Benchmarking and Management Control
[[Schematic content below will de updated for Winter 2019 edition]]
Block 1: Introduction to benchmarking measures
- Definition of performance monitoring and benchmarking in competitive settings
- Monitoring (internal assessments)
- Benchmarking (external assessments)
- 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
- Benchmarking in multidimensional settings
- Output maximization and input minimization, fixed and variable inputs
- Using productivity and efficiency to set targets and reform operations
- 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
- Designing organizational architecture
- Determinants of the architecture of markets and firms
- Decision rights: centralization versus decentralization
- 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
- Measuring internal business processes and employee performance
- Relative, objective and subjective measures
- Within-firm and across-firms applications
- 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
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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)
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Interesting websites
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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.
