Kpi vs Kra Essay

427 WordsMay 17, 20152 Pages
What is the difference between a KPI and a KRA? Answer: KRA stands for Key Result Area - 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 - For me, 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". Others might use a slightly different approach - I find many companies have slight variations on this theme, and sometimes KPIs/KRAs get mixed up and combined. Which is not always a major problem, as long as in the end, people understand what their job is (KRAs) and what results they need to deliver (KPIs). 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/

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