![]() On the other hand, Key Performance Indicator, or otherwise called as KPI is a performance metric, used by the organization to ascertain how effectively the firm is performing. Key Result Area can be described as the essential areas of business that requires excellent performance to obtain the favourable result, to survive and grow in the industry.The points given below are substantial, so far as the difference between KPI and KRA is concerned: ![]() So, it needed to be clearly determined and quantified, so that the employee can line up their role with that of the aim of the firm. It helps the employees in understanding the role and responsibilities, in a better way. Therefore, it highlights the scope of the job profile. In human resource management, KRA implies the metrics set by the organization for a specific role. It is the strategic factor, 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 vision. Key Result Area can be understood as the fundamental areas of the outcome, for which a department is accountable. Therefore, it can be anything like profit, cost, turnover, consumer satisfaction, customer base, customer attrition, employee turnover ratio, employee satisfaction and so forth. Likewise, the pass out rates of the students is the key performance indicator of a school. It plays the role of a compass that helps in understanding whether the company has chosen the right way to reach the final aim or not.ĭifferent types of organization have different performance indicators, such as the KPI of a business entity can be income percent. The key performance indicator is used at different levels by an enterprise to track the progress of the firm in the realisation of targets. After the ascertainment of the organization’s mission, identification of stakeholders and determination of goals, the progress towards the goal is evaluated through key performance indicator. Key Performance Indicator, as the name signifies, is the financial and non-financial metric used by the firms to gauge and fortify the success, towards the goals of the organization.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |