Hey All, I need a clarification. For performance appraisal, I have set 3 KRA. I have fixed particular weightage for each KRA and 3-5 KPI for each KRA.
Formula used to arrive score of each KPI is = average(Sum of KPI)*weightage. I arrived at final rating by using the formula as = sum of each KRA weightage/3

So if I give ratings for all the KPI then the final rating should be 100% but it is more than 100%.
Anyone can help me, how to arrive at 100% as final ratings

From India, Chennai
Dear Nisha,

Please note the following:

a) You can assign the weights to the KRAs, however, the total of weights should be 100 and it cannot exceed 100.

b) The formula to calculate the score for each KRA is as below:

[{(target achieved)/(target given)}*weight]*100

c) For example if the KRA for the Purchase Manager was to attain an Inventory Turnover Ratio (ITR) of 4.5. At the end of the Financial Year (FY), he could achieve an ITR of 4.4 whereas the weight for this KRA was 40% Then the calculation for the score for the KRA would be:

[(4.4/4.5)*0.40]*100 = [0.98*0.40]*100 = 0.392*100 = 39.2%

d) What if the Purchase Manager achieves the target more than it was given, i.e., what if he achieves the ITR of 4.7? In that case, the calculation for the score for the KRA would be:

[(4.7/4.5)*0.40]*100 = [1.04*0.40]*100 = 0.416*100 = 41.6%

e) What if the employee achieves more than the given target for each KRA?

Reply: - Such a situation is rare, however, in that case, the final score will exceed 100. This is perfectly normal.

I hope the above explanation is sufficient.

Thanks,

Dinesh Divekar

From India, Bangalore
Dear Dinesh Divakar,

1)[{(target achieved)/(target given)]}*weight]*100
2)[(4.4/4.5)*0.40]*100 = [0.98*0.40]*100 = 0.392*100 = 39.2%

I understood that first one in a formula
2nd one in applied in the formula
To find out Target achieved- [(4.4/4.5)*0.40]*100
To find out Target given-[0.98*0.40]*100
To find out weight-0.392*100 = 39.2%
Please correct if I am wrong. It would have given with more clarity

From India, Chennai
Dear Nisha,

The explanation given is in-depth and no further clarification is required.

There is no formula to calculate the target given or the weight. To calculate the score for the KRA, we need three things, i.e., a target given, target achieved and weight. Insert the three figures in the formula and that is all!

Thanks,

Dinesh Divekar

From India, Bangalore
KRA/KPI plays an imperative role in management of the tasks. It is utilized for the employees to ensure that the employees have performed and achieved goals. The KPI, KRA calculation method included weightage given to targets. An employee is given a set of targets that needs to be achieved in a quarter. For instance, a sales employee receives a target of making 80 or more clients in a month. The formula is used to utilize the weightage of calculating the weighted or score of the employee at the end of the decade.
From India, Noida
Dear Dinesh Sir, I do not understand the *100 from where this 0.98 came. Please guide. You have very explained the query. Thanks a lot. Regards, Rahul Vaidya
From India, Pune
Dear Mr Rahul Vaidya, Please read paragraph (c) once again. Thanks, Dinesh Divekar
From India, Bangalore
Dear Sir, Understood. Thanks for the instant reply. Regards, Rahul Vaidya
From India, Pune

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