(i)  KRA means Key result areas. Key Result area are fixed on the basis of organisational objectives premises.
(ii) Key Result Areas are arranged on a priority basis. KRA indicates the strength of an organisation.
(iii) The examples of KRA are profitability, market standing, innovation etc.

The advantages of MBO are
(i) MBO gives the criteria of performance, It helps to take corrective action
(ii) MBO process helps the managers to understand their role in the total organisation.

(i) Management by exception is an important principle of managerial control suggested by the classical writers on management.
(ii) It is a style of business management that focuses on identifying and handling cases that deviate from the norm.

The objectives of MBO are ;
(i) to measure and judge performance.
(ii) to relate individual performance to organisational goals

(i) Primarily, it is necessary to set objectives or norms with predictable or estimated results.
(ii) These performances are assessed and get equated to the actual performance. Next, the deviation gets analysed.
(iii) With an insignificant or no deviation; no action is a required and senior managers can concentrate on other matters.
(iv) If actual performances deviates significantly, the issue needs to be passed to the senior managers, as an exception has occurred.
(v) Finally the union is to solve this "exception" immediately.

The MBO process is characterised by the balance of objectives of the organisation and individual. The process of MBO is explained below
(i) Defining Organisational Objectives
(ii) Goals of Each Section.
(iii) Fixing Key Result Areas
(iv) Setting subordinate objectives or targets.
(v) Matching resources with objective.
(vi) Periodical review meetings.
(vii) Appraisal of activities.
(viii) Re-appraisal of objectives.
 

(i) An attempt ismade by the management to integrate the goals of an organisation and individuals. This will lead to effective managerment.
(ii) MBO tries to combine the long run goals of organisation with short run goals.
(iii) Management tries to relate the organisation goals with society goals.
(iv) MBO's emphasis is not only on goals but also on effective performance.
(v) It increases the organisational capability of achieving  goals at all levels.
(vi) Aims at replacingthe exercise of authority with consultations.

(i) The main disadvantage of MBE is, only managers have the power over really important decisions, which can be demotivating for employees at a lower level
(ii) Furthermore, it takes time to pass the issues to managers.
(iii) Managing employees who deviate from the normal procedures.
(iv) Because of compliance failures are considered difficult to manage and typically find themselves with limited job duties and ultimately dismissed / terminated.

The advantages of MBO are explained below:
(i) Managers are involved in objectives setting at various levels of management under MBO and this commitment ensures hard work to achieve them.
(ii) MBO process helps the managers to understand their role in the total organisation.
(iii) Manager recognises the need for planning and appreciates the planning.
(iv) MBO provides a foundation for participative management. Subordinates are also involved in goal setting.
(v) A department does not work at cross purpose with another department.