KPI

Meaning & Definition

A KPI (Key Performance Indicator) is the most common measure that is used to evaluate the performance of employees or teams in relation to certain corporate objectives. KPIs enable corporations to monitor productivity, effectiveness, and success in various domains like sales, human resources, finance, and operations. In the domain of human resources, KPIs find broad applications in performance appraisal and management.

Important Features of KPI

• Measures employee and organizational performance.
• Facilitates goal setting and performance monitoring.
• Increases productivity and accountability at work.
• Supports HR professionals in assessing employee performance.
• Facilitates evidence-based decision-making and workforce management.

Legal Compliance & Policy Guide

There is no specific statutory compliance associated with KPIs in India. However, it must be ensured that fair, objective, and job-oriented performance assessment procedures are in place when KPIs are implemented within an organization.