AboutLeo Lingham Expertise human resource management, human resource planning, strategic planning in resource, management development, training, business coaching, management training, coaching, counseling, recruitment,
selection, performance management.
Experience 18 years of managerial working exercise which covers business planning , strategic planning, marketing, sales management,
management service, organization development
PLUS
24 years of management consulting which includes business planning, corporate planning, strategic planning, business development, product management, human resource management/ development,training,
business coaching, etc
Question hi i need to identify KRA's for a pharmaceutical company. can you please give me a specific example for KRA of HR pharmaceutical company? thank you
Answer MOMSIE,
HERE IS SOME USEFUL MATERIAL.
REGARDS
LEO LINGHAM
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WHAT ARE KRA ---KPA --- KPI .
Key Result Areas [KRA]
“Key Result Areas” or KRAs refer to general areas of outcomes or outputs for which the department's role is responsible. A typical role targets three to five KRA.
Value of KRAs.
Identifying KRAs helps individuals: · Clarify their roles · Align their roles to the organisation’s business or strategic plan · Focus on results rather than activities · Communicate their role’s purposes to others · Set goals and objectives · Prioritize their activities, and therefore improve their time/work management · Make value-added decisions
Description of KRAs
Key result areas (KRAs) capture about 80% of the department's work role. The remainder of the role is usually devoted to areas of shared responsibility (e.g., helping team members, participating in activities for the good of the organisation).
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KEY PERFORMANCE AREAS.[KPA]
When the key results area is large,
it is broken into manageable areas for managing/ evaluation.
KRA and hence KPI is attributed to the department /INDIVIDUAL which
can have effect on the business results and is
self measured where applicable.
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FIRST STEP
review the company's
*VISION STATEMENT
*MISSION STATEMENT
*CORPORATE OBJECTIVES
*CORPORATE STRATEGY
*CORPORATE BUSINESS UNITS/ DEPARTMENTAL PLANS/STRATEGY.
FOR THE BUDGET PERIOD, WHICH IS USUALLY 12 MONTHS.
THIS IS A MUST STEP, AS NO KPi CAN BE SET,
WHEN IT IS NOT ALIGNED WITH THE CORPORATE OBJECTIVES.
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SECOND STEP,
TAKE EACH DEPARTMENT ----ONE AT A TIME.
review, the
*DEPARTMENT OBJECTIVES
*DEPARTMENT STRATEGIES
* DEPARTMENTAL PLANS.
FOR THE BUDGET PERIOD, WHICH IS USUALLY 12 MONTHS.
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THIRD STEP
REVIEW THE JOB DESCRIPTIONS OF THE DEPARTMENT.
START WITH THE HEAD OF THE DEPARTMENT HEAD.
-review the job description.
-from the job description, pick 5 key areas which will impact
on the results of the department.
-weightage the 5 key areas according to the importance
and the weightage must add upto 100.
-IF REQUIRED, YOU CAN BREAK THE KRAs
into KPAs---if the KRAs are large.
-then develop the KPi----which the key performance indicators
based on the corporate / department objectives.
To manage each KRA/ KPA , a set of KPI are set .
KRA and hence KPI is attributed to the person who
can have effect on the business results and is
self measured where applicable.
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EXAMPLE 1--HRM
LET US NOW WORK ON HUMAN RESOURCE DEPARTMENT.
CORE KRAs of HR DEPARTMENT
-REWARD MANAGEMENT
-WORKPLACE MANAGEMENT
-INDUSTRIAL RELATIONS
-SAFETY AND HEALTH WORKPLACE
-BUILDING CAPABILITIES AND ORGANIZATION LEARNING
-EFFECTIVE HR MANAGEMENT SYSTEMS , SUPPORT AND MONITORING
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THIS IS THE JOB DESCRIPTION OF THE DEPARTMENTAL HEAD.
Human Resources Manager
Position: HRM
Position reports to:
Chief Executive
Primary objective
Plan, develop and direct Human Resource policies for the organisation and implement procedures to achieve the most effective use of human resources to acl‑iieve profitability and business objectives.
Specific accountabilities/ responsibilities
Plan, make recommendations and devise personnel and industrial relations policy, in consultation with other senior management.
Establish and direct the organisation's HR procedures and strategies, taking account of the operating environment.
Develop, and direct the setting of performance targets, and participate in business planning and strategy determinations to ensure HR specifications meet the business objectives. Prepare budgets, and other management plans.
Monitor industrial relations developments to prevent and settle disputes. Direct negotiations with unions, industry groups and industrial authorities to determine agreements and minimise the possibility of industrial dispute.
Control and co‑ordinate activities such as personnel administration, staff selection and training, employee relations, wage and salary administration, security, health and safety, employee benefits and remuneration strategy.
Direct and maintain a corporate workforce plan and initiate appropriate action in relation to the organisation's use and development of employees.
Represent and direct the organisation in dealings with other organisations, employer groups, industry associations, unions, government authorities and other relevant bodies as required.
Control the collection, maintenance and interpretation of management information and records to monitor performance, control the preparation of reports (including Affirmative Action) and authorise the release of information.
Ensure the organisation's training activities are planned to meet current and future organisation and employee needs, and satisfv
government training requirements.
Review regularly the organisation's remuneration policy, including its market competitiveness, benefit and reward structures, and internal relativity and equity.
Make policy decisions as appropriate, and accept responsibility for operations, performance of staff, achievement of objectives and adherence to budgets.
Establish lines of control and delegate responsibilities to subordinate staff; control the selection and training of staff. May train and advise other managers in Human Resources or industrial relations matters.
Ensure all activities undertaken by Human Resource department employees comply with relevant Acts, legal demands and ethical standards.
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FOR THIS EXERCISE, WE HAVE TAKEN 6 KRAs
THE KRAs for HR [ weightage of importance %]
1.RECRUITMENT/ SELECTION [ 20%]
2.WORKFORCE PLANNING/ DIVERSITY [ 20%]
3.PERFORMANCE MANAGEMENT [ 25%]
4.REWARD MANAGEMENT [20%]
5.WORKPLACE MANAGEMENT AND RELATIONS [ 10%]
6.BUILDING CAPABILITIES AND ORGANIZATION LEARNING [ 5%]
TOTAL [ 100% ]
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OUT OF THE 6 KRAs, only one KRA is large
and hence broken into 2 KPAs
KRA =RECRUITMENT/ SELECTION.
KPA 1 = RECRUITMENT
KPA 2 =SELECTION
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AGAIN AS AN EXAMPLE, IF THE
CORPORATE OBJECTIVE / STRATEGY, SAY IS
-improve the company competitive positioning and productivity
by 10%.
THEN THE
HR DEPARTMENT'S OBJECTIVE IS
-Achieve high productivity level in all activities [ say by 10%]
WHICH MEANS
KRA 1 -RECRUITMENT/ SELECTION
[KPI= fix the average time taken per employee 2 months MAXIMUM]
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KRA 2 - WORKFORCE PLANNING/ DIVERSITY
ABSENTEEISM [ KPI =maintain absent rate at 5%]
TURNOVER [ KPI = control turnover rate at 7%]
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KRA 3- PERFORMANCE MANAGEMENT
PERFORMANCE APPRAISALS [KPI = all staff to be appraised at least once annually]
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KRA 4 - REWARD MANAGEMENT
MARKET ORIENTED SALARY STRUCTURING [ KPI = total compensation to sales 12%]
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KRA 5 - WORKPLACE MANAGEMENT AND RELATIONS
JOB EVALUATIONS [ KPI = 600 lower staff , below grade 4 to be evaluated]
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KRA 6 - BUILDING CAPABILITIES AND ORGANIZATION LEARNING
TRAINING [ KPI = average training hours per employee annually= 3 days or 24 hours]
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THIS IS , ROUGHLY, HOW HR DEPARTMENTS
KRAs / KPAs / KPIs ARE SET , MONITORED AND
EVALUATED
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EXAMPLE -- KRAs FOR SALES
KRA 1 --- SALES.
kpi 1=sales actual/ sales budget [ this year ] [ % increase]
kpi 2=this year actual sales vs last year actual sales.[ %]
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KRA 2 --- GROSS PROFIT [ GP ]
kpi 1=GP actual/ GP budget [ this year ] [ % increase]
kpi 2= GP actual / SALES actual [this year ] [ % increase ]
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KRA 3 --- SALES EXPENSES [ SE]
kpi 1= SE actual/ SE budget [ this year ] [ % increase or decrease]
kpi 2= SE actual / SALES actual [this year ] [ % increase or decrease ]
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KRA 4 --- Sales value productivity
kpi 1=Sales value productivity per day [ actual / target ]
kpi 2 = Sales value productivity with existing customers (up-sell and cross-sell) [actual / target ]
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KRA 5 --- Customer service
To provide effective, efficient, professional service and advice to ensure client satisfaction of the highest level. This through effective and efficient management of individual portfolio and database of prospects, current clients and past clients.
kpi 1:Remain informed and up to date with regards to Industry related news, Opposition activity, product knowledge and continuously strive to develop own skills and knowledge in order to perform optimally.
kpi 2 : Puts PRODUCT / technical knowledge to commercial use and prepares estimates and tenders in accordance with sales and pricing policy.
kpi 3 :Monitor competitive activity and report significant developments to management.
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KRA 7 - MANAGING CUSTOMER COMPLAINTS
Establish and maintain a high level of customer satisfaction. Communicate to and work with the other departments as necessary to resolve unique customer issues/concerns.
kpi : minimal customer complaints.
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KRA 8 - MANAGING ACCOUNTS RECEIVABLE
Works with Accounts Receivable to collect on accounts and to define credit terms that will most likely achieve payment and retain the customer
kpi : debts- less 30 days.
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KRA 9 --- NEW ACCOUNTS PLANNING AND DEVELOPMENT.
To source and secure new business to ensue optimal growth for the company products, in accordance with new business targets set.
kpi 1=sales actual/ sales TARGET [ this year ] [ % increase]
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KRA 10 --- RETAINING EXISTING DEALERS
To optimise retention of existing business by maintaining at least an 95% . This within rate achievement and effective credit policy parameters.
kpi 1 = 95% of the current strength.
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