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“Key Result Areas” or KRAs refer to general areas of outcomes or outputs for which the department's role is responsible. A typical role targets three to five KRA.

Value of KRAs.

Identifying KRAs helps individuals: · Clarify their roles · Align their roles to the organisation’s business or strategic plan · Focus on results rather than activities · Communicate their role’s purposes to others · Set goals and objectives · Prioritize their activities, and therefore improve their time/work management · Make value-added decisions

Description of KRAs

Key result areas (KRAs) capture about 80% of the department's work role. The remainder of the role is usually devoted to areas of shared responsibility (e.g., helping team members, participating in activities for the good of the organisation).
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CORE KRAs of HR DEPARTMENT

-RECRUITMENT/ SELECTION
-WORKFORCE PLANNING/
-DIVERSITY MANAGEMENT
-PERFORMANCE MANAGEMENT
-REWARD MANAGEMENT
-WORKPLACE MANAGEMENT
-INDUSTRIAL RELATIONS
-SAFETY AND HEALTH WORKPLACE
-BUILDING CAPABILITIES AND ORGANIZATION LEARNING
-EFFECTIVE HR MANAGEMENT SYSTEMS , SUPPORT AND MONITORING
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KRAs [ KEY RESULT AREAS are managed by
-KPAs [ KEY PERFORMANCE AREAS]
-KPIs [KEY PERFORMANCE INDICATORS]
KEY PERFORMANCE AREAS

These are the areas within the HR DEPARTMENT, where an
individual or group, is logically responsible / accountable
for the results.

To manage each KRA/ KPAs, a set of KPI are set .

KRA and hence KPI is attributed to the department which
can have effect on the business results and is
self measured where applicable.

THE IMPORTANCE AND WEIGHTAGE OF THESE ELEMENTS
KRAs/KPAs/ KPIs ARE GUIDED BY THE

*VISION STATEMENT
*MISSION STATEMENT
*CORPORATE OBJECTIVES
*CORPORATE STRATEGY
*CORPORATE BUSINESS UNITS/ DEPARTMENTAL PLANS/STRATEGY.
FOR THE BUDGET PERIOD, WHICH IS USUALLY 12 MONTHS.
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The evaluation of HR DEPARTMENT can have four levels of
perspective.

1. Strategic Perspective — the results of strategic initiatives managed by the HR group. The strategic perspective focuses on the measurement of the effectiveness of major strategy-linked people goals. For instance, the business strategy called for major organizational change programs as the business faced major restructuring and multiple mergers and acquisitions. In this context, the organization’s change management capability will be a key factor in the success or failure of its execution. Therefore, measuring the ability of the business to manage change effectively is the core measure of the effectiveness of HR and will be a key strategic contribution to the future success of the business.

EXAMPLES
-change management capability of the organization
-organization compensation and benefit package with respect market rate.
-organization culture survey
-HR BUDGET / ACTUAL
-HR COSTS BENCHMARK EXTERNALLY
-HR annual resource plan.
-skills/ competency level
etc

2.Operational Perspective — the operational tasks at which HR must excel. This piece of the Balanced Scorecard provides answers to queries about the effectiveness and efficiency in running HR processes that are vital to the organization. Examples include measuring HR processes in terms of cost, quality and cycle time such as time to fill vacancies.

EXAMPLES
-time taken to fill vacancies
-cost per recruitment promotions
-absenteeism by job category
-accident costs
-accident safety ratings
-training cost per employee
-training hours per employee
-average employee tenure in the company
-lost time due to injuries
-no. of recruiting advertising programs
-no. of employees put through training.
-turnover rate
-attrition rate
etc

3.Financial Perspective — this perspective tries to answer questions relating to the financial measures that demonstrate how people and the HR function add value to the organization. This might include arriving at the value of the human assets and total people expenses for the company. HR

EXAMPLES
-compensation and benefits per employee
-sales per employee
-profit per employee
-cost of injuries
-HR expenses per employee
-turnover cost
-employee '' workers compensation costs''
etc

4.Customer Perspective — this focuses on the effectiveness of HR from the internal customer viewpoint. Are the customers of HR satisfied with their service; are service level agreements met; do the customers think they can get better service elsewhere? Conducting an HR customer survey might typically arrive at this.
EXAMPLES
-employee perception of the HRM
-employee perception of the company , as an employer
-customer/market perception of the company, as an employer.
etc
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HERE IS AN EXAMPLE, WHICH YOU CAN USE TO DEVELOP
OTHERS FOR YOUR ORGANIZATION.

CORPORATE OBJECTIVE / STRATEGY
-improve the company competitive positioning and productivity
by 10%.

HR DEPARTMENT'S OBJECTIVE
-Achieve high productivity level in all activities [ say by 10%]

KRA 1
-RECRUITMENT/ SELECTION

KPA 1 --RECRUITMENT
KPI ----reduce average time taken to fill vacancies by 15%
KPI ----reduce average cost per recruit by 10%

KRA 2
-WORKPLACE MANAGEMENT

KPA 1-labour turnover
KPI ---reduce the labor turnover by 20%
KPI ----benchmark total HR COSTS externally.

KRA 3
-SAFETY AND HEALTH WORKPLACE
KPA 1 ---workplace accidents

KPI ----reduce workplace accidents by 10%

KRA 4
-BUILDING CAPABILITIES AND ORGANIZATION LEARNING

KPA 1 ----TRAINING

KPI --- ALL WORKFORCE below middle management should
receive a minimum of 4 days of training.

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THIS IS , ROUGHLY, HOW HR DEPARTMENTS
KRAs / KPAs / KPIs ARE SET , MONITORED AND
EVALUATED.

Vinay
Collected Article from some site