KRA - KPI - KSA

 

KRA

KPI

KSA

 

KRA KRAs show how an employee performs in a routine agenda, which is of strategic importance for the company or department, and which is part of their job description. Hence, for achieving and meeting KRAs, he/she is paid a regular basic salary. This is the theory, the practice is much more colourful. Working without clear paths and goals is inefficient. It leads to people wasting their time and energy on tasks that don’t yield great results, and then they barely have the resources left for real work. The only way to deal with this problem is to distinguish what is really important, what is less important and what are unimportant tasks, often called nice-to-haves. This is why companies often invest considerable resources and effort to get a good understanding of what their key result areas are.   KRAs are the strategic internal or external areas in which a company seeks to realise its added value and outcomes to achieve its development goals. This is because it is generally assumed that if a firm is able to meet its development objectives, it is also successfully fulfilling its strategy and vision.  Each area involves three to five critical tasks. These are the tasks that will help the company to consolidate its competitiveness and sustainable competitive advantage. These critical tasks that employees, departments, and organizations must focus on are the key result areas.   Not every area brings the same benefits and profits to the firm, the ones that are more profitable or more strategic for the firm are the ones that are referred to as key result areas. In these areas, team and individual goals, called KPIs, are then set. Key result areas must be specific, clear and quantifiable. For example, “ensuring organizational growth” does not belong in the KRA list, but “customer acquisition” does. Being too general will only lead to failure because teams and employees will not be able to envision specific activities that will lead to success.  Importance of key result areas Defining key result areas is considered crucial to the successful functioning of an organization, increasing the value added of each department and keeping employees motivated and productive. How do they achieve this? KRAs improve employee focus and increase productivity. The Pareto Principle states that 20% of effort leads to 80% of results. When this rule is applied, 80% of an organization’s results will result from 20% of activities done correctly. Therefore, marking essential tasks helps employees to focus on them and increases their productivity at reduced time cost. They are aligned with individual and organisational goals Often, businesses deviate from their original goals. However, when they have their KRAs written down, it is easier to align their day-to-day activities with their ultimate goals. Further, each employee can align his or her key result areas with the organization’s goals and work to grow the organization at its true essence. Ensure a systematic division of labor After knowing the key result areas of a department, its manager can properly distribute work among subordinates. This will ensure productivity within the organization. Motivate people to perform The KRAs of a department consist of work that is specific to that department. Likewise, employees know that their organization will suffer if they do not work on their key result areas. This sense of accountability motivates them to stick to the plan and perform better. They help monitor performance Once an organization knows the KRAs of its various departments and employees, it can track their progress in these areas. This will further highlight their strengths and underperformance.

 

 

 

KPI  Key Performance Indicators (KPIs) are the critical (key) quantifiable indicators of progress toward an intended result. KPIs provide a focus for strategic and operational improvement, create an analytical basis for decision making and help focus attention on what matters most. Managing with the use of KPIs includes setting targets (the desired level of performance) and tracking progress against those targets. Managing with KPIs often means working to improve performance using leading indicators, which are precursors of future success that will later drive desired impacts.  Often success is simply the repeated, periodic achievement of some levels of operational goal (e.g. zero defects, 10/10 customer satisfaction),   KPIs should follow the SMART criteria. This means the measure has a Specific purpose for the business, it is Measurable to really get a value of the KPI, the defined norms have to be Achievable, the improvement of a KPI has to be Relevant to the success of the organization, and finally it must be Time phased, which means the value or outcomes are shown for a predefined and relevant period.  Key performance indicators are mostly the non-financial measures of a company's performance but, in a business context they do contribute to the company's profitability.  Accounts These are some of the examples: Percentage of overdue invoices Percentage of purchase orders raised in advance Number of retrospectively raised purchase orders Finance report error rate (measures the quality of the report) Average cycle time of workflow Number of duplicate payments  Marketing and sales[edit] New customer acquisition Customer acquisition cost (CAC) Average deal size Status of existing customers ·         Outstanding balances held by segments of customers  ·         Collection of bad debts within customer relationships ·         Profitability of customers  Human Resource Management ·         Employee turnover ·         Ability to recruit to advertised roles ·         Employee performance indicators ·         Staff satisfaction/ results of staff surveys ·         Proportion of staff unplanned absence

  

KSA KSA is a common HR term that describes the Knowledge, Skills, and Ability that each role requires. Knowledge, Skills and Abilities is a list of special qualifications and personal attributes that you need to have for a particular job. Knowledge It is referred to as an organized body of information usually of a procedural nature which, if applied, makes adequate performance on the job possible. A body of information is applied directly to the performance of a function. Skills It is referred to the proficient manual, verbal or mental manipulation of data or things. Skills can be readily measured by a performance test where quantity and quality of performance are tested, usually within an established time limit. Examples of proficient manipulation of things are skill in typing or skill in operating a vehicle, etc. Abilities It is referred to the power to perform an observable activity at present. This means that abilities have been evidenced through activities or behaviors that are similar to those required on the job. Abilities are different from aptitudes. Aptitudes are only the potential for performing the activity.   KSA classifications are segmented as follows: Technical: Evaluates an applicant’s acquired knowledge and specific technical skills Behavioral: Evaluates factors related to human characteristics and skills, such as attitude, work approach and collaborative abilities.