It refers to areas of outcomes or outputs for which a role is responsible. It specifies goals, targets of each employee, which they are supposed to achieve in a given period. It is a self-improvement exercise, which helps, in organizational development. It fosters value addition for the employees as well as the organization. Basically, each employee has 4-5 KRA’s. An employee’s work is different from his KRA’s. KRA focuses on the result & not the day-to-day activities. KRA's are the set of activities on which performances are rated.