Administration Tools

1. Benchmarking:
Benchmarking examples are instances of companies or departments
measuring their results against other departments or others in their
industry, a practice that can help them understand how they're performing
compared to their competitors.

Why is it necessary?
Because you can drill down into performance gaps to identify areas for
improvement in the company and it can help your team become more
efficient and productive year over year.

Types of Benchmarking:
-Strategic benchmarking
-Performance or competitive benchmarking
-Functional benchmarking
-Process benchmarking
-External benchmarking
-Internal benchmarking
-International benchmarking

2. Outsourcing:
Outsourcing is a business practice in which a company hires a third-party
to perform tasks, handle operations or provide services for the company.

Give two examples of outsourcing:

1. A company wants to create a website and hires an independent
programmer to manage it .
2. A company can hire someone else to clean the warehouses if
necessary.

3. Empowerment:
Empowerment in business is a management practice of sharing
information, rewards, and power with employees. This puts them at the
heart of the organization by giving them power and autonomy in the
decision-making field.

What are some benefits of empowerment?

Empowering employees through greater autonomy has been directly linked
to increased employee motivation; employees who have more control over
how, when, and where they do their job will work harder and find their work
more engaging.
Leaders who empower their employees are more likely to be trusted by
their subordinates compared to leaders who do not empower their
employees.

4. Reengineering:
Reengineering is most commonly defined as the redesign of business
processes—and the associated systems and organizational structures—to
achieve a dramatic improvement in business performance.

What is the objective of reengineering?

To achieve improvements in critical performance measures, such as cost,

quality, service, and speed and ultimately improve how the company
performs overall.
Give one example of reengineering in a company:

In the 1980s ford started looking for things that could be improved in the
organization; they spotted that their account payable department currently
employs 500 people.
When Ford looked at their smaller competitor, Mazda, they were astounded
to find out that their accounts payable department consisted of 5 workers.
This meant if Ford implemented a similar technology, the company could
reduce the number of workers to 100
Ford decided to implement the innovative strategy of using computer
software and databases to store and transfer information automatically.

When done digitally, accounts payable processing becomes quicker and

reduces the number of workers involved.