Curious About KRA? Let's Explore What It Stands For Together

Hi all, I wish to know what KRA is.

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Hi all,

I wish to know what KRA stands for.

First of all, make sure that you would like to have knowledge about KRA or you just heard the word and got sparked by it.

KRA - "key result area"
KPI - "key production interest"

HR managers always think about how to enhance the results and production through the human resources available to them.

Hi,

To add more to the above points, KRA is based on the Key Result Areas (KRA) of the company, department, and reporting senior. The KRA will contain the roles, responsibilities, and the weightage measures. Actually, the KRA will be decided in collaboration with the employee. I am attaching a format of the KRA sheet.

Regards,
Lavanya.

When you join an organization, HR discusses your job role in the company (i.e., KRA) according to which the evaluation is done during a specified tenure (six months or one year). Performance appraisal is then conducted accordingly.

KPA: Key Performance Area (Typical Job Description)

KRA: Key Result Area (expected outcome from tasks done)

KPI: Key Performance Indicator (Set standard of best performance)

KRA means "Key Result Area." Simply identify the pain or critical areas in your process and connect them to your Appraisal system. You can arrive at a point system by allotting weightage for each KRA to calculate the rating of your team or process. For example, if productivity and quality are issues in your process, give weightage to both as per your requirement (e.g., 60% for quality and 40% for productivity) and communicate this to your teams. Based on this, you can calculate the weighted average and arrive at the rating as mentioned above.

Dear All,

I have been watching this site for quite some time and would like to add a few suggestions. We, as HR professionals, must know how to express our thoughts, views, and ask questions. We should never use "I want to know" or "what is it". It is always better to use "May someone help me with details of ------------".

Recently, I have noticed that many people choose the HR profession without knowing the fundamentals of the HR department - ESI, EPF, Bonus. These are basic points that we should be familiar with before taking on the role. Our role in a company is extensive; we need to act as MIS and serve as a link between management and employees.

I hope this site can be utilized for discussing the core of HR.

Thank you.

Hi all,

I understand KPI to mean Key Performance Indicators. In relation to KRA (Key Result Areas), what is the distinction between both? Or are they the same? Please, I need answers from the experts here... Thanks.

Hi Akil,

As far as I know, KPI is not KEY PRODUCTION INTEREST - it stands for Key Performance Indicator, which are indicators against your accountabilities.

Daman

Dear friends,

KPIs mean Key Performance Indicators; I have not heard about 'Key production interest'. Can any seniors clarify on this?

Thank you.

Dear Mani,

KRA stands for Key Result Area while KPI stands for Key Performance Indicator.

KRA: Any reference to KRA has to be understood from the point of view of the difference between 'Deliverables' and 'Doables'. While the former stands for the main results expected out of a role, the latter stands for the key tasks/activities that the role comprises of. While some of these tasks/activities are instrumental to realize the expected deliverables (the key results) from the role, not all of them are critical or core. Some of them may be peripheral. For example, an HR Generalist's KRAs could include employee engagement, training & development, and performance management. These would then constitute the key areas where the role holder's performance will have a significant impact on the success or failure of the role to contribute to the overall business success of the company.

KRAs and KPIs need to be connected. For example, in any performance appraisal evaluation/management system, one would typically have a section describing or listing KRAs, the performance goal/target which is to be achieved, and the KPI.

For example, let's say the KRA is hiring. The KPI or the metric by which the individual's performance will be evaluated could be '% of Exceptions'. With this KRA and KPI framework (please note that this is only illustrative for clarification purposes), the performance goal could be quantified or laid down as: Not more than 15% in the fiscal year. What does this mean? This means that if the recruiter makes 100 offers in the fiscal year, not more than 15 out of these 100 offers should be deviating from the salary range budgeted for these positions. If the recruiter is below the 15% mark at the end of the fiscal year, his/her performance could be rated as 'Meets Expectations'. If there are no exceptions, it could be rated as 'Consistently Exceeds Expectations'. On the other hand, if the number of exceptions is more than 15%, his/her performance could be rated as 'Inconsistently Meets Expectations' or 'Below Expectations' depending on whether the organization is using a '5' or '3' point rating scale.

I hope I have been of some help in clarifying these concepts which I find, to my concern, fuzzy concepts for most HR managers despite their seniority/position - things that they do refer to from a point of view of sounding knowledgeable but of which they have only superficial knowledge.

I would recommend anyone who is interested in learning more about KPIs to read Parmenter's book entitled 'Key Performance Indicators' - you can do a Google search for the exact title.

Thanks,

Snoopypryer.

Dear Aakil,

KRA stands for Key Responsibility Area, which signifies the specific areas for which someone is accountable.

Thank you.

KRA: Key Responsible Area

We recruit the employee; before this, work was done by the HR Dept & Concern Dept. Every new employee needs to understand the work that is done in the company. KRA should be done carefully and must be completed. Every six months, the HR dept reviews the KRA and the actual work done by the employee.

Regards,
Malay Kothari

Hi,

I went through the above-mentioned discussion on KRA and could not stop myself from expressing my views. I would like to shed some light.

KRA stands for Key Result Area, a set of responsibilities required to perform any specific role. When companies undertake manpower planning, they create positions according to requirements and set the responsibilities needed for those positions. For example, if a marketing company secures a sales project from a client requiring 200 Sales Executives, a HR person is necessary to manage such a large workforce and its processes. The responsibilities needed for the project to run efficiently are defined and organized under various areas such as Recruitment, Induction, Orientation & Integration, Payroll, Training, Grievance handling, and Exit formalities.

In other words, it is essential to define the responsibilities to be handled under recruitment, induction, integration, and so on. These responsibilities are known as KRAs. Based on these KRAs, the required skill sets can be identified for handling these responsibilities, which are also beneficial for training and appraisal purposes. Attached is a KRA sheet for reference.

Best regards,

Manish Kujur Sr. Executive HR Solutions|Digitas

As other friends have described, the terms KRA and KPI, the simple explanation is KRA is the core area of job responsibilities, while KPI is the measurement of how well you are fulfilling the responsibilities or how your performance is. For a recruitment executive, Hiring is the KRA, while how many recruitments he has done, how much time he has taken to fill the positions, and the quality of hires are all KPIs. KPIs should be formulated and agreed upon between you and your manager. Hope this helps. Thanks.

To add more to the above points, Key Result Area is the critical area for the company. If the company fails to achieve the target in that area, the company will not survive. Usually, we identify the KRAs for our business before creating a business plan, e.g., Profitability. The company has to be profitable enough to sustain its operations. Other key areas include Market Standing, Productivity, Human Resources, and Financial Resources, etc.

Hope it helps.

Dear All,

Please guide me on how to identify Key Results Areas (KRAs) for other departments such as Sales & Marketing, General Practice (GP), Technical Staff, and Accounting & Finance. This is very urgent.

Thank you.

Hey, the format of KRA that you have submitted is useful, but could you please let me know which sector it could be used for?

Hey Rajani,

The format you have attached is useful, but could you let me know to which sector it can be applied?

Dear Mani,

Hi!!

KRA stands for Key Result Areas. These are the tasks/core responsibilities which an employee has to perform as per his role specifications. There may be a number of KRAs assigned to a particular role/position but the weightage assigned to each may or may not vary depending upon the criticality of each KRA. If we go into details, then each KRA must also be specified with the action plan in order to accomplish that task. The KRAs may be qualitative or quantitative depending upon the various aspects of the job on which it may have its implication, i.e., financial aspect, customer aspect, etc.

Recently, the practice is to quantify the KRAs so that it becomes easy to measure the productivity of an employee, and all this goes in the review of an employee's performance during the appraisal cycle of a company. KRAs of an employee may change as per the change in targets/goal setting, which may be monthly, quarterly, or even bi-annually depending upon the target setting of the business.

Individual KRAs of a person cascade from the business planning. KRAs of each member of a team cascade from the KRAs of the reporting manager/lead. KRAs of all the leads have been cascaded from the KRAs of the functional head (designation/nomenclature of position may vary from company to company) and so on.

KRA always cascades from top to bottom.

Regards,

Anand

Dear Akhil,

In your posting, KRA is given correctly but not KPI. KPI stands for "Key Performance Indicators." Please provide the correct meanings to the readers.

Regards,
Shyam Kumar

I don't know, now I feel I had the wrong notion about KRA (Key Result Areas). I thought KRA meant the areas that impact the business performance and devised KPIs (Key Performance Indicators) based on the business processes that directly impact the business performance. Kindly help me to rectify my concept.

I don't know, now I feel I had the wrong notion about KRA (Key Result Areas). I thought KRA meant the areas that impact the business performance and devised KPIs (Key Performance Indicators) based on the business processes that directly impact the business performance. Kindly help me to rectify my concept.

Hi Rave,

First, you need to identify the job purpose. Suppose you are hiring a Finance guy (Manager Finance) in your company. Before hiring, you would have decided a role for him. You will have to do a job analysis and find out the purpose of hiring the Finance Manager – why this particular position is required in the company and what set of responsibilities he will be handling as a Finance Manager, for example, Invoicing, billing, which you can keep under Sales Accounting.

Likewise, you can set the KRAs for other positions. KRAs for different positions and levels would differ from each other as each role has its own purpose in the company.

Best regards,

Manish Kujur Senior Executive HR Solutions|Digitas

Isn't KPI "Key Performance Indicators"? This seems more relevant to HR than key production interest. Thank you.

Dear Mr. Alwar,

Your caption is superb and fabulous. I believe that if the company is incurring losses, it may indicate a lack of proper HR activities implementation. This has been proven to be correct. In my experience, developing companies nowadays often start without proper HR practices in place, only to realize later the importance of having HR personnel. This has been a common pattern. If my observation is incorrect, I seek your pardon, dear City HR team.

Thanks and Regards,

Hi,

I am inquiring about the following. Please confirm if I am incorrect.

KPI - Key Performance Indicators

KRA - Key Responsibility Areas

Soumita

Hi, Key Result Areas are the goals or targets set by an entity in their strategic plan. They are also known as KPIs (Key Performance Indicators).

Regards, AVS