perfomance management
Sharmineh Safarpour; Alireza Amirteimoori; Sohrab Kordrostami; Leila Khoshandam
Abstract
Due to the importance of the health sector in the people’s lives, attention and monitoring of this sector can lead to development and social welfare. In this paper, data on 31 educational and therapeutic hospitals are considered to analyze their performance and managerial ability. A two-step procedure ...
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Due to the importance of the health sector in the people’s lives, attention and monitoring of this sector can lead to development and social welfare. In this paper, data on 31 educational and therapeutic hospitals are considered to analyze their performance and managerial ability. A two-step procedure is used to evaluate the relative efficiency and to measure the impact of contextual variables. Toward this end, in the first step, data envelopment analysis has been used to calculate the technical efficiencies of the hospitals, and then the logarithm of the technical efficiency obtained from the first step was regressed on a set of contextual variables that affect the performance of hospitals. Then, the residual is interpreted as managerial ability of the hospitals. At the end, a unique ranking was presented based on the criteria of managerial ability of each unit. Finally, the results were analyzed and analyzed in order to provide valuable suggestions for managers and more efficient management of the country's hospitals and to maintain the health of the society. According to the study carried out without considering contextual variables, 25 efficient units were evaluated, but by applying the effect of contextual variables on the efficiency, no unit becomes efficient, this proves the high impact of such indicators on the performance of units he does. Also, in the ranking of the units with the approach of managerial ability, Lorestan province is in the first place and Golestan province is in the last place.
Maryeh Nematizadeh; Alireza Amirteimoori; Sohrab Kordrostami; Leila Khoshandam
Abstract
The electricity industry plays a pivotal role in a country's economic growth and development. Therefore, it is imperative to assess its performance and identify the strengths and weaknesses of its different sectors, such as production, transmission, and distribution, to enhance economic growth in diverse ...
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The electricity industry plays a pivotal role in a country's economic growth and development. Therefore, it is imperative to assess its performance and identify the strengths and weaknesses of its different sectors, such as production, transmission, and distribution, to enhance economic growth in diverse areas. Given the significance of the transmission sector, this research focuses on analyzing and evaluating the performance of 16 regional electricity companies in Iran from 1390 to 1398, with the aim of comprehending the impact of contextual variables on efficiency. To achieve this, the study will utilize two techniques - Data Envelopment Analysis (DEA) and Ordinary Least Squares (OLS) - to determine the efficiency score and estimate the effect of contextual variables on efficiency, respectively. In the first stage, the DEA technique is employed to calculate the technical efficiency of each company, considering their specific inputs and outputs. In the second stage, the logarithm of the efficiency scores obtained is regressed on contextual variables to establish their effect on efficiency. The residual derived from the regression is referred to as managerial ability. Finally, the companies are ranked based on their modified efficiency after removing the impact of contextual variables.
Introduction
The electricity industry comprises three key sectors: production, transmission, and distribution. It stands as one of the most crucial economic infrastructures in the country, exerting significant influence on industrial, agricultural, service, and other sectors. Undoubtedly, the growth of the electricity industry drives the nation's economic development and progress, contributing to the prosperity and comfort of its citizens (Tavassoli et al., 2020). Consequently, analyzing and examining the growth trajectory of each sector across different years becomes pivotal in mitigating adverse effects and fostering progress within this domain.
In recent years, numerous researchers have conducted studies in this field. Some have independently evaluated each production, transmission, and distribution sector, while others have adopted a comprehensive approach by considering the integrated three-stage network structure. The research background highlights that the transmission sector has received less attention from researchers than other sectors. This is noteworthy because, following electricity production, the transmission process and energy accessibility to consumers are paramount. The absence of proper energy transfer can result in consumer dissatisfaction, financial losses, and stagnation within the competitive economic market. Therefore, identifying the strengths and weaknesses of the transmission sector's performance and comparing regional electricity transmission companies can effectively help enhance the performance level of each.
One technique that has captured researchers' attention for evaluating the electricity industry's performance is the data envelopment analysis (DEA) technique. DEA is a non-parametric method used to assess the performance of homogeneous units, considering multiple inputs and outputs. It was initially introduced in 1978 by Charnes et al. The initial model was built upon the assumption of constant returns to scale. Subsequently, Banker et al. (1984) extended it by presenting a model under the assumption of returns to a variable scale.
Importantly, traditional DEA models evaluate a system's performance based on specific inputs and outputs consumed and produced by the unit. However, various factors, such as contextual variables, managerial ability, and skill, can significantly influence performance and productivity. A crucial point to consider is that managerial abilities are not always overtly visible. This lack of direct visibility can impede accurate measurement. Hence, recognizing these variables among the existing indicators and assessing their influence on the performance and efficiency of each unit holds particular significance. This procedure enhances the precision of evaluation and opens avenues for delivering enhanced solutions aimed at improving the system's overall performance.
Methodology
The objective of this study is to analyze and evaluate the performance of Iran's regional electricity transmission sector while considering contextual variables and establishing a ranking methodology based on managerial ability. This perspective enables the identification of strengths and weaknesses in the system's structure from various angles and offers appropriate solutions for enhancement. To accomplish this, the first step involves identifying all variables within the transmission section, encompassing inputs, outputs, and contextual factors. Subsequently, we determine the technical efficiency of each regional power transmission company, taking into account specific inputs and outputs, using meta-frontier technology. The concept of meta-frontier in DEA measures the gap or distance between decision-making units (DMUs) across different boundaries. This approach assumes a unified boundary for all subgroups, enabling efficiency estimation based on a single boundary (Battese, 2004; O'Donnell, 2008). Its primary advantage lies in resolving the challenge of evaluating efficiency at varying levels. As a result, meta-frontier technology enhances the precision of evaluating regional power companies over multiple periods. After assessing the efficiency of each regional electricity transmission company, we employ the linear regression method to estimate the impact of contextual variables on efficiency, subsequently yielding a measure of managerial ability. Ultimately, we introduce a method for ranking each company based on managerial ability. The advantage of the proposed method is that, in addition to reviewing and analyzing the technical efficiency of each of the companies in the regional electricity transmission sector during different periods, it will be possible to evaluate the managerial ability of each of the companies. Such a perspective allows for companies to be compared from different dimensions. Moreover, providing a new ranking criterion based on managerial ability also facilitates a better and more accurate comparison.
Results
In this study, the performance of Iran's regional power companies was analyzed and evaluated from two systems and management perspectives during the years 1390-1398. Additionally, a new rating criterion based on managerial ability was presented to compare the performance of companies during 9 time periods. In this regard, firstly, the technical efficiency of 16 regional electricity companies during 9 time periods was calculated based on the inputs of the number of employees and receiving energy from neighboring companies and the outputs of sending energy to neighboring companies and delivering energy to distribution companies, using meta-frontier technology and the DEA approach. Then, the effect of contextual variables, such as line length, transformer capacity, and loss magnitude, on the efficiency score of each company was estimated using the ordinary least squares method (OLS). Furthermore, the managerial ability of each company was determined during different periods. Ultimately, a ranking criterion was established based on the results of technical efficiency after removing the effect of contextual variables.
Conclusion
The results of efficiency measurements over 9 time periods indicate that the highest and lowest average efficiencies were observed in the years 1390 and 1398, respectively. Furthermore, it's evident that, in general, the performance of Iran's 16 regional electricity companies exhibited a consistent upward trend from 1390 to 1398. Among the 16 evaluated companies, the Guilan regional electricity company consistently achieved the highest level of efficiency across all 9 time periods, reflecting its strong performance. Conversely, the Fars regional electricity company consistently had the lowest efficiency, indicating its weaker performance compared to other companies. When analyzing the companies' performance by year, it's noteworthy that the Tehran regional electricity company secured the highest rank in 1390, 1391, and 1394, while the Fars regional electricity company held the top spot in the remaining years. In contrast, the Sistan regional electricity company consistently displayed the lowest performance throughout all periods. The assessment of management performance over the 9 time periods indicates that the Kerman regional electricity company demonstrated superior performance from 1390 to 1393, whereas the Guilan regional electricity company excelled from 1394 to 1398, outperforming other companies. Conversely, the Gharb regional electricity company exhibited weaker performance compared to its counterparts. Additionally, the results of the regression analysis highlight a positive relationship between the efficiency score and two variables: line length and transformer capacity. Conversely, the relationship with loss magnitude is observed to be inversely correlated.
Hossein Safari; Aliyeh Kazemi; Ahmad Mehrpoor Layeghi
Abstract
One of the most known subjects in management literature is performance assessment. In this paper, we have tried to provide a hybrid model in order to evaluate the performance of Iranian gas Transmission Company's operational zones. After an initial screening, due to the low number of Decision making ...
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One of the most known subjects in management literature is performance assessment. In this paper, we have tried to provide a hybrid model in order to evaluate the performance of Iranian gas Transmission Company's operational zones. After an initial screening, due to the low number of Decision making units, different combination of two input and one output are defined. 6 inputs and 4 output criteria have been chosen in initial screening. Based on the experts' judgments, weights or importance of different combinations of input and output extracted using SWARA technique. Then, based on the 22 different combinations, we calculated operational zones efficiency using DEA in the form of CCR and BCC models. In fact for each combination of two input and one output, efficiency for each operational zone has been calculated. Finally, there has been a decision matrix which its’ criteria were equal to different combinations of input and output criteria and their weights gained by SWARA and scores within the matrix were equal to taken efficiency from DEA. In order to calculate final efficiency and prioritizing each operational zone WASPAS technique is used. We use Cohen's kappa coefficient in order to prioritizing validation. The results show that zones 10, 7 and 6 with the highest efficiencies can be appropriate pattern for other zones in resource saving
Moslem Nilchi,; Mohammadesmaeil Fadaeinejad; Seyyed Hossein Razavi-Hajiagha; Ahmad Badri
Abstract
Looking at the economic definition of efficiency as optimal use of resources to produce possible maximum output, it can be understood the importance of this concept in management systems. Basically, Managers are trying to meet the satisfaction of all their stakeholders by optimally utilize of their resources ...
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Looking at the economic definition of efficiency as optimal use of resources to produce possible maximum output, it can be understood the importance of this concept in management systems. Basically, Managers are trying to meet the satisfaction of all their stakeholders by optimally utilize of their resources to produce outputs. Due to high cost of holding money this point has more importance to the banking industry in Iran. In this paper, by looking at the structure of bank activities in Iran, a model with five different parts is provided that depicts the flow of affairs in banks. A mathematical model based on data envelopment analysis is presented to evaluate the efficiency of proposed structure and by using fuzzy approach, a method has been proposed to solve it. The results of applying the proposed model to 210 branches of one bank show that despite relative acceptable efficiency in resource attracting, and management, the efficiency of service, resource allocation and profitability parts are facing with important problem
seyyed heydar mirfakhradini; fatemeh azizi
Volume 13, Issue 36 , April 2015, , Pages 5-26
Abstract
Performance evaluation is a systematic review that helps organizations to achieve their goals. This study evaluates and ranks Yazd Science and Technology Park’s high-tech firms, using integration Data Envelopment Analysis into Six Sigma methodology. In this study a combination of both methods is ...
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Performance evaluation is a systematic review that helps organizations to achieve their goals. This study evaluates and ranks Yazd Science and Technology Park’s high-tech firms, using integration Data Envelopment Analysis into Six Sigma methodology. In this study a combination of both methods is used to propose more effective and efficient performance evaluation framework. By studying research literature in the field of Science and Technology Park’s firms’ performance evaluation and using Fuzzy Delphi, Effective criteria for measuring the performance of Yazd Science and Technology Park’s firms are identified, then by reviewing research literature and experts’ opinions, inputs and outputs of DEA model are identified. Then, by using combining DMAIC circle and DEA, an inclusive approach for In the analysis phase of Six Sigma evaluating performance is suggested. process ranking of firms is identified using DEA scores. This research helps firms’ managers to find the effective criteria on their performance and how they can improve these factors and control its impacts.
alireza alinezhad; kavoos simiari
Volume 11, Issue 28 , April 2013, , Pages 41-60
Abstract
One of the important issues in project management is project portfolio selection. Issue of project selection and related activities is one of the important activities in most of organizations, especially contract companies and developing project centered companies. Issue of project choosing is a periodical ...
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One of the important issues in project management is project portfolio selection. Issue of project selection and related activities is one of the important activities in most of organizations, especially contract companies and developing project centered companies. Issue of project choosing is a periodical activity for choosing suitable portfolio from suggested projects or organizational in process projects which enforce organizational goals in a desirable manner , without spending additional sources or / and neglecting other limitations. . In project portfolio selection, the most important issue which bring up is that this portfolio should conclude which projects. As much as project portfolio selection be more advisable, fulfilment of organization duties would be more probable. In choosing this combination, distinguishing opportunities, assessing amount of project cooperation with goals and organization structure and expenses, profit analysis and project risks has a great importance.
In this research has been used from qualitative and quantitative assimilated approach for project portfolio selection. In a way that at first we use DEMATEL (Decision Making Trial and Evaluation Laboratory) method to selection criteria and then with use Data Envelopment Analysis and criteria that selected in previous stage, calculate the efficiency for each project and rank all of them
Mohamad Hosein Tahari Mehrjardi; Dariush Farid; Hamid Babaei Meybodi
Volume 8, Issue 21 , June 2011, , Pages 21-37
Abstract
Data Envelopment Analysis (DEA) has been a very popular method for measuring and benchmarking relative efficiency of peer Decision Making Units (DMUs) with multiple input and outputs. However, some problems have also appeared as the applications of DEA advance. One of inter-related problems that has ...
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Data Envelopment Analysis (DEA) has been a very popular method for measuring and benchmarking relative efficiency of peer Decision Making Units (DMUs) with multiple input and outputs. However, some problems have also appeared as the applications of DEA advance. One of inter-related problems that has long been known is the lack of discrimination power. The lack of discriminating power problem occurs when the number of DMUs under evaluation is not large enough compared to the total number of inputs-outputs. In this situation, classical DEA models often yield solutions that identify too many DMUs as efficient. In this study the base of the modeling is technique Data Envelopment Analysis But in order to increase accuracy in assessing banks performance and identify the inefficiency and efficiency units, designing a model that combines data envelopment analysis and Goal Programming and also performance of the banks are measured in this perspective. The results of this study showed the higher ability of the presented model toward the basic models to separate the banking units.
Akbar Alam Tabriz; Razieh Faraji; Hesam Saiedy
Volume 8, Issue 19 , December 2010, , Pages 1-22
Abstract
University is an organization with specific mission that needs to be evaluated for optimal using of resources and achieving to goals. To improve the status quo, by performance assessment could recognized weakness and strength and minimized input of resources. Thus, university has to know efficiency of ...
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University is an organization with specific mission that needs to be evaluated for optimal using of resources and achieving to goals. To improve the status quo, by performance assessment could recognized weakness and strength and minimized input of resources. Thus, university has to know efficiency of faculties and to study cause of its efficiency and inefficiency, then to improve and to conduct faculties of inefficiency by using suitable programming. DBA model is nonparametric frontier method for measuring of performance and technical efficiency of comparable sets in converting similar inputs to similar outputs. In this paper, according to importance of university, largest higher education center in country, efficiency of Shahid Beheshti University’s faculties is evaluated by DBA using CCR model in two cases and with weights for inputs and outputs based on goal programming (min deviation variable, min sum deviation variables, min max deviation and multi objective LP) in period of 1382-1386. DBA based on goal programming has more power for separating and presenting real weights from classic models (CCR). Finding of research presented law faculty was inefficient, and earth, science and management and account faculties were top faculties based on observed indices in this period.
Maghsoud Amiri; Amir Alimi; Seyed Hossein Abtahi
Volume 6, Issue 17 , September 2007, , Pages 135-151
Abstract
Data envelopment analysis model is a model for calculating the efficiency of decision making units (DMUs). In previous models there are some weaknesses that the most important one is changing weights of inputs and outputs in model that lead to evaluate efficiencies of DMUs with different weights. The ...
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Data envelopment analysis model is a model for calculating the efficiency of decision making units (DMUs). In previous models there are some weaknesses that the most important one is changing weights of inputs and outputs in model that lead to evaluate efficiencies of DMUs with different weights. The important subject is that How we should evaluate all of decision making units with one set of weights and optimize their efficiencies simultaneously. This paper aims to present a new model that eliminates the weaknesses of previous models. Odeveloped model is designed based on multi objective decision making models and this model is solved with fuzzy solution method of multi objective decision making models and leads to creating common weights. The main object of research that was better ranking of DMUs rather than basic models have been done by using this model and this is showed with solving the model on an example.
Safar Fazli; Saleh Mansouri
Volume 6, Issue 15 , March 2007, , Pages 1-24
Abstract
Decision making is the essence of management and the manager is the one who can decide any time. Nowadays, the Analytical Hierarchy Process (AHP) and Data Envelopment Analysis (DEA) are considered as the most eminent tactics of decision making. The aim of this study is to compare the techniques of DEA ...
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Decision making is the essence of management and the manager is the one who can decide any time. Nowadays, the Analytical Hierarchy Process (AHP) and Data Envelopment Analysis (DEA) are considered as the most eminent tactics of decision making. The aim of this study is to compare the techniques of DEA and the process of AHP and also measuring their potency in compare with each other in a field study. The platform of this survey was laid through identifying the key decision-making indicators regarding stock exchange from investors' side and recording the exchange information in a one-year period. Thereafter, by utilizing these techniques, these indicators have been prioritized. The results of the study revealed no significant difference in two prioritizing method. AHP has shown higher potentiality in prioritizing the key performance indicators in compare with DEA.
M.R. Mehregan; M. Rahmani
Volume 1, Issue 3 , January 2003, , Pages 1-30
Abstract
The paper investigates excesses and deficits in Iranian industrial productivity for the years by combining data envelopment analysis with other management science approaches such as analytical hierarchy process. The application also identifies factors that affect the productivity of Iranian industry ...
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The paper investigates excesses and deficits in Iranian industrial productivity for the years by combining data envelopment analysis with other management science approaches such as analytical hierarchy process. The application also identifies factors that affect the productivity of Iranian industry in a positive or negative way i.e., simultaneously identifies both excesses and deficits. The current study demonstrates that DEA can be combined with other methods to yield more valid results insights and recommendations such as : 1- the trend of Iranian industrial productivity in this 21 year period demonstrates some periods of fall and rise that is due to the conditions of the time 2- in the main factors of productivity we see some continuous trends of weakness; this means that it is necessary to think about this point in the strategic plans for industrial development plans can be set and corrections and revisions can be made.
