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What is a kpi and a kra

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Mohammed Salem
Mohammed Salem

KRA stands for Key Result Area and defines the key areas an employee is responsible for producing results. KPI stands for Key Performance Indicator and describes measurable targets to evaluate an employee's performance within their KRAs. For example, a HR manager's KRA may be recruitment and a related KPI could be recruiting level 1 positions within 3 months of a vacancy and within 90% of budget. While definitions can vary, the goal is for employees to understand their job responsibilities (KRAs) and expected results (KPIs). Setting KRAs, KPAs (Key Performance Areas), and KPIs allows organizations to manage performance and evaluate progress towards objectives.

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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/ 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.

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What is a kpi and a kra

  • 1. 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%]
  • 2. 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.