Facts Every Manager Should Know About KRA And KPI

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Out of all the HR tasks, performance management is the most complicated task. An HR manager should keep a number of things in mind while analyzing employees’ performance and giving them feedback. To make the whole process a lot easier, KRAs and KPIs were designed to review employee performance in a mannerly form. However, most managers still don’t know much about KRA & KPI. Keep reading to understand what is KRA and KPI!!

Take a look!

What is KRA? 

Key Responsibility Area that is most commonly known as KRA is based on the  job description of an employee. They are used while assigning duties that an employee is expected to perform. KRAs are bigger goals that differ from employee to employee. For instance, the KRA of a content writer will be to deliver quality content that will rank and engage more readers. 

What is KPI? 

KPI stands for Key Performance Indicator and is a subset of KRA. That means that an employee’s performance will be evaluated based on the final results delivered. KPIs are easier to measure than KRAs. Following up on the earlier example, one KPI of a content writer could be to rank a particular article or blog on the top 3 search results. 

After KRAs are set in place, one can easily prepare a constructive and measurable KPI. In simpler words, a smaller goal to contribute to the accomplishment of a larger goal is KPI. Hence, KPIs is completely based on the KRAs.

How to Write KRAs?

A manager should keep the following points in mind while writing KRAs:

  • Since KRAs are based on one’s job descriptions, HR managers should thoroughly go through the JD of every employee and also discuss it with them.
  • A manager should also know what every employee is supposed to accomplish and how they will contribute to the company’s progress.
  • Make a list of all the measurable critical duties to be completed on the job. Especially, things that can be evaluated in terms of percentages, numbers, etc.
  • Based on the aforementioned duties a manager should set goals. Plus, one should also write self-explanatory descriptions with every goal.
  • When describing goals, managers should also ensure that realistic and measurable targets and deadlines are set correctly.

Bottom Line!! 

Now that you know what is KRA and KPI, we are sure that you won’t face any challenge in performance management. Timely reviews are very important as it helps to improve employee performance and productivity. An HR manager should ensure a shorter period between reviews. While some companies conduct performance reviews every month, others conduct them, quarterly or annually. Keeping a tab on every employee’s review cycle is truly time-consuming. To solve this problem, one can rely on HR and performance management software to automate the complete process. With the help of such software, performance management can be carried out efficiently and effectively. 

Remember, a good goal setting process and performance management allow a company and the people working in it to focus, arrange, and acquire greater benefits.