A BSC-DEA approach to measure the relative efficiency of service industry: A case study of banking sector

Abstract

Performance evaluation plays an important role in determining faults and difficulties of any organization as well as attempting to increase capabilities and improve activities. Data envelopment analysis (DEA), as a non-parametric method, has been one of the most important and significant management tools for measuring output or efficiency. In this paper, we propose a method to utilize balanced score card (BSC) as a tool for designing performance evaluation indices of an organization. The integrated BSC-DEA has been applied as an empirical case for a major private bank organization and the results are analyzed.

An empirical study based on BSC-DEA to measure the relative efficiencies of different health care centers in province of Semnan, Iran

“…However, BSC developed the indices toward four outlooks of growth and learning, internal processes, customer and finance and intends to balance financial goals as the result of past performance ( past view indices) and three other indices (future view indices) (Abran & Buglione, 2003). Aryanezhad et al (2010) explained the relative importance of using BSC-DEA for performance measurement and used it for efficiency estimation in banking industry. Performance evaluation plays an important role in determining faults and difficulties of any organization as well as attempting to increase capabilities and improve activities.…”

An empirical study on measuring the impact of personality type on employee capabilities

“…Based on their findings, they reported that big five personality dimension scores were substantially higher in the US sample compared to the Japanese sample. Aryanezhad et al (2010) proposed a BSC-DEA method to measure the relative performance of banking industry. In their method, they indicated that learning process plays an important role on increasing the relative performance of an organization.…”

Combining Balanced Scorecard and Data Envelopment Analysis to Design Performance Measurement for Supply Chain Actor and Regulator: A Case Study in Innovative Product in Indonesia

“…A5, A17, A28 and A42. But a comparison of the results with B-S-Rc could not be exploited for improvement because the calculation B-S-Rc model had not been based on the best targets of each indicator [35]. The score was calculated based on the achievement of the highest and lowest of each SME in Yogyakarta.…”

“…DEA can identify units that are inefficient and can quantify the amount of the improvement to achieve the efficiency frontier. Research on the measurement of efficiency, especially with the approach of DEA has been done in various fields, such as the measurement of SME [38], [39], public sector [40], [41], environment [42], hotel industry [43], airlines [44] and banking [45], [35].…”

“…The lack of DEA is that it is only focused on the input and output variables. In addition it couldn't see the vision [35]. The combination of BSC -DEA models is combining the advantages of both models to overcome their weaknesses .…”