TABLE OF CONTENTS
TITLE ……………………………………………………………………………….. i
DECLARATION ……………………………………………………………….. ii
CERTIFICATION
……………………………………………………………. iii
DEDICATION
………………………………………………………………… iv
ACKNOWLEDGEMENT …………………………………………………. v
TABLE OF CONTENTS…………………………………………………. viii
ABSTRACT…………………………………………………………………….. xi
CHAPTER
ONE
INTRODUCTION
1.1 Background of the Study …………………………………………. 1
1.2 Statement of Problem ……………………………………………… 4
1.3 Objectives of the Study ………………………………………….. 6
1.4 Research Questions ……………………………………………….. 7
1.5 Hypotheses ……………………………………………………………. 7
1.6 Significance of the Study ………………………………………… 8
1.7 Scope and Limitations of the Study ……………………….. 10
1.8 Definition of Terms and Acronym ………………………….. 10
CHAPTER
TWO
LITERATURE
REVIEW
2.1 Definition and Concept of Benchmarking ………………. 12
2.2 What to Benchmark ………………………………………………. 16
2.3 Types of Benchmarking ……………………………………….. 19
2.3.1 Internal Benchmarking
…………………………………. 19
2.3.2 External Benchmarking
……………………………….. 21
2.4 Techniques of Benchmarking ……………………………….. 31
2.5 The Benchmarking Process …………………………………. 33
2.6 The Concept of Performance Management …………… 37
2.7 Elements of Performance Management ………………… 40
2.8 Key Performance Indicators ………………………………….. 44
2.9 Benchmarking and Performance Management ……… 47
CHAPTER
THREE
RESEARCH
METHODOLOGY
3.1 Research Design ………………………………………………….. 52
3.2 Area of Study ……………………………………………………….. 52
3.3 Sources of Data ……………………………………………………. 53
3.3.1 Primary Sources ………………………………………….. 53
3.3.2 Secondary Sources ……………………………………… 53
3.4 Study Population …………………………………………………… 54
3.5 Sample Size Determination and Sampling Technique 54
3.6 Instrument for Data Collection
………………………………. 55
3.7 Validity of the Instrument ……………………………………….. 56
3.8 Reliability of the Instrument ……………………………………. 56
3.9 Method of Data Analysis………………………………………… 57
CHAPTER
FOUR
DATA
PRESENTATION AND ANALYSIS
4.1 Data Presentatio …………………………………………………… 59
4.2 Test of Hypotheses ………………………………………………. 76
CHAPTER
FIVE
SUMMARY OF FINDINGS,
CONCLUSION AND RECOMMENDATIONS
5.1 Summary of Findings ……………………………………………. 81
5.2 Conclusion ……………………………………………………………. 82
5.3 Recommendations ……………………………………………….. 83
BIBLIOGRAPHY
…………………………………………………… 85
APPENDIX……………………………………………………………. 89
QUESTIONNAIRE
………………………………………………… 90
ABSTRACT
The main aim of this study is to examine
benchmarking as a performance management strategy in manufacturing industries.
Data were collected from both primary and secondary sources. The major source
of primary data were the respondents
randomly selected from three manufacturing industry in Aba, Abia State. The
major instrument used in the data collection was questionnaire. The data were
presented in tables as frequency distribution and in the analysis, the
techniques of performance and frequency were applied. In testing the
hypothesis, the z-test was applied. The major findings of the study were;
manufacturing company’s engage in benchmarking to achieve industry’s best
practice and to keep abreast with competitors. Benchmarking serves as
performance management strategy by setting performance standard. It identifies
performance gap by comparing actual with target performance. It serves as a
performance control technique by affecting changes that will eliminate the
performance gap. Benchmarking is an effective performance management strategy
which is used to improve individual and organization’s performance.
CHAPTER
ONE
INTRODUCTION
1.1 BACKGROUND
OF THE STUDY
Organizations
vary in their performances. Some register high performance while some register
low performance. Even, some organizations’ performances show a cyclical trend
over a long period of time. However, high performance can be maintained for a
relatively long period if organizations take necessary measures to avoid
performance drawback (Adei, 2006: 18) it is therefore important for companies
to initiate and implement measures that will ensure that their performance
conforms with best practices in the industry. This can be achieved through
benchmarking which organizations can measure themselves against their industry
practices and other competitors (Medrano, 2007:43).
Benchmarking
is a performance management tool used initiate performance improvement. It
measures comparative performance of companies and brings innovative ideas that
can be implemented in different industries with an adopted process (Aimiuwu,
2007: 28). Through benchmarking, business processes can be compared among
different
organizations. It promotes superior performance giving
an organized structure for companies to learn how “the best in class”
do things, understand how other companies methods differ from its own and fund
the gaps that will change and improve its process (Oladunmi, 2005:40). Since
benchmarking is a tool used to manage performance, many organizations use it to
generate data leading to process and performance improvement.
Benchmarking
opens organizations to new methods, ideas and techniques to manage their
performance with a view to improving their effectiveness. It helps to crack
resistance to change by demonstrating other methods of solving problems than
the one currently employed by the company. Through benchmarking a company
ensures that it produces a high quality product whose standard compares with
“the best in class” in the industry (Ugbaja, 2008:19).
Since
benchmarking is performance management tool, not a philosophy properly or a
strategy, it must be used properly. It will be helpful if not offer much
opportunity for improvement.
The
application of benchmarking as a tool of Total Quality Management (TQM) in
manufacturing firms may usher in the climate of change and continuous
improvement in all the areas of operations. In other words, benchmarking may be
a very good intervention technique for a positive change, and for manufacturing
firms to survive in a competitive business environment, there is the need for
the acquisition and exchange of practices among the firms (Agbaeze, 2007:158).
Through
benchmarking, a firm can maintain high performance over a long period of time,
initiating and implementing measures that will ensure that its performance that
conforms with best practices in the industry in which it operates. This calls
for effective performance management predicated on benchmarking.
Performance
management incorporates the configuration and measurement of distinct output
areas. Performance indicator provides the mechanism by which an organization
measures critical business tool, particularly in translating a strategy into
result. Thus, in the manufacturing sector, performance management significantly
drives organizational
performance, individual performance, career planning,
succession planning, training, transfer and business strategy (Ewurum, 2006:1)
amplifies this when he states that in performance management, effort is made to
capture and coordinate all the issue that will make for the delivery of
effective performance by organization members.
Manufacturing
concerns are not performing optimally in Nigeria today. According to (Ifedi,
2010:9) there is little doubt that manufacturing firms in Nigeria have since
the early 1980s been endangered. In order to manage the performance and achieve
set goals in the highly competitive business environment, most manufacturing
firms have been engaged in benchmarking. It is against this background that
this study sets out to examine benchmarking as a performance management
strategy in manufacturing industries.
1.2 STATEMENT
OF PROBLEM
BENCHMARKING AS A PERFORMANCE MANAGEMENT STRATEGY IN THE MANUFACTURING INDUSTRY (A CASE STUDY OF THREE MANUFACTURING FIRMS IN ABA, ABIA STATE)
