Munich Personal RePEc Archive

Performances management when modelling internal structure

Pinto, Claudio (2018): Performances management when modelling internal structure.

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Abstract

The performances management is a key issue for public as well as private organizations. The core of the performances management in the DEA context are essentially the relative efficiency measurement for organizations considered as a “black box” that use inputs to produce two or more outputs. In reality, organizations/ production process are comprised of a number of divisions/stages which performs different functions/tasks interacting among them. For these reasons modelling internal structures of organizations/production process allow to discover the inefficiency of individual divisions/stages. In this paper we estimate the relative efficiency of a production process once modelling its internal structure with a network structure of three divisions/stages interrelated among them. To outline the differences in the performances management in the two cases (“black box” vs network structure) we compare they empirical cumulative distribution functions.

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