A KRA, or Key Result Area, is a specific area of responsibility within an organization that is crucial for achieving its goals. It helps employees understand their roles and the expected outcomes of their work. By focusing on KRAs, organizations can align individual performance with overall business objectives, ensuring that everyone is working towards the same targets. KRAs are often used in performance management systems to evaluate employee effectiveness. They provide a clear framework for assessing contributions and can include metrics related to productivity, quality, and customer satisfaction. This structured approach helps in identifying strengths and areas for improvement in an employee's performance.