KRA’s (GOAL SETTING)

3

Setting ofKRAs

Mid TermPerformance Review

Compensation & Rewards, Training &Development, Career & Succession Planning

Appraisal & Feedback

Business Goals

PMS MODELPMS MODEL

HOW TO DERIVE KRA’s

BUSINESS GOALS

STRATEGY, VISION, MISSION & BUDGET

ORGANIZATION’S OBJECTIVES

DEPARTMENTAL / FUNCTIONAL OBJECTIVES

ROLE / INDIVIDUAL OBJECTIVES

KEY RESULT AREA (KRAs)

WHY SET KRA’s?

KRA’s need to be aligned to the Business goals and need to communicate a common purpose

Alignment

WHAT GETS MEASURED,

GETS DONE…!

PURPOSE

To Aid each Manager in promoting the most effective use of Human Resource such that each member makes an Optimum contribution to the Company’s Performance

OBJECTIVES OF GOAL SETTING

• To provide as objective as possible an analysis of how well an individual is performing in his current responsibilities based on goals set, results achieved, & satisfying the customer, both internal & external.

• To promote a shared understanding of the task & relationship among the supervisor, sub-ordinate, internal customer / external customer.

• To aid in determining performance rewards that are commensurate with results achieved.

• To prepare a development plan required to improve the individual’s performance / capabilities / develop his/her for future responsibilities.

R1 + R2 = R3

Resources Relationship Results+ =

DEFINITIONS

Goals : A goal is a significant shorter term measurable target , which will contribute to a result in a period of time (usually a year)

Result : A result is a fulfillment of a Goal which can be measured. (Output)

Activity : Activity can be anything an Individual does

COMMITMENT

TIME MONEYSOCIAL

SUPPORT

Commitment : There must be a commitment by both Boss & Sub-ordinate(s) to achieve a goal.

WHAT IS COMMITMENT ?

GOALS ARE MEANT TO STIMULATE PEOPLE, NOT TO HANG THEM

MOTIVATION FACTORS :

• Achievement

• Responsibility

• Recognition

• Creative & Challenging Work

• Possibility of Growth on the Job

A GOAL HAS 3 PARTS: -

• What accomplishment is wanted ?

• How much accomplishment is wanted

• Date Goal has to be achieved ?

POINTERS IN GOAL SETTING

• Set Attainable Stretch Goals

• One is more stimulated if he/she feels Goals are Fair !

• Set Weights on each Goal - weight represent the value of the Goal , not the time that is going to be spent on each Goal.

• Ask “ In Order To ? ”

GOAL CLARITY

• One must know on the 1st of April what he / she has to accomplish to get a 4, 3, 2, or 1.

• Spend 60% of Time in Setting & Clarifying Goals & 20% of Time on Year End Appraisal.

Plant ManagerKey Result Areas

• Operational Costs

• Product Quality

• Production Targets

• Product Development

• Technological Change

• Return on new investment

• Fixed asset utilization

• Management - union relations

• Local Government Relations

• Safety

Plant Manager

My Own Areas• Operational Costs

• Return on new investment

• Fixed asset utilization

• Management - union relations

• Local government relations

My Subordinates’ Areas

• Product quality

• Production targets

• Product development

• Technological change

• Safety

Activity Goal

Conduct monthlymanagement developmentsessions for superintendentsin techniques of standardcost programme.

Have 50% superintendentsusing standard costprogramming techniques onat least two projects w.e.f.October 2005

Prepare quality controlmanual for supervisors

Eighty five percent of first-line supervisors to know eightof the ten key points incompany quality contralpractice by April 2005

KRAs (Goals) SET FOR ________________________________________________

Employee Name:

Department :

Sr. No. Personal Targets / Main KRAs Quantification of target /Measure

(Expected Outcome)

Weightage tobe assignedout of 100 %

1

2

3

4

5

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