KRA: Key Result Areas KPA: Key Performance Areas KPI: Key Performance Indicators Process: 1. 2. 3. 4. 5.Review the job profile Define the FUNCTIONAL role of the individuals Allocate KRAs, in consultation with THE BOSS. Then the KPAs Then the KPI Note: The levels are important but also the functional role as well the company objectives/ strategy in deciding - KRAs / KPAs / KPI. Fringe Benefit Tax (Full Details) KEY RESULT AREAS (KRA) As the first step to build KRAs, KRAs are also known as key work outputs (KWOs). KRA IS GUIDED / LINKED BY THE 1. YOU must visit your company's VISION STATEMENT MISSION STATEMENT CORPORATE OBJECTIVES CORPORATE STRATEGY CORPORATE BUSINESS UNITS/ DEPARTMENTAL PLANS/STRATEGY. ***And could change year by year as per the board directives. 2. THEN REVIEW YOUR HR DEPARTMENT'S HR OBJECTIVES HR STRATEGIES ALIGN IT WITH CORPORATE OBJECTIVES/ STRATEGIES 3. KRA refers to general areas of outcomes or outputs for which a role is responsible. A typical role targets three to five KRA STRENGTHS OF KRA Value 5. helping team members. Clarify their roles • Align their roles to the organization’s business or strategic plan. 6. Payroll Management Benefits Management Statutory Admin Employee Relations Recruitment/ selection Workforce planning/ diversity . -normally. . and therefore improve their time/work management. -too focused. Focus on results rather than activities. Set goals and objectives. and hence some areas could be neglected.. Prioritize their activities. Make value-added decisions Description Key result areas (KRAs) capture about 80% of a work role. The remainder of the role is usually devoted to areas of shared responsibility (e. OPPORTUNITIES OF KRA -Increased focus on the outcomes -improve the competencies of KEY RESULT AREAS. less development of other areas. it only makes 80% of the total job. participating in activities for the griptionood of the Organisation).g. WEAKNESSES OF KRA -highly selective. 2.Identifying KRAs helps individuals.Less emphasis on process. -FOCUSED RESPONSIBILITES -BEING MADE ACCOUNTABLE -RESPONSIBLE FOR THE DELIVERABLES -FINE TUNING OF THE MEASURABLES MORE EFFECTIVELY THREATS OF KRA -POORLY DEFINED JOB DESCRIPTION -MULTI ROLE JOB -REPORTING TO TWO BOSSES -ROLE AMBIQUITY Provident Fund Full Details:p>:p> Example HR [KRAs] CORE KRAs 1. 3. 4. Communicate their role’s purposes to others. KPA and hence KPI is attributed to the person who can have effect on the business results and is self measured where applicable Example: 1 KRA = Recruitment / Selection KPA 1 = Recruitment KPA 2= Selection Example: 2 KRA = Employee Benefits KPA = providing all statutory benefits (ESI. a set of KPA / KPI are set. is logically responsible / accountable for the results. Performance management 8. Reward management 9. India's TOP 15 best cities for IT-BPO growth KEY PERFORMANCE INDICATORS (KPI) . Effective HR management systems. PF…) KPA = providing all other benefits provided by company. Safety and health workplace 11. ***To manage each KRA. of new customers etc etc KEY PERFORMANCE AREAS [KPA] These are the areas within the ORGANIZATION FUNCTIONS. support and monitoring Here are some examples: MANAGING DIRECTOR ' S KRA -sales revenue -gross profit. Workplace management and relations 10. -net profit. -% rise in share price -productivity improvement % etc etc SALES MANAGER 'S KRA -sales growth % -market share growth % -no. Building capabilities and organization learning 12.7. where an individual or group. ***The Choice of HR KPI will vary from year to year under… SUBJECT TO COMPANY'S STRATEGIC PLANNING CORPORATE STRATEGIES CORPORATE OBJECTIVES In HR turn affects like -HR STRATEGIC PLANNING -HRM STRATEGIES -HRM OBJECTIVES Frequently used HR Key Performance Indicators include: [[FTE = full time employees]] Revenue per Employee (FTE) Assets per FTE Training Hours per FTE Training Costs per FTE HR Department Cost per FTE FTEs per HR Department FTE Acceptance Rate Average Cost per Hire Absence Rate Turnover Rate Resignation Rate Human Investment Ratio Compensation & Benefits/Revenue Average Remuneration Time taken per recruitment Cost per recruitment EXAMPLES of KRAs / KPAs / KPIs KRA 1 . KPI for KPA 2 = finalize selection in 5 weeks for each individual position.000] ==================================== KRA 2 .RECRUITMENT/ SELECTION KPA 1 . which would enable the individual to improve performance to achieve the objectives.WORKFORCE PLANNING/ DIVERSITY .RECRUITMENT KPI 1 . Example KPI for KPA 1 = reduce the recruitment cost per head by 10%.Average time taken per employee 2 months KPA 2 -SELECTION [ KPI = average cost per new employee RS 10.Select a KPI for each KPA. INDUCTION TRAINING [ % OF NEW EMPLOYEES] 7.KPA 1 . SUPPORT AND MONITORING KPA 1. TRAINING WORKSHOP [ % ] CONDUCTED/PLANNED 8. ================================================== === 1.TURNOVER [ KPI = turnover rate at 7%] KPA 3.PERFORMANCE APPRAISALS [KPI = all staff to be appraised at least once annually] KPA 2 -SUCCESSION PLANNING [ KPI = 8 POTENTAL staff to be identified and talent managed] =================================== KRA 4 . BASED ON YOUR COMPANY STRATEGY/ HR STRATEGY.EMPLOYEE COMMUNICATIONS [ KPI = 4 newsletter on intranet. below grade 4 to be evaluated] KPA 2 .WORKPLACE MANAGEMENT AND RELATIONS KPA 1 -JOB EVALUATIONS [ KPI = 600 lower staff .AVERAGE RECRUITMENT TIME [DAYS] 3.ABSENTEEISM PER EMPLOYEES [DAYS] 2.EFFECTIVE HR MANAGEMENT SYSTEMS .REWARD MANAGEMENT KPA 1. 05:31 AM . YOU CAN SET YOUR OWN THRESHHOLD. one per quarter ] =========================================== KRA 6 .2 million capital budget] HERE ARE SOME COMMON EXAMPLES FOR EACH ELEMENT.BUILDING CAPABILITIES AND ORGANIZATION LEARNING KPA 1 .SAFETY [ KPI = accident safety ratings.ANSENTEEISM [ KPI = absent rate at 5%] KPA 2.SAFETY AND HEALTH WORKPLACE KPA 1 . #2 12-15-2008.AVERAGE EMPLOYEE TENURE [ YEARS] 6.DIVERSITY [ KPI = 3 FEMALES TO BE INDUCTED INTO MANAGEMENT CADRE] ===================================== KRA 3.PERFORMANCE MANAGEMENT KPA 1 . benchmark with industry] KPA 2 .MARKET ORIENTED SALARY STRUCTURING [ KPI = total compensation to sales 12%] KPA 2 -BENEFITS PLANNING [ KPI = 6% of total salary bill] ============================================ KRA 5 .HRIS [ KPI = finalize the software .PERFORMANCE APPRAISALS [ NOS.HEALTH [KPI = actual health expenditure vs budget ] ======================================== KRA 7 .MANAGEMENT DEVELOPMENT [ KPI =average MD cost per employee annually= 16000 RS] ============================================ KRA 8 . TRAINING AT EXTERNAL COURSES [ %] ACTUAL / PLANNED 9.] AGAINST TOTAL EMPLOYEES.TRAINING [ KPI = average training hours per employee annually= 24 hours] KPA 2 .EMPLOYEE TURNOVER [ % ] 4.EMPLOYEE SATISFACTION [ LEVELS ] 5. RS 1. 2.supercool Member Join Date: Dec 2008 Posts: 293 The HR Balanced Scorecard is the measurement tool. Therefore. Examples -Change management capability of the organization -Organization compensation and benefit package with respect market rate. The strategic perspective focuses on the measurement of the effectiveness of major strategy-linked people goals. It provides the management with a tool and a process to measure the performance of people practices and the HR function from multiple perspectives: 1. 4. Strategic Perspective: The results of strategic initiatives managed by the HR group. Examples -time taken to fill vacancies -cost per recruitment promotions -absenteeism by job category -accident costs -accident safety ratings -training cost per employee . For instance. -Organization culture survey -HR BUDGET / ACTUAL -HR COSTS BENCHMARK EXTERNALLY -HR annual resource plan. 3. quality and cycle time such as time to fill vacancies. Strategic Perspective Operational Perspective Financial Perspective Customer Perspective 1. This piece of the Balanced Scorecard provides answers to queries about the effectiveness and efficiency in running HR processes that are vital to the organization. Examples include measuring HR processes in terms of cost. the organization’s change management capability will be a key factor in the success or failure of its execution. Operational Perspective: The operational tasks at which HR must excel. In this context. measuring the ability of the business to manage change effectively is the core measure of the effectiveness of HR and will be a key strategic contribution to the future success of the business. the business strategy called for major organizational change programs as the business faced major restructuring and multiple mergers and acquisitions. -skills/ competency level etc… 2. Are the customers of HR satisfied with their service. This provides a strategic measurement and management process to show the connection between a company’s business strategies and goals and its HR strategies. -Turnover rate -attrition rate etc 3. as an employer. The Balanced Scorecard can provide an ideal approach to measure the contribution that human resource management makes to business success. Such solutions enhance HR’s ability to provide counsel to line management and deliver results that make a difference to the achievement of their goals and strategy and thereby to shareholders. Examples -Employee perception of the HRM -employee perception of the company. .Customer Perspective: This focuses on the effectiveness of HR from the internal customer viewpoint. Etc All four components of the scorecard are used to define and measure the effectiveness of people-management activities and how the HR function executes them. activities. With the HR Balanced Scorecard in place. of employees put through training. do the customers think they can get better service elsewhere? Conducting an HR customer survey might typically arrive at this. This might include arriving at the value of the human assets and total people expenses for the company. and results. HR Examples -compensation and benefits per employee -sales per employee -profit per employee -cost of injuries -HR expenses per employee -turnover cost -employee '' workers compensation costs'' etc 4. Financial Perspective This perspective tries to answer questions relating to the financial measures that demonstrate how people and the HR function add value to the organization. as an employer -customer/market perception of the company. of recruiting advertising programs -no. are service level agreements met.-training hours per employee -average employee tenure in the company -lost time due to injuries -no. it can assist organizations to easily monitor the workforce indicators that are key to their business success. COMPENSATION &BENEFITS AS A % OF SALES.[this year v s last year] 3. ================================================== === HERE ARE SOME STANDARDS METRICS 1 HR UTILIZATION % TOTAL PAYROLL $ / TOTAL SALES $ 2. ACCIDENT SAFETY % CURRENT ACTUAL $ / LAST YEAR $ X 100 RATINGS 6'. HR will be proactive in identifying potential improvements and bringing suggestions to the business that improve bottom-line results. EMPLOYEE % EMPLOYEE BENEFITS $ / TOTAL PAYROLL $ X100 BENEFITS EMPLOYEE BENEFITS $ /TOTAL SALES $ X 100 . giving credibility to HR recommendations and initiatives.COMPENSATION & BENEFITS PER EMPLOYEE [ this year vs last year] 6.% OF EMPLOYEES SATISFIED WITH CURRENT SYSTEM [ SURVEY ] 12.BENEFITS SPEND AS A % OF TOTAL COMPENSATION & BENEFITS 9. 11. HR BUDGET % ACTUAL $ / BUDGET $ X 100 4'. and A business and linked measurement framework focuses activity on those tasks that contribute to organizational success.ANNUAL TURNOVER RATE. Collecting and using data to make decisionsregarding retaining and motivating the workforce. HERE ARE SOME PROBABLE HR METRICS IN COMPENSATION ONLY 1.MEDICAL BENEFITS EXPENSES TOTAL [ THIS YEAR VS LAST YEAR] 13. ACCIDENT COSTS % CURRENT ACTUAL $ / LAST YEAR $ X 100 5'.MEDICAL BENEFITS EXPENSES PER EMPLOYEE. 5. 10. giving the organization a competitive advantage in the marketplace. The right mix of lead and lag measures helps the business assess its strategic alignment and progress towards its objectives.INCENTIVE PAYMENT AS A % OF TOTAL COMPENSATION & BENEFITS.The apparent and inherent values that the HR Balanced Scorecard brings include: Measurement provides the data and facts to support business decisions. This process lifts the role of HR from being viewed purely as a cost centre to that as strategic business partner.COMPENSATION & BENEFITS AS A % OF OPERATING EXPENSES.COMPENSATION & BENEFITS BY LEVELS OF STAFF -senior mgnt/ executives/middle mgnt/ junior mgnt/supervisors/staff etc. HR PRODUCTIVITY % TOTAL EMPLOYMENT COST $/TOTAL PRODUCTION VOLUME IN $ X 100 3. 8.NEW COMERS COMPENSATION & BENEFITS AGAINST TOTAL FOR THE YEAR. 4. 7.ANNUAL TOTAL COMPENSATION INCREASE RATE [%] [this year vs last year] 2.COMPENSATION & BENEFITS COMPETITIVENESS INDEX. HR EXPENSES $ TOTAL HR EXPENSES $ / TOTAL NO. EMPLOYEES % ACTUAL TAKING PART / PLANNED X 100 involvement in train 14. TRAINING DAYS % ACTUAL TRAINING DAYS / PLANNED X 100 EFFECTIVENESS 13. HR BUDGET % ACTUAL HR EXPENSES $ / TOTAL SALES $ X 100 sales effectiveness 8'. OF NEW STAFF ORIENTED X 100 16. OF NEW STAFF LEAVING IN THREE MONTHS/ EFFECTIVENESS TOTAL NO. HR STAFFING NO. NO. TURNOVER BY % TURNOVER / TOTAL EMPLOYEES BY EACH EACH JOB CATEGORY CATEGORY X 100 19. based on your training coordinator's job description ================================================== =============== ======= . OF EMPLOYEES per head 9'. HR EXPENSES % HR EXPENSES $ / TOTAL EXPENSES $ X 100 cost effectivenss 10'. TOTAL HR STAFF / TOTAL EMPLOYEES EFFICIENCY NOW YOU SHOULD WORK OUT YOUR KRAs.DAYS TOTAL NO OF DAYS / TOTAL NO positions filled OPEN POSITION 17. TIME TO FILL AN NO. TOTAL SICKDAYS TAKEN/ TOTAL EMPLOYEES managemeent effectiveness 15. OF SAFETY % ACTUAL CONDUCTED / PLANNED X 100 training programs 12.7'. NO. TURNOVER BY % TURNOVER / TOTAL RECRUITMENTS X100 RECRUITING source BY EACH SOURCE 18.OF COURSES % ACTUAL CONDUCTED / PLANNED X 100 CONDUCTED 11. WORKERS % ACTUAL $ / PLANNED BUDGET $ X 100 çompensation costs 20. SICK DAYS nos. STAFF orientation % NO. KRA 4 *CONDUCT SPECIAL SPECIFIC TRAINING PROGRAMS [ kpi =how many programs conducted]in 12 months. contractors or technical experts and manage related contracts and terms of appointment according to the relevant guidelines. timekeeping. Be responsible for the overall software engineering of the project including providing overall direction to others / partners. [ QUALITY RATINGS against STANDARD CRITERIA. address any issues across the project interfaces. [ QUALITY RATINGS against STANDARD CRITERIA] KRA 7 *Create. YOU MAY MODIFY/CHANGE AS REQUIRED BUT RESTRICT KRAs TO MAXIMUM 7. "Nach Baliye 4" Participants Photos KRA 1 .] KRA 6 *Facilitate transition of new hire from training to work environment. KRA 2 *PLANS/ IMPLEMENTS STAFF TRAINING PROGRAMS[kpi = how many programs vs planned]in 12 months KRA 3 *CONDUCT CONTINUING EDUCATION PROGRAMS [ kpi =how many programs conducted]in 12 months.Support and participate in continuous improvement initiatives. ensuring that project deliverables and milestones are achieved. FOR YOUR PURPOSE . § Engage and provide direction as necessary to others . SINCE THE SOFTWARE ENGINEERS MOSTLY WORK ON PROJECTS. KRA 5 *training administrative work such as tracking of new materials. and other administrative tasks as required in a timely and accurate manner.KRA 1 *DELIVER INSTRUCTIONS TO NEW HIRES [ kpi = how many new hires trained]in 12 months. § Provide regular project reports to the management .[kpi=how many in 12 months] KRA 8 *Evaluation of training impact on organization effectiveness [ kpi = QUALITY RATINGS against STANDARD CRITERIA] HERE IS A BROAD GUIDELINES OF A TYPICAL SOFTWARE ENGINEER. § Monitor progress. THE TYPICAL KRAs WOULD CHANGE. Establish project plans including timelines and resources required for the project. ensuring competency levels are sufficient. Develop. implement and maintain an appropriate software engineering project methodology across the complete project. § Select. pilot releases. § Establish vital links and understand the requirements of the diverse areas. robust and ruggedised development processes § Manage all aspects of the process related to the development and production of the system. § Develop a clear project plan and communicate that with the project staff through an intensive induction process. § Be responsible for implementing production procedures. plus maintain software coding standards. through implementing production standards. Hottest Bollywood Debuts. develop as required. Develop and support the software engineering project methodology of the project § Investigate. KRA 4 Establish links and working relationships with OTHER departments. § Act as a major channel for feedback communication. § Plan. § Apply proven software engineering techniques and solutions to achieve the objectives. KRA 6 . error handling. including reliability testing. execute. select. plus full documentation. plus full documentation.§ Facilitate the ongoing assessment of commitments and regular strategic reviews . KRA 3 Manage the development . user interface. or consultants are engaged as required. § Recruit and appoint project staff and technical consultants as required following appropriate procedures. § Establish a staffing strategy to deliver the specific project objectives in consultation with the management. 2008:p>:p> KRA 5 Manage a team of project staff. monitor and manage thorough user/usability testing and feedback . § Adapt software engineering industrial standards to:data collection/data analysis/security/ storage/data visualization etc § Ensure that all software engineering deliverables and milestones are achieved. § Ensure that appropriate software engineers. KRA 2 . plus take into account this feedback in determining priorities for practical outcomes of the project. § Provide technical and operational guidance to the project as necessary. § Assist staff to work through project impediments in a prompt manner. o dissemination of selected information to ALL CONCERNED.Manage effective communication with TEAM members § Liaise with Management members. § Be responsible for: o relevant conference presentations and publications. technical advisors/consultants. . partners.