Benchmarking is the process of measuring an employee’s performance against established standards. g. output per worker, level of faults/breakdowns, levels of customer satisfaction. Types of benchmarking include:
- Informal benchmarking: strategies such as informal discussions with colleagues in other businesses, undertaking visits to other businesses, researching best practice online and attending conferences.
- Performance benchmarking: comparing the performance levels of a process/activity with other businesses.
- Best Practice benchmarking: comparing the performance levels with those of another best practice business in specific areas using a structural process to gain skills and knowledge and to modify organisational processes.
- Balance Scorecard benchmarking measuring whether the activities of a business are meeting its objectives established in the strategic plan.
Extract from Business Studies Stage 6 Syllabus. © 2010 Board of Studies NSW.