Yes, technically they are different. In benchmarking, a company will try to meas
ID: 373993 • Letter: Y
Question
Yes, technically they are different. In benchmarking, a company will try to measure or compare its performance standards with best company in the industry having highest performance level. It is a process of assessing one's own performance against its immediate competitors in the same industry.
For example: If, Nokia compares it performance with Apple incorporation’s performance in terms of revenue. So, it will be called as benchmarking as in the same cell phone selling industry nokia is seeing its business performance with industry leader company. In quality management, a company can utilize the industry benchmark to achieve a sophisticated level of quality conscious production.
Performance measures are the parameters on the basis of which an organization can measure its overall performance. Such as, growth rate, defect per lot size, efficiency, time saving, employee’s contribution, sales turnover etc. These measures will be useful if it can be quantified easily. For example: An organization can measure its sales performance on the basis of growth in sales, and sales turnover as compared to the last year performance.
Explanation / Answer
How do benchmarks differ from performance measures? Are they different?
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