As an employer, you tend to always end up blaming yourself for any kind of downfall in the business. And most of the times, you keep emphasizing organizational workflow or focus on upgrading the infrastructural facilities to put everything back in order. In the analysis and reorganization process, you sometimes miss an area which is highly responsible for the numbers going down – Human Resources.
Yes! there is a great chance that your workforce is behind the deteriorating productivity. The employees are either losing focus, need training and upskilling sessions or require a revised operational plan. So, it’s time you consider the criticality of manpower management, modify regular employee functionalities and alter their daily maneuvers to improve outcomes. Understanding the problem of mismanaged human resources and its consequences on the overall organizational performance is the need of the hour.
To keep the solution to this prevalent issue simple and precise, let’s divide the areas under observation into 3 ‘K’s as follows:
- KRAs – Key Result / Responsibility Areas
- KPAs – Key Performance Areas
- KPIs – Key Performance Indicators
What is KRA?
Vaguely, Key Result Areas are the daily responsibilities performed by employees at work. These are the basic repetitive operations that working professionals are individually assigned to perform every day when they are hired. At the time of job posting, KRAs are mentioned in the form of a job description explaining the required tasks expected to be managed by the candidate after selection. Broadly speaking, to comprehend what is KRA, it is imperative to first know what your organization does! How your business operates and what are the functions required to accomplish targets can be used as a basis for designing the KRAs later. Now, a predefined and suitable set of KRAs will present a clear picture of what the employees are doing and definitely help to keep track of their performances, thereby enhancing the business output.
What is KPA?
Key Performance Area is a term that is often used interchangeably with Key Result Area. However, there is a very thin line between the two. KRAs strictly concern an employee’s individual targets while KPAs constitute all the visible roles, contributions, and factors that go into the employee’s account for accomplishing organizational goals and growing the business. For instance, KPA is evaluated by realizing an employee’s participation in team performance enhancement, process improvement, group health and safety betterment among others. Key Performace Areas, just like Key Result Areas, are necessary elements of PMS – Performance Management System to evaluate an employee.
What is KPI?
Key Performance Indicator is one of the most critical measurable values or growth indicators for an organization. Now here we are not only talking about the employees’ individual performances but also the performance of a company as a unit. Some components of employee KPIs include learning and development, target achievement, KRA compliance, corporate behavior and professional conduct among others. Whereas the elements of organizational KPI involve financial stability, ROI, set targets v/s revenue generation, resource management, customer satisfaction, and similar factors. These two are undoubtedly interrelated.
Thus, if you are targeting a big leap in productivity and aiming to multiply the business numbers, you need to keep these 3 ‘K’s in mind and boom, the performance goes up like never before.