Understanding Key Result Areas: How Do They Impact and Integrate into Your Organization?

Hi All,

Can anyone help me about Key Result Area (KRA), its implications, and implementation in the organization? Looking forward to your kind support.

Thanks & Regards,
Radha

Hi,

Also called Key Performance Area (KPA), in our organization, we have divided the whole year into 4 quarters. In KPA, we provide a blank format to an employee to fill out their plans for the upcoming quarter. The completed forms are then submitted to the HR department. After the completion of that particular quarter, photocopies of the filled forms are returned to the respective employee. They are asked to evaluate their performance based on Scores x Weightage.

The same assessment is reviewed by the Appraisal Authority, and the final monetary benefit is determined according to the scores. If the scores fall between 90-100%, the employee receives a percentage of the appraised amount. The specific percentage is determined by company policy.

Regards

Dear Radha,

In our organization, we usually prepare the KPA/KRA in consultation with the concerned employee and the department heads in which he is working.

Regards,
MANOJ KUMAR

Dear Radha,

This is my first email in this forum, and you have raised a question which has been very close to me. The very importance of learning is to first understand fundamentals and then, through the journey of experience, gain the skills to customize the fundamental concepts as per objectives:

KPA: Key Performance Areas are a set of activities for which you are responsible, or you can say your general responsibilities which cover almost all areas of your activity, and they do not form a part of the measurement for performance. They are mostly fixed.

KRA: Key Result Areas, on the other hand, are set activities derived from short-term objectives. It may change from quarter/half-yearly or yearly. KRA should be focused, and it should follow SMART (Specific/Measurable/Achievable/Relevant & time-bound).

The major difference between KPA and KRA is that KPA can be shared, but KRA cannot be shared. In other words, responsibilities can be shared while accountabilities cannot be shared.

Process of identifying KRA:

In our organization, KRA is a part of PMS (Performance Management System) which is also linked to the Appraisal Process:

1) It starts with a KRA format which includes KRA Identified/Objective/Completion date/Review Date/Reviewed by/Remarks.

2) The KRA is forwarded to the concerned HOD in the month of March every year once the business plan is over, and KRA is derived in accordance with the business objectives for different Positions.

3) The HR has to facilitate his/her support along with the concerned HOD to identify the KRAs and duly take a signature from the concerned HOD and the Subordinate for a reason that both have agreed upon.

4) Once the KRA is derived, a copy through mail is being forwarded to the concerned, and once the date of review comes, HR has to intervene to understand the outcome of the performance review to put his/her comments on the Appraisal as per performance reviewed on the KRAs.

5) All the KRA is integrated into the Appraisal form.

KRA is one of the most important tools in the total process of the Performance Management System which facilitates a perfect communication platform to review and measure the performance level.

I am attaching the KRA Format and the Appraisal Form which are very simple and customized as per our Organization's needs and objectives for your better understanding.

Regards,

Atul

Management needs to focus more on leadership skills, e.g., establishing vision and goals, communicating the vision and goals, and guiding others to accomplish them. It also asserts that leadership must be more facilitative, participative, and empowering in how visions and goals are established and carried out. Some people assert that this really isn't a change in the management functions

KRAs are those aspects of a job that are crucial for success. They emerge from job descriptions, department goals, business plans, and mission/vision statements. For a year, one individual employee is expected to select nearly 10 KRAs. Against each KRA, he must write his goals. The goals must be SMART: Specific, Measurable, Achievable, Realistic, and Time-bound. This will help in objective performance appraisal.

For a teacher, students' performance is an important KRA.

One problem with KRAs is that they are not monitored. You may think of KRA audit to solve this problem. A well-organized audit should give answers to many questions.