KRA AND KPA
Key Result Areas
“Key Result Areas” or KRAs refer to general areas of outcomes or outputs for which a role is responsible. A typical role targets three to five KRA. KRAs are also known as key work outputs (KWOs).
Value
Identifying KRAs helps individuals: · Clarify their roles · Align their roles to the organisation’s business or strategic plan · Focus on results rather than activities · Communicate their role’s purposes to others · Set goals and objectives · Prioritize their activities, and therefore improve their time/work management · Make value-added decisions
Description
Key result areas (KRAs) capture about 80% of a work role. The remainder of the role is usually devoted to areas of shared responsibility (e.g., helping team members, participating in activities for the good of the organisation).
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EXAMPLE
HR [ KRAs]
CORE KRAs for VP [HR]
-RECRUITMENT/ SELECTION
-WORKFORCE PLANNING/ DIVERSITY
-PERFORMANCE MANAGEMENT
-REWARD MANAGEMENT
-WORKPLACE MANAGEMENT AND RELATIONS
-SAFETY AND HEALTH WORKPLACE
-BUILDING CAPABILITIES AND ORGANIZATION LEARNING
-EFFECTIVE HR MANAGEMENT SYSTEMS , SUPPORT AND MONITORING
THE IMPORTANCE AND WEIGHTAGE OF THESE ELEMENTS IS
-GUIDED BY THE
*VISION STATEMENT
*MISSION STATEMENT
*CORPORATE OBJECTIVES
*CORPORATE STRATEGY
*CORPORATE BUSINESS UNITS/ DEPARTMENTAL PLANS/STRATEGY.
AND COULD CHANGE YEAR BY YEAR AS PER THE BOARD DIRECTIVES.
THIS WOULD BE REFLECTED IN THE
-KPAs --KEY PERFORMANCE AREAS
-KPIs -- KEY PERFORMANCE INDICATORS
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FOR THE VP [ HR ],
KPAs might be
-recruitment / selection
-performance management
-building capabilities and organizational learning
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FOR THE VP [ HR ],
KPIs might be
-recruitment / selection
*average time taken per new recruit compared to the previous year.
*average cost per new recruit compared to the previous year.
-performance management
*HR BUDGET / ACTUAL
*TOTAL COMPENSATION & BENEFITS / SALES REVENUE.
-building capabilities and organizational learning
*average training cost per employee compared to the previous year.
*total training cost / sales revenue
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PRASHANT,
-please review the job profile
-define the FUNCTIONAL role of the individuals
-then allocate KRAs, in consultation with VP [ HR ]
-then the KPAs
-then the KPI
THE LEVELS ARE IMPORTANT BUT ALSO THE
FUNCTIONAL ROLE AS WELL THE COMPANY
OBJECTIVES/ STRATEGY IN DECIDING
-KRAs / KPAs / KPIs.
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KEY PERFORMANCE AREAS
These are the areas within the business unit, where an
individual or group, is logically responsible / accountable
for the results.
To manage each KRA, a set of KPI are set .
KRA and hence KPI is attributed to the person who
can have effect on the business results and is
self measured where applicable.
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regards
LEO LINGHAM