Setting KRAs: Know how to do it in a right way!

Setting KRA
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‘What am I supposed to do?’, ‘what are my core responsibilities?’ are some of the basic questions generally new joinees have in their mind while joining organizations. Addressing this regular yet important query with the process of setting KRAs is a beneficial step for companies. Well-defined KRAs enables a company and its workforce to focus, align and achieve better results.

Defining KRA is like preparing a blueprint for future development, growth and the success of a company. Goal setting is not enough to gain results! You need to understand what you’re doing so that you gain the knowledge to execute strategies successfully to achieve goals.

‘KRA’ is an important element which is necessary for the success of the organization. Analyzing KRAs can guide your workforce to develop their strategic planning to gain success. KRAs help employees understand on which topics he or she has to focus on during the entire year.

If you get confused while defining KPIs, KRAs, goals and objective, then it will surely impact the performance of your staff. All these terms are connected but each term has its own meaning, so don’t get confused.

In this post, HR professionals will get everything related to KRAs, from the meaning of KRA to the importance of it. Once you get the clear idea about the term ‘KRA’, then it will definitely enhance people performance management in the organization. Let’s go step by step, first know the definition of KRA;

  • What is kra?

Going by its definition, KRAs i.e. key result areas generally refer to the basic parameters which the company has decided for a certain profile. It outlines the scope of the job profile and capture almost 80%-8% of a work role.

  • KRA full form?

The full form of KRA is key result areas.

Now, it is time for HR people to know why organizations must focus on defining KRAs. So, here is your answer!

  • Reasons to define KRAs

The purpose behind defining KRAs is to help employees to align their job profile with that of the company. It offers a framework to an employee and help him identify what approach works best for a specific team. Also, companies can easily track how well employees perform and track their work progress.

The employee gets a clear understanding of his or her role to perform his or her tasks with ease.

Set aims in such a manner that produces tangible results as it helps to quantify the results.

Goals must be reasonably achievable, do consider practical obstacles like labor, time and money.

Objectives should be applicable to the employees involves in attaining them.

Define the end date by which results can be achieved because it encourages workforce without pressurizing them.

  • How to write KRAs?

If you define KRAs right, you will be amazed to see the insights you can collect about each team member’s performance. While writing KRAs, managers and the human resource department must consider below mentioned facts;

It should be well-explained, easy to measure and quantifiable.

Now, define easily quantifiable standards and objectives for each KRA.

Prepare a list of all daily activities that could be the part of the KRAs

  • difference between a KRA and a KPI Difference Between KRA and KPI

Every company has a set of objectives which are short-term goals that must be fulfilled within the specific timeline. An organization uses dedicated metrics to know that the strategies developed by the company to meet its objectives are working in the right direction or not. And, these metrics are KPI and KRA. Let’s see the difference between KRAs and KIPs;


KRA i.e. key result area refers to the fundamental areas of the results, for which an employee is held accountable. It implies the metrics decided by the company for a certain role. An employee needs to bring results in set KRAs. Every organization defines KRAs for each employee or department so that they can get a clear understanding of the areas they need to concentrate on and produce results accordingly.

In job descriptions, generally KRAs are highlighted so that an employee understand his or her role as well responsibilities in a much better way and put their efforts with the objective of the organization.


KPI i.e. key performance indicator is a metric used to determine the achievement and progress of the set objective. It is decided at the start of the performance period. At the end of the performance period, one can evaluate the KPI and check whether the company is moving towards achieving that goal or not.

Once the organization decides its vision and goals, then the progress towards a specific objective is evaluated by using key performance indicators. At different levels, it is used to keep track of the organization’s progress and analyze it to decide whether it is the right way to meet its goals or not. KPIs differ with the company; every organization has its own set of KPIs.

KRAs could be different from company to company and from one job profile to another. No specific rules are set to define KRAs, but with correct practice, you can sum up the job role in a right way.  Basically, it starts with clarity on the organization’s mission, vision, goals and objectives. It sets the foundation to address KRAs and help employees to generate desired outcomes.

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