Subbarao.nv
Presently Working As Dy Manager Hr &
Muralikandukuri
Director Of Human Resources
+1 Other

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Dear Seniors,

Dear Seniors,

Will appreciate your expert advise on the following below, its for a friend starting a new company

We are introducing the PMS ( Performance Management System) first time in the company Kindly advise .

1. Should we fix up the KRA for the whole year or it may be for six monthly basis as well. Actually in company we have the system of payment of Incentive/Bonus on every six monthly basis but we want to fix KRA in April for the whole year. As per HR , in case of PMS we need to fix the KRS always on yearly basis.

2. As per HR , once the KRA are fixed it cannot be changed inspite of any changes in business scenario, situation or happening of any exceptional event etc.etc.Once it is fixed , it cannot be changed. Is there any rule of such type in PMS system.

3. As per HR, we cannot have less than 4 KRA as well as more than 6 KRA . Is there any such rule of PMS.

4. Please check with some few companies where PMS system is followed that how much time they are giving to their staff for fixing/writting the KRA under the PMS system . Can this process or activity be done with in one or two days.

My Best Regards

Prashant

Dear Prashant

Pl. find clarification for query raised by you

1. Should we fix up the KRA for the whole year or it may be for six monthly bases as well. Actually in company we have the system of payment of Incentive/Bonus on every six monthly basis but we want to fix KRA in April for the whole year. As per HR, in case of PMS we need to fix the KRS always on yearly basis.

IDEALLY KRAS ARE TO BE FIXED FOR THE ENTIRE YEAR. THERE SHOULD BE SYSTEM OF PERIODIC REVIEW OF THE PROGRESS. YOU CAN FIX MILESTONES FOR EACH KRA (BREAK ONE KRA INTO PROGRESSIVE ACTIONS/ACTIVITY WHICH CAN BE MEASURED.

2. As per HR , once the KRA are fixed it cannot be changed inspite of any changes in business scenario, situation or happening of any exceptional event etc.etc.Once it is fixed , it cannot be changed. Is there any rule of such type in PMS system.

IT IS WRONG NOTION. KRAS CAN BE MODIFED IF THE SITUATION DEMANDS. ANY ORGANIZATIONAL AND ENVIROIONEMNTAL CHANGES MAY DEMAND TO MODIFY THE KRA. PLEASE UNDERSTAND PMS ID YOUR SYSTEM WHICH YOU SHOULD CUSTOMISED TO BEST FIR YOUR COPMPNAY AND TO MAKE IT EFFECTIVE TO ACHIEVE CONMPNAY'S GOALS ULTIMATELY THERE ARE NO SACROSANCT RULES.

3. As per HR, we cannot have less than 4 KRA as well as more than 6 KRA . Is there any such rule of PMS.

AGAIN A WRON NOTION. KRA ARE TO BE CASCADED FROM THE SPECIFIC GOAL, IN YOUR CAE COMPNAY IS NEW AND PERHAPS THE COPNAY'S OBJECTIBE IS TO PENTTRATE IN THE MARKET. HIS SINGLE MANDATE HAS TO BE FRAGMATED FUCNTIONWISE, POSITON WISE AND ROLE WISE. NO NORM FOR MIN. OR MAX. KRAS. YOU MIGHT HAVE HEARD ABOUT SMART. KRAS SHOULD BE SMART- SPECIFIC, MEASURABLE, ACHIEVEABLE, REALISTIC AND TIME BOUND.

4. Please check with some few companies where PMS system is followed that how much time they are giving to their staff for fixing/writing the KRA under the PMS system . Can this process or activity be done with in one or two days.

KRA ARE TO BE PERCOLATED TOP DOWN. KRAS ARE NOT BE SUPERIMPOSED THEY ARE TO BE MUTUALLY AGREED UPON BY BOSS-SUBORDINATE, BY ASSESSOR ASSESEES TEAM LEADER AND TEAM MEMBERS.

Regards

Shailesh Parikh

Vadodara, Gujarat

99 98 97 10 65

Dear Mr. Prashant,

Human Resource Management or Performance Management deals with Humans and can not be done by strict formulas. It has to be flexible to be modified as per the requirements in a dynamic environment.

If your HR Manager is advising you as you stated above, he / she seems to be very fresh and not having much corporate experience. He must have read some books / searched the internet and given you the report.

PMS is a system that has to be applied in an organization based on its needs, business, culture and maturity of the people.

The KRAs have to be developed in consultation with the concerned person for whom they are being set. The process can be done in 1-2 days or it may take more time depending upon the way your discussions progress.

There is no bar on the number of KRAs. They are set for each area of responsibilities handled by the person. However, having a very long list of KRAs does not serve any purpose.

The KRAs are normally set for a year and are reviewed at regular intervals so as to check the progress and revise the targets / KRAs in wake of the situations, if required.

Lastly, I would suggest that the whole process should be handled by an experienced and matured person who can understand the people. The reason is that if the process is handled by immature managers, it would have a negative impact on the organizational culture and its business.

Thanks & Regards,

Avika

KRA's have to be defined at the beginning of the year and a mid year review is required know the performance level of the employee. 5 kRA's are ideal for any firm. KRA's are dynamic in nature and you can amend, mend or end them based on the organizational needs. Further, you can also link your incentive/bonus program to the defined KRA's for achieving organizational objectives.
Neatly briefed on KRA, i am very much impressed on them but the awards are baseless, purely going as per the wishes of HODs, no one bother about grievances of a person who achieved the given target and HR does not bother in many cases. Production and Sales staff can have sales target per annum, If any failure is there in the mid of the year i.e change of production planning both will get corrected accordingly. Same can be mentioned in the remarks in PMS as to why they could not achieve but based on company's performance / benefits PMS can be processed further.
Then what about the Admin and HR scope and Measurability, Rewardless services cannot be measured and fixed / year. Admin and HR jobs are time bound whether they are attended or not attended it only matter. The mostly affected staff in any company will be Admin and HR only.....

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