When at the end of a financial year you find that you haven’t scored very high in your key result areas, do not be dumbfounded. This simply means that you have not performed up to the mark in your result areas. You are required to adopt innovative business strategies.

Measuring output

Through this method we come to know whether individuals departments or even organizations have performed over certain measurable deliverables or not. Key result areas may not be a very widely used HR instrument, but its popularity is growing. More and more successful entrepreneurs are making use of it.

You may think it to be a performance measurement instrument at a broader level. For instance, while at a macro level, the performance of a whole unit would be KRA of the boss, the actual job might be distributed among the subordinates. Thus the individual targets would be each subordinate’s KRA that can also be measured. In this way the KRA of the boss is totally dependent upon the individual KRAs of the team members. This means that the benchmarks are mutually between the boss and his subordinates.

For example, in a hockey team, the winning of the match would be captain’s KRA, but defending the goals would be that of the goalkeeper, and attacking for making goals the KRA of other team members. Being role specific makes it easy to identify where what went wrong. In this way, identifying KRAs also help the individual’s team and work management style by focusing on the results rather than the activities. By aligning individual roles to the organization’s business or strategic plans, it’s easier to prioritize the various goals and objectives.


Sounds really simple. But in reality, it is not so simple at all, let us discuss the complications involved in its implementation. Before one can pinpoint a KRA for each role in an organization, basics like an organizational structure and the role maps for the every employee have to be clearly defined.

Various types of KRAs

There are five types of KRAs that are applicable to companies. These are financial, customer-specific, society-related, employee related and project based. Depending upon the complexity of the role of the team member, he may have more than one key result areas. typically, KRAs capture about 80 percent of a work profile. The remainder is usually devoted to shared areas of responsibility such as helping team members westernunion illinois and participating in joint activities. For example. the image of an organization is usually a very senior officer’s KRA, but all employees contribute to it.

The actual implementation plan

The HR team plays an important role in formulating the policy for its implementation. The HR ensures that individuals are not saddled with too many KRAs. Further, each KRA is assigned a weightage. This weightage depends upon the performance roles of the employees. In actual implementation, the top levels in development and strategic level are given more importance, those lower in the order are held responsible for actual implementation of the plan.

This also helps the HR to review its own system. Most companies use an employee’s KRAs to decide on what an employee’s performance-linked incentives will be. Its an opportunity to see whether the employee is constrained by the environment or whether he is simply the unfit person for the job.

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