Describe how benchmarking is used in an organization Is it e

Describe how benchmarking is used in an organization. Is it effective? Why or Why not?

Solution

The process through which company measures its products, services, and practices against its competitors, or other companies that are recognized as industry leaders is known as Benchmarking. It is one of a manager\'s best tools for determining that whether the company is performing its functions efficiently,and whether its costs are in line with those of other companies competing in the same industry, and whether its processes need improvement. Benchmarking can also be defined as a tool to measure internal processes against an external standards. It helps in learning from companies that are best at performing certain activities and functions and then imitating—or better still, improving on—their techniques.

With all the benefits of this process as stated above, it is an effective tools to companies to learn from industry leaders and adopting the same strategies and processes to bring efficiencies in their own processes.