The paper deals with benchmarking, which involves a search for its genesis in the basic human instinct of comparison and judgmental reasoning. Benchmarking is a systematic comparison of processes of one organization with another, and analyzing and implementing the findings for performance improvement and withstanding competition. Three parameters of performance are identified, namely profitability, customer service and human resource satisfaction. Using these parameters, the power sector in India is studied. The power sector, which has so far remained a state monopoly, faces the eventuality of competition due to the government's privatization initiatives in this sector. This power utilities in the states are facing huge losses and are bound to be affected by the private players entering the arena. Hence, the study has its own significance. The power utility of Uttar Pradesh, UPPCL, is benchmarked against the best performing power utility in the country which is incidentally in the private sector.
Earlier
researches have proved benchmarking as a strategic tool for
improving organizational performance, productivity, and efficiency
(Chaffer, 1992; and Clark, 1993). Benchmarking is defined
as "the process of identifying, understanding, and adopting
outstanding practices from organizations anywhere in the world
to help one's organization improve its performance'' (Cogley
and Sargent, 2001). Benchmarking is an ongoing, systematic
process for measuring and comparing the work processes of
one organization with those of another by bringing an external
focus to internal activities, functions, or operations (Camp,
1989; and Kempner, 1993). The goal of benchmarking is to provide
key personnel in charge of processes with an external standard
for measuring the quality and cost of internal activities,
and to help identify opportunities for improvement (Zairi
and Leonard, 1994). It is analogous to the human learning
process, and it has been described as a method of teaching
an institution how to improve (McNair et al. 1992).
However, not everyone seems to agree with the virtues of benchmarking
as some scholars opine that benchmarking is merely a strategy
for marginally improving existing processes. It is also a
euphemism for copying and lack of innovation (Brigham and
Dale, 1995). The study proposes that these opinions may not
be seen as undermining the importance of benchmarking but
merely highlighting the fallout of overdependence on it. |
