What is standardized Salary (Remuneration Benchmarking)?
In this changing era of Industrialization, demands are changing, supplies are changing, markets are changing also the employers and employees are changing. Thus it is important for an organization to have a few requisites to match this change, they are listed as under:
- quality beyond the competition;
- technology before the competition; and
- costs below the competition
Taking in consideration, the above three requisites, we may agree upon a fact that it is very necessary for an organisation to have competitive nature, in terms of quality, performance, efficiency, pace etc, so as to reach this goal companies are expected to follow benchmarking principles. Benchmarking may be defined as the set of parameters which include measurement, comparison and identification of best practices, implementation and improvement. One of the most commonly quoted definitions is
“Benchmarking is the search for the best industry practices which will lead to exceptional performance through the implementation of these best practices”
Types of Benchmarking
- Process Benchmarking, Camp (1989),Crom (1995)
This generally deals with the internal processes, performance and pointers for evaluation of them, which enables to improve and optimize them under provided situations. The basic intent behind such benchmarking is to identify and award best performers and/or performances to motivate the employees to be faster and efficient.
2) Strategic Benchmarking, Watson (1993)
Best business have best strategies and problem solving approaches, to implement this benchmarking deals with the approaches and/or strategies to provide strength to the plans and processes. A better understanding of this would enable an organisation to create a better strategy or Plans after comparing them with the previous ones.
3) Performance Benchmarking, Watson (1993)
This discusses the performance comparison and their rewards for enhancement of quality of human capital. This can be done to get a perspective of how well the organisation is performing with respect to the other companies in terms of performance, which can be helpful in identifying the gaps and loopholes in this perspective and work in strengthening performance. The basic intent behind such benchmarking is to identify and award best performers and/or performances to motivate the employees to be faster and efficient.
Further research data and analysis would be provided in next blog, stay tuned!!
