Setting Key Result Areas (KRAs)

• Every person in the company must have very clearly defined responsibilities, called Key Result Areas (KRAs). These are the responsibility areas which they have to fulfill through their work.
• If the KRAs are not clear, the person will not be able to focus her efforts properly, affecting the productivity of the company adversely.
• Every department should be assigned department KRAs. The total activities within a company must be grouped and divided among the departments, which give rise to department KRAs. Department KRAs are the broad functions which the department needs to take care of.
• The process of assigning individual KRAs can begin by listing all the tasks within a department. The list of such department tasks may be derived from that department’s KRAs. One KRA of a department may result into many tasks under it. (E.g. “Managing bank accounts” may be a KRA of the accounts department. This broad KRA may be divided into tasks like depositing in the banks, withdrawals, maintaining proper balances, cheque writing or printing, net banking, bank reconciliation, communicating with the bank, taking care of Credit/Debit cards etc.)
• Then, against each department task, the names of the persons responsible for the same should be written. This way, all the tasks will be allocated to appropriate people within the department. These allocated tasks become the individual KRAs of the people.
• Some department tasks may be assigned to multiple persons who are at the same level. All employees in the same roles will have same KRAs.  (E.g. all sales executives will have the same KRAs.)Generally, the juniors in the team have execution related KRAs and the seniors have checking, planning, budgeting, supervising, managing KRAs.
• Each individual should be given her KRAs by the HR department, preferably in written form.
• The HR department must maintain the records of the KRAs documents of everybody in the company. The KRAs documents must be kept updated always. If any new responsibilities are given to the employee or existing responsibilities are changed, that must immediately reflect in their KRAs.
• The performance of the employee can be tracked based on these KRAs. The supervisor or manager must primarily review the employee’s performance based on the KRAs.
• The KRAs of everyone in the company must be reconfirmed during each appraisal process. Any additions, deletions, modifications of KRAs should be carried out, if needed.

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