BENCH MARKING

Bench Marking In Aviation Industry

Bench Marking In Aviation Industry

Part B, Question #1

A) Define Benchmarking

Benchmarking can be defined as: 'The establishment, by the collection of data, of comparators that allow relative levels of performance to be identified.'

Benchmarking is a scientific way of setting goals and objectives that can act as targets before and during the operation. Benchmarking is the nonstop process that continues from before the start of an operation through the process, to the completion of the task. It includes the measuring and evaluation of products, services and practices against the companies recognised as industry leaders (Krovvidi, 2005). Benchmarking gives the relative performance of the company that helps to achieve better performance and results in the future. It highlights the weaknesses of the company as seen by the costumer. The Airline Industry has long recognised the significance of comparing their performance both within the airline and to the performance of other airline companies.

Benchmarking focuses on the upgrading of a business by developing "best practices" rather than just determining the best performance. Only the best practices can produce the best performance. Companies learning the best practices have the maximum opportunity of gaining a strategic, operational, and financial advantage.

In the environment of increasing competition and low profit margins, it becomes crucial for the airline industries to make progress, meet requirements of the customer, become more economical while generating profits. The technique of benchmarking is one of the established aids for achieving desired goals in the industry.

Explain Whom Airlines Should Benchmark Against

In accordance with the definition of benchmarking, the actual performance of an organization is compared with the performance of the best organization in competition in terms of its services and products quality. This is done in order to provide the best services possible. In the same way, the views of Freytag and Hollensen, also present that benchmarking process helps in evaluating the performance of an organization on a continuous basis so that it could improve its strategies to satisfy the customer's needs (Freytag and Hollensen, 2001).

Purpose of Benchmarking

The Airline industry has been in the focus of scientific research for some time now. The airline industry has transformed and developed through an era of revolution and changes as they draw significant interest of public and business communities. One of the modes of the achievements in the industry is benchmarking.

The basic purpose of Benchmarking is to achieve “Excellence”, create higher levels of performance, new goals and raise the standards of performance in the industry. Benchmarking has now become the key to survival especially in the airline industry, with the increase in competition, and technology. The only way possible to survive in such a dynamic environment is to provide the best products, services, facilities, safety and luxury to the passengers so as to gain their trust and loyalty towards the company.

Theoretical Concepts of Benchmarking

There should be a continuous evaluation process that should help an organization to improve its performance. However, to evaluate the performance in this way, organization needs to establish the performance standards ...