A KRA based presentation doene for a Travel company. Gives a complete description of the creation and calculation process.

1. KRA BASED
PERFORMANCE
APPRAISAL SYSTEM

2. Flow of the presentation
• Overview-Performance Appraisal System
• Basics - KRA - Key result areas
&
KPI - Key performance indicator
• KRA derivation process
• Tamarind Individual KRA System
• KRA based Performance Appraisal Cycle
• Appraisal Feedback and it’s utilization
• Recap

3. Performance Appraisal
• Annual Activity with mid-year reviews
• Two way evaluation process of employee
performance.
• Measures performance during the year,
setting up future goals.
• Basis for decision –growth in terms of
Remuneration, Promotion, training.
• Identify potential for additional and higher
roles and responsibilities

4. Why KRA based Performance
Appraisal?
Don't measure yourself by what you have
accomplished, but by what you could have
accomplished with your ability.
•
•
•
•
Focused growth path
Better monitoring with growing times
Bench mark against global standards
Scientific methodology of evaluation
towards standardization and fairness of the
Appraisal Instrument

5. Meaning: KRA
• Key Result Area
• Identified out of the day to day routine
activities
• Primary Job objectives or Major Goals
• Outcomes or Expectations of a Job
Position
• Groups relevant activities under one
cluster forming a KRA

6. Meaning: KPI
• Activity/Assignment /Process to accomplish the
main Goal/KRA.
• Process and procedure done on daily basis i.e.
routine nature
• Sub Activity/s under each KRA
– Eg;- KRA- Increase profit per file
» KPI 1- Get competitive rates
» KPI 2- Effective Negotiation with the parties
• There can be more than one KPI under a KRA

7. How KRA are derived ????
Mission and Vision derived
Organization Objective
Management Goals
Dept Goal / Manager KRA
Individual
KRA
Individual
KRA
Individual
KRA

8. I
What do “ ”
do ??????
Support
Function
Hotel
Booking
Fulfill
Customer
requirements
Leisure
Transfers

9. Tamarind Individual KRA (TIK)
Score break- up
20%
80%
A.
Target
i.e. Achievement of
goals
B. Critical Behavioral
Attributes
i.e. on the job behavior
Contd…

10. TIK Score
100%
80%
20%
Target Score
KRA 1
Achieve and
Surpass the GOP
KPI 1
Costing
KPI 2
Follow Up
CBA Score
KRA 2
Error Free
Operations
KPI 3
Negotiation
KRA 3
Compliance

11. Significance of behavioral
Attributes
•Service oriented Industry
•One organization- One Set of values
•Differentiation factors - Personal Touch
•Higher the responsibility, more
emphasis on behavioral skills
•Better the interpersonal skills, better the
growth prospects
•Long Term success Mantra

12. Why Measure Behaviour
• Communication on phone, email, chat is the mainstay of
our business
• Say the right thing the right way – negotiate, convince
and convert.
• Relationships determine your business
• We cannot work in isolation - team work is important
• Display of responsibility and leadership determines the
leaders for the future
• Keeping abreast of the market environment is essential
to distinguish leaders from followers
All the above results in growth of business for the
company and an edge over the rest, for the individual.

13. Communication
Relationship Building
and managing
Business Acumen
Leadership
B. Critical Behavioral
Attributes
=
20% of TIK
Time Management
Client Orientation
Team Management
Result Orientation

14. KRA should be……..
SPECIFIC – KRA’s should be specific and logical.
MEASURABLE – KRA’s should be quantifiable and
measurable.
ACHIEVABLE – KRA’s framed should be achievable.
RELEVANT– KRA’s should be associated to job.
TIME BOUND – KRA’s framed should be defined for a
specific period

15. Process
Mid-year
Review
& advise
KRA is set
Performance
Appraisal
Cycle
Rewards,
Corrective steps,
New Targets
Final
Performance
Appraisal

16. KRA based Appraisal form- Page 1
(Sample)

17. KRA based Appraisal form- Page 2
(Sample)
Section 1: Target Score (80% of the TIK Score)
Sr
1
KRA
Increase sales
and market
share
Performance Indicators
Measure
(Targets/
Deadlines)
Achieved
(To be
filled by
self)
Achieve and Surpass the GOP
targets
Recognize and grow new
business segments and clients.
Effective sales plan and
implementation, to increase the
existing and new client
business
Timely and result-oriented
reporting, and follow-up
internally and externally
Develop strong relationships
within the team, and with clients
and vendors
2
Compliance of
Laid down
Policies and
Procedures of
the company
Constant upgradation of
product knowledge and
effective use in sales calls
Adherence to all the
organization's policies, rules
and procedures.
Compliance of credit policy with
regards to non- credit clients /
agents
Aggregate Total ( sum of WA)/ No. of KPIs
Target Score =Aggregate Total x 80 / 100
Weightage
(A)
40
10
Self
rating
Appraiser's
Rating (B)
Weighted
avg score WA=
(A*B)/100
Comments
0.00
0.00
5
0.00
10
0.00
10
0.00
10
0.00
5
0.00
10
0.00
0.00
0.00

18. KRA based Appraisal form- Page 3
(Sample)
Section 2 : Critical Behavioral Attributes (CBA) (20% of the TIK Score)
Critical attributes are those behavioral characteristic identified by the organization which are important to achieve one's present role and develop oneself for future role
requirement..
Sr
1
ATTRIBUTES (Behavioral Characteristics/ Factors/Traits/Qualities)
RATING SCORE (1 to 5)
Self
(A)
Appraiser
(B)
Comments
Communication Skills
2
Relationship Maintaining & Building
3
Time Management
4
Client Orientation
5
Results Orientation
6
Teamwork
For Assistant Managers & Above
7
8
Leadership
Business Acumen
Aggregate Total ( sum of individual Bs)/ No. of CBAs
0.00
CBA Score = Aggregate Total x 20 / 100
0.00

19. Appraisal Procedure
• Employee Details
• Self Appraisal by the Employee
• Appraisal by the Immediate Reporting
Manager
• Moderation by the Reviewer i.e. Profit Center
Head
• Data collection and analysis by HR
• Decisions taken
• New KRAs set based on the data

20. Bonus Policy
•
•
•
•
•
•
Scope: Covers all the confirmed employees
Applicable for the F.Y. 1st April to 31st March
Purpose: To reward employees for their contribution
Eligibility: Junior consultant and above
Bonus amount will correspond to performance rating
Rating components: Employee weightage, Team weightage
and company weightage
• Bonus earned: Revenue generating departments (i.e
Operations, Sales, MICE, CPP, GRE) can earn maximum 3
months bonus of gross salary
 1

21. Bonus Policy (contd…)
• Bonus Earned: Support departments (i.e
Accounts, HR, Administration and IT can earn
maximum of 2 months gross salary)
• Eligibilty criteria : Confirmed employee as on
March 31
• Scored a KRA rating of 3 and above
• Scored performance rating of 3 and above.
• Process
• Bonus slab
• Payout: Along with the salary of June

22. Coming Soon
Reward and recognition policy

23. Thank You…..