A framework for performance measurement in university using extended network data envelopment analysis (DEA) structures

Abstract

Measuring university performance is essential for efficient allocation and utilization of educational resources. In most of the previous studies, performance measurement in universities emphasized the operational efficiency and resource utilization without investigating the university's ability to fulfill the needs of its stakeholders and society. Therefore, assessment of the performance of university should be separated into two stages namely efficiency and effectiveness. In conventional DEA analysis, a decision making unit (DMU) or in this context, a university is generally treated as a black-box which ignores the operation and interdependence of the internal processes. When this happens, the results obtained would be misleading. Thus, this paper suggest an alternative framework for measuring the overall performance of a university by incorporating both efficiency and effectiveness and applies network DEA model. The network DEA models are recommended because this approach takes into account the interrelationship between the processes of efficiency and effectiveness in the system. This framework also focuses on the university structure which is expanded from the hierarchical to form a series of horizontal relationship between subordinate units by assuming both intermediate unit and its subordinate units can generate output(s). Three conceptual models are proposed to evaluate the performance of a university. An efficiency model is developed at the first stage by using hierarchical network model. It is followed by an effectiveness model which take output(s) from the hierarchical structure at the first stage as a input(s) at the second stage. As a result, a new overall performance model is proposed by combining both efficiency and effectiveness models. Thus, once this overall model is realized and utilized, the university's top management can determine the overall performance of each unit more accurately and systematically. Besides that, the result from the network DEA model can give a superior benchmarking power over the conventional models.