KRA stands for Key Responsibility Area and is used to describe the primary functions and duties of an employee’s role. It helps organizations structure performance management systems by focusing on responsibility areas instead of only performance outcomes. HR professionals use KRAs to design appraisal criteria, track role effectiveness, and guide employee development. When employees understand their KRAs, they gain clarity about their job priorities and can manage time and resources more efficiently. The concept of KRA ensures that performance is measured fairly based on defined responsibilities rather than subjective judgments.