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 call back the benchmark as too difficult to reach. Performance discharge be gauged by using qualitative and quantitative benchmarking: 1) vicenary Criteria: On the solid ground of quantitative criteria surgery rating plenty be done in two ways: an makeup behind assess how it has performed as compared to its past achievements, and it can besides compare its performance with the manufacture 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 realize profit, stock price, dividend rates, earnings per share, output of capital, return on equity, market share, growth in sales, age confounded per employee as a result of strikes, production cost and efficiency, diffusion costs and efficiency, and employee turnover, absenteeism and satisfaction indexes. Companies can too evaluate performance on the basis of the industry averages provided in industry reports published in leading business newspapers and magazines.

Quantitative Techniques for quantity organizational Performance i) Return on Investment (ROI): The closely commonly used measure of corporate performance (in harm of profits) is Return on Investment (ROI). It is simply the result of dividing net i ncome before taxes by total assets. Although! using ROI has 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 incarnate 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, show it on our website: BestEssayCheap.com

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