Certified Building Official Management Practice Exam

Which auditing tool is used to compare the efficiency of HR activities with industry standards?

1. Benchmarking

2. Cost-benefit analysis

3. Policy analysis

4. Statistical sampling

The correct answer is: Benchmarking

Benchmarking is the auditing tool that enables organizations to compare their HR activities against industry standards. This process involves identifying key performance indicators and gathering data on those indicators from both the organization and its competitors or industry leaders. By analyzing this information, organizations can assess their operational efficiency and effectiveness in various aspects of HR, such as recruitment, employee retention, training, and development. Through benchmarking, HR departments can identify best practices, set performance targets, and implement improvements based on the insights gained from the comparison. This strategic approach helps organizations to not only understand their position within the industry but also to strive for excellence by adopting proven methods and processes seen in top-performing companies. The other options, while valuable in different contexts, do not serve the same purpose. Cost-benefit analysis focuses on evaluating the financial implications of programs or initiatives rather than comparing performance metrics across the industry. Policy analysis looks at the effectiveness and implications of existing policies, rather than direct performance benchmarking. Statistical sampling, on the other hand, is a method used in data collection and analysis, but it does not directly relate to comparing efficiency metrics against industry standards.