KRA Meaning
KRA long form refers to Key Result Area or Key Responsibility Area which is a management term. KRA full form in HR and Management describes the job responsibility of an employee and also implies the particular areas of work for which they are accountable. KRA format is based on the Job Description (JD) of the employees and they are solely responsible for the specific KRAs assigned to them. Where the full form of KRA stands for Key responsibility area, there KRAs is formulated by the corporate or organization to measure the performance of their employees in a systematic form. It can also be incorporated as an appraisal tool since this data is based on their overall performance.
KRA Full Form in Banking
KYC (Know Your Client) Registration Agency (KRA) is a branch registered with SEBI (Securities and Exchange Board of India) Regulations, 2011. KYC records of the investors are maintained with KRA centrally, in the name of a capital market arbitrator registered under SEBI.
Importance of KYC Registration Agency (KRA)
Every Intermediary forming part of the financial market is needed to adhere to the KYC provisions. It is the same as how before renting a house to a tenant, the owner gathers all of the tenant’s information. All intermediaries are needed to gather basic information about a client. Basic details of PAN, Bank accounts, Address and identification etc are collected. The objective of collecting these documents is to be able to institute the true identity and advantageous ownership of the accounts to prevent identity theft, black money, any financial fraud etc.
To brief on why KRA came into existence, here is an example. Suppose that you opened a Demat account for stock market trading with Broker 1. While opening an account, you will require submitting all your documents like PAN, Aadhar, Address proof etc. After a few days, you seek to open a new account with Broker 2 which implies that you’d have to produce the proofs all again. With the introduction of KRA, you are no longer needed to submit these proofs again to Broker 2, given that Broker 1 had registered you with the KRA when you initially opened an account with them. This means that your account gets opened faster simultaneously ensuring that all KYC criteria are complied with.
The purpose of KRA is to develop a central record of all clients KYC that facilitate the client in a way that the client needn’t submit the KYC documents again and again.
KRA Full Form in Retail
Key result areas (KRA meaning) broadly describe the job role for the employee and allow them to have transparency of their operations and objective in alignment with organizational goals.
KRA Full Form in HR
Key performance indicator (KPI) implies a mechanism incorporated to represent how well the company is able to accomplish the business goals. Key result area (KRA) in HR speaks briefly to the sector of the outcome within the organization, for which the department is responsible. KRAs in HR or any sector is basically designed by an organization to analyze the performance of the employees in a systematic way and may also be used as an assessment tool, as these measures are directed towards their total performance.
For Example, as an HR Recruiter of an organization, your KRA would be to source, recruit and train staff in addition to their appraisals, processing leaves etc.
Difference Between Key Performance Indicator (KPI) and Key Result Area (KRA)
Different Types of KRAs
Some KRA are listed below:-
Research and Development Department
Human Resource Management
Financial Management
Manufacturing and Production Department
Marketing, Promotion and Administration Cell
Information, Communication and Telecom technology
FAQs on KRA Full Form
Q1. What is Meant by 'Key Result Areas'?
Answer: KRAs or Key result areas refers to the standard metrics which a company concerned has fixed for a specific role. The term delineates the expanse of the job profile and considers almost 80%-8% of a work role.
Key result areas (KRAs) broadly describe the job profile for the employee and allow them to have better clarity of their role.
Key result areas are those areas that allow you to take complete ownership. In some organizations, even a team meeting conducted on a daily basis is part of a manager’s KRA.
That being said, KRAs could differ from organization to organization and from one work profile to another. There are no specific guidelines to describe KRAs, but broadly they summarize the job profile in addition to the key impact areas on which the employee is expected to deliver.
Q2. How is KRA Prepared?
Answer: KRAs should be well-defined, well-structured and easy to measure. A well-designed KRA enables employees to align their roles with that of the organization.
KRAs are broad categories on which the employee needs to concentrate during the year. For example, an employee who is designated as a manager in a manufacturing firm would have a different KRA than somebody who is in a technology company.
A manager working in a manufacturing firm would require focusing on keeping a check on production capacity, quality control, maintaining the budget of the department, the safety of the employees, coordination with various departments, reporting as well as introducing new technologies to enhance productivity. The Objectives and standards for each KRA should be defined in a matter that’s easily quantifiable. Every employee must have a clear understanding of their KRAs in order to perform his/her tasks efficiently.
