Benchmarking

Benchmarking is a term used in business operating procedures. To benchmark one’s business is to compare its entire standard operating procedures, with the one which is regarded as a pioneer, or is a tycoon in the relative market. Benchmarking is done to deduce accurate performances by comparing the internal practices of an organization with the external industries.The improvements therefore are made accordingly, depending upon the purpose of benchmarking and it can be any out of the misc. e.g. reducing the cost, increasing the production, human relations, etc. Benchmarking in business is used in deciding the most appropriate and reliable way to handle all the affairs in handling a specific business. And it is through the competitive benchmarking, that companies successfully achieve their set goals and missions statement respectively.

The process of benchmarking is studied under the stream of total quality management. The TQM is a philosophy in which consist the elements of various strategies, tactics, and above all includes the competitive bench marking technique. Generally, bench marking is of two types; partially and completely. The difference between these two is that in partial bench marking, the companies’ benchmark to point out their areas of glitch and work on them. Suppose a company is running with its own S.O.Pz’ but is unable to retain employees.

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