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Goal directed benchmarking for organizational efficiency

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  • Stewart, Theodor J.

Abstract

In this paper, we extend the standard data envelopment analysis (DEA) model to include longer term top management goals. This extension is in recognition of the fact that benchmarking for decision making units (DMUs) is more than a purely monitoring process, and includes a component of future planning. The new model uses a goal programming structure to find points on the efficient frontier which are realistically achievable by DMUs, but at the same time achieving a closer approach to long term organizational goals (as distinct from the local performance of individual DMUs). Consideration is given to the possibility of adjusting constraints on the DMU by investment in extended inputs or new technologies, in which case minimization of associated investment costs becomes an additional management objective.

Suggested Citation

  • Stewart, Theodor J., 2010. "Goal directed benchmarking for organizational efficiency," Omega, Elsevier, vol. 38(6), pages 534-539, December.
    • Handle: RePEc:eee:jomega:v:38:y:2010:i:6:p:534-539
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    3. Panagiotis Ravanos & Giannis Karagiannis, 2022. "In search for the Most Preferred Solution in Value Efficiency Analysis," Discussion Paper Series 2022_05, Department of Economics, University of Macedonia, revised Jul 2022.
    4. Monge, Juan F. & Ruiz, José L., 2023. "Setting closer targets based on non-dominated convex combinations of Pareto-efficient units: A bi-level linear programming approach in Data Envelopment Analysis," European Journal of Operational Research, Elsevier, vol. 311(3), pages 1084-1096.
    5. Samoilenko, Sergey & Osei-Bryson, Kweku-Muata, 2013. "Using Data Envelopment Analysis (DEA) for monitoring efficiency-based performance of productivity-driven organizations: Design and implementation of a decision support system," Omega, Elsevier, vol. 41(1), pages 131-142.
    6. Cook, Wade D. & Ramón, Nuria & Ruiz, José L. & Sirvent, Inmaculada & Zhu, Joe, 2019. "DEA-based benchmarking for performance evaluation in pay-for-performance incentive plans," Omega, Elsevier, vol. 84(C), pages 45-54.
    7. Ruiz, José L. & Sirvent, Inmaculada, 2019. "Performance evaluation through DEA benchmarking adjusted to goals," Omega, Elsevier, vol. 87(C), pages 150-157.
    8. Ramón, Nuria & Ruiz, José L. & Sirvent, Inmaculada, 2011. "Reducing differences between profiles of weights: A "peer-restricted" cross-efficiency evaluation," Omega, Elsevier, vol. 39(6), pages 634-641, December.
    9. Hinojosa, M.A. & Mármol, A.M., 2011. "Axial solutions for multiple objective linear problems. An application to target setting in DEA models with preferences," Omega, Elsevier, vol. 39(2), pages 159-167, April.
    10. Farzad Zaare Tajabadi & Sahand Daneshvar, 2023. "Benchmark Approach for Efficiency Improvement in Green Supply Chain Management with DEA Models," Sustainability, MDPI, vol. 15(5), pages 1-17, March.
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    13. Kalinichenko, Olena & Amado, Carla A.F. & Santos, Sérgio P., 2022. "Exploring the potential of Data Envelopment Analysis for enhancing pay-for-performance programme design in primary health care," European Journal of Operational Research, Elsevier, vol. 298(3), pages 1084-1100.
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    DEA Goal programming Multicriteria;

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