Q:

What are the advantages and disadvantages of benchmarking?

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Quick Answer

Benchmarking may contribute to company growth and foster better relations among employees by encouraging new ideas and concepts, but it can also spark competition among employees and be used to judge the work of individual employees. Benchmarking, depending on the size and collaborative spirit of the undertaking organization, may increase sales, productivity and ROI.

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What are the advantages and disadvantages of benchmarking?
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Full Answer

Benchmarking, when used effectively, can make organizations more competitive and lead to their continual improvement. However, although it is designed to benefit entire organizations, it may create the opportunity for managers to focus on the performance of individuals instead. In turn, this reduces worker productivity and may cause internal tensions.

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