Hi!
I am looking for clarity regarding KRAs. If anyone of u could explain me how to write KRAs based on the JD , I would be thankful.
The JD of an Accounts Executive in my company is:
1) Maintenance and accounting of Petty cash on day-to-day basis.
2) Maintenance of bankbook and Bank Reconciliation on monthly basis.
3) Accounting of Expenses on day to basis as and when occurred.
4) Negotiating with suppliers in respect of all financial transactions regarding rates and payment terms.
5) Preparation of Invoices as per the agreements and follow-ups with customers regarding the outstanding receivable from them.
6) Management of Sundry Debtors and Sundry Creditors with Ageing Analysis.
7) Payments pertaining to Salaries, Payroll, other center expenses, payments to suppliers etc as per due dates assigned or as per agreed terms.
8) Maintenance and recording of entire income and expenses in “TALLY” accounting software on day-to-day basis.
9) Preparation of MIS reports as per required format of the management on monthly basis.
How do I make KRAs for this?
Pls help. Its urgent.
Regards,
Vasudha.
From India, Madras
I am looking for clarity regarding KRAs. If anyone of u could explain me how to write KRAs based on the JD , I would be thankful.
The JD of an Accounts Executive in my company is:
1) Maintenance and accounting of Petty cash on day-to-day basis.
2) Maintenance of bankbook and Bank Reconciliation on monthly basis.
3) Accounting of Expenses on day to basis as and when occurred.
4) Negotiating with suppliers in respect of all financial transactions regarding rates and payment terms.
5) Preparation of Invoices as per the agreements and follow-ups with customers regarding the outstanding receivable from them.
6) Management of Sundry Debtors and Sundry Creditors with Ageing Analysis.
7) Payments pertaining to Salaries, Payroll, other center expenses, payments to suppliers etc as per due dates assigned or as per agreed terms.
8) Maintenance and recording of entire income and expenses in “TALLY” accounting software on day-to-day basis.
9) Preparation of MIS reports as per required format of the management on monthly basis.
How do I make KRAs for this?
Pls help. Its urgent.
Regards,
Vasudha.
From India, Madras
Hi Vasudha
From the JD's try to find out his principal accountabilities and from that the person's goals.
The Jd of an Account Executive
His KRA's can be:
1. Maintenance and preparation of Financial Statements
Goals under this KRA can be:
1. Maintenance of Petty Cash.
2. Maintenance of Bank Book. etc..
All Maintenance Activities will come under this KRA.
His Second KRA can be:
Negotiating and Management
Goals can be negotiating with suppliers, managing debtors and creditors.
His third KRA can be:
MIS
his fourth KRA can be:
Payments
Goals will flow accordingly
Hope this sheds a little light on your query.
Regards
From India
5From the JD's try to find out his principal accountabilities and from that the person's goals.
The Jd of an Account Executive
His KRA's can be:
1. Maintenance and preparation of Financial Statements
Goals under this KRA can be:
1. Maintenance of Petty Cash.
2. Maintenance of Bank Book. etc..
All Maintenance Activities will come under this KRA.
His Second KRA can be:
Negotiating and Management
Goals can be negotiating with suppliers, managing debtors and creditors.
His third KRA can be:
MIS
his fourth KRA can be:
Payments
Goals will flow accordingly
Hope this sheds a little light on your query.
Regards
From India
Hi Vasudha
A KRA is the key result a person is supposed to achieve in a time frame & with a measurable target. A KRA should have a performance indicator which will the measuring / tracking criteria. A KRA should be SMART (Specific, Measurable, Achieavable, Reviewable & Timebound).
Where as JDs are your job responsibilities which will help you to directly / indirectly achieve your KRA.
If the KRA of a HR personnel is to maintain attrition rate at 3% for the year 2006-07. He might have many things to do to achieve this which will his JD.
Hope your point is clarified.
Regards
Durguesh
From India, Pune
A KRA is the key result a person is supposed to achieve in a time frame & with a measurable target. A KRA should have a performance indicator which will the measuring / tracking criteria. A KRA should be SMART (Specific, Measurable, Achieavable, Reviewable & Timebound).
Where as JDs are your job responsibilities which will help you to directly / indirectly achieve your KRA.
If the KRA of a HR personnel is to maintain attrition rate at 3% for the year 2006-07. He might have many things to do to achieve this which will his JD.
Hope your point is clarified.
Regards
Durguesh
From India, Pune
I know i ma late to reply....but still if it can help you..
Key Result Areas [ KRAs ]
=======================================
KEY PERFORMANCE AREAS
These are the areas within the business , where an
individual or group, is logically responsible / accountable
for the results.
KRAs [ KEY RESULT AREAS are managed by
-KPAs [ KEY PERFORMANCE AREAS]
-KPIs [KEY PERFORMANCE INDICATORS]
To manage each KRA, KPIs 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.
=================================================
Key Result Areas [ KRAs ]
"Key Result Areas" or KRAs refer to general areas of outcomes or outputs for which a role is responsible. A typical role targets three to five KRAs.
Value of KRAs
Identifying KRAs 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 (KRAs) 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).
================================================== ===========
I am going to use HR DEPARTMENT as an example.
CORE KRAs for HR
-RECRUITMENT/ SELECTION
-WORKFORCE PLANNING/ DIVERSITY
-PERFORMANCE MANAGEMENTA
-REWARD MANAGEMENT
-WORKPLACE MANAGEMENT AND RELATIONS
-SAFETY AND HEALTH WORKPLACE
-BUILDING CAPABILITIES AND ORGANIZATION LEARNING
-EFFECTIVE HR MANAGEMENT SYSTEMS , SUPPORT AND MONITORING
THE IMPORTANCE AND WEIGHTAGE OF THESE ELEMENTS IS
-GUIDED BY THE
*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.
THIS WOULD BE REFLECTED IN THE
-KPAs --KEY PERFORMANCE AREAS
-KPIs -- KEY PERFORMANCE INDICATORS
===============================================
KRAs, KPAs and KPI [shown in brackets ] for HR.
KRA 1 -RECRUITMENT/ SELECTION
KPA 1- RECRUITMENT [KPI= average time taken per employee 2 months]
KPA 2 -SELECTION [ KPI = average cost per new employee RS 10,000]
====================================
KRA 2 - WORKFORCE PLANNING/ DIVERSITY
KPA 1 - ANSENTEEISM [ KPI = absent rate at 5%]
KPA 2- TURNOVER [ KPI = turnover rate at 7%]
KPA 3- DIVERSITY [ KPI = 3 FEMALES TO BE INDUCTED INTO MANAGEMENT CADRE]
=====================================
KRA 3- PERFORMANCE MANAGEMENT
KPA 1 - 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 - REWARD MANAGEMENT
KPA 1- MARKET ORIENTED SALARY STRUCTURING [ KPI = total compensation to sales 12%]
KPA 2 -BENEFITS PLANNING [ KPI = 6% of total salary bill]
============================================
KRA 5 - WORKPLACE MANAGEMENT AND RELATIONS
KPA 1 -JOB EVALUATIONS [ KPI = 600 lower staff , below grade 4 to be evaluated]
KPA 2 - EMPLOYEE COMMUNICATIONS [ KPI = 4 newsletter on intranet,one per quarter ]
===========================================
KRA 6 - SAFETY AND HEALTH WORKPLACE
KPA 1 - SAFETY [ KPI = accident safety ratings, benchmark with industry]
KPA 2 - HEALTH [KPI = actual health expenditure vs budget ]
========================================
KRA 7 - BUILDING CAPABILITIES AND ORGANIZATION LEARNING
KPA 1 - TRAINING [ KPI = average training hours per employee annually= 24 hours]
KPA 2 - MANAGEMENT DEVELOPMENT [ KPI =average MD cost per employee annually= 16000 RS]
============================================
KRA 8 - EFFECTIVE HR MANAGEMENT SYSTEMS , SUPPORT AND MONITORING
KPA 1- HRIS [ KPI = finalize the software . RS 1.2 million capital budget]
================================================== =====
HERE above I have shown the contents of HR, along with the
attached format [ excel format ].
In a very similar way, you can develop for other departments
like
-manufacturing
-marketing
-sales
-R&D
-finance
etc etc.
================================================
THIS IS AN EXAMPLE FOR INDIVIDUALS.
AGAIN I AM USING HR DEPARTMENT.
FOR INDIVIDUALS WITH HR DEPARTMENT,
-you should take the job description of the individual
-determine the KRAs for the year
-identify the KPAs for the year [ which could change yearly]
-determine the KPI for each KPA, which depends on the company annual
objectives.
HERE IS THE EXAMPLE for a recruitment officer
KRA 1
-RECRUITMENT/ SELECTION
KPA 1 --RECRUITMENT
KPI ----reduce average time taken to fill vacancies by 15%
KPI ----reduce average cost per recruit by 10%
================================================
FOR OTHER DEPARTMENTS, YOU SHOULD REVIEW
Typical key result areas at the corporate and some functional levels.
JUST LIKE HR DEPARTMENT'S KRAs AND KPIs,
A COMPANY CAN DEVELOP KRA AND KPI
FOR OTHER FUNCTIONAL DEPARTMENTS.
SOME EXAMPLES
1. CORPORATION AS A WHOLE
-corporate objective / actual results
-sales growth %
-gross profit % of sales
-market share growth %
-return on assets
-return on investment
-corporate image index improvement
etc etc
===================================
2.MANUFACTURING
- Unit volume level
- unit cost target
-production efficiency improvement
-productivity improvement
-quality improvement index
-capacity utilization
etc etc
====================================
MARKETING
-market share %
-new product launches success
-profit contribution by productlines
etc etc
=====================================
SALES
-sales against last year
-sales against target
-sales coverage improvement
etc etc
======================================
DISTRIBUTION
-market coverage
-customer coverage
-channel coverage
=======================================
CUSTOMER SERVICE
-CUSTOMER SERVICE IMPROVEMENT
-CUSTOMER SATISFACTION ACHIEVEMENT
ETC ETC
======================================
WAREHOUSING / TRANSPORTATION
-%ACHIEVED AGAINST ORDERS
-PICKING / PACKING RATE
-FINISHED GOODS INVENTORY LEVEL
-STOCK TURNOVER
-====================================
FINANCE
-Cost of Capital USED
- Receivables leveL / against sales
-Bad-debt level
-
Debt-equity ratio
=====================================
PROCUREMENT / SUPPLY
-raw material inventory levels
-cost saving target
etc etc
===============================
HERE IS ANOTHER EXAMPLE OF AN INDIVIDUAL
IN SALES
JOB TITLE:
Sales Representative
JOB PURPOSE:
SERVES CUSTOMERS
by selling products; meeting customer needs.
ESSENTIAL JOB RESPONSIBILITIES
1. SERVICES EXISTING ACCOUNTS, OBTAINS ORDERS, AND ESTABLISHES NEW ACCOUNTS
by planning and organizing daily work schedule to call on existing or potential sales
outlets and other trade factors.
2. ADJUSTS CONTENT OF SALES PRESENTATIONS
by studying the type of sales outlet or trade factor.
3. FOCUSES SALES EFFORTS
by studying existing and potential volume of dealers.
4. SUBMITS ORDERS
by referring to price lists and product literature.
5. KEEPS MANAGEMENT INFORMED
by submitting activity and results reports, such as daily call reports, weekly work plans, and monthly and annual territory analyses.
6. MONITORS COMPETITION by
gathering current marketplace information on pricing, products, new products, delivery schedules, merchandising techniques, etc.
7. RECOMMENDS CHANGES IN PRODUCTS, SERVICE, AND POLICY by
evaluating results and competitive developments.
8. RESOLVES CUSTOMER COMPLAINTS
by investigating problems; developing solutions, preparing reports; making recommendations to management.
9. PREPARES SALES OUTLET PERSONNEL, CONTRACTORS, AND OTHER TRADE FACTORS WITH PRODUCT KNOWLEDGE AND SELLING SKILLS
by conducting and/or participating in
sales promotion and educational meetings.
10. MAINTAINS PROFESSIONAL AND TECHNICAL KNOWLEDGE
by attending educational workshops-, reviewing professional publications; establishing personal networks; participating in professional societies.
11. PROVIDES HISTORICAL RECORDS by
maintaining records on area and customer sales.
12. CONTRIBUTES TO TEAM EFFORT
by accomplishing related results as needed.
BASED ON THE ABOVE JOB DESCRIPTION, THE
KRAs / KPAs / KPIs ARE
KRA 1 TERRITORY MANAGEMENT
KPA 1 --no. of accounts
KPI 1 ---100% of target in the top 10 accounts.
----------------------------------------------
KRA 2 CUSTOMER SERVICING
KPA 1 CUSTOMER COMPLAINTS
KPI 1 REDUCE CUSTOMER COMPLAINTS TO '0' LEVEL
--------------------------------------------------
KRA 3 SALES RESULTS
KPA 1 SALES [ ACTUAL / TARGET]
KPA 2 PRODUCTLINE SALES [ SALES BY TARGET]
--------------------------------------------------------------------------------------------
hope this is useful to you
Bhavna
From India, Vadodara
Key Result Areas [ KRAs ]
=======================================
KEY PERFORMANCE AREAS
These are the areas within the business , where an
individual or group, is logically responsible / accountable
for the results.
KRAs [ KEY RESULT AREAS are managed by
-KPAs [ KEY PERFORMANCE AREAS]
-KPIs [KEY PERFORMANCE INDICATORS]
To manage each KRA, KPIs 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.
=================================================
Key Result Areas [ KRAs ]
"Key Result Areas" or KRAs refer to general areas of outcomes or outputs for which a role is responsible. A typical role targets three to five KRAs.
Value of KRAs
Identifying KRAs 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 (KRAs) 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).
================================================== ===========
I am going to use HR DEPARTMENT as an example.
CORE KRAs for HR
-RECRUITMENT/ SELECTION
-WORKFORCE PLANNING/ DIVERSITY
-PERFORMANCE MANAGEMENTA
-REWARD MANAGEMENT
-WORKPLACE MANAGEMENT AND RELATIONS
-SAFETY AND HEALTH WORKPLACE
-BUILDING CAPABILITIES AND ORGANIZATION LEARNING
-EFFECTIVE HR MANAGEMENT SYSTEMS , SUPPORT AND MONITORING
THE IMPORTANCE AND WEIGHTAGE OF THESE ELEMENTS IS
-GUIDED BY THE
*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.
THIS WOULD BE REFLECTED IN THE
-KPAs --KEY PERFORMANCE AREAS
-KPIs -- KEY PERFORMANCE INDICATORS
===============================================
KRAs, KPAs and KPI [shown in brackets ] for HR.
KRA 1 -RECRUITMENT/ SELECTION
KPA 1- RECRUITMENT [KPI= average time taken per employee 2 months]
KPA 2 -SELECTION [ KPI = average cost per new employee RS 10,000]
====================================
KRA 2 - WORKFORCE PLANNING/ DIVERSITY
KPA 1 - ANSENTEEISM [ KPI = absent rate at 5%]
KPA 2- TURNOVER [ KPI = turnover rate at 7%]
KPA 3- DIVERSITY [ KPI = 3 FEMALES TO BE INDUCTED INTO MANAGEMENT CADRE]
=====================================
KRA 3- PERFORMANCE MANAGEMENT
KPA 1 - 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 - REWARD MANAGEMENT
KPA 1- MARKET ORIENTED SALARY STRUCTURING [ KPI = total compensation to sales 12%]
KPA 2 -BENEFITS PLANNING [ KPI = 6% of total salary bill]
============================================
KRA 5 - WORKPLACE MANAGEMENT AND RELATIONS
KPA 1 -JOB EVALUATIONS [ KPI = 600 lower staff , below grade 4 to be evaluated]
KPA 2 - EMPLOYEE COMMUNICATIONS [ KPI = 4 newsletter on intranet,one per quarter ]
===========================================
KRA 6 - SAFETY AND HEALTH WORKPLACE
KPA 1 - SAFETY [ KPI = accident safety ratings, benchmark with industry]
KPA 2 - HEALTH [KPI = actual health expenditure vs budget ]
========================================
KRA 7 - BUILDING CAPABILITIES AND ORGANIZATION LEARNING
KPA 1 - TRAINING [ KPI = average training hours per employee annually= 24 hours]
KPA 2 - MANAGEMENT DEVELOPMENT [ KPI =average MD cost per employee annually= 16000 RS]
============================================
KRA 8 - EFFECTIVE HR MANAGEMENT SYSTEMS , SUPPORT AND MONITORING
KPA 1- HRIS [ KPI = finalize the software . RS 1.2 million capital budget]
================================================== =====
HERE above I have shown the contents of HR, along with the
attached format [ excel format ].
In a very similar way, you can develop for other departments
like
-manufacturing
-marketing
-sales
-R&D
-finance
etc etc.
================================================
THIS IS AN EXAMPLE FOR INDIVIDUALS.
AGAIN I AM USING HR DEPARTMENT.
FOR INDIVIDUALS WITH HR DEPARTMENT,
-you should take the job description of the individual
-determine the KRAs for the year
-identify the KPAs for the year [ which could change yearly]
-determine the KPI for each KPA, which depends on the company annual
objectives.
HERE IS THE EXAMPLE for a recruitment officer
KRA 1
-RECRUITMENT/ SELECTION
KPA 1 --RECRUITMENT
KPI ----reduce average time taken to fill vacancies by 15%
KPI ----reduce average cost per recruit by 10%
================================================
FOR OTHER DEPARTMENTS, YOU SHOULD REVIEW
Typical key result areas at the corporate and some functional levels.
JUST LIKE HR DEPARTMENT'S KRAs AND KPIs,
A COMPANY CAN DEVELOP KRA AND KPI
FOR OTHER FUNCTIONAL DEPARTMENTS.
SOME EXAMPLES
1. CORPORATION AS A WHOLE
-corporate objective / actual results
-sales growth %
-gross profit % of sales
-market share growth %
-return on assets
-return on investment
-corporate image index improvement
etc etc
===================================
2.MANUFACTURING
- Unit volume level
- unit cost target
-production efficiency improvement
-productivity improvement
-quality improvement index
-capacity utilization
etc etc
====================================
MARKETING
-market share %
-new product launches success
-profit contribution by productlines
etc etc
=====================================
SALES
-sales against last year
-sales against target
-sales coverage improvement
etc etc
======================================
DISTRIBUTION
-market coverage
-customer coverage
-channel coverage
=======================================
CUSTOMER SERVICE
-CUSTOMER SERVICE IMPROVEMENT
-CUSTOMER SATISFACTION ACHIEVEMENT
ETC ETC
======================================
WAREHOUSING / TRANSPORTATION
-%ACHIEVED AGAINST ORDERS
-PICKING / PACKING RATE
-FINISHED GOODS INVENTORY LEVEL
-STOCK TURNOVER
-====================================
FINANCE
-Cost of Capital USED
- Receivables leveL / against sales
-Bad-debt level
-
Debt-equity ratio
=====================================
PROCUREMENT / SUPPLY
-raw material inventory levels
-cost saving target
etc etc
===============================
HERE IS ANOTHER EXAMPLE OF AN INDIVIDUAL
IN SALES
JOB TITLE:
Sales Representative
JOB PURPOSE:
SERVES CUSTOMERS
by selling products; meeting customer needs.
ESSENTIAL JOB RESPONSIBILITIES
1. SERVICES EXISTING ACCOUNTS, OBTAINS ORDERS, AND ESTABLISHES NEW ACCOUNTS
by planning and organizing daily work schedule to call on existing or potential sales
outlets and other trade factors.
2. ADJUSTS CONTENT OF SALES PRESENTATIONS
by studying the type of sales outlet or trade factor.
3. FOCUSES SALES EFFORTS
by studying existing and potential volume of dealers.
4. SUBMITS ORDERS
by referring to price lists and product literature.
5. KEEPS MANAGEMENT INFORMED
by submitting activity and results reports, such as daily call reports, weekly work plans, and monthly and annual territory analyses.
6. MONITORS COMPETITION by
gathering current marketplace information on pricing, products, new products, delivery schedules, merchandising techniques, etc.
7. RECOMMENDS CHANGES IN PRODUCTS, SERVICE, AND POLICY by
evaluating results and competitive developments.
8. RESOLVES CUSTOMER COMPLAINTS
by investigating problems; developing solutions, preparing reports; making recommendations to management.
9. PREPARES SALES OUTLET PERSONNEL, CONTRACTORS, AND OTHER TRADE FACTORS WITH PRODUCT KNOWLEDGE AND SELLING SKILLS
by conducting and/or participating in
sales promotion and educational meetings.
10. MAINTAINS PROFESSIONAL AND TECHNICAL KNOWLEDGE
by attending educational workshops-, reviewing professional publications; establishing personal networks; participating in professional societies.
11. PROVIDES HISTORICAL RECORDS by
maintaining records on area and customer sales.
12. CONTRIBUTES TO TEAM EFFORT
by accomplishing related results as needed.
BASED ON THE ABOVE JOB DESCRIPTION, THE
KRAs / KPAs / KPIs ARE
KRA 1 TERRITORY MANAGEMENT
KPA 1 --no. of accounts
KPI 1 ---100% of target in the top 10 accounts.
----------------------------------------------
KRA 2 CUSTOMER SERVICING
KPA 1 CUSTOMER COMPLAINTS
KPI 1 REDUCE CUSTOMER COMPLAINTS TO '0' LEVEL
--------------------------------------------------
KRA 3 SALES RESULTS
KPA 1 SALES [ ACTUAL / TARGET]
KPA 2 PRODUCTLINE SALES [ SALES BY TARGET]
--------------------------------------------------------------------------------------------
hope this is useful to you
Bhavna
From India, Vadodara
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