WHAT IS KRA ?
Key Result Areas” or KRAs refer to general areas of
outputs or outcomes for which the department’s role is
responsible.
Key Result Area in simple Terms may be defined as
Primary responsibilities of an Individual, the core
area which each person is accountable for.
Key Results Areas enables you to take ownership of
your job and to accept responsibility for those areas in
which achieving results are your responsibility.
Importance of KRAs.
• Set goals and objectives
• Prioritize their activities, and therefore improve their
time/work management
• Clarify roles of department or individual
• Focus on results rather than activities
• Align their roles to the organization’s business or
strategic plan
• Promote an environment of self-management.
DETERMINANTS OF KRA
VISION STATEMENT
MISSION STATEMENT
CORPORATE OBJECTIVES
*CORPORATE STRATEGY
*CORPORATE BUSINESS
UNITS/
DEPARTMENTAL
PLANS/STRATEGY.
Specific
Measur
able
SMART
Achiev
able
Relevant
Time
Bound
Present scenario of appraisal system
in POWERGRID
Traditional way of maintaining appraisal
system
E1 to E3 – Filled at the end of the calendar year.
Part –I Self Appraisal by Appraisee
- Main Responsibilities and task accomplished
- Major Achievements
- Task Assigned but not completed and reasons
thereof
Part –II Reporting officer
- Brief comment by reporting officer after discussion with
the apparisee.
- Brief comment on apparaisee’s job knowledge, cost
consciousness, initiative, communication skills and
commendable work done in Hindi
- Integrity assessment
E4 & E5 – Filled at the end of the calendar year.
Part –I Self Appraisal by Appraisee
- Main Responsibilities and task accomplished
- Major Achievements
- Task Assigned but not completed and reasons thereof
Part –II Reporting officer
- Brief comment by reporting officer after discussion with
the apparisee.
- Brief comment on apparaisee’s job knowledge, cost
consciousness, initiative, communication skills and
commendable work done in Hindi
- Assessment of managerial traits such as organizing
ability, team effectiveness, cost effectiveness,
development of subordinates and judgment.
- Integrity assessment
E6 /E7/E7A - Appraisal Period – Financial year
Part –IA – Performance Planning & Review
- Targets/ Key Result Areas for the year to be filled in by
the appraisee after discussion with Reporting officer.
Part –IB – Review Discussion – 1st Half
- Targets /KRAs assigned and filled.
- Brief record of discussion of the reporting officer with
the appraisee.
Part –IC – Review Discussion – 2nd Half
- Targets /KRAs assigned and filled.
- Brief record of discussion of the reporting
officer with the appraisee
Part –II – Executive Abilities
- Assessment on 10 parameters such as Job
Knowledge, Organizing Ability, Cost Effectiveness,
Team Effectiveness, Initiative, Judgment,
Development of Subordinates, Commendable work
done in Hindi and Peer Relationship.
- Integrity assessment
Management objective for different
appraisal formats for different levels
E1 to E3 – Operational level executives
E4 & E5 – Managerial cadre – heading sections
within Department.
E6 to E7A – Middle Managerial cadre
Use of Performance management system
- Clarity of expectations and responsibilities of the
employee.
- Review the performance of the employees over a
given period of time.
- Assess the gap between the actual and the desired
performance.
- Identify training and development needs of the future.
-Provide information to assist in the HR decisions like
promotions, transfers etc.
- To reduce the grievances of the employees.
- Helps to strengthen the relationship and
communication between superior – subordinates and
management – employees.
Need for Changing to a new system
To objectively provide for performance planning,
target setting and measurement.
To promote performance feedback to all executives,
with the objective of improving their performance.
Have Individual Target Alignment with
organizational MOU.
Make PMS as a business tool for appraisers to
manage performance of their team.
Link the reward system to Performance as suggested
in the Pay Commission Report.
Bring about efficiency in administration of the
Performance Management System (e-PMS).
The pay revision circular has directed
that all the CPSEs should develop a robust
and transparent Performance Management
System. CPSEs would adopt “Bell Curve
Approach” in grading the officers so that
not more than 10% to 15% executives are
Outstanding/Excellent. Similarly, 10% of
executives should be graded as “Below Par”.
The Sixth pay Commission report
also suggested adoption of Balance
Scored Card to determine the eligibility
of PRP for each Executive.
PMS in other PSUs
 To have a better understanding of industry practice in
PMS, we visited NTPC, NHPC, IOCL and BHEL to see
and understand their system and also held detailed
discussion regarding designing, implementing and
running a forward looking PMS.
 It was concluded from all the above meetings that all
these organizations today have KRA system. IOCL and
BHEL have e-enabled their Performance Management
System. KRA’s have to be set after mutual discussion
between Appraiser and apraisee.
 All the oragnisations have conducted extensive work
shop and training for making KRA directory and making
the new PMS acceptable in the organizations.
Introducing
New Performance
Management System
in POWERGRID
All the Executive in the organization has
been divided into THREE JOB CLUSTERS
•E1 to E5
•E6/E7/E7A
•E8 & E9
- Cluster I
- Cluster II
- Cluster III
These job clusters have been finalized by IE
Group during Competency Mapping exercise
The new PMS is applicable to first two job
clusters
No Change has been made in the E8 & E9
PMS
The New Appraisal formats in the New
PMS has been approved by the Board of
Directors.
The New Appraisal formats have the following
features:Part –I PERFORMANCE, Part - A.pdf, Part - B.pdf
- KRA has to be set with measurable targets
- KRA has to be aligned with MOU targets.
- KRA to be set after mutual discussion
between Appraiser and appraisee.
- KRA to be reviewed bi-annually
- Performance Review sheet shall be filled at
the end of Appraisal Period which shall
include need for training and development.
Part –II Competencies (E1toE5), (E6toE7A)
- All the Executives shall be assessed of 9
competencies identified for various job
cluster.
- Appraiser shall rate the appraisee on a scale
of 1 to 5 on competencies
Part –III VALUES (E1 to E5), (E6 to E7A)
- The values for all the job cluster is same.
- Appraiser shall rate the appraisee on a scale of
1 to 5 on values
Part – IV POTENTIAL APPRAISAL (E1to E5), (E6to E7A)
- All the Executives shall be assessed on 5
potential appraisal attributes
- Potential Appraisal attributes shall differ as per
the job cluster
- Appraiser shall rate the appraisee on a scale of
1 to 5 on values potential appraisal attributes
Marking System in the Appraisal
formats
Appraisal Parameters
E1 to E5
E6 to E7A
Performance
75
65
Competencies
15
15
Values
05
10
Potential
05
10
Total
100
100
COMPETENCIES
CompetenciesE6-E7A.doc
CompetenciesE1-5.doc.
1. Business Environment
1. Business Knowledge:
2. Profession Specific Knowledge:
2. Profession Specific Knowledge:
3. Decision Making
3. Decision Making
4. Planning & Coordination
4. Planning & Coordination
5. Systematic Thinking
5. Problem Solving
6. Learning Orientation
6. Collaboration & Networking
7. Result Orientation
7. Accountability
8. Leadership
8. Drive & Initiative
9. Team Player
9. Team Player
POTENTIAL APPRAISAL
E6/E7/E7A
E1/E2/E2A/E3/E4/E5
1. Inspire People
1. Leadership Abilities
2. Team Building
2 Business Sense
3. Ability to build a Strategic
Vision
3. Foresight
4. Business Sense
4. Innovation
5. Coaching
5. Trust and Respect
Expectation from the New
PMS
 Target setting at all executive levels
 Cascading of MOU to the lower levels to





achieve optimum performance
To provide objective assessment.
Clarity in the beginning itself as to what is
expected.
Performance feedback to all
Help in the overall achievement of Organization
Goal
Bring about efficiency in administration of the
Performance Management System by
implementing e-PMS