5 KRA for Performance Appraisals to Make it Effective by GroSum - HTML preview

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It’s quite easy to set KRAs or goals.

It’s much more important to explain how performance will be actually measured on these. For example, a driver of a car knows what he is primarily supposed to do.

But he also needs to know if his performance will be measured on speed, smooth ride or safety.

And importantly, this needs to be laid out upfront before he starts driving.

So, while employees are communicated their goals, they should also be made absolutely clear on the key performance indicators & the methods used to measure.

Key takeaway for Practitioners

It is even easier to say & get away that actual measures for KRAs should be set.

But HOW is the question that should be answered with a lot of honesty and collaboration between employees & management.

While for measurable KRAs like sales, on time delivery or defects, quantitative targets with the measuring methods can be set. For example:

  • Sales -> USD 5 Million new account booking
  • On Time Delivery -> 99% of delivery instances with 5% threshold
  • Defects -> 2% of Rejected Defects

However, most KRAs are subjective in nature for example

  • Employee Engagement, Personal Growth, Knowledge Management.

Rather than force set quantitative targets like 1 article per quarter that defeats the purpose of the objective, these should be set against a set of desired outcomes & rated on an overall basis.

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