Hi Raashi,
If an employee is working in any industry, they should have some goals to achieve in their designation. These goals may be company goals or personal goals that lead to achieving the business goals of an organization.
If a company has a good Performance Appraisal system, Key Result Areas (KRAs) are one of the most important aspects.
An employee who joins any organization should strive to achieve some desirable goals for the company. Therefore, there should be a plan in place to achieve these goals, including duration, time frame, and a schedule to complete the tasks or goals.
KRAs help to guide us towards those goals, outlining the company's expectations for its employees.
KRAs also assist in understanding how far employees have progressed or attempted to achieve them. If employees meet these goals, they can be rewarded with more responsibilities, such as promotions, salary increases, incentives, etc.
KRAs establish boundaries for achieving personal and professional goals, aiding in employee development.
Hence, I believe every organization should incorporate Performance Appraisal with KRAs.
This approach will facilitate the evaluation of employee performance and the goals achieved by the organization as a whole.
I hope this information helps you understand the concept. If you require further information, please feel free to contact me.
Thanks,
Shravan