Benchmarking is a crucial management tool that guides the stakeholders on the overall performance of the organization as well as mobilizing the employees on a continuous improvement of the organisation’s environmental and social performance. Bench marking is considered to have an impact when the results of the organization performance are immediate (Vorhies and Morgan, 2005). It is essential to recognize that benchmarking and the transfer of the best industry practices are supposed to help an organization in the long run through maximum utilization of the available resources and filling in the gaps associated with an organization poor performance (Drew, 1995).
The notion of a single best practice may be overstated. Distinctive human resource practices help to create unique competencies that differentiate products and services and drive competitiveness in organizations. People management practices are the drivers of efforts to create distinctive competencies and, in turn, business strategies. There are various human resource management models that have been used by companies to benchmark and stay competitive in the turbulent business environment and they include the Industrial Organization Model and McKenzie’s 7s Strategy which include shared values, structure, strategy, systems, style, staff and skills.
Shared values are commonly held beliefs, mindsets, and assumptions that shape how an organization behaves and its corporate culture. Shared values are what engender trust. They are an interconnecting centre of the 7Ss model. Values are the identity by which a company is known throughout its business areas, what the organization stands for and what it believes in, it central beliefs and attitudes. These values must be explicitly stated as both corporate objectives and individual values.
Structure is the organizational chart and associated information that
References: Drew, S. A. W. (1995). Strategic Benchmarking: Innovation Practices in Financial Institutions. International Journal of Bank Marketing 13 (1),4-16. Vorhies, D. W., & Morgan, N. A. (2005). Benchmarking Marketing Capabilities for Sustainable Competitive Advantage. Journal of Marketing 69 (January Issue), 80–94.