Kra & kpa by nitish rathi

KRA & KPA is the key for Organization performance.

1. "Key Result Area(KRA) and Key
Performance Area(KPA)"
By Nitish Rathi

2. ‘Key Result Area(KRA) and Key
Performance Area(KPA)’
Key Result Area(KRA) and Key Performance
Area(KPA) , though the terms hold different
meaning butare often used interchangeably
and more or less assumed to have same
applicability . The purpose of this post is to
underline the basic differences between the
concept of KRA and KPA.

3. In relation to a job role, KRA defines the outcome or
end result expected to be delivered while KPA defines
all the activities, not always result oriented,an
individual has to perform being on job.
Key Result Area:-
Key = crucial/main
Result = outcome/end/consequence
Area = space/range
KEY RESULT AREA :-crucial outcome space

4. Point to note:-
-KRA is not the result.
-KRA isthe area identified as important or
crucial where a result will assist in the
achievement of the setobjectives or goal.
-KRA defines what a job is expected to
accomplish.
-KRA’s might fall within the scope of Key
Performance Areas (KPA)

5. Key Performance Area:-
Key = crucial/main
Performance = Achievement/Attainment
Area = space/range/field of operation
KEY PERFORMANCE AREA : -
Main achievement space

6. Point to Note:-
-KPA is the overall scope of activities that an
individual on a job role has to perform.
-KPA is not always result focused.
-KPA’s can be inclusive of KRA’s
In organizations, each role or job has a “Job
Description (JD)” which consist of all the
responsibilities the person on job has to perform. All
the activities listed in JD falls in two categories:

7. Category A:-List of functions and activities crucial
or critical for the job role. These activities form
theKRAof the job.
Category B–List of functions and activities
associated with the job role but not truly critical for
the role. These functions are important for overall
performance of the team, department or organization
as a whole and form theKPAfor the job

8. Example :-
Role–Product Manager
Goal–Ensuring delivery of quality product within
schedule.
Key Result Area
1. Customer Satisfaction.
2. Product Management.
3. Operational Cost Control.
4. Quality Check.
5. Record keeping.

9. Key Performance Areas
1. Maintaining good working condition in plant.
2. Optimum Resource Utilization.
3. Process Improvement.
4. Safety and Prevention planning and control.
5. Working within the company’s SLA(Service Level
Agreement), GRC(Governance, Risk Management
and Compliance) policies.

10. Business Definitions:-
Key Result Areasrefer to general areas of outputs or
outcomes for which the department’s role is
responsible.
Key Performance Areasare the areas within the
business unit, for which an individual or group is
logically responsible.

11. Hope this will better for understanding about the
KRA & KPA for enhancing the Business capability
and reliability.
THANK YOU
BY:-NITISH RATHI