AS the first step to build KRAs for HR,
YOU must visit
YOUR COMPANY'S
*VISION STATEMENT
*MISSION STATEMENT
*CORPORATE OBJECTIVES
*CORPORATE STRATEGY
*CORPORATE BUSINESS UNITS/ DEPARTMENTAL PLANS/STRATEGY.
AND COULD CHANGE YEAR BY YEAR AS PER THE BOARD DIRECTIVES.
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Then review your own job description.
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UNDERSTAND THAT THE ,
KRA AND KPA
Key Result Areas
“Key Result Areas” or KRAs refer to general areas of outcomes or outputs for which a role is responsible. A typical role targets three to five KRA.
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Value
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
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Description
Key result areas (KRAs) capture about 80% of a 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 griptionood of the organisation).
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EXAMPLE
HR [ KRAs]
CORE KRAs
-RECRUITMENT/ SELECTION
-WORKFORCE PLANNING/ DIVERSITY
-PERFORMANCE MANAGEMENT
-REWARD MANAGEMENT
-WORKPLACE MANAGEMENT AND RELATIONS
-SAFETY AND HEALTH WORKPLACE
-BUILDING CAPABILITIES AND ORGANIZATION LEARNING
-EFFECTIVE HR MANAGEMENT SYSTEMS , SUPPORT AND MONITORING
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KEY PERFORMANCE AREAS [ KPA ]
These are the areas within the ORGANIZATION FUNCTIONS, where an
individual or group, is logically responsible / accountable
for the results.
To manage each KRA, a set of KPA / KPI are set .
KPA and hence KPI is attributed to the person who
can have effect on the business results and is
self measured where applicable
EXAMPLE OF HR
KRA = RECRUITMENT / SELECTION
KPA 1 = RECRUITMENT
KPA 2= SELECTION
KPi for KPA 1= reduce the recruitment cost per head by 10%.
KPi for KPA 2 = finalize selection in 5 weeks for each individual position.
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.THE CHOICE OF HR KPI WILL VARY FROM YEAR TO YEAR,
SUBJECT TO COMPANY'S
-STRATEGIC PLANNING
-CORPORATE STRATEGIES
-CORPORATE OBJECTIVES
WHICH IN TURN AFFECTS THE HR'S
-HR STRATEGIC PLANNING
-HRM STRATEGIES
-HRM OBJECTIVES
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HERE ARE SOME EXAMPLES.
of KPI
FOR EACH ELEMENT, YOU CAN SET YOUR OWN
THRESHHOLD, BASED ON YOUR COMPANY
STRATEGY/ HR STRATEGY.
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1.ABSENTEEISM PER EMPLOYEES [DAYS]
2.AVERAGE RECRUITMENT TIME [DAYS]
3.EMPLOYEE TURNOVER [ % ]
4.EMPLOYEE SATISFACTION [ LEVELS ]
5.AVERAGE EMPLOYEE TENURE [ YEARS]
6.INDUCTION TRAINING [ % OF NEW EMPLOYEES]
7. TRAINING WORKSHOP [ % ] CONDUCTED/PLANNED
8. TRAINING AT EXTERNAL COURSES [ %] ACTUAL / PLANNED
9.PERFORMANCE APPRAISALS [ NOS.] AGAINST TOTAL EMPLOYEES.
1 HR UTILIZATION % TOTAL PAYROLL $ / TOTAL SALES $
2. HR PRODUCTIVITY % TOTAL EMPLOYMENT COST $/TOTAL
PRODUCTION VOLUME IN $ X 100
3. HR BUDGET % ACTUAL $ / BUDGET $ X 100
4'. ACCIDENT COSTS % CURRENT ACTUAL $ / LAST YEAR $ X 100
5'. ACCIDENT SAFETY % CURRENT ACTUAL $ / LAST YEAR $ X 100
RATINGS
6'. EMPLOYEE % EMPLOYEE BENEFITS $ / TOTAL PAYROLL $ X100
BENEFITS
EMPLOYEE BENEFITS $ /TOTAL SALES $ X 100
7'. HR BUDGET % ACTUAL HR EXPENSES $ / TOTAL SALES $ X 100
sales effectiveness
8'. HR EXPENSES $ TOTAL HR EXPENSES $ / TOTAL NO. OF EMPLOYEES
per head
9'. HR EXPENSES % HR EXPENSES $ / TOTAL EXPENSES $ X 100
cost effectivenss
10'. NO.OF COURSES % ACTUAL CONDUCTED / PLANNED X 100
CONDUCTED
11. NO. OF SAFETY % ACTUAL CONDUCTED / PLANNED X 100
training programs
12. TRAINING DAYS % ACTUAL TRAINING DAYS / PLANNED X 100
EFFECTIVENESS
13. EMPLOYEES % ACTUAL TAKING PART / PLANNED X 100
involvement in train
14. SICK DAYS nos. TOTAL SICKDAYS TAKEN/ TOTAL EMPLOYEES
managemeent effectiveness
15. STAFF orientation % NO. OF NEW STAFF LEAVING IN THREE MONTHS/
EFFECTIVENESS TOTAL NO. OF NEW STAFF ORIENTED
X 100
16. TIME TO FILL AN NO.DAYS TOTAL NO OF DAYS / TOTAL NO positions filled
OPEN POSITION
17. TURNOVER BY % TURNOVER / TOTAL RECRUITMENTS X100
RECRUITING source
BY EACH SOURCE
18. TURNOVER BY % TURNOVER / TOTAL EMPLOYEES BY EACH
EACH JOB CATEGORY
CATEGORY X 100
19. WORKERS % ACTUAL $ / PLANNED BUDGET $ X 100
çompensation costs
20. HR STAFFING NO. TOTAL HR STAFF / TOTAL EMPLOYEES
EFFICIENCY
THESE ARE SAMPLES ONLY.
YOU SHOULD BE GUIDED BY YOUR COMPANY
OBJECTIVES //STRATEGIES.
REGARDS
LEO LINGHAM