Modeling Performance Measurement in Organizations

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Performance measurement and benchmarking are important underpinnings of our economic system, particularly the large Canadian service sector. Banks, hospitals, schools, and fast food restaurants are but a few examples of organizations that can benefit from benchmarking and efficiency evaluation. By having effective tools for measuring the performance of any organization relative to its peers or competitors, that organization can have a better understanding of any gaps that may exist between where it currently stands and where its potential lies. The proposed research is aimed at developing decision support tools for modeling performance and identifying best practice in organizations. The model structure to be used is data envelopment analysis (DEA), which falls within the broader set of multiple criteria decision-making methodologies. DEA research has spanned three decades; the proposed research program examines some of the major issues that have arisen in the process of applying DEA to real world problems. An important area of current research is supply chain management. Having the means for analyzing supply chains and making performance comparisons between vendors and their associated supply chains, is now becoming a must in both 'for profit' and 'not for profit' settings. The DEA methodology has the potential to become a tool of choice here, but is not robust enough in its current form to provide the detailed analysis needed. A major portion of the proposed research focuses on addressing some of these shortcomings in the DEA methodology.