The Research On Application Of Benchmarking In Central Enterprises

Benchmarking enjoys good reputation in companies' application, and it has been found to meet central enterprises' management needs in China. The traditional mechanism of state-owned enterprises' performance assessment has established a solid foundation in indicators' system and culture which are suitable to benchmark. At present, central enterprises have implemented benchmarking universally as a efficient path to catch up the world first-class companies. Based on analysis on cases of benchmarking application in central enterprises, we find that external benchmark which adopted generally in petrochemical and telecom industries and internal benchmark that used widely in electricity power industry are two application models basically, and if other central enterprise want to implement benchmarking, it has to consider the actual situation itself and follow these models comprehensively. According to benchmarking theory studies' level and its' application in central enterprises in China, benchmarking theory study has been behind its' application, and there is severely shortage at benchmarking functional mechanism study which causes "black box" for further practice in companies, and seriously restricts the further improvement and development of benchmarking' practice.Additionally, considering some unique features exist in state-owned companies' practice, there are structural defects in central enterprises' application, such as weakness foundation problem, incomplete process and no direction in future development, etc,.Based on Principal-agent theory and management cost of benchmarking, this paper analyzes the function mechanism of benchmarking in application according to central enterprises' organization structure and management needs, which put forward a theory basis and research structure for benchmarking practice development and improvement in the future and also provide a feasible angle to solve the structural defects in central enterprises' practice. On the basis of the general operation method which adopted widely in application, the paper analyzes the conditions for ratcheting effect existing in benchmarking practice and proposes countermeasures to dismiss it according to the theory basis and research structure mentioned above, that a good example for further study on detail problems of structure defects in central enterprises. At last, the general implementing structure for the strategic planning of benchmarking is proposed by mechanism and application's features of central enterprises' practice.