Key result areas
KRA’s is an acronym for ‘Key Results Area’.Having clearly defined Key Results Areas enables you to take ownership of your job and toaccept responsibility for those areas in which achieving results are your responsibility.Key Results Areas enable you to:•Have clearly defined and achievable goals.•Measure your progress during the year in terms of identified targets.•Manage your skills development.•Identify areas for development (skills gaps which exist).•Obtain timely feedback that will allow you to change direction when needed.•Promote an environment of self-management.
Key Performance Areas [KPA]
When the key results area is large, it is broken into manageable areas formanaging/ evaluation. These sub-sections of KRAs are called KPAFor exampleKRA = Recruitment / SelectionKPA 1= RecruitmentKPA 2 = Selection
Key Performance Indicators [KPI]
To manage each KRA/ KPAs, a set of KPIs are set.A key performance indicator is a financial and non-financial measure used to measureprogress towards a stated organizational goal or objective (KPA / KRA).The benefits of measuring Key Performance Indicators• It can be a very quick way of seeing the actual performance of a goal or strategic objective.• Decisions can be made much quicker when there are accurate and visible measures to backthem up.• Can allow management to see the company or department performance in one place.• A team can work together to a common set of measurable goals.Characteristics of KPI• KPI is always connected with the corporate goals.• A KPI is decided by the middle or top management.• It belongs to an individual who is accountable for its outcome.• A KPI leads to action.• Few in number.• They are indicators of performance desired by the organization.• Easy to understand.• It should be balanced not undermine each other.• Users can gauge their progress overtime.• KPI’s loses its value overtime so they must be periodically reviewed and refreshed.