International bussiness performance appraisal Essay

International bussiness performance appraisal - Essay Example The elements of benchmarking notably considered are time, quality and cost (Schiffauerova and Thomson, 2006, pg. 650). Benchmarking involves a methodology whereby the management of a firm identifies the leading companies in the industry then compares and contrasts their processes with those of their own. Benchmarking employs several methods, but all of them are geared to enabling the company achieve a competitive advantage over its rivals. In evaluating how benchmarking can be used in measuring the performance of the organisation, there are three key aspects and issues that relate to benchmarking. This includes why organisations should engage in benchmarking, the scope and limitations of benchmarking and the possible solutions. In tackling these key aspects, a business will know whether to use benchmarking and how to use it best (Goetsch and Davis, 2014, pg. 9). Benchmarking as an appraisal mechanism offers various advantages to the firm executing the approach. One of the key benefits that accrue to a firm when benchmarking is the performance improvement. Benchmarking sets the basis of performance development intended for facilitating competitiveness. In the quest for finding ways to outperform competitors, benchmarking ensures the fundamental survival of any business. Moreover, Camp (2003, pg. 29) suggests that benchmarking identifies best practices in the industry then establishes what comprises better-quality performance. The process of also benchmarking enumerates the gap between the actual performance and the anticipated performance thereby instituting real objective facts about the business. Consequently, this provides the business entity with what improvement entails and the rationale to improve (Dragolea and Cotirlea, 2009, pg. 820). Benchmarking also helps organisations to focus on transformation and presents the direction for the transformation process. Organisational