HR Services1

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Thursday, 24 January 2013

How to Build mature performance management system without any automation software?- Part 2- Lets understand, how to Define KRA?

How to Build mature performance management system without any automation software?- Part 2- Lets understand, how to Define KRA?

Now we understand the importance of a matured performance management system and various benefits which an organization and employees can get with such kind of system in place.

Please note that, if you are a HR professional of a company which do not have performance management system in place, then you should implement it gradually and not in rush, best will be to take up one department at once. I would suggest to start with HR department performance management as you are the functional head of this department and you need not to interact with any other functional manager for functional inputs. Once you devise the system for your department, you can refer the same to other departmental functional head while discussing performance management of their departments and use it as live project and take examples from HR department performance management system.

Let’s start talking about, how do we implement this?

First three things which should be defined well and are the basic blocks of performance management system are:

1) KRA- Key Responsibility Area
2) Weight-age of these KRA
3) KPI- Key Performance Indicators

KRA- Key Responsibility Area:

Every employee is expected to do certain tasks. Main task or deliverables are called KRA wherein sub task which are required to accomplish main task can be referred as sub KRA here.
Many managers get confused between both main KRA and sub KRA due to which number of KRA of a particular employee sometimes cross 10-15 because manager consider sub KRA as main KRA, which should not be the case.

Example : As I have mentioned above, we should start implementation of performance management by taking HR department as case, hence I will be taking examples from HR field only. Lets say, to do recruitment, person responsible for recruitment, need to do lot of activities which will lead to final placement i.e. taking request from hiring manager, searching resume through various sources, short listing resume at his end, sending it manager for views, lining up the candidates, interview coordination, negotiation if candidate get selected etc etc and many other things I don’t want to mention. In this case “Recruitment” should be considered as KRA and rest of the activities should be referred as sub KRA.

Once this is clear, you can make list of KRA and sub KRA for each employee in your HR department. One of the example is as below for your understanding.

Table 1:
Profile : HR Executive
S. No.
Sub KRA- Detail
Getting ER (Employee Requisition)
In case of new Profile Formulate JD along with HoD
Discussion with HoD for new Profiles
Searching profiles through job portal, internal References etc
Telephonic Round
Align interviews and other co-ordination.
Preparing Salary Chart and Salary Negotiation
Reference Check for Below Senior Executive Level
Offer letter issuance
Follow up for Acceptance of offer letter
Intimation to all Concerns about candidate acceptance
Monthly Job Profile Updation on Web Portal Check
Coordinating with Consultants

Employee Induction
Confirmation of Candidate Joining on DOJ
Joining Formalities (Documentation, Medical Certificate, Checking certificates)
HR Induction
Coordination for Asset, I Card, Access Card, Email id etc
Aligning with HOD
Department Induction of Candidate
Preparation of Appointment letters
Handing over all documents to Documentation in charge
Post Employment Verification of New Joinees
Bank Account Opening

Employee Wishes Mail
Birthday Mail, Wedding Anniversary Mail

Exit Formalities
Sending No Dues and Exit Interview form to Resigned Employee
Assisting Signing Authority from HR on No dues
Issuance of Relieving and Experience Letter

Miscellaneous Work
Warning, Disciplinary, Appreciation Letters
Coordinating of Monthly Performance Incentive distribution

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bhupi said...

Helpful article. hope it will help people mainly in HR to understand the actual means and responsibility regarding KRA.

Ben Simonton said...

Why would anyone devote so much time to this when creating a fully engaged, highly motivated, and highly committed workforce with high morale and innovation literally loving to come to work and at least 300% more productive than if poorly engaged is so easy?

Take a look at this short video.

Best regards, Ben Simonton
Leadership is a science and so is engagement

Govind Singh Negi said...

Dear Ben,

I enjoyed the video. I will surely find time to go through your website as it looks interesting. Have a nice day.

Unknown said...

Thank you for sharing.

Govind Singh Negi said...

Pleasure is mine..manjula

Anonymous said...


Govind Singh Negi said...

thanks a lot

Unknown said...

Mr Govind im really get a confuse about KRA and KPI.Key Result Area and key Responsibility Area is same and one more thing Sub KRA is KPI ? is it.Please can you explain me.

Thanks & Regards


Govind Singh Negi said...

Dear Cecily,

KRA is Key responsibility Area which describe broadly what are the job responsibility of employee where in KPI is Key Performance Indicators and are end results you expect from employee.

Sub KRA are not KPI but detailed description of KRA.

Please post your further doubts on for detailed answers.

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Anna Schafer said...

Once this is clear, you can make list of KRA and sub KRA for each employee in your HR department. One of the example is as below for your understanding.projector service toronto

joni said...

Your article is very interesting and fantastic, at the same time the theme is unique and perfect, great job.