Benchmarking, HR Management


Benchmarking is a efficient tool that permits a company to decide whether its performance of organizational procedures and activities correspond to the best practices. Benchmarking models are helpful in determining how well a business division, unit, organization or corporation is performing compared with other like organizations. A benchmark is referred to as a point of reference for a measurement. The term 'benchmark' most probably originates from the practice of creating dimensional height measurements of an object on a workbench by means of a gradual scale or related tool, and using the surface of the workbench as the source for the measurements. 


Business benchmarking is associated with Kaizen and competitive advantage thinking. 


Use of Benchmarking

Budgetary reasons

Improving communication

Professionalizing the organization / processes, or for 

In outsourcing projects

Five types of Benchmarking

There are five types of benchmarking

1. Internal benchmarking (benchmark created within a corporation, for example among business units)

2. Functional benchmarking (benchmark for similar processes in an industry)

3. Collaborative benchmarking 

4. Competitive benchmarking (benchmark for performance or procedures with competitors)

5. Generic benchmarking (For comparison of operations between not related industries)

Typical steps in a benchmarking process

Scope or definition of a process

Select benchmark partner(s)

Find out measurement methods, units, indicators and data collection method

Data compilation

Study of the discrepancies

Present the consequences and discuss implications / improvement areas and objectives

Make enhancement plans or new measures

Check progress and plan ongoing benchmark.

Limitations of benchmarking

It is a tough process that requires a lot of commitment to be successful. 

Expensive and Time-consuming.

Posted Date: 7/23/2012 8:48:54 AM | Location : United States

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