KRA (Key Result Area), a target for an individual employee, which is to be measured through KPI (Key Performance Indicator). The KRA and KPI are to be decided by the management at the time of fixing the targeted KRAs, which is a mutually agreed by the Appraiser and Appraisee. Each KRA has KPI to measure the same in a certain period and also to be reviewed periodically as per policy / practice of the organisation.
The KRA / KPI are in the nature of either up-word or down word Ex-up-word : KRA - Increase in Sales Volume - The KPI may be fixed either on total sales volume or % increase over the previous year.
Ex-down-word : KRA - Decrease in customer complaints - The KPI may be fixed either decrease in number of complaints or % of customer complaints over the last year.
Hence, the KRA & KPI are to be fixed before sign-off process.