What is KRAs or Key Result Areas

Definition: Key result areas or KRAs refer to the general metrics or parameters which the organisation has fixed for a specific role. The term outlines the scope of the job profile, and captures almost 80%-8% of a work role.

Description: Key result areas (KRAs) broadly define the job profile for the employee and enable them to have better clarity of their role. KRAs should be well-defined, quantifiable, and easy to measure. It also helps employees to align their role with that of the organisation.

KRAs are broad categories or topics on which the employee has to concentrate during the year. For example, an employee who is working at a managerial level in a manufacturing company would have a different KRA than somebody who is in a technology firm.

A manager who is working in a manufacturing firm would have to focus on maintaining the budget of the department, safety of the employees, coordination with different departments, training, reporting as well as introducing new technologies to improve productivity.

The next step is to define objectives and standards for each KRA which should be easily quantifiable. The employee should have a clear understanding of his/her KRAs to perform his/her tasks efficiently.

Key result areas are those areas in which you have to take complete ownership. The first step is to list out daily activities which could be part of the KRAs. In some organisation even a team meeting everyday is part of a manager’s KRA.

So, KRAs could be vary from organisation to organisation and from one work profile to another. There are no set rules to define KRAs, but broadly they sum up the job profile as well as the key impact areas on which the employee is expected to deliver.

Examples of KRA for some job profiles

KRA focuses on the roles and responsibilities of the employees and the team. KRA for every job profile is different. For example, KRA for an HR manager can be employee satisfaction; a content writer should produce well-written and acknowledged content; KRA for a sales manager can be the total number of sales in a quarter, etc.

Sales Manager 

A sales manager is responsible for guiding and leading a team of salespeople in an organization. They set goals, build a plan, analyze data, assign tasks for other sales representatives. The KRAs for sales managers incorporates the following data:

  • Increasing net revenue from the previous period
  • Increasing sales contacts per salesperson
  • Increasing ratio of online sales to other sales.
  • To increase sales from an earlier period.

Product Manager

A product manager is responsible for product planning and product marketing. They must ensure that the product and its services meet the needs of the customers. Their key role is to check whether the product supports the company’s overall strategy and goals. The KRAs for a Product Manager are:

  • Increasing revenue from the product as compared to the previous period.
  • To attract new customers for the product
  • Ensuring customer stability, i.e., the present customers buy and use the product.
  • Ensuring customer satisfaction, i.e., the customers are satisfied with the product.

Project Manager

A Project Manager is responsible for planning, executing, monitoring, controlling, and closing a project. They are in charge of project scope, estimating budget, and the success or failure of the project. The KRAs for a Project Manager are:

  • Complete the project within the estimated budget.
  • Completing the project on time
  • Improve forecasting on costs for components of the project.

HR Manager 

A Human Resource Manager is responsible for planning, coordinating, and directing the administrative functions of an organization. They establish a link between the organization and employer, oversee the hiring and recruiting process, check administrative work, review the company’s policies, regulate employees’ benefits, etc. The KRA for an HR Manager are:

  • Attracting qualified candidates for job vacancies.
  • Recruiting efficient candidates
  • The increasing rate of acceptance of job offers.
  • Decreasing HR costs per new hire
  • Decreasing employee turnover.

IT Manager

An IT Manager is responsible for fulfilling the organization’s information systems requirements. All the computer-related activities, including coordinating and planning, are handled by an IT Manager. The primary duty is to manage the organization’s network and infrastructure, ensure the security of the company’s computer systems and electronic data, communicate with other departments for any queries, and monitor the company’s network systems daily. The KRAs of an IT Manager is:

  • Increasing efficiency in addressing and fixing the user problems
  • Increasing employee satisfaction with the use of technology operations.
  • Ensuring the network system is always operational.

Finance Manager

A Financial Manager is responsible for overseeing the finances of the company. These include financial planning, investing, and financing for the company. They are accountable for producing financial reports, developing strategies, planning long-term financial goals, and building a profit projection. A financial manager must have in-depth knowledge of the competitive job market. The KRAs associated with the Finance Manager are:

  • Increasing the revenue of the company since the last period
  • Increasing the profitability of the company since the previous period.
  • Increasing cash flow
  • Improving operational efficiencies within the company.

The Importance of KRAs

Key result areas are critical for the success of the company. These areas of business require best performance from the employees to obtain the desired result. If KRA is set for a particular employee, it means that employee has the entire responsibility of completing the task based on which their performance shall be measured. It helps employees to have a clearer picture on targets that need to be achieved. KRA for an employee is aligned with the team that is further aligned with the organizational goals. For example:

KRA for a team leader will be :

  • Managing everyday tasks
  • Aligning the work to the deadline
  • Motivating and guiding the team to achieve the company’s goals
  • Conducting training sessions when necessary
  • Checking on the professional needs of the employees

Frequently Asked Questions(FAQ)

Why is it Important to Define Roles and Responsibilities?

Organizations that clearly define roles and responsibilities can simplify their hiring processes. It can empower their people to do better and be more focused at work. It also helps boost operational efficiency by reducing confusion and redundancies.

Why is Responsibility Important in the Workplace?

Responsibility is important in the workplace because it shows your professionalism, can advance your career, helps build professional bonds with coworkers, and shows company leadership that you are a valuable employee.

Why is it important to recognize one’s roles and responsibilities among team members?

People work together better when they understand their roles. There’s less jockeying for position, fewer arguments, and higher overall creativity when everyone understands their responsibility as part of the group.

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