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 carry the benchmark as too difficult to reach. Performance oust be treasured by using qualitative and quantitative benchmarking: 1) vicenary Criteria: On the solid ground of quantitative criteria act paygrade plenty be done in two shipway: an makeup arse assess how it has performed as compared to its past achievements, and it can besides compare its performance with the fabrication average or that of major competitors. There are several criteria. Mainly mo dismissary 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 net profit, stock price, dividend rates, earnings per share, yield of capital, return on equity, market share, growt h in sales, long time 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 as well as evaluate performance on the basis of the industry averages provided in industry reports published in leading business newspapers and magazines.

Quantitative Techniques for measure organizational Performance i) Return on Investment (ROI): The just about commonly used measure of corporate performance (in scathe of profits) is Return on Investment (ROI). It is simply the result of divid ing net income 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 collective 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, regulate it on our website: BestEssayCheap.com

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