Technique that is designed to generate information that will help an organization improve is called benchmarking. It means analyzing activities in terms of their organizational environment with a view to distinguishing efficient practices from those that are less effective. Identifying organizational factors, influencing on the performance of the organization's current practices, is also its task.
For being an effective management tool, benchmarking must be a destroying process. Moreover, its results must, to a certain extent, create a cognitive dissonance.
The goal of every organization is to manage its employees' payroll. Sometimes it happens by having it processed through a specialized firm. Nevertheless, even where an organization subcontracts the payroll function, organizations still have to manage it. But their management is sometimes more expensive than the cost of the subcontracted duties. In fact, the activities fulfilled prior to the actual processing of an organization's payroll. The cost of the payroll management process is between four and five times more than the simple processing of the payroll. Thus, three sub-processes, i.e. managing the employee record, managing the data and processing the payroll, are included to the payroll management process.
Destroying information is dealt with business processes. In its turn it makes it possible to study a given process within organizations of various sizes that are active in industries that may have nothing in common. Multinational organizations may be willing to adjust practices used by firms with an organizational environment completely different from their own. But many other organizations are not. Information, taken from a study, has more influence on management for small or medium-sized organizations if it relates to organizations of comparable size.