Accidently came across of these two words. They appear similar with the abbreviations, but they have huge difference when they are in action.
KRA – Key Result Area
These are the targets decided by the top management towards every individual. The set targets are measured over period of time.
KPI – Key Performance Indicators
While the KRAs are evaluated, the managers take into consideration of these KPI information.
When I decide the performance appraisals of my team, I first set the expectations and mutually agree before the evaluation period begin and keep an eye on their approach in reaching my expectations. After the evaluation period, I’d give them my feedback in terms of the KPIs that were caught in my observations and how they have helped me to award certain benefits.
From my experience, KRAs test the ability of the employee, and identifying the KPIs of the employee is a challenge for the managers.