A key performance indicator is a tool that measures the overall detailed performance of the employee for a period And checks alignment with the company's strategic goal. And KPIs are mostly used by directors and Sr. managers for good decision making.
So What is KRA and KPI? and What is the Difference?
Developing an effective KPI and KPI helps to assess intended and actual progress. Also help to track revenue, gross margin, etc. Then These KPIs are useful in assessing individuals' programs weekly, monthly, or yearly.
Key Performance Indicator (KPI) is the financial and Non-financial metric used by the organization to measure and be ready for success towards goals.
Key Result Area (KRA) understood the fundamental area of the outcome, for which department is responsible or liable. It is a strategic element implicit or explicit to the firm, from where favourable outcomes can be attained, to reach the final goal and take a step ahead towards the organization’s goals.
Also, KPI helps in problem-solving and handling opportunities. It is Important for validating business modules once you think of a business launching on a bigger platform.
KRA Enable the departments to have clarity and a better experience of their departmental job responsibilities and fairly distribute the work.
KPI help in measuring the growth of a particular unit, service, and product.
KRA helps in understanding the scope and expandation of an individual service or product.
KPI is generally quantitative, it makes it easily measurable. and also it evaluates the overall performance of a particular product, business, or service in the market.
KRA is qualitative and subjective, Act as a powerful tool by identifying those areas of the company that might be proven useful in obtaining high values for a company.
KPI also measures employees' responsibility, and efforts, and suggests them improvements.
KRA is a set of goals and objectives that each organization assigns to its employees at the start of the evaluation period.
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