Comparing Performance
Standards for comparison
• Absolute standards – which give the best performance that can ever be achieved.
• Target performance – which is a more realistic target that is agreed by managers, who want to set tough, but attainable, goals.
• Historical standards – which look at performance that was actually achieved in the past.
• Competitors’ standards – which look at the performance actually being achieved by competitors. This is the lowest level of performance that an organisation must achieve to remain competitive.