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What are the merits and demerits of an organization using Benchmarking as a way of quality management?

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Merits of Benchmarking:
(i) Benchmarking helps in beating competition because an organization is able to understand the
nature of existing competition and gets ideas from proven practices.
(ii)Benchmarking helps in identifying in performance and aids in closing the gap between
present quality and expectation.
(iii)Benchmarking provides insight into new approaches especially those used by the
competitors. This in itself provokes innovation and new thinking.
(iv) Benchmarking focuses on performance measures and processes, not on the product, hence is
not restricted to the same industry in which the company operates.
(v)It helps in establishing effective and realistic goals, vision and objectives.
(vi) Benchmarking promotes the culture of a learning organization. A well structures
benchmarking exercise is a learning experience for the institution and the means of making
use of the best ideas and knowledge available in that organization.
(vii) Benchmarking helps in creating awareness of changing customer needs.
(viii)Benchmarking provides an opportunity for sharing information among the process

Demerits of Benchmarking
(i) Benchmarking is a waste of effort and that the rewards do no outweigh the time that has
been invested.
(ii) Success is often a matter of culture and that it is very difficult to replicate those aspects of
organization that led to outstanding performance. Often the difference lies with the
competence and capability of the as well as the commitment, creativity and ability to rise to
the challenge.
(iii) Benchmarking can lead to shame culture whereby so called ‘poor performers’ are despised
such practices are not conducive to positive and forward change.
(iv) Issues of ethics and legal questions may need to be addressed especially those surrounding
the exchange of working information between organizations, particularly the competitors.
It can also be a potential security threat.
(v) Benchmarking does not identify the reasons why performance is at a particular level
whether good or bad.
(vi) Benchmarking is a catching – up exercise rather than development of anything distinctive.
In some cases after the benchmarking exercise, the competitors might improve
performance properly.

NatalieR answered the question on May 10, 2022 at 05:40

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What are the merits and demerits of an organization using Benchmarking as a way of quality management?

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