Benchmarking and Management Control

Syllabus

[[Schematic content below will de updated for Winter 2019 edition]]

Block 1: Introduction to benchmarking measures

  1. Definition of performance monitoring and benchmarking in competitive settings
  • Monitoring (internal assessments)
  • Benchmarking (external assessments)
  1. Profitability and productivity changes
  • Decision making for improved profitability; applications
  • Absolute and relative changes (index numbers) in the presence and absence of prices
  • Multifactor productivity, profit margins, output and input prices, and output-input mix

Block 2: Multidimensional benchmarking and applications

  1. Benchmarking in multidimensional settings
  • Output maximization and input minimization, fixed and variable inputs
  • Using productivity and efficiency to set targets and reform operations
  1. Business applications of benchmarking assessments
  • Business applications of benchmarking (e.g., acquisitions, corporate social responsibility)
  • Public sector applications of benchmarking (e.g., regional spending for entrepreneurship)

Group activity: Presentation of articles

Block 3: Organizational architecture and performance control measures

  1. Designing organizational architecture
  • Determinants of the architecture of markets and firms
  • Decision rights: centralization versus decentralization
  1. Divisional performance evaluation and control
  • Measuring divisional performance: cost, expense, revenue, profit and investment centers
  • Transfer pricing and trade-offs between decision management and decision control
  1. Measuring internal business processes and employee performance
  • Relative, objective and subjective measures
  • Within-firm and across-firms applications
  1. Assessing management evaluation across the world
  • Firm- and institutional-level determinants of performance measures
  • Applications -using econometric techniques- with real data from international management surveys

Group activity: Presentation of Final Reports

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Additional material and data examples

Identifying gains from mergers and acquisitions

Hotel data

Bank data

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Software resources

EMS: Efficiency Measurment System (novice users) or [alternative direct download]

R package: “Benchmark and frontier analysis using DEA and SFA” (average users)

GAMS (advanced users)

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Interesting websites

World Management Survey

Interactive Benchmarking

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Optional bibliography

American Productivity and Quality Center. www.apqc.org

Bain and Company “Management Tools and Trends”

*Balk, B.M., 2003. The residual: On monitoring and benchmarking firms, industries, and economies with respect to productivity. Journal of Productivity Analysis 20(1), 5-47.

Bogetoft P., Otto, L., 2011. Benchmarking with DEA, SFA and R. Springer, New York.

*Brickley, J.A., Smith Jr., C.W., Zimmerman, J.L., 2016. Managerial Economics and Organizational Architecture. 6th ed., McGraw-Hill.

Camp, R.C. Benchmarking: The Search for Industry Best Practices That Lead to Superior Performance. Productivity Press, 2006.

Kaplan, R.S., Atkinson, A.A., 2000. Advanced Management Accounting. 3th ed., Prentice Hall, Upper Saddle River.

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