What is KRA? How can an organization make effective appraisal system?

What is KRA?

KRA is key Result Area. It is the set of activities on which performance are rated. These are the main objective of the employee in an organization.

It includes 80 % of work role and 20 % of shared responsibility.

For Example KRA of an HR manager
• Recruitment (Average lead time)
• Training and development
• Employee retention and productivity

How can an organization make effective appraisal system?

• Job Relatedness.
• Reliability and validity.
• Standardization.
• Practical viability.
• Legal sanction.
• Trainings to appraiser.
• Open communication.
• Employee access to results.