Key Result Area(KRA) and Key Performance Area(KPA)

Key Result Area(KRA) and Key Performance Area(KPA) , though the terms hold different meaning but   are often used interchangeably and more or less assumed to have same applicability . The purpose of this post is to underline the basic differences between the concept of KRA and KPA.

In relation to a job role, KRA defines the outcome or end result expected to be delivered while KPA defines all the activities, not always result oriented,  an individual has to perform being on job.

Key Result Area

Key = crucial/main

Result = outcome/end/consequence

Area = space/range

KEY RESULT AREA = crucial outcome space

Point to note

-KRA is not the result.

-KRA is  the area identified as important or crucial where a result will assist in the achievement of the set  objectives or goal.

-KRA defines what a job is expected to accomplish.

-KRA’s might fall within the scope of Key Performance Areas (KPA)

Key Performance Area

Key = crucial/main

Performance = Achievement/Attainment

Area = space/range/field of operation

 KEY PERFORMANCE AREA = Main achievement space

Point to Note

-KPA is the overall scope of activities that an individual on a job role has to perform.

-KPA is not always result focused.

-KPA’s can be inclusive of KRA’s

In organizations, each role or job has a “Job Description (JD)” which consist of all the responsibilities the person on job has to perform. All the activities listed in JD falls in two categories:

Category A – List of functions and activities crucial or critical for the job role. These activities form the KRA  of the job.

 Category B – List of functions and activities associated with the job role but not truly critical for the role. These functions are important for overall performance of the team, department or organization as a whole and form the KPA for the job

Example :

Role – Product Manager

Goal – Ensuring delivery of quality product within schedule.

Key Result Area

  1. Customer Satisfaction.
  2. Product Management.
  3. Operational Cost Control.
  4. Quality Check.
  5. . Record keeping.

 Key Performance Areas

  1. Maintaining good working condition in plant.
  2. Optimum Resource Utilization.
  3. Process Improvement.
  4. Safety and Prevention planning and control.
  5. Working within the company’s SLA(Service Level Agreement), GRC(Governance, Risk Management and Compliance) policies

Business Definitions

 Key Result Areas refer to general areas of outputs or outcomes for which the department’s role is responsible.

Key Performance Areas are the areas within the business unit, for which an individual or group is logically responsible.

.Hope the post is  able to explain the concept of KRA and KPA.

58 thoughts on “Key Result Area(KRA) and Key Performance Area(KPA)

Add yours

  1. Hello
    Thank you for giving me your valuable time….
    The above subject is very useful to me, I I’ve understood the topic…
    Thank you, again.

  2. Hie. I loved your simple and straight foward explanations on key concepts on HR management. I am a dedicated student who utilises websites which provide academic information such as the one applied above and really appreciate the help you proffer to students like me. However I am not for the idea of posting adverts on celebrities and entertainment news. They divert attention from the core target market of your site as well reducing attention spans in the minds of your readers. This negatively affects research that maybe going on for users like me. I hope in future you post adverts that are academic related in order not to lose focus.

  3. Simply amazing explanation. I have been trying to complete my KRA since last night but after reading this article it seems to be just an hour work. Thank you for the post.

  4. it is very good , i need to fix KRA an KPA for HR Executive, Finance Manager, Engineering Manager and Operation executive, can any body help.

    Z Huq

  5. I do believe the best perfomance in working oportunity, is to offer services that will make your workmates feel welcomed.

  6. Hi, please I can help regarding Performance appraisal is an annual exercise of assessment of employee performance, Key contributions area of work/KRA.
    Or post in company Senior Executive Accounts and Finance.

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