KRA vs KPI vs OKR
The three are often mixed up. A KRA names the area of responsibility; it is fairly stable and belongs to the role. A KPI is the measure that shows how well the KRA is being met, with a number and a target. An OKR is a time-bound goal-setting method: an ambitious objective for a quarter or half-year with a few measurable key results, often shared across a team. A store manager's KRA might be inventory accuracy, the KPI stock variance in the monthly audit, and a quarter's OKR 'cut shrinkage in the Andheri store', with key results on audit scores and CCTV coverage.
How KRAs are set in Indian companies
HR drafts KRAs from the job description, and the reporting manager adjusts them for the individual at the start of the appraisal year, which is April in companies that follow the financial year. Each KRA gets a weight, and the weights add up to 100. Sales roles weight revenue KRAs heavily; support roles weight quality and turnaround. The employee acknowledges the KRAs, progress is discussed during the year, and the year-end rating is built from the KRA scores.
Writing KRAs that managers can review
A KRA that cannot be reviewed at year end is only a label. Test each draft with one question: at appraisal time, what evidence will show whether this went well? In ZeniaHR's Performance module, each goal can be typed as a KRA, KPI, OKR, competency or task with its own weight. Good KRAs share these traits:
- They name an outcome, such as on-time dispatch, rather than an activity like handling dispatch
- There are four to seven per role
- Each carries a weight that reflects where the person spends effort
- Each has at least one measurable KPI attached
- Managers carry one people or team development KRA
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What is the difference between KRA and KPI?
A KRA is an area of responsibility, such as customer service or collections. A KPI is the measure used to judge performance in that area, such as average complaint resolution time or the share of dues collected on time. One KRA usually has one to three KPIs. KRAs describe what the role owns; KPIs show how well it is done.
How many KRAs should an employee have?
Four to seven KRAs is a practical range for most roles. Fewer than four tends to leave out important parts of the job, and more than seven spreads attention so thin that the weights stop meaning anything. Give each KRA a weight, keep the total at 100, and attach at least one measurable KPI to each.
Who sets KRAs for an employee?
HR usually drafts standard KRAs for each role from the job description, and the reporting manager tailors them for the individual at the start of the appraisal year. The employee should discuss and acknowledge them. When the role changes mid-year, the manager updates the KRAs and weights instead of waiting for the next cycle.