- Benchmarking is :: a process in which indicators are used to compare business performance between internal sections of a business OR between businesses.
There are a variety of different benchmarking processes which include:
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Informal benchmarking:
- i.e. networking through informal discussions with colleagues in other businesses & attending conferences.
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Performance benchmarking:
- compares performance levels of a process with other businesses.
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Best practices benchmarking:
- compares levels with best practice businesses in specific areas
- using a structured process to gain skills and knowledge.
- compares levels with best practice businesses in specific areas
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Balance scorecard benchmarking:
- measures whether the activities of a business are meeting its objectives established in the strategic plan
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benchmarking process used depends on factors (e.g. cost, time)
- there has been a recent shift from relying on:
- quantitative info → to qualitative info.
- there has been a recent shift from relying on:
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Human resource audit : diagnostic tool used to evaluate HR policies and identify problems with-in the problem in an effort to rectify issues and better the performance of the department