A process of improving performance by continuously identifying, understanding and adopting outstanding practices and processes found inside and outside the organization is called:

Question

Options

• ABenchmarking
• BFlowcharting
• CCapital budgeting
• DNone of the above

• A
  81% (39)
• B
  2% (1)
• C
  4% (2)
• D
  13% (6)

Explanation

Benchmarking (A) is correct because it is precisely defined as the continuous process of identifying, measuring, and adopting best practices from both internal and external sources to improve organizational performance - matching the question's description word for word.

Flowcharting (B) is wrong because it is simply a diagramming technique used to map out process steps or workflows - it has nothing to do with performance comparison or adopting external practices. Capital budgeting (C) is wrong because it refers to the financial process of evaluating and selecting long-term investment projects, such as purchasing equipment or expanding facilities.

Memory tip: Think of benchmarking like an athlete studying the world record holder's technique - you find the best, understand how they do it, then adopt it yourself. The word "bench" even evokes a measuring standard, like a surveyor's benchmark used as a reference point.

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