This document defines and explains various performance measurement terms used in organizations such as KPIs, KRAs, KPAs, and KPIs. It provides examples of how these may be used to measure the performance of different job roles and departments. Key performance indicators (KPIs) are quantifiable metrics that reflect an organization's critical success factors and goals. Key result areas (KRAs) are the specific activities or projects assigned to employees. Key performance areas (KPAs) are the key factors that make up an employee's job duties. The document provides a sample KRA-based performance appraisal form and process that involves setting employee KRAs and measuring performance against them.

1. PERFORMANCE INDICES
KPAs for various job holders
KRAs for various job holders

2. KPAS / KPI/ KPFS/ KSI
Key Performance Areas /
Key Performance Indicator/
Key Performance Factor/
Key Success Indicators

3. KRAS
Key Result Areas

4. KEY PERFORMANCE AREA
 Key = crucial/main
 Performance =
Achievement/Attainment
 Area = space/range/field of
operation
KEY RESULT AREA
 Key = crucial/main
 Result =
outcome/end/consequence
 Area = space/range

5. ROLE – PRODUCT MANAGER
GOAL – ENSURING DELIVERY OF QUALITY PRODUCT WITHIN SCHEDULE.
 Key Result Area
 Customer Satisfaction.
 Product Management.
 Operational Cost Control.
 Quality Check.
 Record keeping.
 Key Performance Areas
 Maintaining good working condition
in plant.
 Optimum Resource Utilization.
 Process Improvement.
 Safety and Prevention planning and
control.
 Working within the company’s
SLA(Service Level Agreement),
GRC(Governance, Risk Management
and Compliance) policies

6. KEY PERFORMANCE INDICATORS (KPI)
 Key Performance Indicators, also known as KPI or Key
Success Indicators (KSI), help an organization define and
measure progress toward organizational goals.
 Once an organization has analyzed its mission, identified
all its stakeholders, and defined its goals, it needs a way
to measure progress toward those goals.
 Key Performance Indicators are those measurements.

7.  Key Performance Indicators are quantifiable
measurements, agreed to beforehand, that reflect the
critical success factors of an organization. They will differ
depending on the organization.

8.  Key Performance Indicators are quantifiable measurements,
agreed to beforehand, that reflect the critical success factors of an
organization. They will differ depending on the organization.
 A business may have as one of its Key Performance Indicators the
percentage of its income that comes from return customers.
 A school may focus its Key Performance Indicators on graduation
rates of its students.
 A Customer Service Department may have as one of its Key
Performance Indicators, in line with overall company KPIs,
percentage of customer calls answered in the first minute
 A Key Performance Indicator for a social service organization might
be number of clients assisted during the year.

9.  Key Performance Factors or KPA are the factors that make up an
employees’ job. KPAs are fixed and are those where the
incumbent is doing the maximum value creation for organization.
 These 5 Key Performance Factors (In General) are –
Job knowledge
Quality of output
Quantity of output
Cost/time consciousness
Team Work

10.  2 methods adopted to carry on KPF
analysis are dependent on size of the team
and are-

11. TEAM SIZE MORE OR EQUAL TO 5
 PCR – Paired Comparison & Review - Each employee is
compared with all his team members individually on
basis of KPFs. He/ she is given 1 ( if better than other with
whom he / she is compared) or 0 ( vice-versa). His total
individual score is obtained by adding all 1’s obtained by
him in the sheet.

Individual Weightage score = Total Individual score *
Weightage given to each attribute
Individual Attribute Score = Weightage score / No. of
employees in the department
Common Organizational Score/PC Score/ KPF Score =
Sum of Individual Attribute Scores in all 5 attributes

12. TEAM SIZE LESS THAN 5
 SWR – Strength Weakness & Review -
Individual Attribute Score = Total Score attained in each
point of that attribute/ 4
Individual Weightage Score = Individual Attribute score *
Weightage given to each attribute
Common Organizational Score/SW Score/ KPF Score =
Sum of Individual Weightage Scores in all 5 attributes/5
There can be other factors based on relevant factors.

13. KRAS
Key Result Areas

14.  The KRAs are considered to be a parameter for
performance is mutually agreed upon by both appraisee
and appraiser
 The KRAs are the activities/project/s which are assigned
to an employee time to time and are essentially SMART.
 It should be:
Specific
Relevant
Measurable
Time-based
Achievable

15. KRA BASED
PERFORMANCE
APPRAISAL
SYSTEM

16. 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

17. 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

18. 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

19. 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

20. HOW KRA ARE DERIVED ????
Mission and Vision derived
Individual
KRA
Individual
KRA
Individual
KRA
Organization Objective
Management Goals
Dept Goal / Manager KRA

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

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

23. 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
SIGNIFICANCE OF BEHAVIORAL ATTRIBUTES

24. 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

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

26. 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

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

28. KRA BASED APPRAISAL FORM- PAGE 1 (SAMPLE)
Name:
Emp. No:
Designation:
Department:
Date of Joining:
Rating Performance Variable
1 Unsatisfactory
2 Average
3 Good
4 Excellent
5 Outstanding
Signature of the
Appraisee
(after self rating)
CBA Score (Section 2) 0.00
TIK Score (Section 1) + (Section 2) 0.00
Signature of the
Appraiser
(after Appraisal)
Signature of the Reviewer
(after Moderation)
(To be filled by Appraiser in conjunction with the reviewer after the review discussion with Appraisee
Indicate specific remarks pertaining to the Appraisee’s performance, future prospect, Weaknesses and Training needs.)
PERFORMANCE SUMMARY:
Final KRA Score
Target Score (Section 1) 0.00
Performs at a fairly poor level in terms of output, quality and timeliness (50% and below)
Performs at an average level in terms of output, quality and timeliness (51-70%)
Performs at a fairly above average level in terms of output, quality and timeliness (71-90%)
Performs and Delivers the required level of output, quality and timeliness (91-99%)
Performs and Exceeds the required level of output, quality and timeliness (100% and above)
Performance Appraisal Feedback ( to be filled by Appraiser)
Reviewer:
Rating Parameters
Quantitative Achievement
Senior Consultant - Sales Last Increment:
Sales Appraiser:
Review Period 1st April 2012 till 31st march 2013
Last Promotion:

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

30. 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 ATTRIBUTES (Behavioral Characteristics/ Factors/Traits/Qualities)
RATING SCORE (1 to 5)
Self
( A )
Appraiser
( B )
Comments
1
Communication Skills
2 Relationship Maintaining & Building
3 Time Management
4 Client Orientation
5 Results Orientation
6 Teamwork
For Assistant Managers & Above
7 Leadership
8 Business Acumen
Aggregate Total ( sum of individual Bs)/ No. of CBAs 0.00
CBA Score = Aggregate Total x 20 / 100 0.00

31. 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

32. THANK YOU…..