KRA, KPA, KPI
KRA: Key Result Areas
KPA: Key Performance Areas
KPI: Key Performance Indicators
Process:
1. Review the job profile
2. Define the FUNCTIONAL role of the individuals
3. Allocate KRAs, in consultation with THE BOSS.
4. Then the KPAs
5. Then the KPI
Note:
The levels are important but also the functional role as well the company
objectives/ strategy in deciding - KRAs / KPAs / KPI.
KEY RESULT AREAS (KRA)
As the first step to build KRAs, KRAs are also known as key work outputs (KWOs).
KRA IS GUIDED / LINKED BY THE
1. YOU must visit your company's
VISION STATEMENT
MISSION STATEMENT
CORPORATE OBJECTIVES
CORPORATE STRATEGY
CORPORATE BUSINESS UNITS/ DEPARTMENTAL PLANS/STRATEGY.
***And could change year by year as per the board directives.
2. THEN REVIEW YOUR HR DEPARTMENT'S
HR OBJECTIVES
HR STRATEGIES
ALIGN IT WITH CORPORATE OBJECTIVES/ STRATEGIES
3. KRA refers to general areas of outcomes or outputs for which a role is responsible.
A typical role targets three to five KRA
STRENGTHS OF KRA
Value
Identifying KRAs helps individuals, Clarify their roles • Align their roles to the organization’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
Key result areas (KRAs) capture about 80% of a 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 griptionood of the Organisation).
WEAKNESSES OF KRA
-highly selective, and hence some areas could be neglected.
-too focused, less development of other areas.
-normally, it only makes 80% of the total job.
- Less emphasis on process.
OPPORTUNITIES OF KRA
-Increased focus on the outcomes
-improve the competencies of KEY RESULT AREAS.
-FOCUSED RESPONSIBILITES
-BEING MADE ACCOUNTABLE
-RESPONSIBLE FOR THE DELIVERABLES
-FINE TUNING OF THE MEASURABLES MORE EFFECTIVELY
THREATS OF KRA
-POORLY DEFINED JOB DESCRIPTION
-MULTI ROLE JOB
-REPORTING TO TWO BOSSES
-ROLE AMBIQUITY
Example
HR [KRAs]
CORE KRAs
1. Payroll Management
2. Benefits Management
3. Statutory Admin
4. Employee Relations
5. Recruitment/ selection
6. Workforce planning/ diversity
7. Performance management
8. Reward management
9. Workplace management and relations
10. Safety and health workplace
11. Building capabilities and organization learning
12. Effective HR management systems, support and monitoring
Here are some examples:
MANAGING DIRECTOR ' S KRA
-sales revenue
-gross profit.
-net profit.
-% rise in share price
-productivity improvement %
etc etc
SALES MANAGER 'S KRA
-sales growth %
-market share growth %
-no. of new customers
etc etc
KEY PERFORMANCE AREAS [KPA]
These are the areas within the ORGANIZATION FUNCTIONS, where an individual or group, is logically responsible / accountable for the results.
***To manage each KRA, a set of KPA / KPI are set.
KPA and hence KPI is attributed to the person who can have effect on the business results and is self measured where applicable
Example: 1
KRA = Recruitment / Selection
KPA 1 = Recruitment
KPA 2= Selection
Example: 2
KRA = Employee Benefits
KPA = providing all statutory benefits (ESI, PF…)
KPA = providing all other benefits provided by company.
KEY PERFORMANCE INDICATORS (KPI)
Select a KPI for each KPA, which would enable the individual to
improve performance to achieve the objectives.
Example
KPI for KPA 1 = reduce the recruitment cost per head by 10%.
KPI for KPA 2 = finalize selection in 5 weeks for each individual position.
***The Choice of HR KPI will vary from year to year under…
SUBJECT TO COMPANY'S
STRATEGIC PLANNING
CORPORATE STRATEGIES
CORPORATE OBJECTIVES
In HR turn affects like
-HR STRATEGIC PLANNING
-HRM STRATEGIES
-HRM OBJECTIVES
Frequently used HR Key Performance Indicators include:
[[FTE = full time employees]]
Revenue per Employee (FTE)
Assets per FTE
Training Hours per FTE
Training Costs per FTE
HR Department Cost per FTE
FTEs per HR Department FTE
Acceptance Rate
Average Cost per Hire
Absence Rate
Turnover Rate
Resignation Rate
Human Investment Ratio
Compensation & Benefits/Revenue
Average Remuneration
Time taken per recruitment
Cost per recruitment
EXAMPLES of KRAs / KPAs / KPIs
KRA 1 - RECRUITMENT/ SELECTION
KPA 1 - RECRUITMENT
KPI 1 - Average time taken per employee 2 months
KPA 2 -SELECTION [ KPI = average cost per new employee RS 10,000]
====================================
KRA 2 - WORKFORCE PLANNING/ DIVERSITY
KPA 1 - ANSENTEEISM [ KPI = absent rate at 5%]
KPA 2- TURNOVER [ KPI = turnover rate at 7%]
KPA 3- DIVERSITY [ KPI = 3 FEMALES TO BE INDUCTED INTO MANAGEMENT CADRE]
=====================================
KRA 3- PERFORMANCE MANAGEMENT
KPA 1 - PERFORMANCE APPRAISALS [KPI = all staff to be appraised at least once annually]
KPA 2 -SUCCESSION PLANNING [ KPI = 8 POTENTAL staff to be identified and talent managed]
===================================
KRA 4 - REWARD MANAGEMENT
KPA 1- MARKET ORIENTED SALARY STRUCTURING [ KPI = total compensation to sales 12%]
KPA 2 -BENEFITS PLANNING [ KPI = 6% of total salary bill]
============================================
KRA 5 - WORKPLACE MANAGEMENT AND RELATIONS
KPA 1 -JOB EVALUATIONS [ KPI = 600 lower staff , below grade 4 to be evaluated]
KPA 2 - EMPLOYEE COMMUNICATIONS [ KPI = 4 newsletter on intranet, one per quarter ]
===========================================
KRA 6 - SAFETY AND HEALTH WORKPLACE
KPA 1 - SAFETY [ KPI = accident safety ratings, benchmark with industry]
KPA 2 - HEALTH [KPI = actual health expenditure vs budget ]
========================================
KRA 7 - BUILDING CAPABILITIES AND ORGANIZATION LEARNING
KPA 1 - TRAINING [ KPI = average training hours per employee annually= 24 hours]
KPA 2 - MANAGEMENT DEVELOPMENT [ KPI =average MD cost per employee annually= 16000 RS]
============================================
KRA 8 - EFFECTIVE HR MANAGEMENT SYSTEMS , SUPPORT AND MONITORING
KPA 1- HRIS [ KPI = finalize the software . RS 1.2 million capital budget]
HERE ARE SOME COMMON EXAMPLES
FOR EACH ELEMENT, YOU CAN SET YOUR OWN THRESHHOLD, BASED ON YOUR COMPANY STRATEGY/ HR STRATEGY.
=====================================================
1.ABSENTEEISM PER EMPLOYEES [DAYS]
2.AVERAGE RECRUITMENT TIME [DAYS]
3.EMPLOYEE TURNOVER [ % ]
4.EMPLOYEE SATISFACTION [ LEVELS ]
5.AVERAGE EMPLOYEE TENURE [ YEARS]
6.INDUCTION TRAINING [ % OF NEW EMPLOYEES]
7. TRAINING WORKSHOP [ % ] CONDUCTED/PLANNED
8. TRAINING AT EXTERNAL COURSES [ %] ACTUAL / PLANNED
9.PERFORMANCE APPRAISALS [ NOS.] AGAINST TOTAL EMPLOYEES.
The HR Balanced Scorecard is the measurement tool. It provides the management with a tool and a process to measure the performance of people practices and the HR function from multiple perspectives:
1. Strategic Perspective
2. Operational Perspective
3. Financial Perspective
4. Customer 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
All four components of the scorecard are used to define and measure the effectiveness of people-management activities and how the HR function executes them. This provides a strategic measurement and management process to show the connection between a company’s business strategies and goals and its HR strategies, activities, and results. The Balanced Scorecard can provide an ideal approach to measure the contribution that human resource management makes to business success.
With the HR Balanced Scorecard in place, it can assist organizations to easily monitor the workforce indicators that are key to their business success. Such solutions enhance HR’s ability to provide counsel to line management and deliver results that make a difference to the achievement of their goals and strategy and thereby to shareholders.
The apparent and inherent values that the HR Balanced Scorecard brings include:
Measurement provides the data and facts to support business decisions, giving credibility to HR recommendations and initiatives;
Collecting and using data to make decisionsregarding retaining and motivating the
workforce, giving the organization a competitive advantage in the marketplace;
The right mix of lead and lag measures helps the business assess its strategic
alignment and progress towards its objectives;
HR will be proactive in identifying potential improvements and bringing suggestions
to the business that improve bottom-line results; and
A business and linked measurement framework focuses activity on those tasks
that contribute to organizational success. This process lifts the role of HR from being viewed purely as a cost centre to that as strategic business partner.
HERE ARE SOME PROBABLE HR METRICS IN COMPENSATION ONLY
1.ANNUAL TOTAL COMPENSATION INCREASE RATE [%] [this year vs last year]
2.ANNUAL TURNOVER RATE.[this year v s last year]
3.COMPENSATION &BENEFITS AS A % OF SALES.
4.COMPENSATION & BENEFITS AS A % OF OPERATING EXPENSES.
5.COMPENSATION & BENEFITS PER EMPLOYEE [ this year vs last year]
6.COMPENSATION & BENEFITS COMPETITIVENESS INDEX.
7.INCENTIVE PAYMENT AS A % OF TOTAL COMPENSATION & BENEFITS.
8.BENEFITS SPEND AS A % OF TOTAL COMPENSATION & BENEFITS
9.COMPENSATION & BENEFITS BY LEVELS OF STAFF
-senior mgnt/ executives/middle mgnt/ junior mgnt/supervisors/staff etc.
10.NEW COMERS COMPENSATION & BENEFITS AGAINST TOTAL FOR THE YEAR.
11.% OF EMPLOYEES SATISFIED WITH CURRENT SYSTEM [ SURVEY ]
12.MEDICAL BENEFITS EXPENSES TOTAL [ THIS YEAR VS LAST YEAR]
13.MEDICAL BENEFITS EXPENSES PER EMPLOYEE.
=====================================================
HERE ARE SOME STANDARDS METRICS
1 HR UTILIZATION % TOTAL PAYROLL $ / TOTAL SALES $
2. HR PRODUCTIVITY % TOTAL EMPLOYMENT COST $/TOTAL
PRODUCTION VOLUME IN $ X 100
3. HR BUDGET % ACTUAL $ / BUDGET $ X 100
4'. ACCIDENT COSTS % CURRENT ACTUAL $ / LAST YEAR $ X 100
5'. ACCIDENT SAFETY % CURRENT ACTUAL $ / LAST YEAR $ X 100
RATINGS
6'. EMPLOYEE % EMPLOYEE BENEFITS $ / TOTAL PAYROLL $ X100
BENEFITS
EMPLOYEE BENEFITS $ /TOTAL SALES $ X 100
7'. HR BUDGET % ACTUAL HR EXPENSES $ / TOTAL SALES $ X 100
sales effectiveness
8'. HR EXPENSES $ TOTAL HR EXPENSES $ / TOTAL NO. OF EMPLOYEES
per head
9'. HR EXPENSES % HR EXPENSES $ / TOTAL EXPENSES $ X 100
cost effectivenss
10'. NO.OF COURSES % ACTUAL CONDUCTED / PLANNED X 100
CONDUCTED
11. NO. OF SAFETY % ACTUAL CONDUCTED / PLANNED X 100
training programs
12. TRAINING DAYS % ACTUAL TRAINING DAYS / PLANNED X 100
EFFECTIVENESS
13. EMPLOYEES % ACTUAL TAKING PART / PLANNED X 100
involvement in train
14. SICK DAYS nos. TOTAL SICKDAYS TAKEN/ TOTAL EMPLOYEES
managemeent effectiveness
15. STAFF orientation % NO. OF NEW STAFF LEAVING IN THREE MONTHS/
EFFECTIVENESS TOTAL NO. OF NEW STAFF ORIENTED
X 100
16. TIME TO FILL AN NO.DAYS TOTAL NO OF DAYS / TOTAL NO positions filled
OPEN POSITION
17. TURNOVER BY % TURNOVER / TOTAL RECRUITMENTS X100
RECRUITING source
BY EACH SOURCE
18. TURNOVER BY % TURNOVER / TOTAL EMPLOYEES BY EACH
EACH JOB CATEGORY
CATEGORY X 100
19. WORKERS % ACTUAL $ / PLANNED BUDGET $ X 100
çompensation costs
20. HR STAFFING NO. TOTAL HR STAFF / TOTAL EMPLOYEES
EFFICIENCY
NOW YOU SHOULD WORK OUT YOUR KRAs, based on your training coordinator's
job description
================================================================= =======
KRA 1
*DELIVER INSTRUCTIONS TO NEW HIRES [ kpi = how many new hires trained]in 12 months.
KRA 2
*PLANS/ IMPLEMENTS STAFF TRAINING PROGRAMS[kpi = how many programs vs planned]in 12 months
KRA 3
*CONDUCT CONTINUING EDUCATION PROGRAMS [ kpi =how many programs conducted]in 12 months.
KRA 4
*CONDUCT SPECIAL SPECIFIC TRAINING PROGRAMS [ kpi =how many programs conducted]in 12 months.
KRA 5
*training administrative work such as tracking of new materials, timekeeping, and other administrative tasks as required in a timely and accurate manner. [ QUALITY RATINGS against STANDARD CRITERIA.]
KRA 6
*Facilitate transition of new hire from training to work environment, ensuring competency levels are sufficient. [ QUALITY RATINGS
against STANDARD CRITERIA]
KRA 7
*Create, Develop,Support and participate in continuous improvement initiatives.[kpi=how many in 12 months]
KRA 8
*Evaluation of training impact on organization effectiveness
[ kpi = QUALITY RATINGS against STANDARD CRITERIA]
HERE IS A BROAD GUIDELINES OF A TYPICAL SOFTWARE ENGINEER.
SINCE THE SOFTWARE ENGINEERS MOSTLY WORK ON PROJECTS,
THE TYPICAL KRAs WOULD CHANGE. FOR YOUR PURPOSE , YOU MAY
MODIFY/CHANGE AS REQUIRED BUT RESTRICT KRAs TO MAXIMUM 7.
KRA 1
. Be responsible for the overall software engineering of the project including providing overall direction to others / partners.
Establish project plans including timelines and resources required for the project.
§ Monitor progress; address any issues across the project interfaces, ensuring that project deliverables and milestones are achieved.
§ Engage and provide direction as necessary to others , contractors or technical experts and manage related contracts and terms of appointment according to the relevant guidelines.
§ Provide regular project reports to the management
§ Facilitate the ongoing assessment of commitments and regular strategic reviews .
KRA 2
. Develop and support the software engineering project methodology of the project
§ Investigate, select, implement and maintain an appropriate software engineering project methodology across the complete project.
§ Ensure that appropriate software engineers, or consultants are engaged as required.
§ Select, develop as required, plus maintain software coding standards, plus full documentation.
§ Adapt software engineering industrial standards to:data collection/data analysis/security/
storage/data visualization etc
§ Ensure that all software engineering deliverables and milestones are achieved.
KRA 3
Manage the development , through implementing production standards, robust and ruggedised development processes
§ Manage all aspects of the process related to the development and production of the system.
§ Be responsible for implementing production procedures, including reliability testing, error handling, user interface, pilot releases, plus full documentation.
§ Plan, execute, monitor and manage thorough user/usability testing and feedback .
KRA 4
Establish links and working relationships with OTHER departments.
§ Establish vital links and understand the requirements of the diverse areas.
§ Apply proven software engineering techniques and solutions to achieve the objectives.
§ Act as a major channel for feedback communication, plus take into account this feedback in determining priorities for practical outcomes of the project.
KRA 5
Manage a team of project staff.
§ Establish a staffing strategy to deliver the specific project objectives in consultation with the management.
§ Recruit and appoint project staff and technical consultants as required following appropriate procedures.
§ Develop a clear project plan and communicate that with the project staff through an intensive induction process.
§ Provide technical and operational guidance to the project as necessary.
§ Assist staff to work through project impediments in a prompt manner.
KRA 6
Manage effective communication with TEAM members
§ Liaise with Management members, partners, technical advisors/consultants.
§ Be responsible for:
o relevant conference presentations and publications.
o dissemination of selected information to ALL CONCERNED.
KRA: Key Result Areas
KPA: Key Performance Areas
KPI: Key Performance Indicators
Process:
1. Review the job profile
2. Define the FUNCTIONAL role of the individuals
3. Allocate KRAs, in consultation with THE BOSS.
4. Then the KPAs
5. Then the KPI
Note:
The levels are important but also the functional role as well the company
objectives/ strategy in deciding - KRAs / KPAs / KPI.
Fringe Benefit Tax (Full Details)
KEY RESULT AREAS (KRA)
As the first step to build KRAs, KRAs are also known as key work outputs (KWOs).
KRA IS GUIDED / LINKED BY THE
1. YOU must visit your company's
VISION STATEMENT
MISSION STATEMENT
CORPORATE OBJECTIVES
CORPORATE STRATEGY
CORPORATE BUSINESS UNITS/ DEPARTMENTAL PLANS/STRATEGY.
***And could change year by year as per the board directives.
2. THEN REVIEW YOUR HR DEPARTMENT'S
HR OBJECTIVES
HR STRATEGIES
ALIGN IT WITH CORPORATE OBJECTIVES/ STRATEGIES
3. KRA refers to general areas of outcomes or outputs for which a role is responsible.
A typical role targets three to five KRA
STRENGTHS OF KRA
Value
Identifying KRAs helps individuals, Clarify their roles • Align their roles to the organization’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
Key result areas (KRAs) capture about 80% of a 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 griptionood of the Organisation).
WEAKNESSES OF KRA
-highly selective, and hence some areas could be neglected.
-too focused, less development of other areas.
-normally, it only makes 80% of the total job.
- Less emphasis on process.
OPPORTUNITIES OF KRA
-Increased focus on the outcomes
-improve the competencies of KEY RESULT AREAS.
-FOCUSED RESPONSIBILITES
-BEING MADE ACCOUNTABLE
-RESPONSIBLE FOR THE DELIVERABLES
-FINE TUNING OF THE MEASURABLES MORE EFFECTIVELY
THREATS OF KRA
-POORLY DEFINED JOB DESCRIPTION
-MULTI ROLE JOB
-REPORTING TO TWO BOSSES
-ROLE AMBIQUITY
Example
HR [KRAs]
CORE KRAs
1. Payroll Management
2. Benefits Management
3. Statutory Admin
4. Employee Relations
5. Recruitment/ selection
6. Workforce planning/ diversity
7. Performance management
8. Reward management
9. Workplace management and relations
10. Safety and health workplace
11. Building capabilities and organization learning
12. Effective HR management systems, support and monitoring
Here are some examples:
MANAGING DIRECTOR ' S KRA
-sales revenue
-gross profit.
-net profit.
-% rise in share price
-productivity improvement %
etc etc
SALES MANAGER 'S KRA
-sales growth %
-market share growth %
-no. of new customers
etc etc
KEY PERFORMANCE AREAS [KPA]
These are the areas within the ORGANIZATION FUNCTIONS, where an individual or group, is logically responsible / accountable for the results.
***To manage each KRA, a set of KPA / KPI are set.
KPA and hence KPI is attributed to the person who can have effect on the business results and is self measured where applicable
Example: 1
KRA = Recruitment / Selection
KPA 1 = Recruitment
KPA 2= Selection
Example: 2
KRA = Employee Benefits
KPA = providing all statutory benefits (ESI, PF…)
KPA = providing all other benefits provided by company.
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KEY PERFORMANCE INDICATORS (KPI)
Select a KPI for each KPA, which would enable the individual to
improve performance to achieve the objectives.
Example
KPI for KPA 1 = reduce the recruitment cost per head by 10%.
KPI for KPA 2 = finalize selection in 5 weeks for each individual position.
***The Choice of HR KPI will vary from year to year under…
SUBJECT TO COMPANY'S
STRATEGIC PLANNING
CORPORATE STRATEGIES
CORPORATE OBJECTIVES
In HR turn affects like
-HR STRATEGIC PLANNING
-HRM STRATEGIES
-HRM OBJECTIVES
Frequently used HR Key Performance Indicators include:
[[FTE = full time employees]]
Revenue per Employee (FTE)
Assets per FTE
Training Hours per FTE
Training Costs per FTE
HR Department Cost per FTE
FTEs per HR Department FTE
Acceptance Rate
Average Cost per Hire
Absence Rate
Turnover Rate
Resignation Rate
Human Investment Ratio
Compensation & Benefits/Revenue
Average Remuneration
Time taken per recruitment
Cost per recruitment
EXAMPLES of KRAs / KPAs / KPIs
KRA 1 - RECRUITMENT/ SELECTION
KPA 1 - RECRUITMENT
KPI 1 - Average time taken per employee 2 months
KPA 2 -SELECTION [ KPI = average cost per new employee RS 10,000]
====================================
KRA 2 - WORKFORCE PLANNING/ DIVERSITY
KPA 1 - ANSENTEEISM [ KPI = absent rate at 5%]
KPA 2- TURNOVER [ KPI = turnover rate at 7%]
KPA 3- DIVERSITY [ KPI = 3 FEMALES TO BE INDUCTED INTO MANAGEMENT CADRE]
=====================================
KRA 3- PERFORMANCE MANAGEMENT
KPA 1 - PERFORMANCE APPRAISALS [KPI = all staff to be appraised at least once annually]
KPA 2 -SUCCESSION PLANNING [ KPI = 8 POTENTAL staff to be identified and talent managed]
===================================
KRA 4 - REWARD MANAGEMENT
KPA 1- MARKET ORIENTED SALARY STRUCTURING [ KPI = total compensation to sales 12%]
KPA 2 -BENEFITS PLANNING [ KPI = 6% of total salary bill]
============================================
KRA 5 - WORKPLACE MANAGEMENT AND RELATIONS
KPA 1 -JOB EVALUATIONS [ KPI = 600 lower staff , below grade 4 to be evaluated]
KPA 2 - EMPLOYEE COMMUNICATIONS [ KPI = 4 newsletter on intranet, one per quarter ]
===========================================
KRA 6 - SAFETY AND HEALTH WORKPLACE
KPA 1 - SAFETY [ KPI = accident safety ratings, benchmark with industry]
KPA 2 - HEALTH [KPI = actual health expenditure vs budget ]
========================================
KRA 7 - BUILDING CAPABILITIES AND ORGANIZATION LEARNING
KPA 1 - TRAINING [ KPI = average training hours per employee annually= 24 hours]
KPA 2 - MANAGEMENT DEVELOPMENT [ KPI =average MD cost per employee annually= 16000 RS]
============================================
KRA 8 - EFFECTIVE HR MANAGEMENT SYSTEMS , SUPPORT AND MONITORING
KPA 1- HRIS [ KPI = finalize the software . RS 1.2 million capital budget]
HERE ARE SOME COMMON EXAMPLES
FOR EACH ELEMENT, YOU CAN SET YOUR OWN THRESHHOLD, BASED ON YOUR COMPANY STRATEGY/ HR STRATEGY.
=====================================================
1.ABSENTEEISM PER EMPLOYEES [DAYS]
2.AVERAGE RECRUITMENT TIME [DAYS]
3.EMPLOYEE TURNOVER [ % ]
4.EMPLOYEE SATISFACTION [ LEVELS ]
5.AVERAGE EMPLOYEE TENURE [ YEARS]
6.INDUCTION TRAINING [ % OF NEW EMPLOYEES]
7. TRAINING WORKSHOP [ % ] CONDUCTED/PLANNED
8. TRAINING AT EXTERNAL COURSES [ %] ACTUAL / PLANNED
9.PERFORMANCE APPRAISALS [ NOS.] AGAINST TOTAL EMPLOYEES.
ICL from Oct. 10
The HR Balanced Scorecard is the measurement tool. It provides the management with a tool and a process to measure the performance of people practices and the HR function from multiple perspectives:
1. Strategic Perspective
2. Operational Perspective
3. Financial Perspective
4. Customer 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
All four components of the scorecard are used to define and measure the effectiveness of people-management activities and how the HR function executes them. This provides a strategic measurement and management process to show the connection between a company’s business strategies and goals and its HR strategies, activities, and results. The Balanced Scorecard can provide an ideal approach to measure the contribution that human resource management makes to business success.
With the HR Balanced Scorecard in place, it can assist organizations to easily monitor the workforce indicators that are key to their business success. Such solutions enhance HR’s ability to provide counsel to line management and deliver results that make a difference to the achievement of their goals and strategy and thereby to shareholders.
The apparent and inherent values that the HR Balanced Scorecard brings include:
Measurement provides the data and facts to support business decisions, giving credibility to HR recommendations and initiatives;
Collecting and using data to make decisionsregarding retaining and motivating the
workforce, giving the organization a competitive advantage in the marketplace;
The right mix of lead and lag measures helps the business assess its strategic
alignment and progress towards its objectives;
HR will be proactive in identifying potential improvements and bringing suggestions
to the business that improve bottom-line results; and
A business and linked measurement framework focuses activity on those tasks
that contribute to organizational success. This process lifts the role of HR from being viewed purely as a cost centre to that as strategic business partner.
HERE ARE SOME PROBABLE HR METRICS IN COMPENSATION ONLY
1.ANNUAL TOTAL COMPENSATION INCREASE RATE [%] [this year vs last year]
2.ANNUAL TURNOVER RATE.[this year v s last year]
3.COMPENSATION &BENEFITS AS A % OF SALES.
4.COMPENSATION & BENEFITS AS A % OF OPERATING EXPENSES.
5.COMPENSATION & BENEFITS PER EMPLOYEE [ this year vs last year]
6.COMPENSATION & BENEFITS COMPETITIVENESS INDEX.
7.INCENTIVE PAYMENT AS A % OF TOTAL COMPENSATION & BENEFITS.
8.BENEFITS SPEND AS A % OF TOTAL COMPENSATION & BENEFITS
9.COMPENSATION & BENEFITS BY LEVELS OF STAFF
-senior mgnt/ executives/middle mgnt/ junior mgnt/supervisors/staff etc.
10.NEW COMERS COMPENSATION & BENEFITS AGAINST TOTAL FOR THE YEAR.
11.% OF EMPLOYEES SATISFIED WITH CURRENT SYSTEM [ SURVEY ]
12.MEDICAL BENEFITS EXPENSES TOTAL [ THIS YEAR VS LAST YEAR]
13.MEDICAL BENEFITS EXPENSES PER EMPLOYEE.
=====================================================
HERE ARE SOME STANDARDS METRICS
1 HR UTILIZATION % TOTAL PAYROLL $ / TOTAL SALES $
2. HR PRODUCTIVITY % TOTAL EMPLOYMENT COST $/TOTAL
PRODUCTION VOLUME IN $ X 100
3. HR BUDGET % ACTUAL $ / BUDGET $ X 100
4'. ACCIDENT COSTS % CURRENT ACTUAL $ / LAST YEAR $ X 100
5'. ACCIDENT SAFETY % CURRENT ACTUAL $ / LAST YEAR $ X 100
RATINGS
6'. EMPLOYEE % EMPLOYEE BENEFITS $ / TOTAL PAYROLL $ X100
BENEFITS
EMPLOYEE BENEFITS $ /TOTAL SALES $ X 100
7'. HR BUDGET % ACTUAL HR EXPENSES $ / TOTAL SALES $ X 100
sales effectiveness
8'. HR EXPENSES $ TOTAL HR EXPENSES $ / TOTAL NO. OF EMPLOYEES
per head
9'. HR EXPENSES % HR EXPENSES $ / TOTAL EXPENSES $ X 100
cost effectivenss
10'. NO.OF COURSES % ACTUAL CONDUCTED / PLANNED X 100
CONDUCTED
11. NO. OF SAFETY % ACTUAL CONDUCTED / PLANNED X 100
training programs
12. TRAINING DAYS % ACTUAL TRAINING DAYS / PLANNED X 100
EFFECTIVENESS
13. EMPLOYEES % ACTUAL TAKING PART / PLANNED X 100
involvement in train
14. SICK DAYS nos. TOTAL SICKDAYS TAKEN/ TOTAL EMPLOYEES
managemeent effectiveness
15. STAFF orientation % NO. OF NEW STAFF LEAVING IN THREE MONTHS/
EFFECTIVENESS TOTAL NO. OF NEW STAFF ORIENTED
X 100
16. TIME TO FILL AN NO.DAYS TOTAL NO OF DAYS / TOTAL NO positions filled
OPEN POSITION
17. TURNOVER BY % TURNOVER / TOTAL RECRUITMENTS X100
RECRUITING source
BY EACH SOURCE
18. TURNOVER BY % TURNOVER / TOTAL EMPLOYEES BY EACH
EACH JOB CATEGORY
CATEGORY X 100
19. WORKERS % ACTUAL $ / PLANNED BUDGET $ X 100
çompensation costs
20. HR STAFFING NO. TOTAL HR STAFF / TOTAL EMPLOYEES
EFFICIENCY
NOW YOU SHOULD WORK OUT YOUR KRAs, based on your training coordinator's
job description
================================================================= =======
KRA 1
*DELIVER INSTRUCTIONS TO NEW HIRES [ kpi = how many new hires trained]in 12 months.
KRA 2
*PLANS/ IMPLEMENTS STAFF TRAINING PROGRAMS[kpi = how many programs vs planned]in 12 months
KRA 3
*CONDUCT CONTINUING EDUCATION PROGRAMS [ kpi =how many programs conducted]in 12 months.
KRA 4
*CONDUCT SPECIAL SPECIFIC TRAINING PROGRAMS [ kpi =how many programs conducted]in 12 months.
KRA 5
*training administrative work such as tracking of new materials, timekeeping, and other administrative tasks as required in a timely and accurate manner. [ QUALITY RATINGS against STANDARD CRITERIA.]
KRA 6
*Facilitate transition of new hire from training to work environment, ensuring competency levels are sufficient. [ QUALITY RATINGS
against STANDARD CRITERIA]
KRA 7
*Create, Develop,Support and participate in continuous improvement initiatives.[kpi=how many in 12 months]
KRA 8
*Evaluation of training impact on organization effectiveness
[ kpi = QUALITY RATINGS against STANDARD CRITERIA]
HERE IS A BROAD GUIDELINES OF A TYPICAL SOFTWARE ENGINEER.
SINCE THE SOFTWARE ENGINEERS MOSTLY WORK ON PROJECTS,
THE TYPICAL KRAs WOULD CHANGE. FOR YOUR PURPOSE , YOU MAY
MODIFY/CHANGE AS REQUIRED BUT RESTRICT KRAs TO MAXIMUM 7.
"Nach Baliye 4" Participants Photos
KRA 1
. Be responsible for the overall software engineering of the project including providing overall direction to others / partners.
Establish project plans including timelines and resources required for the project.
§ Monitor progress; address any issues across the project interfaces, ensuring that project deliverables and milestones are achieved.
§ Engage and provide direction as necessary to others , contractors or technical experts and manage related contracts and terms of appointment according to the relevant guidelines.
§ Provide regular project reports to the management
§ Facilitate the ongoing assessment of commitments and regular strategic reviews .
KRA 2
. Develop and support the software engineering project methodology of the project
§ Investigate, select, implement and maintain an appropriate software engineering project methodology across the complete project.
§ Ensure that appropriate software engineers, or consultants are engaged as required.
§ Select, develop as required, plus maintain software coding standards, plus full documentation.
§ Adapt software engineering industrial standards to:data collection/data analysis/security/
storage/data visualization etc
§ Ensure that all software engineering deliverables and milestones are achieved.
KRA 3
Manage the development , through implementing production standards, robust and ruggedised development processes
§ Manage all aspects of the process related to the development and production of the system.
§ Be responsible for implementing production procedures, including reliability testing, error handling, user interface, pilot releases, plus full documentation.
§ Plan, execute, monitor and manage thorough user/usability testing and feedback .
KRA 4
Establish links and working relationships with OTHER departments.
§ Establish vital links and understand the requirements of the diverse areas.
§ Apply proven software engineering techniques and solutions to achieve the objectives.
§ Act as a major channel for feedback communication, plus take into account this feedback in determining priorities for practical outcomes of the project.
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KRA 5
Manage a team of project staff.
§ Establish a staffing strategy to deliver the specific project objectives in consultation with the management.
§ Recruit and appoint project staff and technical consultants as required following appropriate procedures.
§ Develop a clear project plan and communicate that with the project staff through an intensive induction process.
§ Provide technical and operational guidance to the project as necessary.
§ Assist staff to work through project impediments in a prompt manner.
KRA 6
Manage effective communication with TEAM members
§ Liaise with Management members, partners, technical advisors/consultants.
§ Be responsible for:
o relevant conference presentations and publications.
o dissemination of selected information to ALL CONCERNED.
