Key result areas

KRAs is an acronym for Key Results Area.

Having clearly defined Key Results Areas enables you to take ownership of your job and to
accept responsibility for those areas in which achieving results are your responsibility.
Key Results Areas enable you to
! Have clearly defined and achievable goals.
! "easure your progress during the year in terms of identified targets.
! "anage your skills development.
! #dentify areas for development $skills gaps which e%ist&.
! 'btain timely feedback that will allow you to change direction when needed.
! (romote an environment of self)management.
Key Performance Areas [KPA]
*hen the key results area is large+ it is broken into manageable areas for
managing, evaluation. -hese sub)sections of KRAs are called K(A
.or e%ample
KRA / Recruitment , 0election
K(A 1/ Recruitment
K(A 2 / 0election
Key Performance Indicators [KPI]
-o manage each KRA, K(As+ a set of K(#s are set.
A key performance indicator is a financial and non)financial measure used to measure
progress towards a stated organi3ational goal or objective $K(A , KRA&.
-he benefits of measuring Key (erformance #ndicators
! #t can be a very 4uick way of seeing the actual performance of a goal or strategic objective.
! 5ecisions can be made much 4uicker when there are accurate and visible measures to back
them up.
! 6an allow management to see the company or department performance in one place.
! A team can work together to a common set of measurable goals.
6haracteristics of K(#
! K(# is always connected with the corporate goals.
! A K(# is decided by the middle or top management.
! #t belongs to an individual who is accountable for its outcome.
! A K(# leads to action.
! .ew in number.
! -hey are indicators of performance desired by the organi3ation.
! 7asy to understand.
! #t should be balanced not undermine each other.
! 8sers can gauge their progress overtime.
! K(#s loses its value overtime so they must be periodically reviewed and refreshed.
Core KRAs of the HR Department
1. Recruitment, 0election
2. *orkforce (lanning,
9. 5iversity "anagement
:. (erformance "anagement
;. Reward "anagement
<. *orkplace "anagement
=. #ndustrial Relations
>. 0afety And Health *orkplace
?. @uilding 6apabilities And 'rgani3ation Aearning
1B.7ffective Hr "anagement 0ystems + 0upport And "onitoring
KRAs are managed by K(As and K(#s
KEY PERFR!A"CE AREA#
-hese are the areas within the HR 5epartment where an individual or group+ is logically
responsible , accountable for the results.
-o manage each KRA, K(As+ a set of K(# are set.
KRA and hence K(# is attributed to the department which can have effect on the business
results and is self measured where applicable.
-he evaluation of HR 5epartment can have four levels of perspective.
1. 0trategic (erspective C the results of strategic initiatives managed by the HR group. -he
strategic perspective focuses on the measurement of the effectiveness of major strategy)
linked people goals. .or instance+ the business strategy called for major organi3ational
change programs as the business faced major restructuring and multiple mergers and
ac4uisitions. #n this conte%t+ the organi3ations change management capability will be a key
factor in the success or failure of its e%ecution. -herefore+ measuring the ability of the
business to manage change effectively is the core measure of the effectiveness of HR and will
be a key strategic contribution to the future success of the business.
7DA"(A70
)change management capability of the organi3ation
)organi3ation compensation and benefit package with respect market rate.
)organi3ation culture survey
)HR @udget , Actual
)HR 6osts @enchmark 7%ternally
)HR annual resource plan.
)skills, competency level
2. 'perational (erspective C the operational tasks at which HR must e%cel. -his piece of the
@alanced 0corecard provides answers to 4ueries about the effectiveness and efficiency in
running HR processes that are vital to the organi3ation. 7%amples include measuring HR
processes in terms of cost+ 4uality and cycle time such as time to fill vacancies.
7DA"(A70
)time taken to fill vacancies
)cost per recruitment promotions
)absenteeism by job category
)accident costs
)accident safety ratings
)training cost per employee
)training hours per employee
)average employee tenure in the company
)lost time due to injuries
)no. of recruiting advertising programs
)no. of employees put through training.
)turnover rate
)attrition rate
9..inancial (erspective C this perspective tries to answer 4uestions relating to the financial
measures that demonstrate how people and the HR function add value to the organi3ation.
-his might include arriving at the value of the human assets and total people e%penses for
the company. HR
7DA"(A70
)compensation and benefits per employee
)sales per employee
)profit per employee
)cost of injuries
)HR e%penses per employee
)turnover cost
)employee EE workers compensation costsEE
:. 6ustomer (erspective C this focuses on the effectiveness of HR from the internal customer
viewpoint. Are the customers of HR satisfied with their serviceF are service level agreements
metF do the customers think they can get better service elsewhereG 6onducting an HR
customer survey might typically arrive at this.
7DA"(A70
)employee perception of the HR"
)employee perception of the company+ as an employer
)customer ,market perception of the company+ as an employer.
HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH
0uppose the 6orporate 'bjective for the organisation is to improve the company competitive
positioning and productivity by 1BI.
-he HR departments objective for the period is to improve the productivity 1BI.
-his means
KRAs+ K(As and K(# Jshown in bracketsK for HR.
KRA 1 )Recruitment, 0election
K(A 1) Recruitment
JK(#/ average time taken for recruitment per employee / 2 monthsK
K(A 2 )0election
J K(# / average cost per new employee / #LR %y3
////////////////////////////////////
KRA 2) (erformance "anagement
K(A 1 ) (erformance Appraisals
JK(# / all staff to be appraised at least once annuallyK
K(A 2 ) 0uccession (lanning
J K(# / > (otential staff to be identified and talent managedK
/////////////////////////////////////////////////
KRA 9 M Reward "anagement
K(A 1) "arket 'riented 0alary 0tructuring
J K(# / total compensation to sales 12IK
K(A 2 )@enefits (lanning
J K(# / <I of total salary billK
////////////////////////////////////////////
KRA : ) @8#A5#LN 6A(A@#A#-#70 AL5 'RNAL#OA-#'L A7ARL#LN
K(A 1 ) -RA#L#LN
J K(# / average training hours per employee annually/ 2: hoursK
K(A 2 ) "ALAN7"7L- 57P7A'("7L-
J K(# /average "5 cost per employee annually/ 1<BBB 5'AAAR0K
///////////////////////////////////////////////
KRA ; ) *'RK(AA67 "ALAN7"7L- AL5 R7AA-#'L0
K(A 1 )Q'@ 7PAA8A-#'L0
J K(# / <BB lower staff + below grade : to be evaluatedK
K(A 2 ) 7"(A'R77 6'""8L#6A-#'L0
J K(# / : newsletter on intranet+ one per 4uarter K
///////////////////////////////////////////
KRA < ) *'RK.'R67 (AALL#LN, 5#P7R0#-R
K(A 1 ) AL07L-77#0"
J K(# / absent rate at ;IK
K(A 2) -8RL'P7R
J K(# / turnover rate at =IK
K(A 9) 5#P7R0#-R
J K(# / 9 .7"AA70 -' @7 #L586-75 #L-' "ALAN7"7L- 6A5R7K
///////////////////////////////////////////
KRA = ) 0A.7-R AL5 H7AA-H *'RK(AA67
K(A 1 ) 0A.7-R
J K(# / accident safety ratings+ benchmark with industryK
K(A 2 ) H7AA-H
JK(# / actual health e%penditure vs budget K
////////////////////////////////////////////
KRA > ) 7..76-#P7 HR "ALAN7"7L- 0R0-7"0 + 08(('R- AL5 "'L#-'R#LN
K(A 1) HR#0
J K(# / finali3e the software . S B.; million capital budgetK
Writing SMART Goals (also called KRAs) from Job Descriptions
Knowing your Noals and writing them effectively is an all)together different game. -o
describe your Noals $KRAs& you need to have effective writing skills and sound knowledge of
terminology. 8nfortunately+ some e%ecutives, managers may not have a flair for writing and
thus unable to write their Noals $KRAs&. -his is true for HR also. 0o here are some tips that
will help you to write Noals $KRAs& from the Qob 5escriptions.
0"AR- A 0mart Noal $KRA& is one which is
1. Specific 6learly stated what to do and how to doG
2. Measurable 0tates how the performance for this goal will be measured.
9. Achieable #t can be achieved by employees if they work really hard $Rou can draw
this conclusion by talking to employee+ manager or someone who has done this job
successfully&.
:. Releant -he KRA $Noal& is relevant to the job and the performance on this goal will
improve productivity of the employee.
;. Time !rame 0tates a time frame to achieve the goals.
Ho$ to %RI&E #!AR& 'oals (KRAs)*
Here are the steps how anyone can write Noals $KRAs& from Qob 5escriptions
1. No through employees Qob 5escription. #f Qob 5escription is not updated talk to
employee and his,her "anager or many be managers manager also.
2. -ry to find out e%actly what the employee is supposed to achieve.
9. "ake a list of the functions and responsibilities which are critical to the employees job
based on your reading and discussions+
:. 6ategori3e these critical functions and responsibilities in two categories
A *hich can be measured whether in numbers or percentages or yes,no.
@ *hich cannot be measured in numbers and cannot be calculated.
;. As are the one which can be converted to Noals $KRAs&.
<. "ake a list of all critical functions.
=. *rite a self e%planatory $1 sentence & definition of each Noal $KRA&.
>. #f you plan to follow @06 $@alanced 0core 6ard& (attern+ then categori3e each goal
into one of the following categories 6ustomer+ .inancial+ #nternal @usiness (rocess+ Aearning
and Nrowth.
?. -here after describe each Noal $KRA&. "ake sure you mention a measurable target to
be achieved and time frame for achievement of the Noal $KRA&.
An 7%ample
.unctions of a 0ales "anager as per the Qob 5escription
! 5evelops a business plan and sales strategy for the market that ensures attainment of
company sales goals and profitability.
! Responsible for the performance and development of the Account 7%ecutives.
! (repares action plans by individuals as well as by team for effective search of sales
leads and prospects.
! #nitiates and coordinates development of action plans to penetrate new markets.
! Assists in the development and implementation of marketing plans as needed.
! 6onducts one)on)one review with all Account 7%ecutives to build more effective
communications+ to understand training and development needs+ and to provide insight for
the improvement of Account 7%ecutives sales and activity performance.
! (rovides timely feedback to senior management regarding performance.
! (rovides timely+ accurate+ competitive pricing on all completed prospect applications
submitted for pricing and approval+ while striving to maintain ma%imum profit margin.
! "aintains accurate records of all pricings+ sales+ and activity reports submitted by
Account 7%ecutives.
! 6reates and conducts proposal presentations and R.( responses.
! Assists Account 7%ecutives in preparation of proposals and presentations.
! 6ontrols e%penses to meet budget guidelines.
! Adheres to all company policies+ procedures and business ethics codes and ensures
that they are communicated and implemented within the team.
! Recruits+ tests+ and hires Account 7%ecutives based on criteria agreed upon by senior
management.
After going through the above list you identify the following si% functions that are critical to a
0ales "anagers job and can be measured 4uantitatively
6ritical "easurable .unctions of a 0ales manager
1. #mprovement in .inancial (erformance of Account 7%ecutives
2. 5evelopment of 0ales Action (lans
9. Reporting to "anagement about (erformance of 0ales -eam
:. Legotiates with prospective customers in order to ma%imi3e the profits
;. 6reate and conducts proposal presentations and presentations
<. Adhere to company policies.
*riting Noals $KRAs& for 6ritical .unctions
Here are the KRA $,Noals& based on above functions.
.irst # wrote the definition for the KRA and then gave a description along with measure and
time line.
KRA &ar+et
1 #mproves .inancial (erformance of Account
7%ecutives. -o ensure that all sales e%ecutive under
him meets,e%ceed the sales targets provided to
them. -rack the performance of sales and guides the
salesmen to improve their skills to ensure more
sales.
80S ;BB+BBB per 4uarter for the
whole team.
6onduct 2 0ales -raining per
month.
2 5evelopment of 0ales Action (lans
6onducts market research and develops solid sales
plans. 0ales plan must be reported every 4uarter to
management team for analysis and approval.
Renew and Renovate the (lan
every 4uarter.
9 Reporting to "anagement about (erformance of
0ales -eam )6reate and send the monthly reports
with accuracy and time to management. Reports
should clearly indicate the strengths and weaknesses
of the sales team.
6omplete Reports to be send by
=th of 7very "onth.
: Legotiates with prospective customers in order to
ma%imi3e the profits 0ales manager should
ensure that all salesmen are pitching most
competitive and profitable rates to the clients.
Average 0elling (rice 80S
1B+BBB or above
; 6reate and conducts proposal presentations and
presentationsReply to Re4uest for (roposals+ -ender
Lotices+ and (rice Tuotations in -ime.
All (roposals to be submitted to
management for review 2 days
prior and to customer as on date.
< Adhere to company policies and procedures ) 7nsure
that all teams members attend the weekly sales meet
and present their report.
?BI attendance in 0ales
"eetings.
= 6ollections of 5ue Revenues
0ales "anager should assist the Accounts Receivables
manager in collecting all due invoices in time. He,0he
should ensure that customer has accepted the
delivery of the product and the #nvoice.
-arget >BI of the due invoices
to be collected within 9B days,
ad agreed in (urchase 'rder.