1. Definition of Key Result Areas (KRA)
“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.
2. Importance of KRAs.
• 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
3. 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
4. Types of KRAs:
• Training KRAs
• Management KRA
• Purchasing KRA
• RD KRA
• Administration KRA
• Finance KRA
• HR KRA
• Manufacturing KRA
• Quality KRA
• Marketing KRA
• Sales KRA
• Key result areas
KRA – Key Result Areas The employee is given certain responsibilities which will be his/her key result areas. Example – If i have given reponsiblity of induction then the end to end process of induction will be my Key Result Area. If i am doing any other work which is not assigned to me but i am willing to do it, then it will not be counted in my KRA’s.
KPI – Key Performance Indicators These are performance target set by management for various levels of staff , on annual basis, as part of the planning / budgeting process. Example – Percentage of deliveries made on time, total inventory at any given time, distribution costs as a percentage of total sales, accuracy of invoices sent to clients, or lead time for a product.
Competency Mapping – is a process through which one assesses and determines one’s strengths as an individual worker and in some cases, as part of an organization. It generally examines two areas: emotional intelligence or emotional quotient (EQ), and strengths of the individual in areas like team structure, leadership, and decision-making. Example –
the following are the steps which can help you in doing competency mapping….:
1) First of all you have to check out the designations in your company. if there is any annomoly in the designation in your company try to sort out that first.
2) Once you clear out the annoying, you have to then take out the competencies for every designations i.e. you have to take out the competency for Asst. Mgr. (accounts), Manager (sales)……infect of all those designations who comes under management staff……
Note that the competencies should be related to their job only….
3) After defining the competencies, you have to mention the skills required for that competencies…..
Example: For the opst of Manager – Accounts on needs to have a good skill in numbers, counting, etc. etc.
4) Once you do this u have to then list down those competencies in a excel format and then sitting with the respective HODs you have to decide the desired level and the actual level of the rating…
5) Once you have noted down thual rate desired and the actual rating, you have to then see where there is a gap and then that individual goes for the training….