GENERAL INTRODUCTION OF THE SECTOR

The service sector forms a backbone of social and economic development of a region. It

has emerged as the largest and fastest-growing sectors in the world economy, making

higher contributions to the global output and employment. Its growth rate has been

higher than that of agriculture and manufacturing sectors. It is a large and most dynamic

part of the Indian economy both in terms of employment potential and contribution to

national income. It covers a wide range of activities, such as trading, transportation and

communication, financial, real estate and business services, as well as community,

social and personal services. In India, services sector, as a whole, contributed as much

as 68.6 per cent of the overall average growth in gross domestic product (GDP)

between the years 2002-03 and 2006-07.

Services or the "tertiary sector" of the economy covers a wide gamut of activities like

trading, banking & finance, infotainment, real estate, transportation, security,

management & technical consultancy among several others.

There was marked acceleration in services sector growth in the eighties and nineties,

especially in the nineties. While the share of services in India's GDP increased by 21

per cent points in the 50 years between 1950 and 2000, nearly 40 per cent of that

increase was concentrated in the nineties. While almost all service sectors participated

in this boom, growth was fastest in communications, banking, hotels and restaurants,

community services, trade and business services. One of the reasons for the sudden

growth in the services sector in India in the nineties was the liberalization in the

regulatory framework that gave rise to innovation and higher exports from the services

sector.

India ranks fifteenth in the services output and it provides employment to around 23% of

the total workforce in the country. The various sectors under the Services Sector in

India are construction, trade, hotels, transport, restaurant, communication and storage,

social and personal services, community, insurance, financing, business services, and

real estate.

The Services Sector contributes the most to the Indian GDP. The Sector of Services in

India has the biggest share in the country's GDP for it accounts for around 53.8% in

2005. The contribution of the Services Sector in India GDP has increased a lot in the

last few years. The Services Sector contributed only 15% to the Indian GDP in 1950.

Further the Indian Services Sector's share in the country's GDP has increased from

43.695 in 1990- 1991 to around 51.16% in 1998- 1999. This shows that the Services

Sector in India accounts for over half of the country's GDP.

ORIGIN AND DEVELOPMENT OF THE INDUSTRY

Event management refers to methods of outsourcing business occasions, social

occasions, or a combination of both. There is no limit to the business development

ideas for an event management business. It is possible to organize every kind of event

ranging from wedding to a political rally. An event management team can be retained

for any type of business meeting.

Event Management involves studying the intricacies of the brand, identifying the target

audience, devising the event concept, planning the logistics and coordinating the

technical aspects before actually executing the modalities of the proposed event. Post-

event analysis and ensuring a return on investment have become significant drivers for

the event industry.

Events occurred long time ago, with the birth of the first society. As a human being is

a social animal, we do need socializing; that is why we have created events – ways to

celebrate important happenings and dates: such as anniversaries, harvesting time,

dancing before hunting. I believe that events are one of the most effective methods to

hand information to the society. People go to event to experience something new, know

some more information, communicate with other people, etc. To include all, people have

various motives to attend the events. With the time society has changed, people have

different needs and requirements, and events had changed their disposition.

Industrialization reduced amount of folk festivals. We do not have anymore, or at least

not that often, long and magnificent royal ceremonies, but we do have numerous of

modern unique and grandiose ones, which are in our lives and influence us. However,

today, events industry is developing taking more and more place in our lives. It remains

a significant niche in the society, influencing it in different ways.

The industry now includes events of all sizes from the Olympics down to a breakfast

meeting for ten business people. Every industry, charity, society and group will hold

events of some type/size in order to market themselves, build business relationships,

raise money or celebrate.

Event Types

Conference Management

Wedding Management

Artist Management

Dance Troupe Management

Corporate Event

Theme Party

Product Release Celebrations

Private Party

Inaugurations Ceremony

Corporate Gift Management

Fashion Show

GROWTH AND PRESENT STATUS OF THE INDUSTRY

Last 15 years have witnessed a tremendous growth in the field of event management. If

we add the amount of money spent on event management all over the world in one year

it comes to a whopping 500 billion dollars. Gone are the days when we could do with

hiring only a small catering team that supplies the food for a business event. If you wish

to make an impression on your potential clients today, hiring a meeting management

company is a necessity.

Event management is growing rapidly because it provides companies alternatives to the

cluttered mass media, an ability to segment on a local or regional basis, and

opportunities for reaching narrow lifestyle groups whose consumption behavior can be

linked with the local event. MasterCard invested an estimated $25 million in sponsoring

the nine-city World Cup soccer championship in the United States in 1994 and will likely

sponsor other big events in many countries as well.

Corporate sponsorships in India in 2001 were estimated at $3.9 billion-with 65% of this

total going to sports events and most of the remainder spent on sponsoring

entertainment tours or festival and fairs. Thousands of companies invest in some form

of event sponsorship.

We have just entered the 21st century, the time of information technology, globalization

and time of social development. Our society is changing: level of living has increased, it

has more free and leisure time to spend on participation in the events. Media industry

has reached the highest point of the progress; information is more accessible to the

people.

We can notice the recent rise in the Event Industry. Over the years events grow slowly:

from 200 people to thousands and millions. The consequence to this is the emergence

of professional events. Event Industry has exploded in our time.

Events are the best attractions for large touristic flows, which brings high profit to the

country. Companies are using events as the way of promoting themselves. The social

status is more and more important for us to survive in the world. People are making

more and more luxurious and fancy events to rise and prove their place in society. All

these factors above are explaining the huge rise in events industry and why events are

taking an important place in society.

Event management is a lucrative game of “what’s in a name”, as consumers purchase

tickets and expose themselves to everything. The world of event marketing is a fast

growing, high profile industry worth over $20 billion annually, and one of the most

successful marketing strategies.

FUTURE OF THE INDUSTRY

Today, event-based marketing is viewed as a sunrise sector both for products and

services. These days of “brand building” require a high profile that dazzles customers

and creates a strong impression in their minds. Corporate events, which include live

entertainment shows, product launches, and expositions embracing various product

classes, are particularly suitable in this regard. The marketing success of these events

largely depends on the facility they offer for on-the-spot interaction between participants

and visitors and on a professional approach. Moreover, proliferation of new

technologies like the Internet has seen the event-marketing scenario witnessing many

changes. Online events and online interaction are gathering momentum. The future of

these events depends large on how successfully corporate gear up to these

technological changes and how they integrate these events in their overall marketing

and promotional strategies.

From its origins in event planning, the event marketing industry has seen great growth

in the last five years and has consistently been one of the most effective tools that

marketing professionals have at their disposal in terms of making a tangible connection

to current and potential customers. The increasing competitive pressures brought on by

globalization are forcing business professionals to find new ways to engage customers.

Not surprisingly, savvy event marketing professionals are therefore focusing the

majority of their efforts and budgetary spend on lead generation tactics such as trade

shows. While it is important to garner leads, marketing and specifically event marketing

professionals cannot lose sight of the fact that the sales cycle only begins at lead

generation and that current and prospective customers must also be nurtured even

beyond purchase. Companies can benefit tremendously from the deeper event

marketing touch points that promote nurturing such as proprietary conferences that

provide a controlled environment for delivering messages and closing business. The

nurturing process will allow the customers to more effectively be funneled into the

subsequent stages of the sales cycle thus creating greater opportunities to develop into

repeat customers.

ORIGIN OF ORGANIZATION

With the bang of media options, technology, interactivity & activation have become the

buzzwords of communication. Clients look for communication solutions & also the

experience of interacting with their target audience across multiple media. This is where

Ps Corporate Solutions comes in.

Founded in 1999, Ps corporate solutions has emerged as one of the most reputed

events & corporate. It creates brand events, with a touch of magic, to inspire and

transform the audience. It delivers focused and turn-key solutions, from brand strategy

and content development to creative, design, video, production and program

management.

Ps Corporate Solutions is a Communication and Event management firm with over six

years of successful business experience in the field of communication enables the P’s

management to claim its position amongst the very best in the industry.

GROWTH AND DEVELOPMENT OF ORGANIZATION

Ps corporate solutions is widely recognized as a wholesome, complete events solution

factory. It’s a team of young, creative, enthusiastic and dynamic professionals with a

sparkling stream of ideas having vast experience in the field of Events &

Entertainments. Our goal is to give each & every event a different Meaning, Identity and

a Vision with true professionalism to chart the roads of informative & entertaining

events.

Ps corporate is here to simplify & make things easier to provide excellent services to the

clients. Every event organized / managed / coordinated by us is an excellent opportunity

for entertainment, growth, personality development and confidence building. From our

in-house staff to our many clients and participants; every one experiences the magic.

Keys to Success

Our keys to success include the commitment to quality by every person who is part of

the team. Each of us will be responsible to push ourselves to a higher level of

professionalism in three areas:

1. Consistent, accurate fulfillment of the client's wishes.

2. Competitive pricing for the quality of services offered.

3. Significant profit made on each event planned.

PRESENT STATUS OF ORGANIZATION

Ps has the ability to tailor the range of their services to their customer’s satisfaction and

exact requirements. Ps provides cutting edge media, analytics and content solutions to

help build brands in the age of convergence. It brings an idea to life and that’s what they

do for their brands. They use the art of communication to express the ideas that shape

their brands.

Ps corporate solutions focus on three strategic areas:

Specialized Event Management

Brand Activation

Artist Management

Specialized Event Management

Special events remain one of the best ways to connect with the audience on a visceral

level, and Ps is the expert. These events have gradually carved a niche for themselves

having been recognized the world over for their authenticity. In a short period of time,

these events have earned respect for themselves from the doyens of their respective

industries & the events combine sheer magnitude with unparalleled star power to give

audiences around the globe a never-before experience.

Brand Activation

As one of the most innovative event marketing agencies, Ps is focusing towards

activating brands through face-to-face live customer experiences. The unique events

are customized to create a platform for:

Driving PR, promoting sales & sampling

Achieving maximum visibility by breaking through media clutter

Brand communication & positioning through multiple promotional channels

Artist Management

The mandate of Ps corporate solutions is to nurture musician’s creativity and to provide

appropriate services for deserving artists at all career levels.

FUNCTIONAL DEPARTMENTS OF ORGANIZATION

Ps corporate solutions ltd. has the following functional departments:

Event Planning Department

Personnel Department

Marketing Department

ORGANIZATION STRUCTURE AND ORGANIZATION CHART

From conceptualization to complete execution of event our highly-skilled personnel

provide the best alternatives to give our client the right service in accordance to their

needs. Since we deal in providing the event management service to our clients, we

strongly focus on manpower knowledge. We have the best knowledgeable personnel

team that provides the best consultancy to our clients.

Organizational Structure

Ps corporate has two event planners, an office assistant, three site managers for the

events, one personnel manager and a product and marketing specialist.

Organizational Chart

PRODUCT AND SERVICE PROFILE OF

ORGANIZATION COMPETITORS

Scorpio Events Management Pvt. Ltd.

It is an event management company, with a group of young talented professionals who

gained experience by working with the leading brand names in the industry. We have a

futuristic vision with an eye for deadlines and more than that… total dedication to the

event.

Business Philosophy

Committed to give best event management services at competitive price, we listen,

strategize and then implement our planning of various events to exceed our clients'

expectations. We envision to be the best provider of elite event management service

solutions. At Scorpio Events Management Private Limited, our mission is to exceed our

customers' expectations by establishing lasting partnerships based on the highest levels

of service, loyalty and integrity. We also foster an environment that enables our team

members to achieve professional growth and success while providing consistently

superior services within the stipulated time frame.

Services

Our services range from Event Management, Public Relations, Celebrity Management

and a host of media related services. Our fully integrated operations team is adapt in

devising and implementing wide range of innovative activities that would give your

brand a boost it has never had before. Spectacular themes, glorious setting, great

entertainment... we plan, organize and execute every single detail. ‘A visual treat based

on the services we provide’

Event Management Service

-- Dealer Meet, Conferences and Seminars

-- Audio Visual Presentation, Staging and Lighting Setup

-- Star Nights & Entertainment Shows

-- Event Backdrop & Venue Branding

-- Fashion Shows & Laser Shows

-- Corporate or Anniversary Parties

-- Road Shows

-- Product Launch & Press Meet

-- Ad & Corporate Film Making

-- Multimedia & Animation Design Studio

-- Venue Selection

MARKET PROFILE OF THE ORGANIZATION

Ps events strive to be the most reliable and creative event company in India, always

delivering a high standard of quality and value for money to the customers. Ps corporate

work in close partnership with the customers to offer a service that sets new standard in

event management, with customer’s needs at the forefront of our mind. Each event is a

custom project, irrespective of size or budget. This is what makes us a different.

Ps corporate is the professional Event Management Organization based in New Delhi,

India. In Events Management, we believe that there is no better business referral than

that given by a satisfied customer. That's why we are committed to finding out what

exactly our customer's needs are and delivering solutions that meet, and often exceed,

expectations. We can tailor an event package to fit customer’s requirements for any

event no matter how big or small. We can organize any event from a garden party to a

wedding anniversary, from a product launch to a corporate event. We can even supply

event solutions in order to add to your existing event capability by providing catering

services, entertainment solutions, amusements and our team can even provide

technical support with extensive industry experience in sound and lighting solutions in

both theatre and live events.

STATEMENT OF RESEARCH OBJECTIVES

Every task is undertaken with an objective. Without any objective a task is rendered

meaningless. The main objectives for undertaking this project are:

To study the purpose of benchmarking the HR practices.

To study the process and steps of benchmarking.

Defining the factors enhancing the success of benchmarking efforts.

To know the benefits of benchmarking.

To analyze the trends and best practices for using HR for competitive advantage.

RESEARCH DESIGN AND METHODOLOGY

A Research Design is the framework or plan for a study which is used as a guide in

collecting and analyzing the data collected. It is the blue print that is followed in

completing the study. The basic objective of research cannot be attained without a

proper research design. It specifies the methods and procedures for acquiring the

information needed to conduct the research effectively. It is the overall operational

pattern of the project that stipulates what information needs to be collected, from which

sources and by what methods.

Research methodology is a way to systematically solve the research problem. In it, we

study the various steps that are generally adapted by a researcher in studying research

problem along with logic behind them.

RESEARCH METHODOLOGY

DATA COLLECTION

There are two types of data used.

1. Primary Data

2. Secondary Data

Primary data is defined as data that is collected from original sources for a specific

purpose. Primary Data are collected afresh and for the first time. Primary data helps in

validation of the knowledge gathered from secondary data. The methods adopted for it

are as under:

Observation Method

Questionnaire

Secondary data is defined as data collected from indirect sources. Secondary data are

collected through someone else, and users can obtain from websites, books,

magazines, and articles in newspapers. Secondary data provides the knowledge about

the topic of the research and the company in terms of facts and figures.

METHODS OF DATA COLLECTION

PRIMARY DATA COLLECTION SECONDARY DATA COLLECTION

QUESTIONNAIRES OBSERVATION METHOD

INTERNET BOOKS

MAGAZINES

DATA COLLECTION METHODS

Primary data collection

Questionnaire consists of a number of questions printed in a definite order on a form. It

is free from the bias of the interviewer.

Questionnaire: This device is appropriate for this project as the questionnaire contains

open-ended questions to be asked from some students and the industry people.

Secondary data collection-

Internet, journals, statistics, broachers and other sources of published information.

SUMMARY OF FINDINGS

INTRODUCTION OF BENCHMARKING

"Benchmarking is a process for identifying and importing best practices to improve

performance."  Benchmarking is not a simple comparative study, simply copying

practices from other organizations, or simply assessing performance.

The International Personnel Management Association and the National Association of

State Personnel Executives jointly developed the following definition for benchmarking:

A comparison of similar processes across public and private organizations to identify

best practices to improve organizational performance. The characteristics and attributes

of benchmarking include measuring performance, systematically identifying best

practices, learning from leading organizations, and adapting best practices as

appropriate.

Benchmarking essentially involves learning, sharing information and adopting best

practices to bring about changes in performance. To simplify this, it can be stated as:

'Improving ourselves by learning from others'

In practice, benchmarking usually encompasses:

Regularly comparing aspects of performance (functions or processes) with best

practitioners;

Identifying gaps in performance;

Seeking fresh approaches to bring about improvements in performance;

Following through with implementing improvements; and

Following up by monitoring progress and reviewing the benefits.

Alan Flower (1997) lists 5 main stages in effective benchmarking:

Selecting aspects of performance that can be improved and defining them in a

way that enables relevant comparative data to be obtained - in effect, producing

performance indicators that will make sense to other organizations;

Choosing relevant organizations from which to obtain raw or headline data;

Studying the data to identify possible opportunities for improvement;

Examining the procedures of the best-performing organizations to pick up ideas

that can be adopted or adapted to achieve performance improvements; and

Implementing new processes.

Organizations usually benchmark performance indicators (e.g. profit margins, return on

investment (ROI), cycle times, percentage defects, sales per employee, cost per unit) or

business processes (e.g. how it develops a product or service, how it meets customer

orders or responds to enquiries, how it produces a product or service). For human

resources, three types of benchmarks are particularly appropriate (Matters, 1993).

Broad measures of performance which take an organization-level view of HR

management, using broad productivity measures like sales per employee, profit

per employee, volume per employee, number of employees per HR specialists,

and other relevant "output-over-input" ratios;

HR practices focusing on how effectively HR programs and practices are

implemented, and making comparisons with other organizations; and

HR competencies tracking the knowledge, skills and abilities

PURPOSE OF BENCHMARKING

Have an experienced HR Consultant 24/7- just a phone call away.

Establish solid HR Systems.

Ensure compliance with Federal and State Employment laws.

Get difficult, focused HR projects done accurately and quickly.

Maintain HR Systems on an ongoing basis.

Recommend systems and establish a timeline for project.

Establish workers compensation reporting, drug testing procedures, and

establish working relationship with company doctor or clinic.

Assist with staffing the company as needed.

Provide assistance with interviewing, reference checking, and benefits sign-up

and initial orientation of new employees.

Provide ongoing Human Resource support as needed and requested either on-

site or off-site.

Train an on-site administrative person to handle day to day Human Resource

tasks such as monthly benefits administration, etc.

Set up personnel files and recordkeeping systems such as Personnel Action

Request Forms, Performance Review systems, job descriptions, etc.

NAVIGATING HR BENCHMARKING

Benchmarking Model

Benchmarking is the search for industry best practice which leads to superior

performance. The pioneer of competitive benchmarking was the American company,

Xerox Corporation. The company demonstrated the usefulness of observing and

learning from superior performers by benchmarking their competitor. Through the

knowledge they gained they managed to dramatically improve their productivity and

significantly reduce their cost of production.

Based upon the Xerox experience, Robert Camp has developed a model which can be

modified and adapted to suit any functional area, including HR management.

The Benchmarking Process

Phase One: Planning

Camp has broken the process of benchmarking into 10 steps which progress through 4

phases:

Step 1: Identify what functions, products or outputs are essential practices and should

be benchmarked.

Step 2: Identify external organizations or functions within own organization with superior

work practices for comparison.

Phase Two: Analysis

Step 3: Determine what data sources are to be used. If an organization has up to date

personnel/payroll systems it should be able to measure a range of HR practices and

outputs relatively easily. Valuable information may also be available through personnel

records, surveys or even interviews.

Step 4: Determine the current level of performance. This will enable the gap in

performance to be identified. Camp emphasizes the importance of a "full understanding

of internal business processes before attempting comparison with external

organizations." Baseline measurement also provides an objective basis upon which to

plan and act.

Phase Three: Integration

Step 5: Develop a vision for future operation based on the benchmarking findings.

Focus should be directed on the quality of best practice procedures/practices and how

these can be not just emulated, but improved upon by the organization.

Step 6: Report progress to all employees on an ongoing basis. Communication and

feedback are crucial components of benchmarking.

Phase Four: Action

Step 7: Establish functional goals linked to the overall vision for the organization.

Step 8 & 9: Develop action plans and implement the best practice findings. This should

be the responsibility of the people who actually perform the work. Periodic

measurement and assessment of achievements should be put into place.

Step 10: Update knowledge on current work practices. This is, in essence, the crux of

continuous quality improvement.

The remainder of this paper will focus on how to begin step one, the planning

phase, of an HR benchmarking process, i.e. Identifying what to benchmark.

The discussion will primarily deal with the quantitative measurement of human

resource management. Although qualitative assessment can be a valuable and

informative benchmarking tool, the ease with which agencies can define, and in many

cases obtain, quantitative information makes it a practical starting point from which to

develop a benchmarking process.

Steps of a Benchmarking process:

The basic steps of a benchmarking effort are:

1. Decide what process to benchmark.

2. Study the process in your own organization.

3. Identify benchmarking partners.

4. Analyze the processes of benchmarking partners to identify differences that

account for superior performance.

5. Adapt and implement "best practices."

6. Monitor and revise.

BENCHMARKING THE HUMAN RESOURCES FUNCTIONS

The Global best practices HR tool examines 44 performance measures in 5 key areas:

1. Cost and Staffing: Compare a series of cost measures, including the total cost of

the human resources department, in addition to a series of staffing measures,

including the number of HR staff to total employees.

2. Recruitment: Assess turnover rates. Determine the timeliness and efficiency of the

recruitment process.

3. Training and Recognition: Review types of training offered and use of incentive

plans.

4. Benefits: Understand methods used to communicate benefits information and the

extent to which contributions are made to retirement plans.

5. Technology and Organization: Examine the types of human resource information

systems used, as well as methods of effective communication and employee feedback.

DIFFERENCE BETWEEN BENCHMARKING AND

BEST PRACTICES

Are benchmarking and best practices the same?

No, they are not the same.  Benchmarking is the process that allows one to identify

potential best practices, i.e. by identifying the best performers; one knows where to look

for practices that might improve their own performance.  However, there are different

types of benchmarking and some organizations engage in benchmarking in order to

identify performance targets for their own organizations rather than to look for practices

that make other organizations so successful.

What distinguishes a best practice from a better practice or a good idea?

A best practice is not simply a new idea, but rather a Best Practice is one that meets the

following seven criteria:

1. Successful over Time:  A best practice must have a proven track record.

2. Quantifiable results:  The success of a best practice must be quantifiable.

3. Innovative: A program or practice should be recognized by its peers as being

creative or innovative.

4. Recognized positive outcome: If quantifiable results are limited, a best practice

may be recognized through other positive indicators.

5. Repeatable:  A best practice should be replicable with modifications.  it should

establish a clear road map, describing how the practice evolved and what benefits are

likely to accrue to others who adopt the practice.

6. Has local importance:  Best practices are salient to the organization searching for

improvement.  The topic, program, process, or issue does not need to be identical to the

importing organization, however.

7. Not linked to unique demographics:  A best practice may have evolved as a result

of unique demographics, but it should be transferable, with modifications, to

organizations where those demographics do not necessarily exist.

FACTORS ENHANCING THE CHANCES OF SUCCESS FOR

A BENCHMARKING EFFORT

A well-designed benchmarking process is essential.  However, there are some other

critical success factors, including:

Senior Management Support;

Benchmarking training for the project team;

Useful information technology systems;

Cultural practices that encourage learning; and

Resources, especially in the form of time, funding, and useful equipment.

BENEFITS OF BENCHMARKING HR PRACTICES

Affirmative Action Plans.

HR Policy and Procedures Manuals.

Employee Handbooks.

Interviewing Guides and Training.

Human Resource Department Audits.

General on-site and off-site Human Resource Support.

Organizational development.

Teambuilding.

Performance Review Systems.

Attitude Surveys.

Wage & Salary Surveys.

Supervisory Training.

HR PRACTICES WHICH ARE CRITICAL TO ECONOMIC SUSTAINABILITY

Employment security

Selective hiring of new personnel

Self-managed teams and decentralization of decision-making

High compensation contingent on organizational performance

Extensive training and development

Continuous improvement HR programs

Reduced status distinctions and barriers

Trust between management and employees at all organizational levels

Efficient and effective use of new information technologies

WHAT IS "BEST PRACTICE" IN HR?

There is no single best practice to which all organizations should aspire. Rather, the

literature shows that each firm has a distinctive HR system that represents a core

competencies required for the survival and sustainability for that particular organization.

“Best practices" in HR are subjective and transitory. What is best for one company may

not be best for another. What was best last month may not be best for today. The

concept of "best" is highly subjective and non-specific.

FACTORS WHICH CONSTITUTE BEST PRACTICES IN HR

o Communications

o Continuous Improvement

o Culture Consciousness

o Customer Focus & Partnering

o Interdependence

o Risk Taking

o Strategy and commitment

IMPLEMENTING HR PRACTICES AND POLICIES

When implementing HR practices and policies, managers should note that HR

practices:

Cannot be "copied" from one organization to another.

Must be implemented with regard to the organizational context of a particular

firm.

Are more effective, and can produce a synergistic effect, if they are

complementary to each other.

Require significant planning, resources and effort.

Necessitate that people who are expected to assist with the implementation of

the new HR practices must be consulted and be a part of the planning,

development and implementation processes right from the start.

There must be an effective management system to support long-term productivity

improvements. Policies and training have to be aligned with HR practices.

Must be broadly complementary to HR policies linked to "high-involvement work

practices" and are thus relevant to explaining the variation in the diffusion of such

practices.

NEW ROLE FOR HR PROFESSIONALS

The role of HR departments is being transformed as line managers assume greater

responsibility for a number of people management activities and as HR specialists focus

more closely on integrating HR and corporate strategy. It will become increasingly

important for HR specialists to demonstrate that they can contribute to organizational

efficiency and effectiveness in both the short and long term.

HR professionals can now play a more proactive role by:

o Demonstrating that they understand these employment changes has an impact

on employees and that employee’s experience organizational change in different

ways.

o Realigning the expectations of managers and other employees within their

organizations. HR practitioners are responsible for communicating the need to

understand the changing nature of work and the impact of such changes on the

organization.

o Monitoring how well employees are coping with employment changes where

many employees do not feel that they are effectively making the transitions when

organizational changes and flexible work practices are introduced.

o Providing advice to executive management to adopt a long-term strategic

approach to HRM that is more conducive to the development of employment

relationships based on mutuality of organizational and individual goals and

expectations.

EXAMPLES OF TOP 10 BENCHMARKING FIRMS

THE TOP 10 BENCHMARK FIRMS IN RECRUITING AND TALENT MANAGEMENT

The very best companies in recruiting are constantly striving to improve everything they

do through continuous learning. One of the best learning tools at their disposal is

benchmarking, which often provides learning that can be applied immediately.

The Top Ten

1. First Merit Bank: Some may find it hard to believe that the most strategic and

innovative approach to recruiting isn't found inside one of America's most recognized

companies, but rather from this bank headquartered in Ohio. In addition to a great

referral program, they are the best in understanding how recruiting can adopt successful

approaches such as data mining, customer relationship management, competitive

intelligence, and assessment metrics from other business functions.

2. General Electric: Long recognized as "the" benchmark firm when it comes to

building a performance culture, GE wins hands down as having the best overall talent

management strategy. They prioritize jobs and focus on "game changers." Their

employer-of-choice brand is second to none and they are among the leaders (along with

Home Depot) in recruiting from the military.

3. Microsoft: Giving GE a run for their money as best in talent management is

Microsoft. They excel at workforce planning, redeployment, utilizing analytics, and

leveraging the internet. They are also truly world class when it comes to the effective

use of contingent workers. Microsoft was also ranked #57 on Fortune Magazine's 2005

100 Best Companies to Work for in America.

4. Wachovia Corporation: This hands-down leader in diversity recruiting is also well

versed in utilizing metrics and running a fee-for-service recruiting model capable of

actually generating revenue by selling excess recruiting capacity to other organizations.

Their recruiting strategy is world-class in a relatively conservative industry.

5. Starbucks: Given the "less than glamorous" nature of the retail industry, the

approach taken by this coffee giant to employment branding and becoming an employer

of choice is phenomenal. They also excel at high-volume hiring. Starbucks was ranked

#11 on Fortune Magazine's 2005 100 Best Companies to Work for in America.

6. Marriott International: This hotel giant was one of the earliest adopters of

employment branding, and one of the few companies to maintain a dedicated focus on

the art. While they still excel in employment branding, their diversity recruiting and work

with the disadvantaged are world class by any standard. Marriott was ranked #63 on

Fortune Magazine's 2005 100 Best Companies to Work for in America.

7. Southwest Airlines: The clear winner for innovation in recruiting, this company not

only excels in selection but also scores huge in branding with the launch of its own TV

show (Airline). Every employee periodically receives productivity and financial reports

so they can act more like owners.

8. Booz Allen Hamilton: The things that set this professional services firm apart from

the competition comprise a laundry list of "must have" programs for professional-level

talent. In addition to these programs, they also excel at employment branding. BAH

was ranked #75 on Fortune Magazine's 2005 100 Best Companies to Work for in

America.

9. Valero Energy: Managing in a place "run by CPAs" requires extraordinary metrics,

and Valero comes through with the best metrics in recruiting, bar none. Their use of

regression analysis for workforce forecasting is truly best in class. In addition, they have

development metrics that demonstrate the relationship between recruiting effectiveness

and stock price per share, and they have created a sourcing channel report that

demonstrates the ROI in the effectiveness of their best sourcing channels. Valero was

ranked #23 on Fortune Magazine's 2005 100 Best Companies to Work for in America.

10. T-Mobile: Excellent work in nearly every aspect of recruiting, T-Mobile is a stand

out in both the usage of metrics and online candidate assessment. In 2004, T-Mobile

set out to demonstrate the business impact of recruiting and succeeded beyond

expectations. With a largely tech-savvy target audience, they also excel at innovation in

Internet recruiting.

A SUMMARY OF THE BENCHMARKING INTERVIEWS

The overall trend in the delivery of modern human resource practices is to refocus the

traditional orientation of the Personnel Office from conducting transactions alone to

combining service delivery and strategic planning. For example, at Genzyme, Human

Resources (HR) is 70% a business partner and 30% a service provider. Johnson&

Johnson has organized HR into three segments: Thinkco, Touchco and Serveco.

Thinkco is a strategic unit providing direction to individual areas; Touchco exists within

the business unit to deliver specific human resource practices; Serveco handles human

resource transactions across the organization.

In the aggregate, three key factors are necessary for high level human resource

practices: strong leadership, clear organizational values, and ongoing measurement.

Success requires faith in administrative processes, use of technology, and high-level

involvement of HR in the overall strategic planning for the organization. Every

organization the team interviewed cited the critical importance of high-level leadership

to advocate for change and to clarify the focus of future human resource practices.

To better define and clarify the values of the institution or corporation, several

organizations have specified human resource principles that provide a basis for the

development and implementation of new practices. For example, one multi-national

organization developed a process to review practices world-wide, after which it issued a

statement defining seven principles of leadership and appointed people to guide the

subsequent implementation of new human resource practices.

These organizations used employee surveys, exit interviews and cross-functional

meetings initiated by HR to measure the success of changes in human resource

practices.

Common Themes

Certain approaches to human resource practices were fairly common across many of

the organizations interviewed.

1. Planning and Appraisal

In general, planning and appraisal processes focus on developing the individual; letter

grades are not used. Several organizations use a "360" evaluation tool in which

subordinates, colleagues, and supervisors contribute to an individual's evaluation. An

important outcome of this process is a training plan that links both the needs of the

individual and the goals of the organization. Positive, honest feedback is critical.

2. Individual and Team Development

The key to individual and team development is training. Characteristics of successful

organizations include: budgeting training expenses and releasing individuals to attend

training sessions; providing centralized core training appropriate for the job; training

managers, coaches, and supervisors in work and family issues; and providing training

specifically tailored to the needs of teams.

3. Career Planning

Consistently, career planning is described as being the responsibility of individual

employees. Several organizations said, "the job belongs to the company; the career

path belongs to the individual."

4. Hiring

Technology is widely used by central HR for recruiting, hiring, retaining and assessing

performance and competencies. Nevertheless, screening, interviewing and final

decisions remain the responsibility of the business units. The documentation supporting

these transactions is processed and stored electronically. The organizations believe this

technologically enhanced hiring process is valuable to both the internal and external

candidates.

5. Succession Planning

Succession planning is of growing importance to organizations as they come to realize

that professionals who have achieved a high level of success within a particular

discipline have not necessarily developed all the competencies for leadership. Several

organizations have taken specific steps to develop new leadership. For example, Johns

Hopkins has established a Leadership Institute that may contribute to succession

planning.

6. Job Design

Successful job designs offer flexibility; are guided by what needs to be done; and meet

the demands of the marketplace.

7. Classification

Job classification remains the responsibility of central HR. Problems occur when

standards for classification are not applied.

8. Compensation/Recognition/Other Rewards

Total compensation and rewards are being desegregated into base salary, discretionary

bonuses, and non-financial recognition. For example, AT&T provides cash awards for

ideas which lead to cost saving. At Lucent Technologies, bonuses are based on a

combination of individual merit, the performance of the business unit, and the

performance of the corporation.

Together, the experiences of these organizations offer guidance to MIT as it works to

expand its human resource practices, to deliver base line services more efficiently and

to develop the workforce to meet the strategic needs of the Institute.

CONCLUSION

"Benchmarking is a process for identifying and importing best practices to improve

performance."  Benchmarking is not a simple comparative study, simply copying

practices from other organizations, or simply assessing performance. Benchmarking

helps in establishing solid HR systems and maintaining HR Systems on an ongoing

basis. It also helps in recommending systems and establishing a timeline for project. It

also helps in assisting with staffing the company as needed. There are various benefits

of benchmarking. It helps in making affirmative action plans and thereby makes HR

policies and procedures manuals. It helps in enhancing Teambuilding. The Performance

Review Systems are made effective by practicing benchmarking. Wage & Salary

Surveys are done to make the existing policies more effective.

Hence, Organizations usually benchmark performance indicators (e.g. profit margins,

return on investment (ROI), cycle times, percentage defects, sales per employee, cost

per unit) or business processes (e.g. how it develops a product or service, how it meets

customer orders or responds to enquiries, how it produces a product or service).

BIBLIOGRAPHY

www.citehr.com

www.google.co.in

www.docstoc.com

www.benchmarkoutsourcing.com

www.globalbestpractices.com