Setting Up a Performance Management System in a Large Manufacturing Unit: Need Guidance on Implementation

Hi All,

I have joined a manufacturing unit with 2200 employees. I need to establish a Performance Management system here. I have started to define KPIs for the HR staff, but I still need guidance on the implementation and execution of the same.

Kindly help.

Regards,
Ms. Batavia

Preparation of KPIs and KRAs

Preparation of KPIs and KRAs requires a lot of expertise. Secondly, you cannot develop the KRAs in isolation for a particular designation. This is an organization-wide exercise. I do not know what your designation is; however, if you are from HR, then it is not your job to develop the KRAs. This job belongs to the Head of the Department (HOD) of the respective department. Why are the HODs not developing the KRAs for their juniors? HR's role is to vet the KRAs and determine whether they align with the principles of the Performance Management System (PMS) or not. It seems that your company does not have a comprehensive PMS in place.

Principles of PMS

Regardless of the type of company, the principles of PMS remain the same and are common across all industries. When establishing PMS or designing KRAs, the following points need to be considered:

- Are we measuring what deserves to be measured?
- Do the KRAs comply with the SMART principle?
- Have the direct and indirect costs been identified for all departments? Are these costs included as KRAs for the respective HOD?
- Have employees at all levels understood the importance of measurement and how to design measures? It is not enough for just the Manager or HOD to understand the concept of KPIs and KRAs; they attain the department's KRA through their subordinates. What if the Manager/HOD does not receive sufficient support from their juniors?
- Are there any employees who are escaping accountability?

I have been responding to posts on PMS consistently. You can refer to an exhaustive reply by clicking on the following link: https://www.citehr.com/511936-pms-company.html

Though the heading of the link is for IT companies, the information is applicable to all industries. In the provided link, you will find several other relevant links. Please go through them patiently as it will enhance your understanding of the subject.

Attachment

For your convenience, I have included the Sample KPI and KRA Manual. This Excel workbook contains KPIs and KRAs for various industries such as manufacturing, ports, and construction.

For any further queries, feel free to contact me on my mobile number. Kindly discuss with your management whether they are interested in engaging paid services of an external consultant like me. For additional information, you can also reach me on my mobile.

Thanks,

Dinesh Divekar

Hello Dolly,

You can use the following 15 questions for effective employee evaluation for setting up Key Result Areas (KRA) and how to derive Key Performance Indicators (KPIs).

Once you have that in place, you can utilize a Performance Management system like GroSum to make the process more streamlined and easy for your employees as well as managers.

Good luck with that.

Rajarshi
www.grosum.com

Dear All,

Please, if any of you could help me out with the Key Result Areas (KRA) and Key Performance Indicators (KPI) for all the departments listed below in a manufacturing company:

I need to establish the KRA and KPI, but as it's my first time doing so, I'm a bit confused. Could someone please share if you have experience with this?

1. Sl. No Department Designation
1 ACCOUNTS Sr. EXECUTIVE
2 DESIGN ASSISTANT MANAGER - DESIGN
3 HR & ADMINISTRATION ASSISTANT MANAGER - HUMAN RESOURCE COMPLIANCE
4 HR & ADMINISTRATION ASST. MANAGER - TALENT ACQUISITION
5 HR & ADMINISTRATION MANAGER - HR
6 INVENTORY MANAGER - Inventory
7 IT MANAGER - IT
8 MAINTENANCE MANAGER - MAINTENANCE
9 MARKETING MANAGER - DIGITAL MARKETING
10 MIS SR. EXECUTIVE - DATA ADMINISTRATION
11 PPC MANAGER - PPC
12 PRODUCTION ASSISTANT MANAGER-ASSEMBLY
13 PRODUCTION ASSISTANT SUPERVISOR - MACHINE SHOP
14 PRODUCTION PROGRAMMER - BENDING & CUTTING
15 PRODUCTION PROGRAMMER - MACHINE SHOP
16 PRODUCTION SUPERVISOR - CARPENTRY
17 PRODUCTION SUPERVISOR - FABRICATION MACHINE
18 PRODUCTION SUPERVISOR - FABRICATION PARTS
19 PRODUCTION SUPERVISOR - HIGH SKILLS
20 PRODUCTION SUPERVISOR - LOW SKILLS
21 PRODUCTION SUPERVISOR - MACHINE SHOP
22 PRODUCTION SUPERVISOR - PAINT SHOP
23 PRODUCTION SUPERVISOR - SEMI SKILLS
24 Quality MANAGER - QUALITY
25 Quality SR. ENGINEER - QUALITY
26 Sales AREA SALES MANAGER-SALES
27 Sales DGM- SALES
28 Sales MANAGER-BUSINESS DEVELOPMENT
29 Sales REGIONAL SALES MANAGER
30 Sales REGIONAL SALES MANAGER - PROJECT
31 Sales Support MANAGER - SERVICE
32 Sales Support MANAGER-BUSINESS DEVELOPMENT
33 Sales Support SALES SUPPORT
34 SUPPLY CHAIN MANAGEMENT ASSISTANT MANAGER - DISPATCH
35 SUPPLY CHAIN MANAGEMENT Assistant Manager- SUPPLY CHAIN
36 SUPPLY CHAIN MANAGEMENT MANAGER - DISPATCH
37 SUPPLY CHAIN MANAGEMENT MANAGER - PURCHASE

Regards,
Rani

Hi, Asking for clarification on the difference between KRA and KPI or inquiring about what KRA and KPA are is a reasonable and natural question. Simply sharing a long list of departments related to your organization and asking members to prepare KRA and KPI does not make sense. How will we know the department-wise KRAs of your organization? As you work for that organization, you are the one who knows the work processes, roles, and responsibilities of the individuals there. Therefore, you should draft and submit it here for fine-tuning. For example, we may not know the nature of the work of the PRODUCTION ASSISTANT MANAGER-ASSEMBLY. Therefore, sit with the technical team, make a note of the roles and responsibilities department-wise, and then attempt to prepare KRAs based on the inputs shared by them.