Internal Benchmarking enables the organisation to understand how maximum productivity can be achieved & what changes needs to be made in order to reach the level of highest efficiency. It has a very wide scope in improving the quality & performance levels in any company. It provides an unconventional method of analysis of any facet in the functioning of an organisation. The procedure is not only applicable for physical goods, but is also a great indicator of the performances of employees in a certain company. It can successfully bring the intricacies of different departments & prove highly beneficial in helping them to work in harmony & synchronization.
Internal Benchmarking an be defined as "best practices that are established as standards within the organisation against which performance of a department or an individual is measured."
This process is vital for creating an edge in the external market.
Internal Benchmarking like any appraisal process, needs to be carried out with care. if not conducted in a vigilant manner, it can fail to achieve its objectives & can give a false conclusions & estimations. Internal benchmarking is supposed to help a company in identifying, understanding & adopting outstanding practices from within the organisations improve its performances. However, the practice has certain problems associated with it that must be taken care of. It lacks external focus & may foster complacency as the organisations tend to bask in the thought of having outdone their expectations.
Thus, internal benchmarking can go a way long in aiding the organisations better their output levels & motivating theor staff to perform with a greater focus.