Dear All,
Pls share ur views on KRA/KPA and KPI......nd wat is the difefrence between ths.....pls explain with good exapmles..

Thanks

Abhishek Tiwari

Hi Abhishek,

Key Result Areas
“Key Result Areas” or KRAs refer to general areas of outcomes or outputs for which the department's role is responsible. A typical role targets three to five KRA.

Key Performance Areas
These are the areas within the HR DEPARTMENT, where an individual or group, is logically responsible / accountable for the results.

To manage each KRA/ KPAs, a set of KPI are set .

HERE IS AN EXAMPLE, WHICH YOU CAN USE TO DEVELOP OTHERS FOR YOUR ORGANIZATION.

CORPORATE OBJECTIVE / STRATEGY
-improve the company competitive positioning and productivity by 10%.

HR DEPARTMENT'S OBJECTIVE
-Achieve high productivity level in all activities [ say by 10%]

KRA 1
-RECRUITMENT/ SELECTION

KPA --RECRUITMENT

KPI ----reduce average time taken to fill vacancies by 15%
KPI ----reduce average cost per recruit by 10%

KRA 2
-WORKPLACE MANAGEMENT

KPA -labour turnover

KPI ---reduce the labor turnover by 20%
KPI ----benchmark total HR COSTS externally.

KRA 3
-SAFETY AND HEALTH WORKPLACE

KPA ---workplace accidents

KPI ----reduce workplace accidents by 10%

KRA 4
-BUILDING CAPABILITIES AND ORGANIZATION LEARNING

KPA ----TRAINING

KPI --- ALL WORKFORCE below middle management should receive a minimum of 4 days of training.

THIS IS , ROUGHLY, HOW HR DEPARTMENTS KRAs / KPAs / KPIs ARE SET , MONITORED AND EVALUATED.

THIS CAN BE APPLIED TO ALL OTHER FUNCTIONAL DEPARTMENTS LIKE MARKETING / SALES / PRODUCTION ETC.

Hope this gives some clarity.

Warm Regards

Nath

KRAs and KPAs are the same thing, the only difference is like this-

In some cases, even if the employee does his best to achieve his KRA successfully, he may fail because of certain unavoidable circumstances, beyond his control. IF we go by KRA, he will not achieve results. But , if we go by KPA, he has performed. He should not be made to loose because of certain problems beyond his control.

take an example of a salesman in seeds industry. If the region is flooded, he will not be able to reach targets of selling seeds. but, this does not mean that he will be considered a poor performer.

because of this, the inclination is shifting from KRAs to KPAs.

KRA means the results or outcome for which the job holder is accountable.

Here are some examples:

MANAGING DIRECTOR ' S KRA

-sales revenue
-gross profit.

-net profit.
-% rise in share price
-productivity improvement % etc etc

SALES MANAGER 'S KRA
-sales growth %
-market share growth %
-no. of new customers etc etc

YOU need to do a complete job analysis. HENCE conduct a job analysis

-functions
-results / outcome
-job analysis of the person in charge etc etc

Once you complete that, than you can set up KRAs.

HERE ARE SOME BROAD GUIDELINES

-cost management
-tests carried
-new products developed
-tests and calibrations
-no. of back orders not completed
-no. of warranties handled.
-no of defects
etc etc

The elements will depend on the nature of jobs carried out.

Regards

Nath