THE IMPORTANCE OF BENCHMARKING IN MAKING MANAGEMENT DECISIONS

• Main Authors: Adriana-Mihaela IONESCU, Cristina Elena BIGIOI
• Format: Article
• Language: English
• Published: Nicolae Titulescu University Publishing House 2016-06-01
• Series: Challenges of the Knowledge Society
• Subjects: benchmarking; performance; competitiveness; decisions; management.
• Online Access: http://cks.univnt.ro/uploads/cks_2016_articles/index.php?dir=06_business_administration_and_marketing%2F&download=CKS+2016_business_administration_and_marketing_art.107.pdf

Launching a new business or project leads managers to make decisions and choose strategies that will then apply in their company. Most often, they take decisions only on instinct, but there are also companies that use benchmarking studies. Benchmarking is a highly effective management tool and is useful in the new competitive environment that has emerged from the need of organizations to constantly improve their performance in order to be competitive. Using this benchmarking process, organizations try to find the best practices applied in a business, learn from famous leaders and identify ways to increase their performance and competitiveness. Thus, managers gather information about market trends and about competitors, especially about the leaders in the field, and use these information in finding ideas and setting of guidelines for development. Benchmarking studies are often used in businesses of commerce, real estate, and industry and high-tech software.