A new approach in the DEA technique for measurement of productivity of decision-making units through efficiency and effectiveness

Abstract

So far, numerous studies have been developed to evaluate the performance of decision-making units through DEA technique in different places, but most of these studies have measured the performance of decision-making units by efficiency criteria. The productivity is considered as a key factor in the success and development of decision-making units and its evaluation is more comprehensive than efficiency evaluation. Recently, the productivity has been considered in DEA technique. The productivity in these studies is often evaluated through the productivity indexes. These indexes require at least two time periods and also the two important elements of efficiency and effectiveness in these studies are not significantly evident. There are few studies that measure productivity through efficiency and effectiveness. This few researches also measure the efficiency and effectiveness in two stages separately. So, the purpose of this study is to develop a new approach in the DEA technique in order to measure productivity of decision-making units through efficiency and effectiveness simultaneously, in one stage and interdependently. One case study demonstrates application of the proposed approach in the branches of a Bank. Using proposed approach revealed that efficient branches are not necessarily productive, but productive branches are also efficient.