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Difference Between KRA AND KPA

KRA stands for Key Result Areas and refers to the general outcomes or outputs that a role is responsible for achieving. A typical role will have 3 to 5 KRAs. Identifying KRAs helps individuals clarify their role, align with organizational goals, focus on results, communicate purpose, set goals and priorities, and improve time management. KRAs usually account for about 80% of a work role, with the remaining 20% devoted to shared responsibilities. Key Performance Areas are the specific business units where an individual is accountable for results. KPIs or Key Performance Indicators are set for each KRA to help manage and measure performance. KRAs and KPIs should be attributed to individuals who can directly impact

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100% found this document useful (2 votes)
6K views

Difference Between KRA AND KPA

KRA stands for Key Result Areas and refers to the general outcomes or outputs that a role is responsible for achieving. A typical role will have 3 to 5 KRAs. Identifying KRAs helps individuals clarify their role, align with organizational goals, focus on results, communicate purpose, set goals and priorities, and improve time management. KRAs usually account for about 80% of a work role, with the remaining 20% devoted to shared responsibilities. Key Performance Areas are the specific business units where an individual is accountable for results. KPIs or Key Performance Indicators are set for each KRA to help manage and measure performance. KRAs and KPIs should be attributed to individuals who can directly impact

Uploaded by

ishaa
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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KRA AND KPA

Key Result Areas

“Key Result Areas” or KRA’s refer to general areas of outcomes or outputs for which a
role is responsible. A typical role targets three to five KRA. KRA’s are also known as key
work outputs (KWO’s).

Value

Identifying KRA’s helps individuals: · Clarify their roles · Align their roles to the
organisation’s business or strategic plan · Focus on results rather than activities ·
Communicate their role’s purposes to others · Set goals and objectives · Prioritize their
activities, and therefore improve their time/work management · Make value-added
decisions

Description

Key result areas (KRA’s) capture about 80% of a work role. The remainder of the role is
usually devoted to areas of shared responsibility (e.g., helping team members,
participating in activities for the good of the organisation).

EXAMPLE
SALES [KRA’s]
-customer sales revenue
-customer servicing level
-merchandising
-accounts relationship
-key accounts / major accounts service
=======================================
KEY PERFORMANCE AREAS

These are the areas within the business unit, where an


individual or group, is logically responsible / accountable
for the results.

To manage each KRA, a set of KPI are set .

KRA and hence KPI is attributed to the person who


can have effect on the business results and is
self measured where applicable.

EXAMPLE
SALES
-sales target [15%] growth
CUSTOMER SERVICE
-raise service index by 6%

WAREHOUSING
-improve picking/ packing rate by 7%

You can have many KRA’s / KPI’s but 3/5 is workable


at best.

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