Benchmarking of contributory organisations within the framework of technical efficiency

Abstract

Organisations should evaluate their goals in the areas of customer service provision, overall organisational strategy, finance, and human resource management. The performance of specific services provided to the client should be monitored and evaluated in greater detail. The comparison should be made between similar organisations aiming to improve services and technical efficiency. Most organisations, profit and non-profit alike, do not know how to evaluate and compare their efficiency. Retirement homes were selected for evaluation. The review focused on the technical efficiency for the years 2015-2017. To achieve the goal, Data Envelopment Analysis (DEA) was used as a specialised model tool for assessing the technical efficiency, performance or productivity of a group of homogeneous or comparable production units based on selected inputs and outputs. Due to different types of inputs and outputs, the method was selected from among multi-criteria decision-making methods. Two models, Model X and Model Y, including specific inputs and outputs, were designed to evaluate and compare the technical efficiency of selected retirement homes. According to the results, the output-oriented model (Model Y) was more effective for retirement homes compared to the input-oriented model (Model X). The value added could be seen in the model combination and comparison between different studies, which helps to understand the transferability of the results. The analysis confirmed the necessity to combine the DEA method with the quality of service assessment to be able to benchmark the real efficiency of service of a selected type of an organisation.

Keywords

• contributory organisations
• technical efficiency
• data envelopment analysis
• comparable units