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Data Envelopment Analysis as a Tool for Evaluation of Employees’ Performance

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  • Zbranek, Peter

Abstract

Employee performance evaluation systems, which are well designed and properly used, are essential for the effective functioning of the organization. Due to some disadvantages of traditional methods, there is a need to develop new evaluation procedures. The main contribution of this paper is to apply a multidimensional approach, represented by the method of Data Envelopment Analysis (DEA) to measure the performance and efficiency of employees. This approach overcomes several weaknesses of traditional systems of the employees’ performance evaluation and provides a comprehensive indicator of the performance of individual employees, their technical efficiency score. The input variables of the used model were the motivational factors (salary, working conditions and benefits); the output was the indirectly assessed performance through work motivation, job satisfaction and organizational commitment. Furthermore, we applied the nonparametric methods for compliance testing of mean values to validate the stated hypotheses. In a baking company using the DEA method, we identified 12 efficient employees and 48 employees who need to improve their outputs to achieve their maximum efficiency.

Suggested Citation

  • Zbranek, Peter, 2013. "Data Envelopment Analysis as a Tool for Evaluation of Employees’ Performance," Acta Oeconomica et Informatica, Faculty of Economics and Management, Slovak Agricultural University in Nitra (FEM SPU);Association of Agricultural Economists in Slovakia (APES), vol. 16(1).
  • Handle: RePEc:ags:aoeisl:144683
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    File URL: http://purl.umn.edu/144683
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    References listed on IDEAS

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    1. José L. Ruiz & Diego Pastor & Jesús T. Pastor, 2013. "Assessing Professional Tennis Players Using Data Envelopment Analysis (DEA)," Journal of Sports Economics, , vol. 14(3), pages 276-302, June.
    2. Sueyoshi, Toshiyuki & Ohnishi, Kenji & Kinase, Youichi, 1999. "A benchmark approach for baseball evaluation," European Journal of Operational Research, Elsevier, vol. 115(3), pages 429-448, June.
    3. Cooper, W.W. & Ruiz, José L. & Sirvent, Inmaculada, 2009. "Selecting non-zero weights to evaluate effectiveness of basketball players with DEA," European Journal of Operational Research, Elsevier, vol. 195(2), pages 563-574, June.
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    More about this item

    Keywords

    motivational factors; work motivation; job satisfaction; organizational commitment; employees‘ performance; Data Envelopment Analysis; Labor and Human Capital; Productivity Analysis; C44;

    JEL classification:

    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory

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