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KRA stands for Key Result Area - Each role in a company generally has a number of KRAs, which define the key areas that the employee needs to produce results in (for example, for a HR Manager, one of the Key Result Areas might be Recruitment). Typically organisations like to define a set of KRA's for each role in an company, so that everybody's clear on the exact areas that the role is responsible for, and the incumbent is clear where they need to focus their attention.

KPI stands for Key Performance Indicator - For me, KPIs describe the indicators of performance or success for an employee. Again, using the example of the HR Manager who has Recruitment as one of their KRA's, a typical KPI for this HR Manager might be "Recruitment of Level 1 Positions within 3 months of notified vacancy and within 90% of budget".

Others might use a slightly different approach - I find many companies have slight variations on this theme, and sometimes KPIs/KRAs get mixed up and combined. Which is not always a major problem, as long as in the end, people understand what their job is (KRAs) and what results they need to deliver (KPIs).

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15y ago

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