CORE KRAs of HR DEPARTMENT

-RECRUITMENT/ SELECTION
-WORKFORCE PLANNING/
-DIVERSITY MANAGEMENT
-PERFORMANCE MANAGEMENT
-REWARD MANAGEMENT
-WORKPLACE MANAGEMENT
-INDUSTRIAL RELATIONS
-SAFETY AND HEALTH WORKPLACE
-BUILDING CAPABILITIES AND ORGANIZATION LEARNING
-EFFECTIVE HR MANAGEMENT SYSTEMS , SUPPORT AND MONITORING
============================================-=======
KRAs [ KEY RESULT AREAS are managed by
-KPAs [ KEY PERFORMANCE AREAS]
-KPIs [KEY PERFORMANCE INDICATORS]
===================================
KEY PERFORMANCE AREAS
These are the areas within the HR DEPARTMENT, where an
individual or group, is logically responsible / accountable
for the results.
To manage each KRA/ KPAs, a set of KPI are set .
KRA and hence KPI is attributed to the department which
can have effect on the business results and is
self measured where applicable.
THE IMPORTANCE AND WEIGHTAGE OF THESE ELEMENTS
KRAs/KPAs/ KPIs ARE GUIDED BY THE
*VISION STATEMENT
*MISSION STATEMENT
*CORPORATE OBJECTIVES
*CORPORATE STRATEGY
*CORPORATE BUSINESS UNITS/ DEPARTMENTAL PLANS/STRATEGY.
FOR THE BUDGET PERIOD, WHICH IS USUALLY 12 MONTHS.
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

CORPORATE OBJECTIVE / STRATEGY

-improve the company competitive positioning and productivity
by 10%.
HR DEPARTMENT'S OBJECTIVE
-Achieve high productivity level in all activities [ say by 10%]
------------------------------------------------------KRA 1
-RECRUITMENT/ SELECTION
KPA --RECRUITMENT
KPI ----reduce average time taken to fill vacancies by 15%
KPI ----reduce average cost per recruit by 10%
-------------------------------------------

KRA 2
-WORKPLACE MANAGEMENT
KPA -labour turnover
KPI ---reduce the labor turnover by 20%
KPI ----benchmark total HR COSTS externally.
-----------------------------------------------KRA 3
-SAFETY AND HEALTH WORKPLACE
KPA ---workplace accidents
KPI ----reduce workplace accidents by 10%
--------------------------------------------KRA 4
-BUILDING CAPABILITIES AND ORGANIZATION LEARNING
KPA ----TRAINING
KPI --- ALL WORKFORCE below middle management should
receive a minimum of 4 days of training.
=========================================
THIS IS , ROUGHLY, HOW HR DEPARTMENTS
KRAs / KPAs / KPIs ARE SET , MONITORED AND
EVALUATED.
MANAGER -LEARNING AND DEVELOPMENT

KRA 1-deliver relevant and targeted programs to the

organization employees.
KPI 1--EMPLOYEE SATISFACTION FEEDBACK THROUGH SURVEY
SATISFACTION LEVEL MINIMUM 70%.
KPI 2--% INCREASE INCREASE IN TRAINING PROGRAMS
KPI 3--% INCREASE IN EMPLOYEE PARTICIPATION.
===============================================
KRA 2-promote the programs/learning culture
KPI 1--EMPLOYEE SATISFACTION FEEDBACK THROUGH SURVEY
SATISFACTION LEVEL MINIMUM 70%.
KPI 2--NUMBER OF DEPARTMENTS SATISFACTION LEVEL.
KPI 3--% INCREASE IN TYPES OF ACTIVITIES
===============================================
KRA 3-provide lead in the provision of
organization learning and development service
KPI 1--NO. OF TRAINING DAYS % INCREASE
KPI 2--NO. OF EMPLOYEES PARTICIPATING % INCREASE
KPI 3--NO. OF INHOUSE PROGRAMS % INCREASE
KPI 4--NO. OF EXTERNAL PROGRAMS ATTENDED %INCREASE.
KPI 5--NO. OF EXTERNAL TRAINING PACKAGES BOUGHT %INCREASE.
KPI 6--% INCREASE IN COST.
KPI 7--% INCREASE IN RESOURCE REQUIREMENTS.
================================================
KRA 4-improvements in capabilities/capacities
to deliver L&D.
KPI 1--PROGRAMS IMPLEMENTED ON TIME [ % ]
KPI 2--PROGRAMS IMPLEMENTED WITHIN BUDGET [ %]
KPI 3--EFFECTIVE USE OF PERFORMANCE MANAGEMENT
SYSTEM FOR DEVELOPMENT [ % ]
===============================================

==================================================
HR MANAGER
KEY RESULT AREAS.
KRA 1 Recruitment / Selection
KRA 2 Workforce Planning and Diversity
KRA 3 Performance Management
KRA 4 Reward Management
KRA 5 Workplace Management and Relations
KRA 6 A Safe and Healthy Workplace
KRA 7 Building Capabilities and Organisational Learning
KRA 8 Effective HR Management Systems, Support and Monitoring
================================================== =============== ===
General Management or Senior Executive
KRAs include Internal operations
Market development
Profitability
Organisational structure
Organisational vision and mission
Asset and liability management
Board of directors relationship
Productivity
Financial strategy
Business development
Technology
Customer satisfaction
Community relations
Regulatory compliance
=================================
Finance and Accounting
KRAs include Credit referencing
Management information
Capital expenditure
Security
Financial analysis
Cost control
Internal audit
Regulatory reporting
Credit control
Financial records
Payroll
Cashflow forecasting
Budgeting
Costing
===================================

Sales
KRAs include New business acquisition
Territory management
Customer care

Lead generation
Lead follow up (internal and external)
Account management
Customer retention
Interpersonal skills
Negotiating skills
Product knowledge
Sales forecasting
=====================================
Manufacturing
KRAs include Stock control
Maintenance
Labour relations
Waste
Reworks
Productivity
Health and Safety
Quality control
Record keeping
======================================
Marketing
KRAs include
Advertising
Promotional strategy
Pricing
Market research
Field support
Marketing materials
Media relations
Sales support
Agency relations
======================================
Secretarial, Clerical and Administrative
KRAs include
Correspondence
Filing
Records management
Administrative support
Internal customer relations
Equipment maintenance
Forms administration
Scheduling
Supply maintenance and purchasing
Telephone coverage
Project support
Finally, key result areas for everyone in an organisation are:
Personal development
Professional development
Internal and external customer satisfaction
Public relations

Communication - oral and written

Interdepartmental relations
Project management
====================================
KPI FOR THE VARIOUS KRAs should be
-quantity oriented
-quality oriented
-time oriented
-cost oriented
or a combination .
Quantity
Number of units produced/published/sent/received/processed/deadlines
Calls per hour/day/week
New products introduced
Grievances per 100 employees
Staff turnover
Customer complaints and compliments
Error rate or reworks
Returned goods
Sales increased
Profit increased
Increase in market share

Cost
Variance against budget
s spent
Profit
Waste
Overtime incurred
Speed

Time
Reduction in number of minutes/hours/days etc.
Deadlines and schedules met
Average call response time
Projects completed per week/month etc.
Number of minutes between customers

Qualitative
Accuracy
Customer satisfaction
Repeat business
Mistakes
Reworks/repairs

Therefore:example
Key Result Area = Sales
Objective = Sell x new product to customers
KPI = Number of units sold per new customer whilst maintaining
gross profit level of 25%

ANOTHER IMPORTANT ARE IN BUSINESS IS

SUPPLY CHAIN MANAGEMENT
DEMAND PLANNING
-demand planning for core products
-demand planning for parts/accessories
-demand planning for critical items
-developing product life cycle trends
-product life cycle forecast for new products
etc
KPI could be
-remove stock shortages[ by %]
-improve inventory levels.[ 98% max]
etc
==================================
PROCUREMANT
-quicker stock replenishment
-continual stock replenishment
-reduction in lead time
etc
KPI could be
-improving stock availability [100%]
-reducing cost [ 5%]
-reduction working capital [ 7%]
etc
=======================================
SUPPLY
-better supply coordination
-more effective communication with supplier
-faster / timely communication
etc
KPI could be
-developing supplier profile [ all accounts]
-developing suppliers networking [ all accounts]
etc
===================================
RAW--INVENTORY
-quicker replenishment
-customer focused inventory building
-logistical lead time reduction
-demand based inventory
etc
KPI could be
-better material availability[100%]
-good/ usable inventory levels [ 98% satisfaction]
etc
=======================================
MANUFACTURING
-elimination of wastages in production
-improving throughput effiiciency
-process efficiency
etc
KPI could be
-reducing back orders[ nil %]

-improving targeted delivery date [ 98%]

etc
=================================
FINISHED --INVENTORY
-reduction in logical leadtime
-full stock availability
etc
KPI could be
-full total inventory[ 100%]
-full stock / range availability [ full range]
etc
=================================
ORDER SERVICE
-short--response time to query
-shortening order cycle time
etc
KPI could be
-making targeted delivery date [ 100%]
-providing order status [ at all times]
etc
==================================
DISTRIBUTION
-order fill rate
-ontime delivery
-backorder by age
-service/ parts availability
-targeted delivery date
-order completeness
-delivery reliability
etc
KPI could be
-improve order fill rate [ 98%]
-improve on-time delivery [ 98%]
-reduce shipment delays[ 0%]
etc
=============================
CUSTOMER SERVICE
-order status
-delivery reliabilitty
-documentation integrity
etc
KPI could be
-timely order status [ 100%]
-timely delivery status.[ 100%]
etc
================================================== =====
THE SUPPLY CHAIN MANAGEMENT KPIs
could include
-IMPROVING MATERIAL FLOWS
-REDUCE RAW MATERIAL INVENTORY LEVELS
-REDUCING PURCHASING COST
-REDUCE FREIGHT COST
-REDUCE OBSOLETE STOCK LEVELS
-IMPROVING WAREHOUSING OPERATIONS EFFICIENCY
-OPTIMISE STOCK LEVELS
-REDUCE LEAD TIME

-REDUCE TOTAL INVENTORY LEVELS

-REDUCE FINISHED STOCKS
-IMPROVE DEMAND FORECASTING
-IMPROVE MATERIAL RESOURCE PLANNING
================================================== ===
===================================
OTHER KPIs could be as follows
2.MANUFACTURING
- Unit volume level
- unit cost target
-production efficiency improvement
-productivity improvement
-quality improvement index
-capacity utilization
etc etc
==================================== MARKETING
-market share %
-new product launches success
-profit contribution by productlines
etc etc
=====================================
SALES
-sales against last year
-sales against target
-sales coverage improvement
etc etc
======================================
DISTRIBUTION
-market coverage
-customer coverage
-channel coverage
=======================================
CUSTOMER SERVICE
-CUSTOMER SERVICE IMPROVEMENT
-CUSTOMER SATISFACTION ACHIEVEMENT
ETC ETC
======================================
WAREHOUSING / TRANSPORTATION
-%ACHIEVED AGAINST ORDERS
-PICKING / PACKING RATE
-FINISHED GOODS INVENTORY LEVEL
-STOCK TURNOVER
====================================
FINANCE
-Cost of Capital USED
- Receivables leveL / against sales
-Bad debt level

-Debt equity ratio

=====================================
PROCUREMENT / SUPPLY
-raw material inventory levels
-cost saving target