Benchmarking's Role in Personnel Cost Management PPT

This PPT slide, part of the 348-slide Strategic System Design Toolkit PowerPoint presentation, presents an evaluation of benchmarking as a critical tool for managing personnel costs in various decision-making scenarios. It categorizes different situations—permanent overload, underutilization, sick leave, and MRP—indicating whether benchmarking can serve as a sole instrument for addressing these issues. Each situation is assessed for its importance in conjunction with other management instruments.

For permanent overload, benchmarking can be utilized, and its importance is rated as medium. The suggested instruments to combine with benchmarking include work control, job rotation, process optimization, rationalization investments, and outsourcing. This indicates a multifaceted approach to managing workload effectively.

In the case of underutilization, benchmarking is not identified as a standalone tool, and its importance is deemed small. Here, the focus shifts to needs analysis and job enlargement, suggesting that the organization may need to explore internal adjustments rather than relying solely on benchmarking.

Sick leave is highlighted as a significant concern, with benchmarking being a key instrument. Its importance is rated high, and the recommended actions include personnel relocation and changes in structure or rewards. This reflects a proactive stance in addressing employee absenteeism through strategic adjustments.

Lastly, the MRP situation shows benchmarking as not applicable, with a small importance rating. The focus here is on inventory analysis and process optimization, indicating a need for operational efficiency rather than personnel-centric solutions.

Overall, the slide emphasizes the nuanced role of benchmarking across different management scenarios, urging decision-makers to consider its application contextually alongside other instruments for optimal personnel cost management.

This slide is part of the Strategic System Design Toolkit PowerPoint presentation.

This toolkit is created by trained McKinsey, BCG, and Porsche Consulting consultants and is the same used by MBB, Big 4, and Fortune 100 companies when performing System Design Initiatives.

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