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Developing a step-by-step effectiveness assessment model for customer-oriented service organizations

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  • Brissimis, Sophocles
  • Zervopoulos, Panagiotis

Abstract

Effectiveness involves more than simple efficiency, which is limited to the production process assessment of peer operational units. Effectiveness incorporates both endogenous and exogenous variables. It is a fundamental driver for the success of an operational unit within a competitive environment in which either the liquidity of money in the market and the customers are considered to be scarce sources, or the New Public Management (NPM) is citizen/customer and goal-oriented. Additionally, with respect to short-run production constraints, the resources available and controllable by the operational units, as well as the legal status, we go beyond the traditional effectiveness assessment techniques by developing a modified or “rational” Quality-driven – Efficiency-adjusted DEA (MQE-DEA) model. This particular model provides a feasible effectiveness attainment path for every disqualified unit in order to meet high-perceived quality and high-efficiency standards. The input-output mix restructuring targets estimated by the original QE-DEA model are provided on a step-by-step basis in order to have realistic managerial implications.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 30765.

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Date of creation: 13 Apr 2011
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Handle: RePEc:pra:mprapa:30765

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Keywords: Effectiveness; Efficiency; Perceived Quality; Data Envelopment Analysis (DEA); context-dependent DEA;

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  1. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, INFORMS, vol. 30(9), pages 1078-1092, September.
  2. Seiford, Lawrence M. & Zhu, Joe, 2003. "Context-dependent data envelopment analysis--Measuring attractiveness and progress," Omega, Elsevier, Elsevier, vol. 31(5), pages 397-408, October.
  3. Perelman, Sergio & Santín, Daniel, 2009. "How to generate regularly behaved production data? A Monte Carlo experimentation on DEA scale efficiency measurement," European Journal of Operational Research, Elsevier, Elsevier, vol. 199(1), pages 303-310, November.
  4. Athanassopoulos, Antreas D., 1997. "Service quality and operating efficiency synergies for management control in the provision of financial services: Evidence from Greek bank branches," European Journal of Operational Research, Elsevier, Elsevier, vol. 98(2), pages 300-313, April.
  5. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, Elsevier, vol. 2(6), pages 429-444, November.
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