Benchmarking

The competition has been increasing extremely in the last few decades. Organizations have to do more things nowadays than in the past if they want to survive in this high competition market. Organizations have to be aware of their performance and position in order to make the right decisions in any organization activities or actions. There are many performance measurement tools that exist, such as total quality management, balanced scorecard or economic value added. But benchmarking is the only one which is done externally. Of course all the performance measurements are important for the organization but benchmarking has an extra advantage compare to others that it is done externally. It is a tool that an organization has to apply if it wants to know its position, monitor, control and information for decision making. The data the organization gets out of benchmarking will help the organization to improve profitability, productivity, using the resource effective and efficient, control the resource, cut the waste within the organization, monitor the actions and help the organization to make right decisions.