Dear Renu Nayyar,
Understanding the Difference Between KRA and Job Description
Job Description: These outline the routines and functions one may handle on a day-to-day basis. For example, for an Admin Manager:
- Keeping the office premises neat and clean.
- Ensuring all office equipment is maintained perfectly and in working condition, and entering into AMCs with service providers wherever necessary.
- Keeping all electrical wires and cables concealed to comply with electrical safety.
- Monitoring the Attendance Recording System, generating an MIS report regarding latecomers, absentees, etc., and sending it to higher-ups.
(These are just a few examples.)
However, the KRA (or KPA) is something different. The Key Result Areas or Key Performance Areas should not focus on day-to-day routines. They should be developed based on the problems or issues a department may face and how to address them.
The KRAs must be Specific, Measurable, Achievable, Realistic, and Time-bound. For the same administration manager, the KRA may be like this:
- To reduce electricity expenses by 20% from the current level of Rs.1.5 lakhs per month by March 2011.
- To obtain 'patta' from the Government Authority for the proposed building at Anna Nagar, on or before December 2011.
- To complete the project of "Centralized Air Conditioning System" in the existing premises with a budget of Rs.15.00 lakhs on or before March 2010.
The above KRAs are specific, quantifiable, and time-limited. Hence, the administration person will start working on this. Based on the same, he may develop a team and address those issues. Performance reviews will also be done periodically to achieve the above KRAs. In case of any support required from the management, he will ask for it. At the end of the review period, it is also easy for the reviewer to assess the KRAs in clear terms and award the person accordingly.
A well-defined KRA is half solved.
Another example for KRA - in a manufacturing industry for an Electrical Manager:
- To reduce electricity consumption from 100.00 units per ton of cement to 80 units per ton by March 2011.
A vague KRA may look like this. This is for an HR Manager:
- Keep all employees motivated.
- Ensure the recruitment of the right people.
I hope you now understand the difference between "Job description or routines" and KRA. If you have any doubts, please write back.
Regards,
V. Balaji