Proposal of Performance Assessment by Integration of Two Management Tools

Abstract

Performance evaluation plays an important role in determining faults and difficulties of any company. 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. On the other side, the Balanced Scorecard (BSC) has been one of the best-known performance management tools. In this paper, we combine the BSC with the DEA method by using various interconnected models which try to sum up four perspectives of performance (financial, customers, internal processes, learning and growth). The application of these models provides structured information regarding the performance of each Decision Making Unit and ways to improve it.

Keywords

• Data Envelopment Analysis (DEA)
• Balanced Scorecard (BSC)
• effectiveness
• efficiency
• integration of management tools