What is benchmarking?
A) the practice of identifying employees with promotion potential
B) the practice of identifying performance differences with competing firms
C) the process of identifying the best practices of a firm in a given area and comparing your practices to their practices
D) the process of establishing performance standards through HRP

Question

Quizplus · Accepted Answer

Benchmarking is the process of identifying the best practices of a firm in a given area and comparing your practices to their practices. It helps organizations to assess their performance, set goals and objectives, and improve their processes and systems to achieve better results by comparing themselves with the best in their industry. Therefore, option C is the correct answer. Option A is incorrect because identifying employees with promotion potential is known as talent management, not benchmarking. Option B is partially correct, but it does not encapsulate the complete meaning of benchmarking. Option D is also incorrect because establishing performance standards through HRP is called performance management, not benchmarking.

What Is Benchmarking