Every employee who waits for the performance appraisal process will certainly have heard about KRA.
Although KRA is a well-known term in the corporate world, many working individuals still do not have a clear understanding of it. You have landed in the right place if you are also one of them.
Let’s dig deeper and acquire some basic knowledge about KRAs.
The Meaning
The KRA full form in HR and every other industry is Key Result Areas.
In layman’s terms, KRAs are like a "to do" list that have measurable items on them such as sales numbers, store hours, etc.
Key Result areas are very important because they determine how much you get paid at the end of the year.
Remember- if your KRA's are not met, don't expect a pay raise!
That's why it is so important to meet all your KRA's.
Difference between Key Result Areas and Key Performance Indicators
People often get confused with KRAs and KPIs.
Here’s how KRAs and KPIs are different from each other:
- KPIs have clear targets while KRAs have less concrete ones- a company might set a goal of "improve sales" but the way to accomplish it might not be clear.
- Key result areas are also called objective or key business objectives, while KPIs are also called Key Performance Indicators or metrics- they all mean the same thing.
- KRA is more about long-term goals than short-term ones.
- KRAs focus on how much money your company made in the past year, KPI's focus on how much money you will make in the next month.
There you go. Isn’t the whole concept so easy?
There is more about KRAs, but these are some basic information every working individual should know about.
Last but not least, careful attention should be given while defining both KRAs and KPIs.
