The MBO exercise entails defining “What” is to be achieved i.e. the Key Performance Areas (KPA). This refers to the core areas of delivery for which an individual is responsible in his role. For example, achievement of sales targets, agent recruitment and team building etc. Every employee is expected is expected to have some KPA’s pre-defined to bring about variety in his role.
It is the performance yard-stick to assess if the performance is on track or off track. This could be a quantitative measure like percentage, numbers, days, currency etc. or a qualitative measure like feedback.
It refers to the weight assigned to a particular Key Performance Area (KPA) in the MBO sheet. A higher weightage on a KPA signifies the relative importance of that KPA vis-à-vis other KPAs with lower weightage.
A critical step towards detailed & transparent expectation setting is accomplished by agreeing upon 3 types of targets against each KPA-