KRA: Measuring Employee Performance and Organization's Development

With the market getting aggressively competitive to be the best organizations are increasingly focused on driving productivity and yielding profitable results. This is why every organization should have its key results area (KRA) defined in alignment with their goals.

Key result area is critical to an organization’s decision making process and development. They make sure that every employee focuses on the work that produces results to steer ahead, financially as well in other aspects. Adequately defined key results areas for each department helps keep the workforce focus on completing the task assigned to them in the limited time frame, holding them accountable for their daily duties.

Let us discuss this vital component of an organization's foundation from the basics:

What is KRA?

Key result area or key responsibility area as it commonly referred to, is a means to define the work and measure employee performance, checking how well are they performing their assigned task. It can also be seen as a tool that helps determine and establish the qualitative and quantitative ability of the employee. Every employee and the designation has their specific KRA, for which they are responsible for. Depending upon the organization’ requirement, policies and goals, KRA are assessed quarterly or yearly.

What are the benefits of having a KRA system in place?

· A KRA which is clearly defined and aligned with the business objective will ensure that every employee is mindful of what will drive the organization towards success.

· It will keep the employee focused and hold them accountable for the task assigned to them.

· Since the time is of the essence in operating an organization, KRA will ensure that the employee devotes time judiciously to meet their daily goals, which will further help improve the return on investment.

· Prioritizing the critical factors and understanding their impact help drive the organization towards growth.

· With employees sole focus on delivering results rather than the process, KRA help with prioritizing work and instill time management qualities in the workforce.

· KRAs when communicated and implemented right help the employee perform better, encouraging them to gain new skills that will help them reach a higher level. This will help the employee, as well as the organization, develop and grow.

· Aside from helping the employees, a KRA helps the HR track and monitor the performance of every employee, gauging upon how the tasks are being accomplished. This also help them transform the strategies to boost up their performance and give them a wider platform to reach their full potential.

· KRAs help enhance communication in an organization and with the Human resource team, by laying down and informing them of their updated responsibility, making sure it is aligned with the organization’s vision.

Things that need to be kept in mind when framing a KRA:

· As stated before, it is essential to know the organization’s intent and how every job role contributes toward that goal. This would require you to discuss the responsibility of each employee with the department head.

· Determine the critical duties for that designation that can be measured in terms of percentage and numbers.

· Set a clearly explained description of the goal for the respective designation, which could be on a daily, weekly basis, monthly basis.

· When describing these goals, it is essential to keep in mind that they are measurable, in a realistic time frame and strengthen the target of achieving maximum ROI and driving growth.

KRAs when structured appropriately has the ability to guide the team to align their actions in achieving long term goals. It is important to note that every department within an organization has a different KRA, on which an employee is assessed for their future, but the collective KRA must be aligned with the organization goals. This makes the KRA process complex, which is why it is advisable that they implement a performance management system automating the whole process to keep that processing as simple as possible for the employees.

SaffronTech performance management system helps clients generate and implement an effective KRA process, customized per the company’s requirement and policies, ensuring that the foundation of the respective company is fortified, with responsibility area clearly defined to the employee as well as departments. SaffronTech performance management system makes sure that the whole organization has a clear understanding of the direction in which they are supposed to proceed to steer it ahead.

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