Analysis of Parameters in Creating Key Responsibility Areas (KRAs) of Top-Level Management Executives in Service Organizations

Abstract

This research paper investigates the parameters involved in creating Key Responsibility Areas (KRAs) for top-level management executives in service organizations. KRAs are crucial in defining the scope and expectations of executives' roles and responsibilities, facilitating strategic alignment and performance evaluation. The study focuses on five fictional parameters: leadership style, customer satisfaction focus, financial performance orientation, employee development emphasis, and innovation and change management approach. A quantitative research design is employed, and data is collected through a survey questionnaire administered to top-level management executives. The Chi-Square test is used to analyze the relationship between the parameters and KRA creation. The findings reveal that leadership style, customer satisfaction focus, financial performance orientation, and employee development emphasis significantly influence the creation of KRAs. However, no significant relationship is found between the innovation and change management approach and KRA creation. The study provides implications for service organizations, including strategic alignment, performance evaluation, talent development, and customer-centricity. Recommendations for developing KRAs are also provided, emphasizing the need for a thorough analysis, collaboration, clear objectives, regular review and feedback, and ongoing training and development. The study contributes to the existing knowledge on KRA formulation in service organizations and suggests future research directions, such as validation with real data, longitudinal studies, comparative analyses, and qualitative research.