Hello, I am doing my dissertation project on "How KRA and KPI can be aligned with organizational strategies for creating High Performance Work Systems." For this, I need to prepare one Employee Perception Form. I thought of including the following things in that form:

- The satisfaction level
- Their role alignment with the organization and KRA-KPI
- Reward
- Their further suggestions
- Their contributions, etc.

Also, suggest if you have any information on how KRA and KPI are formed in general, and how they are aligned to organizational strategies. I would be very glad to get your help.

Thanks,
Akhil

From Germany, Dresden
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Understanding Key Result Areas (KRA) and Key Performance Indicators (KPI)

Key Result Area (KRA) and Key Performance Indicator (KPI) are often considered similar, but they serve distinct purposes. A Key Result Area (KRA) focuses on the end result of the objectives, while a Key Performance Indicator (KPI) focuses on the objectives themselves, irrespective of how the results are achieved. You can prepare a KRA from a KPI.

KRA and KPI are formed from the organization's overall objectives, which are cascaded down to the departmental level and then to the individual level. This top-down relationship ensures alignment with the organization's strategy.

Cascading Organizational Strategy

- Overall Organization Strategy cascaded to
- Overall Departmental Objectives cascaded to
- Departmental Heads' Objectives cascaded to
- Individual Objectives cascaded to
- Individual Key Performance Indicator (KPI) cascaded to
- Individual Key Result Area (KRA)

Regards

From Oman, Muscat
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File Type: doc KRA & Org.doc (36.0 KB, 6522 views)

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Dear Anayaat, the flow provided in your post is the ideal sequence for setting individual KRAs:

Overall Organizational Strategy cascaded to
Overall Departmental Objectives cascaded to
Departmental Heads' Objectives cascaded to
Individual Objectives cascaded to
Individual Key Performance Indicators (KPIs) cascaded to
Individual Key Result Areas (KRAs)

Could you please explain it using some live examples?

Thank you.

From India, Delhi
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