Management

Management by Objectives
Management by Objectives is the process that links Business Objectives to Results by means of Key
Results Areas and Individual Objectives.

Key Result Areas

KRA’s are business measures which have outputs that are reportable as a ratio and if not met will
have a negative impact business performance.

Measuring job effectiveness starts with understanding the KRA’s that relate to the job function and
their associated measures.

JOB FUNCTIONS
Administrative ......................................................................................................................................... 2

Financial/Accounting .............................................................................................................................. 3

Manufacturing ......................................................................................................................................... 4

Managerial/Supervisory.......................................................................................................................... 5

Customer Service ................................................................................................................................... 6

Executive ................................................................................................................................................ 7

Human Resources.................................................................................................................................. 8

Sales....................................................................................................................................................... 9

Marketing/Advertising ...........................................................................................................................10

Information Systems.............................................................................................................................11

Purchasing............................................................................................................................................12

Maintenance .........................................................................................................................................13

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 Management

Administrative
• Administration Assistant
• Administrator
• Executive Assistant
This category covers administrative assistants, clerks, office managers, secretaries, etc., whose
responsibilities might include:

KRA Measurements
Administration Number of errors in correspondence.
Administrative Distribution Accuracy of records.
Administrative Support Deadlines met.
Calendar Maintenance Response time on requests.
Correspondence/Document Production Accuracy of information provided.
Department Liaison Number of special projects.
Expense Report Number of customer
complaints/compliments.
Filing/Record Keeping
Certification in program.
Financial Information Management
Financial information submitted on time.
General Office Operations
Number of mistakes on invoices/expense
Internal/External Customer Satisfaction
reports.
Meeting Coordination
Department/Coworker feedback.
Office Equipment Maintenance
Turnaround time for distributing documents.
Office Management
Adherence to payroll and mail schedules.
Phone Coverage
Number of times phone rings.
Project Support
Adherence to daily work list/calendar.
Record/File Retention
Customer feedback.
Records/Forms
Customer survey results.
Report Generation
Adherence to routine department
Scheduling procedures.
Supply Maintenance Turnaround time for producing meeting
minutes.
Team/Department Support
Appropriate allocation of time per
Training Coordination
assignment.
Travel Coordination Projects completed within time frames.
Appearance of correspondence.
Accuracy of mail and phone call distribution.
Accuracy of petty cash fund audits.
Clarity of written/oral communication.

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 Management

Financial/Accounting
• Accounts Payable / Accounts Receivable
• Accountant
• Senior Accountant
• Accounting Supervisor
• Controller
• Financial Director
This category covers accountants, auditors, brokers, payroll administrators, etc., whose
responsibilities might include:

KRA Measurements
Asset/Liability Management Number of deviations from customer
invoicing requirements.
Capital Expenditures and Appropriations
Resolve invoicing problems.
Cash Forecasting
Payment delays.
Collections
Number of late payments to suppliers.
Competition Analysis
Number of user complaints about late,
Cost Control
erroneous, or useless information.
Credit Approval
Time required to process payrolls.
Customer Satisfaction
Number of travel expense accounts
Customer Support processed.
Documentation Number and types of errors in reports.
External and Government Reporting Accuracy of journal entries.
Financial Analysis and Evaluation Responsiveness to invoice inquiries.
Financial Control Accuracy of budget projections.
Financial Records Percent reduction in costs.
Financial Reporting Completeness and accuracy of records.
nternal Audit Compliance Expenses vs. actual.
International Cash and Investment Analysis Accuracy of numbers.
International Cash Flow Deadlines met.
International Debt Analysis Response time for customer inquiries.
International Dividend Plan Number of complaints/commendations.
Legal Compliance Accuracy of audit reports.
Management Information Accuracy of budget reports.
Payroll Generation Payroll accuracy.
Payroll Process Payroll variance.
Process Management Accuracy of payroll checks.
Report Generation Timeliness of deposits.
Risk Reviews Percent processed payments.
Security Encoding errors.
Vendor Relations Management Timeliness of check processing.

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 Management

Manufacturing
• Inventory Clerk
• Line Worker
• Line Engineer
• Manufacturing Manager
• Quality Inspector
• Quality Manager
• EHS Officer
• Material Handler
This category covers assemblers, machine operators, production supervisors, etc., whose
responsibilities might include:

KRA Measurements
Budget Management Money spent vs. budget.
Cost Management Cost of units produced.
Customer Satisfaction Reduction of cost per unit produced.
Documentation Logs completed on time.
Inventory Control Accuracy of logs.
Job Coordination/Completion Accident reports (OSHA, personal, vehicle).
Labor Management Quarterly safety audit results.
Maintenance Nonconformance incidents.
Process Improvement Number of complaints per unit of production.
Production Percentage of on-time deliveries.
Quality Assurance Number of OSHA violations cited.
Record Maintenance Unscheduled shutdowns.
Regulatory Compliance Number of spills or leaks.
Resource Management Units produced.
Safety Dollars per unit.
Schedule Management Number of incident reports.
Security Management Number of system problems.
Team Support Deadlines met.
Percentage of staff cross-trained.
Weekly targets.
Reject rate.
Percentage of overtime hours.
Hours training per employee.
Adherence to security guidelines.
Rework required.
Injury rate.

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 Management

Managerial/Supervisory
• Manager
• Supervisor
• Leader
This category covers managers, superintendents, supervisors, etc., whose responsibilities might
include directing, supervising people or making decisions.

KRA Measurements
Administration Cost-improvement savings.
Budget Money spent vs. budget.
Business Development Cost of units produced.
Business Strategy Reduction of cost per unit produced.
Customer Satisfaction Accident reports (OSHA, personal, vehicle).
Field Sales Support Quarterly safety audit results.
Financial Management Number of complaints per unit of production.
Interdepartmental Relations Percentage of on-time deliveries.
Internal Communication Number of OSHA violations cited.
Internal Operations Management Unscheduled shutdowns.
Legal Compliance Number of spills or leaks.
Marketing Units produced.
Production Dollars per unit.
Profitability Number of incident reports.
Quality Assurance Deadlines met.
Recruiting and Selection Percentage of staff cross-trained.
Resource Management Certifications.
Revenue Accuracy of allocation of personnel to the
job.
Safety
Weekly targets.
Sales and Marketing Support
Reject rate.
Service Quality
Reviews completed on time.
Staff Development
Percentage of overtime hours.
Staff Management
Hours training per employee.
Strategic Planning
Rework required.
Technology/Product Development
Injury rate.
Training

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 Management

Customer Service
• Customer Service
• Customer Service Officer
• Data Entry Clerk
This category covers customer complaint clerks, customer service representatives, service
investigators, etc., whose responsibilities might include being responding to customer requests for
information, helping customers place orders or investigating and resolving customer complaints about
merchandise, service, billing, or credit ratings

KRA Measurements
Account Information Management Accuracy of routed calls.
Account Maintenance Number of calls taken/placed.
Administration Accuracy of orders placed.
Billing Number of complaints/compliments received.
Complaint Resolution Response time for return calls.
Customer Assistance Number of complaints resolved without
further action.
Customer Satisfaction
Dollar amount lost due to representative
Documentation
error.
Field Liaison
Currency/Accuracy of customer information.
Order Fulfillment
Number of new sales leads per quarter.
Product/Market Knowledge
Accuracy of credited returns.
Records/Forms
Accuracy of documented product complaints.
Report Generation
Budget compliance.
Courtesy ratings.
Percent repeat complaints.
Number of coding errors.
Accuracy of information provided to clients.
Percent of problems resolved the first time.
Accuracy of shipping information.
Quality/Accuracy of schedules.
Timeliness/Accuracy of reports.
Quality/Timeliness of contract maintenance.
Product training completion.

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 Management

Executive
• Director
• General Manager
This category includes chief executive officers, managing directors, presidents, etc., whose
responsibilities might include developing and establishing organizational policies and objectives,
reviewing reports/financial statements for progress toward objectives, revising objectives and plans
according to current conditions or increasing productivity.

KRA Measurements
Budget Percent of market share/penetration.
Business Development Number of articles written, interviews given.
Business Strategy Percent of development plan completed.
Capital Expenditures/Appropriations Earnings per share.
Climate/Culture Expenses by department, region, etc., vs.
budget, forecast.
Community/Industry Involvement
Loan to deposit ratio.
Compensation and Benefits
Business unit profitability.
Customer Satisfaction
Sales by territory/country.
Expense Management
Business unit revenue vs. budget, forecast
Financial Strategy
growth.
Information Management
Dollars saved in compliance.
Internal Operations
Customer growth rate.
Labor Relations
Revenue per account segment.
Marketing
Technological improvements.
Operational Plan
Effectiveness/Profitability of
Pensions/Benefits Administration partnerships/alliances.
Policy Development Shareholder satisfaction.
Production Internal cost per employee.
Profitability Number of new products introduced.
Public Relations Accuracy of financial projections.
Quality Actual vs. planned spending.
Regulatory Compliance Actual expenditures/revenues vs. plan.
Salary Administration Revenue growth rate.
Staff Development Profit margin.
Staffing Labor dollars compared to revenue dollars.
Technology/Product Development Sales cost/revenue.
Union Contract/Legal Compliance

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 Management

Human Resources
• Personnel manager
• Recruitment Officer
• Trainers
• Employee Relations Officer
This category covers personnel managers, recruiters, training representatives, etc., whose
responsibilities might include creating personnel policies, conducting programs for recruitment,
training, development, retention, promotion, compensation, benefits, labor relations, and occupational
safety.

KRA Measurements
Associate Development Opinion survey rating on responsiveness,
timeliness, and quality of recruiting,
Benefits Administration
compensation, or benefit services.
Career Development
Number of unfilled employment requests.
Compensation Design/Administration
Number of days to fill an employment
Counseling request.
Employee Relations Number of days to respond to compensation
change notice.
Employee Retention
Turnaround time to process benefits
Human Resources Information System statements.
Administration
Number of people hired vs. number of
Job Redesign people interviewed:
Labor Relations Number of jobs offered vs. number of jobs
Policy Development accepted.
Record/File Retention Percent of turnover.
Recruitment Number of salary reviews completed on time.
Regulatory Compliance Adherence to government regulations.
Report Generation Accuracy/Completeness of employee
records/human resources information
Salary Administration system.
Staffing, Selection, and Placement Number of trained personnel within target
Training and Development population.
Union Contract Administration and Number of candidates selected who meet job
Negotiation criteria.
Accuracy of job descriptions.
Legal compliance.
Percent of performance plans completed on
time.
Percent of performance appraisals
completed on time.
Quality of performance appraisals.
Satisfaction with training.

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 Management

Sales
• Account Executive
• Sales Representative
• Sales Manager
• Telesales
• Key Account Representative
• Sales Director

This category covers account executives, sales agents, sales representatives, etc., whose
responsibilities might include selling, demonstrating, and soliciting orders for various products and
services.

KRA Measurements

Account Acquisition Number of calls per week.

Account Base Maintenance Number of calls per client.
Account Development Percent of business retained.
Account Expansion Number of new clients/contracts.
Account Management Revenue vs. projections.
Account Planning Percent of market share in designated
territory.
Account Selling
Number of leads generated.
Budget Management
Closing sales.
Business Development
Effectiveness of presentations.
Contract Generation
Percent of sales quota met or exceeded.
Customer Education
Accuracy of sales forecast.
Customer Satisfaction
Customer problem resolution.
xisting Business Retention
Accuracy of account/client information.
Information Management
Number of complaints/compliments from field
Lead and Inquiry Qualification
or customers.
Marketing
Expense vs. sales ratio.
Product Knowledge
Number of follow-up calls made (resulting in
Proposal Generation sales).
Record/File Maintenance Number of marketing initiatives that lead to
sales.
Report Generation
Number of incomplete/incorrect orders
Sales (new business) placed.
Sales Forecasting
Number of expense reports completed on
Sales Revenue/Profitability time
Territory Management

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 Management

Marketing/Advertising
• Product Manager
• Marketing Manager
This category covers advertising managers, marketing strategy coordinators, public relations
representatives, etc., whose responsibilities might include influencing customer preference for
products and services, managing advertising programs, selecting, developing, and distributing
favorable, persuasive material to sell products or services or developing credibility or creating a
favorable public image for an individual, group, or organization.

KRA Measurements

Advertising Customer satisfaction rating of marketing

services:
Brand Management
Proposals.
Budget
Brochures/Communications.
Business Development, Acquisition,
Penetration, Expansion Consulting.
Field Support Order processing.
Financial Management Number of contracts/orders for which
marketing has communicated customer
Market Analysis
requirements to the rest of the organization.
Marketing Plan
Number of proposals 100 percent responsive
Marketing Plan Execution to technical specifications.
arketing Research Number of proposals won vs. number
submitted.
Marketing Schedule Management
Turnaround time to prepare proposals (RFP
Material Development
receipt to submittal) vs. hands-on time to
Media Relations prepare proposals.
Product Launch Communication Response time to internal and external
customer inquiries.
Promotional Strategy
Percentage of accurate price or delivery
Public Relations estimates.
Special Projects Management Number of errors in brochures
Staff Management/Development Number of customer complaints.
Vendor Relations Management Number of repeat customers.

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 Management

Information Systems
• Help Desk Representative
• Network Administrator
• Programmer
• Systems Analyst

This category covers computer analysts, information system administrators, programmers, etc.,
whose responsibilities might include coding information into computer language, developing and
writing natural and artificial computer programs, preparing flow charts and documents or installing
hardware and software.

KRA Measurements

Budget Management Percent of services or programs designed to

comply with customer requirements.
Business Needs Assessment
Number of user complaints.
Customer Service
Jobs completed on schedule.
Database Administration
Percent of calls responded to by help
Defect Analysis and Repair
line/help desk.
Hardware/Software Maintenance
Computer network availability (hours
Information Strategy Plans available vs. hours scheduled or total hours):
Installation Services Number of shutdowns per month.
Network Management Percent of reports generated that are
accurate, timely, and valuable.
Product Programming
Percent of time equipment functions properly.
Product Quality
Percent of time inventory levels are
Product Specifications Development
appropriate.
Software Development Percent of time staying abreast of
Software Production technological advancements.
System Analysis Number of times unable to reach while on
call.
System Enhancements
Number of times communication to end users
System Implementation is understandable and relevant.
Technology Integration Time to resolve user problems.
User Support and Consulting Accuracy of database.
Deadlines met.

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 Management

Purchasing
• Procurement Manager

This category covers buyers, contract administrators, purchasing agents, etc., whose responsibilities
might include negotiating and contracting for the purchase of equipment, products, and supplies or
determining quantity and quality to be purchased, determining costs, delivery dates, contract
conditions, and sources of supplies or taking inventories.

KRA Measurements

Budget Management ustomer satisfaction/opinion survey ratings

on accuracy, timeliness, or quality of
Contract Management
materials.
Contract Negotiation
Time elapsed from request to purchase order
Cost Containment placement.
Customer Satisfaction Cost of rush orders (expediting hours,
premiums, shipping, and approvals).
Database Management
Number of items on hot list.
Inventory Control
Schedule delays or downtime because of
Order Fulfillment parts shortages.
Packaging Time required to replace incorrect material.
Purchase Order Creation
Number of computer system input errors,
Purchase Order Maintenance including number of:
Report Generation Shipments received without purchase order
on system.
Vendor Evaluation/Assessment
Invoices received without purchase order on
Vendor Relations Management system.
Production scheduling delays because of
part number or delivery schedule errors.
Number of waivers to approved supplier list.
Cost savings realized from volume orders or
long-term partnerships.
Errors per purchase order.
Cost of parts scrapped because of mistake in
order or defective material.
Budget vs. actual dollars spent.
Percent customer delivery requirements met.
Percent reduction in inventory.
Cost savings generated.

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 Management

Maintenance
• Maintenance Engineer
• Engineering Manager
This category covers maintenance repairmen, mechanics, service technicians, etc., whose
responsibilities might include installing, maintaining, and repairing mechanical equipment and
appliances.

KRA Measurements

Equipment Installation Number of repeat visits for same problem.

Equipment Maintenance Results of customer satisfaction surveys.
Equipment Repair Accuracy/Completeness of records.
Information Management Cost savings passed on resulting from
improvements.
Inventory Management
Number of process improvements.
Problem Resolution
Number of complaints/compliments.
Process Improvements
Number of incident reports filed because of
Professional Certification
unsafe working conditions.
Record Maintenance
Number of training courses completed.
Safety
Unplanned monetary costs resulting from
Service Quality accidents or lost-time injuries.
Team Support Number of complaints about and compliments
for suppliers from field personnel.
Training
Percent of technical problems resolved in a
Work Area Maintenance timely manner.
Number of warranty claims.
Losses caused by rework as the result of
misdiagnosed problem.
Number of customers lost because of quality
problems.
Losses caused by equipment malfunction.
Timeliness of repair work completion.
Quality of repairs.
Number of process or service improvements
suggested.
Expenses vs. budgeted expenses.
Percent overtime.

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