13 Dec

“Key Result Areas” or KRAs refer to general areas of outputs or outcomes for which the department’s role is responsible.

Key Result Area in simple Terms may be defined as Primary responsibilities of an Individual, the core area which each person is accountable.
KRA’s is an acronym for ‘Key Results Area’.Having clearly defined Key Results Areas enables you to take ownership of your job and toaccept responsibility for those areas in which achieving results are your responsibility.Key Results Areas enable you to:•Have clearly defined and achievable goals.•Measure your progress during the year in terms of identified targets.•Manage your skills development.•Identify areas for development (skills gaps which exist).•Obtain timely feedback that will allow you to change direction when needed.•Promote an environment of self-management.

Why KRAs?

• To have clearly defined and achievable goals.
• To measure and communicate your progress during the year in terms of identified targets.
• To manage your skills development. Identify areas for development.
• To contribute to the company’s wealth creation.
• To obtain timely communications and feedback that will allow you to stay aligned and change direction when needed.
• To promote an environment of alignment and self-management.

So the importance of KRA is to

• Set goals and objectives
• Prioritize their activities, and therefore improve their time/work management
• Make value-added decisions
• Clarify roles of department or individual
• Focus on results rather than activities
• Align their roles to the organization’s business or strategic plan
• Communicate their role’s purposes to others

Conditions of KRAs

• Key result areas (KRAs) capture about 80% of the department’s work role. The remainders are usually devoted to areas of shared responsibility.
• Each KRA should capture at least 5 % of work role

Writing SMART Goals (also called KRAs) from Job Descriptions

Here are 9 steps suggested by Go through employee’s Job Description. If Job Description is not updated talk to employee and his/her Manager or may be manager’s manager also.

  1. Try to find out exactly what the employee is supposed to achieve.
  2. Based on your reading and discussions, make a list of the functions and responsibilities which are critical to the employee’s job.
  3. Categorize these critical functions and responsibilities in two categories:
    1.     i.            (4.1) Which can be measured whether in numbers or percentages or yes/no.
    2.   ii.            (4.2) Which cannot be measured in numbers and cannot be calculated.
  4. Ones in 4.1 are the ones that can be converted to Goals (KRAs).
  5. Make a list of all critical functions.
  6. Write a self-explanatory (1 sentence) definition of each Goal (KRA).
  7. If you plan to follow BSC (Balanced Score Card) Pattern, then categorize each goal into one of the following categories: Customer, Financial, Internal Business Process, Learning and Growth.
  8. There after describe each Goal (KRA). Make sure you mention a measurable target to be achieved and time frame for achievement of the Goal (KRA).

Key Performance Areas [KPA]

When the key results area is large, it is broken into manageable areas formanaging/ evaluation. These sub-sections of KRAs are called KPA
For example
KRA = Recruitment / Selection
KPA 1= Recruitment
KPA 2 = Selection
Key Performance Indicators [KPI]
To manage each KRA/ KPAs, a set of KPIs are set.A key performance indicator is a financial and non-financial measure used to measureprogress towards a stated organizational goal or objective (KPA / KRA).
The benefits of measuring Key Performance Indicators
• It can be a very quick way of seeing the actual performance of a goal or strategic objective.
• Decisions can be made much quicker when there are accurate and visible measures to backthem up.
• Can allow management to see the company or department performance in one place.
• A team can work together to a common set of measurable goals.Characteristics of KPI
• KPI is always connected with the corporate goals.
• A KPI is decided by the middle or top management.
• It belongs to an individual who is accountable for its outcome.
• A KPI leads to action.• Few in number.
• They are indicators of performance desired by the organization.
• Easy to understand.• It should be balanced not undermine each other.
• Users can gauge their progress overtime.
• KPI’s loses its value overtime so they must be periodically reviewed and refreshed.

Difference between KRA and KPI

Each role in a company generally has a number of KRAs, which define the key areas that the employee needs to produce results in (for example, for a HR Manager, one of the Key Result Areas might be Recruitment). Typically organisations like to define a set of KRA’s for each role in an company, so that everybody’s clear on the exact areas that the role is responsible for, and the incumbent is clear where they need to focus their attention.

KPI stands for Key Performance Indicator – KPIs describe the indicators of performance or success for an employee. Again, using the example of the HR Manager who has Recruitment as one of their KRA’s, a typical KPI for this HR Manager might be “Recruitment of Level 1 Positions within 3 months of notified vacancy and within 90% of budget”.

Many companies have slight variations on this theme, and sometimes KPI’s/KRA’s get mixed up and combined. Which is not always a major problem; as long as in the end, people understand what their job are (KRA’s) and what results they need to deliver (KPI’s)

Difference between JD and KRA’s –

JD stands for Job Description – It will give the broad description or picture of any job.

KRA’s- It is very specific to organization short term and present goal.



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Posted by on December 13, 2012 in KRA's


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