Kri & Kpa: - BY S.SANA AFFROZE (16210) K.S DIVYA (16227)

KRI & KPA
-BY
S.SANA AFFROZE (16210)
K.S DIVYA (16227)
KEY PERFORMANCE AREA
• Key = crucial/main
• Performance = Achievement/Attainment
• Area = space/range/field of operation
KEY PERFORMANCE AREA = Main achievement space

KEY PERFORMANCE AREA(CONT….)
• KPA is the overall scope of activities that an individual on a job role has to perform.
• KPA is not always result focused.
• KPA’s can be inclusive (Including all the services or items normally expected or
required)of KRA’s.
CONCEPT
• KEY RESULT AREAS

“Key Result Areas” or KRAs refer to general areas of outcomes or outputs for which the
department's role is responsible.
• KEY PERFORMANCE AREAS

These are the areas within any department, where an individual or group, is logically
responsible / accountable for the results.
A SMALL EXAMPLE
• In organizations, each role or job has a “Job Description (JD)” which consist of all the
responsibilities the person on job has to perform. All the activities listed in JD falls in
two categories:
• Category A – List of functions and activities crucial or critical for the job role. These
activities form the KRA of the job.
• Category B – List of functions and activities associated with the job role but not truly
critical for the role. These functions are important for overall performance of the
team, department or organization as a whole and form the KPA for the job
A Small Example(CONT….)
Key Result Area

• Customer Satisfaction.
• Product Management.
• Operational Cost Control.
• Quality Check.
• Record keeping.
A SMALL EXAMPLE(CONT….)
Key Performance Areas

• Maintaining good working condition in plant.
• Optimum Resource Utilization.
• Process Improvement.
• Safety and Prevention planning and control.
• Working within the company’s SLA(Service Level Agreement), GRC(Governance,
Risk Management and Compliance) policies
IMPORTANT KPA’S AND KRA’S
• To manage each KRA/ KPAs, a set of KPI are set .
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%]
IMPORTANT KPA’S AND KRA’S(CONT….)
• 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.
CONCEPT(CONT….)
• 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.
EXAMPLE-HR RECRUITER OF KARVY
Key Performance areas Key Result areas Weightage Expected Results
Quantity of work Improve Cost per Hire 15% Increase hiring through
portal to 55%
15% Overall hiring through
portal & supervisor
should increase to 85%
Quality of Work Reduce rejections in CV 10% Improve selection rate

sourced in CVs sent to line to
20%
10%
Increase hiring through
social networking to 5%
KRI
• In an organisation, it is necessary to monitor the performance, and hence it can be
concluded that there are four types of performance measures:
• Key Result Indicator (KRIs)
• Key Performance Indicator (KPI)
• Result Indicator (RI)
• Performance Indicator(PI)
• The above four measures can be grouped into Result Indicators and Performance Indicators
• Performance Indicators : It tells management what teams are delivering i.e. tracks specific
actions or activities
KEY RESULT INDICATORS
• Result Indicators : It tells management how teams are combining to

produce results i.e. it only tells WHAT happened
and not WHY
• Key result Indicator :
• It give the board an overall summary of how the organisation is performing.
• It tells how one has done in a part of a business that is critical to meet its
corporate goals.
• KRIs measure the effect of business activities but ignore the cause.
CHARACTERISTICS OF KRIs
• They are good summary measures hence the term ‘Key’
• They are the result of many actions carried out by many teams hence the term ‘Result’
• They give a clear picture of whether the organisation is travelling in the right direction at
the right speed.
• KRIs provide the Board or Governing body with a good overviews as to progress with
regards to the Organisation's strategy
• For a private sector , KRI would be:
• Net profit before tax
• Customer satisfaction
• Profitability of key customer groups
• Return on capital employed
• Employee satisfaction
RELATION BETWEEN KRIs AND KPAs

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KRI & KPA

KEY PERFORMANCE AREA = Main achievement space

• KEY RESULT AREAS

• KEY PERFORMANCE AREAS

Key Result Area

Key Performance Areas

• To manage each KRA/ KPAs, a set of KPI are set .

CORPORATE OBJECTIVE / STRATEGY

• KRA 2 -WORKPLACE MANAGEMENT

KPI ----reduce workplace accidents by 10%

• KRA 4 -BUILDING CAPABILITIES AND ORGANIZATION LEARNING

Quality of Work Reduce rejections in CV 10% Improve selection rate

• Result Indicators : It tells management how teams are combining to

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