Please assist want to know the differences (if any) between goals and key result areas
From Zimbabwe
From Zimbabwe
Hi Fatch
Goals are set for the purpose of achieving the Key Results, after identifying the possible Key Result Areas.
It is the responsibility of the HR to identify the Key Result Areas and align organisational goals with the same so that individual performance goals are arrived at
Ask for any help to take this further...
Ram Ram
HR Trainer
From India, Madras
Goals are set for the purpose of achieving the Key Results, after identifying the possible Key Result Areas.
It is the responsibility of the HR to identify the Key Result Areas and align organisational goals with the same so that individual performance goals are arrived at
Ask for any help to take this further...
Ram Ram
HR Trainer
From India, Madras
MRS. FATCH,
I have listed below
-what is a goal in an organization / how it is set.
-what is an objective in an organization/ how it is set
and how it is derived from the goal.
-what are KRAs/KPAs/KPIs in an organization/ how it is set
and how it is derived from the goal/ OBJECTIVES.
================================================
GOAL
-for an organization, is a desired state of affairs based on
the current situation and the forecasted conditions/ assumptions.
EXAMPLE-- BE THE NUMBER ONE COMPANY IN TERMS OF
MARKET SHARE IN THE INDUSTRY.
COCA COLA wants to be number one cola company in the
world.
-----------------------------------------------------------------------------------
OBJECTIVE
-for an organization, is the most desired outcome based on
the current situation and the forecasted conditions / assumptions.
EXAMPLE-- BE THE NUMBER ONE COMPANY, with 51% , IN TERMS OF
MARKET SHARE IN THE INDUSTRY.
COCA COLA wants to be number one cola company in the
world, with 51%.
------------------------------------------------------------------------------------------------------
WHAT ARE
''KRA'' AND ''KPA'' AND ''KPI''
Key Result Areas
“Key Result Areas” or KRAs refer to general areas of outcomes or outputs for which the department's role is responsible.
----------------------------------------------------------------
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 of KRAs
Key result areas (KRAs) capture about 80% of the department's 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).
================================================== ================
KRAs [ KEY RESULT AREAS are managed by
-KPAs [ KEY PERFORMANCE AREAS]
AND -KPIs [KEY PERFORMANCE INDICATORS]
KEY PERFORMANCE AREAS
To manage each KRA/ KPAs, a set of KPI are set .
KRA and hence KPI is attributed to the department which
can have effect on the business results and is
self measured where applicable.
THE IMPORTANCE AND WEIGHTAGE OF THESE ELEMENTS
KRAs/KPAs/ KPIs ARE GUIDED BY THE COMPANY'S
*VISION STATEMENT
*MISSION STATEMENT
*CORPORATE OBJECTIVES
*CORPORATE STRATEGY
*CORPORATE BUSINESS UNITS/ DEPARTMENTAL PLANS/STRATEGY.
FOR THE BUDGET PERIOD, WHICH IS USUALLY 12 MONTHS.
================================================== ====
Now I will use HR department / MARKETING department / SALES department
as a case study for our purpose.
================================================== =
One of the CORE KRAs of HR DEPARTMENT IS
-RECRUITMENT/ SELECTION
HERE IS AN EXAMPLE OF KRAs, KPAs and KPIs FOR HR DEPT.,
CORPORATE OBJECTIVE / STRATEGY
-to gain world market share of 51%
HR DEPARTMENT'S OBJECTIVE
-Achieve high productivity level in all activities [ say by 10%]
KRA 1
-RECRUITMENT/ SELECTION
KPA 1 --RECRUITMENT
KPI ----reduce average time taken to fill marketing/sales vacancies by 15%
KPI ----reduce average cost per recruit by 10%
===========================================
One of the CORE KRAs MARKETING DEPARTMENT IS
-DISTRIBUTION
HERE IS AN EXAMPLE OF KRAs, KPAs and KPIs FOR DISTRIBUTION.,
CORPORATE OBJECTIVE / STRATEGY
-to gain world market share of 51%
DISTRIBUTION OBJECTIVE
-Improve / Increase the distribution coverage by 20%
KRA 1
-DISTRIBUTION
KPA 1 --CHANNEL EXPANSION BY 2 NEW CHANNELS.
KPI ----INCREASE THE CHANNEL NETWORK BY 20%
==================================================
One of the CORE KRAs of SALES DEPARTMENT IS
-SALES COVERAGE
HERE IS AN EXAMPLE OF KRAs, KPAs and KPIs FOR SALES DEPT.,
CORPORATE OBJECTIVE / STRATEGY
-to gain world market share of 51%
SALES DEPARTMENT'S OBJECTIVE
-INCREASE THE SALES COVERAGE BY 20%.
KRA 1
-SALES COVERAGE
KPA 1 --SALES COVERAGE
KPI ----INCLUDE 5 MORE COUNTRIES IN THE SALES EXPANSION.
KPI ----INCREASE THE GEOGRAPHICAL COVERAGE BY 15%.
================================================== ====
regards
LEO LINGHAM
From India, Mumbai
260I have listed below
-what is a goal in an organization / how it is set.
-what is an objective in an organization/ how it is set
and how it is derived from the goal.
-what are KRAs/KPAs/KPIs in an organization/ how it is set
and how it is derived from the goal/ OBJECTIVES.
================================================
GOAL
-for an organization, is a desired state of affairs based on
the current situation and the forecasted conditions/ assumptions.
EXAMPLE-- BE THE NUMBER ONE COMPANY IN TERMS OF
MARKET SHARE IN THE INDUSTRY.
COCA COLA wants to be number one cola company in the
world.
-----------------------------------------------------------------------------------
OBJECTIVE
-for an organization, is the most desired outcome based on
the current situation and the forecasted conditions / assumptions.
EXAMPLE-- BE THE NUMBER ONE COMPANY, with 51% , IN TERMS OF
MARKET SHARE IN THE INDUSTRY.
COCA COLA wants to be number one cola company in the
world, with 51%.
------------------------------------------------------------------------------------------------------
WHAT ARE
''KRA'' AND ''KPA'' AND ''KPI''
Key Result Areas
“Key Result Areas” or KRAs refer to general areas of outcomes or outputs for which the department's role is responsible.
----------------------------------------------------------------
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 of KRAs
Key result areas (KRAs) capture about 80% of the department's 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).
================================================== ================
KRAs [ KEY RESULT AREAS are managed by
-KPAs [ KEY PERFORMANCE AREAS]
AND -KPIs [KEY PERFORMANCE INDICATORS]
KEY PERFORMANCE AREAS
To manage each KRA/ KPAs, a set of KPI are set .
KRA and hence KPI is attributed to the department which
can have effect on the business results and is
self measured where applicable.
THE IMPORTANCE AND WEIGHTAGE OF THESE ELEMENTS
KRAs/KPAs/ KPIs ARE GUIDED BY THE COMPANY'S
*VISION STATEMENT
*MISSION STATEMENT
*CORPORATE OBJECTIVES
*CORPORATE STRATEGY
*CORPORATE BUSINESS UNITS/ DEPARTMENTAL PLANS/STRATEGY.
FOR THE BUDGET PERIOD, WHICH IS USUALLY 12 MONTHS.
================================================== ====
Now I will use HR department / MARKETING department / SALES department
as a case study for our purpose.
================================================== =
One of the CORE KRAs of HR DEPARTMENT IS
-RECRUITMENT/ SELECTION
HERE IS AN EXAMPLE OF KRAs, KPAs and KPIs FOR HR DEPT.,
CORPORATE OBJECTIVE / STRATEGY
-to gain world market share of 51%
HR DEPARTMENT'S OBJECTIVE
-Achieve high productivity level in all activities [ say by 10%]
KRA 1
-RECRUITMENT/ SELECTION
KPA 1 --RECRUITMENT
KPI ----reduce average time taken to fill marketing/sales vacancies by 15%
KPI ----reduce average cost per recruit by 10%
===========================================
One of the CORE KRAs MARKETING DEPARTMENT IS
-DISTRIBUTION
HERE IS AN EXAMPLE OF KRAs, KPAs and KPIs FOR DISTRIBUTION.,
CORPORATE OBJECTIVE / STRATEGY
-to gain world market share of 51%
DISTRIBUTION OBJECTIVE
-Improve / Increase the distribution coverage by 20%
KRA 1
-DISTRIBUTION
KPA 1 --CHANNEL EXPANSION BY 2 NEW CHANNELS.
KPI ----INCREASE THE CHANNEL NETWORK BY 20%
==================================================
One of the CORE KRAs of SALES DEPARTMENT IS
-SALES COVERAGE
HERE IS AN EXAMPLE OF KRAs, KPAs and KPIs FOR SALES DEPT.,
CORPORATE OBJECTIVE / STRATEGY
-to gain world market share of 51%
SALES DEPARTMENT'S OBJECTIVE
-INCREASE THE SALES COVERAGE BY 20%.
KRA 1
-SALES COVERAGE
KPA 1 --SALES COVERAGE
KPI ----INCLUDE 5 MORE COUNTRIES IN THE SALES EXPANSION.
KPI ----INCREASE THE GEOGRAPHICAL COVERAGE BY 15%.
================================================== ====
regards
LEO LINGHAM
From India, Mumbai
HIREN,
I HAVE COLLECTED INFORMATION FROM MY FILES.
SOME OF THESE INFORMATION IS ALREADY ON CITEHR.
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]
================================================== =====
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%
================================================
HR Key Performance Indicators
Frequently used HR Key Performance Indicators include:
FTE = full time employees [only]
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
==================================
HERE ARE SOME COMMON EXAMPLES.
FOR EACH ELEMENT, YOU CAN SET YOUR OWN
THRESHHOLD, BASED ON YOUR COMPANY
STRATEGY/ HR STRATEGY.
================================================== =====
1.ABSENTEEISM PER EMPLOYEES [DAYS]
2.AVERAGE RECRUITMENT TIME [DAYS]
3.EMPLOYEE TURNOVER [ % ]
4.EMPLOYEE SATISFACTION [ LEVELS ]
5.AVERAGE EMPLOYEE TENURE [ YEARS]
6.INDUCTION TRAINING [ % OF NEW EMPLOYEES]
7. TRAINING WORKSHOP [ % ] CONDUCTED/PLANNED
8. TRAINING AT EXTERNAL COURSES [ %] ACTUAL / PLANNED
9.PERFORMANCE APPRAISALS [ NOS.] AGAINST TOTAL EMPLOYEES.
================================================== ===
HERE ARE SOME
PROBABLE HR METRICS IN COMPENSATION ONLY
1.ANNUAL TOTAL COMPENSATION INCREASE RATE [%] [this year vs last year]
2.ANNUAL TURNOVER RATE.[this year v s last year]
3.COMPENSATION &BENEFITS AS A % OF SALES.
4.COMPENSATION & BENEFITS AS A % OF OPERATING EXPENSES.
5.COMPENSATION & BENEFITS PER EMPLOYEE [ this year vs last year]
6.COMPENSATION & BENEFITS COMPETITIVENESS INDEX.
7.INCENTIVE PAYMENT AS A % OF TOTAL COMPENSATION & BENEFITS.
8.BENEFITS SPEND AS A % OF TOTAL COMPENSATION & BENEFITS
9.COMPENSATION & BENEFITS BY LEVELS OF STAFF
-senior mgnt/ executives/middle mgnt/ junior mgnt/supervisors/staff etc.
10.NEW COMERS COMPENSATION & BENEFITS AGAINST TOTAL FOR THE YEAR.
11.% OF EMPLOYEES SATISFIED WITH CURRENT SYSTEM [ SURVEY ]
12.MEDICAL BENEFITS EXPENSES TOTAL [ THIS YEAR VS LAST YEAR]
13.MEDICAL BENEFITS EXPENSES PER EMPLOYEE.
================================================== =====
HERE ARE SOME STANDARDS METRICS
1 HR UTILIZATION % TOTAL PAYROLL $ / TOTAL SALES $
2. HR PRODUCTIVITY % TOTAL EMPLOYMENT COST $/TOTAL
PRODUCTION VOLUME IN $ X 100
3. HR BUDGET % ACTUAL $ / BUDGET $ X 100
4'. ACCIDENT COSTS % CURRENT ACTUAL $ / LAST YEAR $ X 100
5'. ACCIDENT SAFETY % CURRENT ACTUAL $ / LAST YEAR $ X 100
RATINGS
6'. EMPLOYEE % EMPLOYEE BENEFITS $ / TOTAL PAYROLL $ X100
BENEFITS
EMPLOYEE BENEFITS $ /TOTAL SALES $ X 100
7'. HR BUDGET % ACTUAL HR EXPENSES $ / TOTAL SALES $ X 100
sales effectiveness
8'. HR EXPENSES $ TOTAL HR EXPENSES $ / TOTAL NO. OF EMPLOYEES
per head
9'. HR EXPENSES % HR EXPENSES $ / TOTAL EXPENSES $ X 100
cost effectivenss
10'. NO.OF COURSES % ACTUAL CONDUCTED / PLANNED X 100
CONDUCTED
11. NO. OF SAFETY % ACTUAL CONDUCTED / PLANNED X 100
training programs
12. TRAINING DAYS % ACTUAL TRAINING DAYS / PLANNED X 100
EFFECTIVENESS
13. EMPLOYEES % ACTUAL TAKING PART / PLANNED X 100
involvement in train
14. SICK DAYS nos. TOTAL SICKDAYS TAKEN/ TOTAL EMPLOYEES
managemeent effectiveness
15. STAFF orientation % NO. OF NEW STAFF LEAVING IN THREE MONTHS/
EFFECTIVENESS TOTAL NO. OF NEW STAFF ORIENTED
X 100
16. TIME TO FILL AN NO.DAYS TOTAL NO OF DAYS / TOTAL NO positions filled
OPEN POSITION
17. TURNOVER BY % TURNOVER / TOTAL RECRUITMENTS X100
RECRUITING source
BY EACH SOURCE
18. TURNOVER BY % TURNOVER / TOTAL EMPLOYEES BY EACH
EACH JOB CATEGORY
CATEGORY X 100
19. WORKERS % ACTUAL $ / PLANNED BUDGET $ X 100
çompensation costs
20. HR STAFFING NO. TOTAL HR STAFF / TOTAL EMPLOYEES
EFFICIENCY
REGARDS
LEO LINGHAM
From India, Mumbai
I HAVE COLLECTED INFORMATION FROM MY FILES.
SOME OF THESE INFORMATION IS ALREADY ON CITEHR.
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]
================================================== =====
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%
================================================
HR Key Performance Indicators
Frequently used HR Key Performance Indicators include:
FTE = full time employees [only]
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
==================================
HERE ARE SOME COMMON EXAMPLES.
FOR EACH ELEMENT, YOU CAN SET YOUR OWN
THRESHHOLD, BASED ON YOUR COMPANY
STRATEGY/ HR STRATEGY.
================================================== =====
1.ABSENTEEISM PER EMPLOYEES [DAYS]
2.AVERAGE RECRUITMENT TIME [DAYS]
3.EMPLOYEE TURNOVER [ % ]
4.EMPLOYEE SATISFACTION [ LEVELS ]
5.AVERAGE EMPLOYEE TENURE [ YEARS]
6.INDUCTION TRAINING [ % OF NEW EMPLOYEES]
7. TRAINING WORKSHOP [ % ] CONDUCTED/PLANNED
8. TRAINING AT EXTERNAL COURSES [ %] ACTUAL / PLANNED
9.PERFORMANCE APPRAISALS [ NOS.] AGAINST TOTAL EMPLOYEES.
================================================== ===
HERE ARE SOME
PROBABLE HR METRICS IN COMPENSATION ONLY
1.ANNUAL TOTAL COMPENSATION INCREASE RATE [%] [this year vs last year]
2.ANNUAL TURNOVER RATE.[this year v s last year]
3.COMPENSATION &BENEFITS AS A % OF SALES.
4.COMPENSATION & BENEFITS AS A % OF OPERATING EXPENSES.
5.COMPENSATION & BENEFITS PER EMPLOYEE [ this year vs last year]
6.COMPENSATION & BENEFITS COMPETITIVENESS INDEX.
7.INCENTIVE PAYMENT AS A % OF TOTAL COMPENSATION & BENEFITS.
8.BENEFITS SPEND AS A % OF TOTAL COMPENSATION & BENEFITS
9.COMPENSATION & BENEFITS BY LEVELS OF STAFF
-senior mgnt/ executives/middle mgnt/ junior mgnt/supervisors/staff etc.
10.NEW COMERS COMPENSATION & BENEFITS AGAINST TOTAL FOR THE YEAR.
11.% OF EMPLOYEES SATISFIED WITH CURRENT SYSTEM [ SURVEY ]
12.MEDICAL BENEFITS EXPENSES TOTAL [ THIS YEAR VS LAST YEAR]
13.MEDICAL BENEFITS EXPENSES PER EMPLOYEE.
================================================== =====
HERE ARE SOME STANDARDS METRICS
1 HR UTILIZATION % TOTAL PAYROLL $ / TOTAL SALES $
2. HR PRODUCTIVITY % TOTAL EMPLOYMENT COST $/TOTAL
PRODUCTION VOLUME IN $ X 100
3. HR BUDGET % ACTUAL $ / BUDGET $ X 100
4'. ACCIDENT COSTS % CURRENT ACTUAL $ / LAST YEAR $ X 100
5'. ACCIDENT SAFETY % CURRENT ACTUAL $ / LAST YEAR $ X 100
RATINGS
6'. EMPLOYEE % EMPLOYEE BENEFITS $ / TOTAL PAYROLL $ X100
BENEFITS
EMPLOYEE BENEFITS $ /TOTAL SALES $ X 100
7'. HR BUDGET % ACTUAL HR EXPENSES $ / TOTAL SALES $ X 100
sales effectiveness
8'. HR EXPENSES $ TOTAL HR EXPENSES $ / TOTAL NO. OF EMPLOYEES
per head
9'. HR EXPENSES % HR EXPENSES $ / TOTAL EXPENSES $ X 100
cost effectivenss
10'. NO.OF COURSES % ACTUAL CONDUCTED / PLANNED X 100
CONDUCTED
11. NO. OF SAFETY % ACTUAL CONDUCTED / PLANNED X 100
training programs
12. TRAINING DAYS % ACTUAL TRAINING DAYS / PLANNED X 100
EFFECTIVENESS
13. EMPLOYEES % ACTUAL TAKING PART / PLANNED X 100
involvement in train
14. SICK DAYS nos. TOTAL SICKDAYS TAKEN/ TOTAL EMPLOYEES
managemeent effectiveness
15. STAFF orientation % NO. OF NEW STAFF LEAVING IN THREE MONTHS/
EFFECTIVENESS TOTAL NO. OF NEW STAFF ORIENTED
X 100
16. TIME TO FILL AN NO.DAYS TOTAL NO OF DAYS / TOTAL NO positions filled
OPEN POSITION
17. TURNOVER BY % TURNOVER / TOTAL RECRUITMENTS X100
RECRUITING source
BY EACH SOURCE
18. TURNOVER BY % TURNOVER / TOTAL EMPLOYEES BY EACH
EACH JOB CATEGORY
CATEGORY X 100
19. WORKERS % ACTUAL $ / PLANNED BUDGET $ X 100
çompensation costs
20. HR STAFFING NO. TOTAL HR STAFF / TOTAL EMPLOYEES
EFFICIENCY
REGARDS
LEO LINGHAM
From India, Mumbai
Thanks a million, Leo. You have given both the macro and micro picture very well. It will take some time to digest but from first impression it seems that Training and Development is missing. Is "Building capabilities and Organization learning" a substitute for Training and Development?
Thanks and Regards
Hiren
From India, New Delhi
Thanks and Regards
Hiren
From India, New Delhi
HIREN, "Building capabilities and Organization learning INCLUDES -TRAINING -DEVELOPMENT -KNOWLEDGE MANAGEMENT ETC REGARDS LEO LINGHAM
From India, Mumbai
From India, Mumbai
Gone through the discussions given above . interesting I still have a few questions but. can anybody clarify ?
-what is the sequence KPA , KRA Goal . what are the steps involved . where do you start from
- which one of the above terms should be SMART.
-KPI - is performance indicator of which of the above term
-which of the above terms you need to measure & therefore identify measures .
if HR function can be broadly divided into following three sub-functions - talent acquisition ,talent management , talent development , an each sub function can be further divided into multiple sub function , how take one of the sub function , let us talent Acquisition & put in the sequence.
From India, Delhi
-what is the sequence KPA , KRA Goal . what are the steps involved . where do you start from
- which one of the above terms should be SMART.
-KPI - is performance indicator of which of the above term
-which of the above terms you need to measure & therefore identify measures .
if HR function can be broadly divided into following three sub-functions - talent acquisition ,talent management , talent development , an each sub function can be further divided into multiple sub function , how take one of the sub function , let us talent Acquisition & put in the sequence.
From India, Delhi
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HR Admn - Goals Objectives-2008 (Edited ).ppt
Goals.pdf
What are the goals of the evaluation.doc