Hellenic Open University Conferences, International Conference on Business & Economics of the Hellenic Open University 2015

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THE DATA ENVELOPMENT ANALYSIS METHOD FOR THE ASSESSMENT OF THE EFFICIENCY OF ORGANIZATIONS : A LITERATURE REVIEW
GEORGIOS FARANTOS

Building: Titania
Room: Solon
Date: 2015-02-06 03:00 PM – 04:45 PM
Last modified: 2015-01-27

Abstract


The paper constitutes a bibliographical review of the non-parametrical method of linear programming – Data Envelopment Analysis (DEA)– for the assessment of an organization’s efficiency. The derived knowledge can be used for further analysis within the framework of the elaboration of Doctoral Studies. The methodology of the survey encloses the bibliographical overview of DEA and offers the idea of the creation of a figurative model of dual application for the study of how a phenomenon (the Economic Crisis, for example) affects the efficiency of organizations. The financial assessment methods as well as the practices of comparative analysis are briefly summarized in relation to DEA. The fundamental theoretical framework of DEA is analysed if we take into account the influence of Farell’s work on the insertion of the particular method, the models of Charnes, Cooper & Rhodes - Banker, Charnes & Cooper as well as other contemporary models. The paper offers a detailed analysis of the concepts of technique efficiency and allocation efficiency, the constant return to scale, the variable return to scale and the graphic resolution of the method. The detection of both advantages and disadvantages, the study of efficiency based on method and the analysis of susceptibility offer a complete assessment for the efficiency of systems and organizations. A new approach is suggested through the development of a figurative model (Data Environment Contrast Analysis) which might be used for the study of the influence of a phenomenon on the efficiency of the organizations’ units. The paper allows for further survey to be conducted in the future concerning the assessment of the mutability of efficiency under the influence of both financial and social phenomena.


Keywords


Data Envelopment Analysis (DEA), Efficiency, Economic Crisis, Data Envelopment Contrast Analysis (DECA)