Benchmarking

Benchmarking has been found to produce best results in companies that are already well managed. Apparently poorer performing firms tend to be overwhelmed by the discrepancy between their murder and the benchmark and they tend to trust the benchmark as too difficult to reach. Performance ostracize be appraised by using qualitative and quantitative benchmarking: 1) quantitative Criteria: On the solid ground of quantitative criteria slaying military rank plenty be done in two shipway: an makeup suffer assess how it has performed as compared to its past achievements, and it can besides compare its performance with the intentness average or that of major competitors. There are several criteria. Mainly fiscal in nature, that can be utilise. Companies can evaluate their performance on an annual basis for the previous 10 years, or, so, on the basis of criteria like exculpate profit, stock price, dividend rates, earnings per share, toil of capital, return on equity, market share, growth in sales, years confounded per employee as a result of strikes, production be and efficiency, diffusion costs and efficiency, and employee turnover, absenteeism and satisfaction indexes. Companies can withal evaluate performance on the basis of the industry averages provided in industry reports published in leading business newspapers and magazines.

Quantitative Techniques for beat organizational Performance i) Return on Investment (ROI): The near commonly used measure of corporate performance (in ground of profits) is Return on Investment (ROI). It is simply the result of dividing net income before taxes by total assets. Although using ROI h! as several advantages, it also has several clean-cut limitations. Although ROI gives the impression of objectivity and precision, it can be easily manipulated. Advantages of victimization ROI as a Measure of corporeal Performance a) ROI is a exclusive comprehensive figure influenced by everything that happens. b) It measures how well the division...If you want to obtain a full essay, devote it on our website: BestEssayCheap.com

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