1. Purpose
To provide a structured process for setting goals and Key Result Areas (KRAs) for all employees, ensuring alignment with organizational objectives, fairness in performance measurement, and clarity of expectations from the beginning of each cycle.
Outcome:
Employees understand what is expected, managers can track what is delivered, and leadership can connect individual performance to business strategy.
2. Scope
This SOP applies to:
- All confirmed employees (probationers follow the 30-60-90 SOP in Stage 4).
- Annual and quarterly performance cycles.
- All departments, roles, and levels.
3. Roles & Responsibilities
| Role | Responsibilities |
| Employee | Draft initial goals aligned with role and department priorities; discuss with manager; commit to measurable KRAs. |
| Manager | Translate organizational/department goals into team KRAs; validate employee goals; ensure measurability; provide feedback. |
| HR | Provide standardized templates; conduct orientation on goal-setting; track completion status; facilitate calibration. |
| Leadership | Approve final frameworks; ensure cascading of company strategy into functional and role-level goals. |
4. Goal / KRA Setting Process
| Step | Owner | Action | Timeline | Output |
| 1. Strategy Cascading | Leadership + HR | Define annual business goals & break into departmental priorities. | Start of cycle (e.g., April) | Departmental Goal Sheet |
| 2. Template Distribution | HR | Share Goal/KRA Setting Template with managers & employees. | Within 1 week of cycle start | Standardized Template |
| 3. Drafting Goals | Employee | Draft individual goals linked to role deliverables. | Week 1–2 | Draft Goals |
| 4. Manager Review | Manager | Validate goals against SMART criteria (Specific, Measurable, Achievable, Relevant, Time-bound). | Week 2–3 | Reviewed Goals |
| 5. Alignment Meeting | Employee + Manager | Discuss & finalize goals; adjust based on role clarity & team priorities. | Week 3 | Agreed Goals |
| 6. HR Audit | HR | Check completion status; flag gaps/missing KRAs; ensure fairness across teams. | Week 4 | HR-Validated Goal Sheet |
| 7. Final Approval | Leadership (if required for senior roles) | Approve finalized goals. | Week 4 | Finalized KRAs |
| 8. Documentation | HR | Upload finalized KRAs into HRIS/Performance system. | By end of month | Record in HRIS |
5. Guidelines for Goal Setting
- SMART Framework: All goals must be Specific, Measurable, Achievable, Relevant, and Time-bound.
- Balanced KRAs:
- Quantitative (revenue, delivery timelines, defect rates, client satisfaction scores).
- Qualitative (collaboration, innovation, cultural alignment).
- Weightages:
- Each goal is assigned a weightage (%).
- Total weightages must equal 100%.
- Typical split: 70% functional goals, 30% behavioral/values.
- Linkages:
- Individual goals must link to team and organizational objectives.
- EVP pillars (Growth, Impact, Culture, Rewards, Balance) must be reflected.
- Review Frequency: Goals are reviewed quarterly and may be adjusted for business priorities.
6. Tools & Templates
- Goal/KRA Setting Template (Excel/HRIS) – standardized sheet for employees & managers.
- KPI Dictionary – reference document defining standard KPIs by function/role.
- Performance Tracker – digital dashboard for monitoring progress.
7. Compliance & Monitoring
- HR to ensure 100% goal-setting completion within the first month of each cycle.
- Any deviations (missing goals, unrealistic KRAs) must be corrected during the HR audit.
- Annual audit ensures goals are consistently aligned across functions.
8. Review & Ownership
- SOP Owner: HR Department.
- Review Cycle: Annual (aligned with performance cycle).
- Approval Authority: Head of HR in consultation with Leadership.
- Updated SOP to be stored in HR Policy Repository.