TAKEN 6 KRAs
 
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% ]
====================================
OUT OF THE 6 KRAs, only one KRA is large
and hence broken into 2 KPAs
KRA =RECRUITMENT/ SELECTION.
KPA 1 = RECRUITMENT
KPA 2 =SELECTION
=====================================
AGAIN AS AN EXAMPLE, IF THE
CORPORATE OBJECTIVE / STRATEGY, SAY IS
-improve the company competitive positioning and productivity
by 10%.
 
THEN THE
HR DEPARTMENT'S OBJECTIVE IS
-Achieve high productivity level in all activities [ say by 10%]
WHICH MEANS

KRA 1 -RECRUITMENT/ SELECTION
[KPI= fix the 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]
============================================
THIS IS , ROUGHLY, HOW HR DEPARTMENTS
KRAs / KPAs / KPIs ARE SET , MONITORED AND
EVALUATED
============================================
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 five KRA.
-------------------------------------------------
STRENGTHS 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
--------------------------------------------------------------------------
IN PERFORMANCE APPRAISAL,
-each manager sets up the KPi for each KRA
of each staff..
-the actual performance is recorded regularly.
-at the time of performance appraisal,
the actual performance is appraised against the KPi set.
========================================
OPPORTUNITIES OF KRA
-increased focus on the outcomes
-improve the competencies of KEY RESULT AREAS.
-FOCUSED RESPONSIBILITES
-BEING MADE ACCOUNTABLE
-RESPONSIBLE FOR THE DELIVERABLES
-FINE TUNING OF THE MEASURABLES MORE EFFECTIVELY
==========================================
AN EXAMPLE OF
FINANCE AND ACCOUNTS MANAGER
Primary objective
Administer and manage the general accounting activities and the preparation of reports and statistics reflecting earnings, profits, cash balances and other financial results.
 
Specific accountabilities
Formulate and administer approved general accounting practices throughout the company to ensure accounting, financial and operating reports accurately reflect the conditions of the business and provide reliable information for control and management purposes.
Participate in or direct the development of accounting methods and administer approved accounting procedures.
Review financial and operating statements of divisions and subsidiary organisations and prepare reports for management review.
Supervise the maintenance of company general ledgers; prepare departmental, divisional and consolidated operating and financial statements.
Oversee maintenance of the accounts payable ledger and, as required, supervise banking and cashiering activities. Responsibility may extend to cost accounting, maintenance of accounts receivable ledgers and preparation of invoices, sales statistics and stock records.
Maintain pre-paid and accrued insurance, check insurance invoices, review tax records.
Provide functional supervision over divisional branch accounting, including material stores accounting if relevant.
Ensure all accounting and office staff are trained and competent to achieve position objectives and demonstrate initiative in the conduct of assignments.
Co-operate with and assist external auditors as required.
Control the selection and training of accounting and clerical staff.
Prepare special accounting reports and cost statements as required.
Ensure activities related to the function comply with relevant Acts, legal demands and ethical standards.
================================================== ===============
KRAs FOR ACCOUNTS MANAGER
KRA 1. MANAGEMENT OF ACCOUNTS
budget management
Maintaining financial and accounting standards, principles, and practices
Development of appropriate management and other reports for internal and external customers
undertaking research and analysis.
---------------------------------------------------------------------------------
KRA 2. LEADERSHIP MANAGEMENT
Formulation business/operational strategy consistent with organisational vision, purpose and business objectives;
Lead and manage people;
--------------------------------------------------------------------------------

KRA 3. COMMUNICATION WITH INFLUENCE
Communication clearly verbally and in writing and Presentation
Representation of the Comcare with credibility and professionalism on financial, business and/or accounting matters.
------------------------------------------------------------------------------------
KRA 4. ACHIEVEMENT OF RESULTS
managing financial, business and/or accounting projects, organise information, monitor progress and meet deadlines;
provide professional/specialist/technical financial, business and/or accounting expertise and knowledge.
--------------------------------------------------------------------------------------

KRA 5. BUILDING AND MAINTAINING RELATTIONSHIP

managing the delivery of quality /TIMELY client service;
working effectively and making contribution to both the formulation and achievement of team, business and corporate goals.
-------------------------------------------------------------------------------------------
KRA 6. SELF MANAGEMENT

Developing innovative and creative approaches to addressing issues and challenges in the work group/business unit/organisation;
manage own ongoing learning and development.
################################################## ##
THE SELECTION OF KPi FOR EACH KRA
will depend on the corporate objectives for the year.
================================================

14th December 2009 From India, Mumbai
How to develop and what is the best option to Impliment PMS System in a company of 1500 employees of ITES Industry.
Which are best books can be referred to prepare PMS Policy
23rd November 2017 From India, Vadodara
Zero in on
1. KRA Succinctly Defined
2. KPI Succinctly Defined
3. Monthly/quarterly Monitoring & action plan to achieve the Set Targets.
23rd November 2017 From India, Pune
Reply (Add What You Know) Start New Discussion

Cite.Co - is a repository of information created by your industry peers and experienced seniors. Register Here and help by adding your inputs to this topic/query page.
Prime Sponsor: TALENTEDGE - Certification Courses for career growth from top institutes like IIM / XLRI direct to device (online digital learning)





About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2017 Cite.Co™