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Human resource benchmarking.

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Introduction. Benchmarking has a been a key word for human resources since back in the 70', this paper explores the issue of benchmarking within the human resource function of a company, first it will be define and discuss the concept of benchmarking within an organization, secondly it will be explore how has benchmarking evolve over the years and where does it fit in the day to day operations of a company and finally it will be illustrated how benchmarking is used within the tourism and hospitality industry to improve business performance and its operations. Benchmarking is a process of comparisons of one company with another, which is suppose to be the standard or benchmark, in human resources, aspects such as wages, sales or production objectives are aspects in which peoples managers are suppose to benchmark against other companies to measure their performance (Bramham 1997, Fowler 1997). They would also want benchmark analysis of recruitment procedures, number of staff employed and employee's productivity. So in sum there different areas for benchmarking, some are within the human resource department, others are organization wide and can be numerical or strategic like culture, value systems, development and appraisal, management training and so on. ...read more.


An interesting fact is that Xerox has taken both parallel and generic approaches to benchmarking, comparing itself with companies similar to what they do like Fujitsu and companies in a totally different industry like IBM, Hewlett Packard and Mobil (Anonymous 1995). Event though benchmarking seems to be a modern business term, according to Patterson (1996), the first ones to do benchmarking where the Egyptians, by creating marks to re-establish property boundaries after the annual flooding. It has always been important to discover the best way to complete a process, but this issue became more important in the time of the industrial revolution and even more important with the mass production efforts of World War II (Patterson 1996). Although this first points of view where focused on production, know a days benchmarking the human resource function is an important mechanism for a company to improve its efficiency and productivity (Patterson 1996). Benchmarking fits within an organization in its people, values and culture, it is suppose to improve a company's efficiency (Greengard 1995). Benchmarking cultural issues and attitudes are not easily quantifiable and are more of a qualitative nature (Nazemet as cited in Greengard 1995). ...read more.


The benchmarking efforts of a company have to be in accordance with the strategic goals, some times to resolve an operational problem those not guarantee to work towards the strategic objective at all because the root of the problem might be within more deep cultural issues and not just operational. Ritz Carlton argues they are the benchmark regarding recruitment, presumably has the highest level of customer satisfaction among their competitors, they relate this to their employee selection practices, in other words the higher the customer satisfaction is, the better their selection process is, because they have the ideal people for every job. Finally, another company that uses human resource benchmarking to maximize its profits is Starbucks, by benchmarking it reward system this company claims to posses the highest levels of job satisfaction within the fast food industry, their reward system consists of giving their employees to buy company shares at discount prices and giving them extended benefits like medical, dental and alternative services coverage, but not only their reward system is involved in their high levels of employee satisfaction, Starbucks has a very strong corporate culture and really worries about work environment issues. ...read more.

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