Measuring Organizational Performance

2011 ◽  
pp. 687-706
Author(s):  
James F. Burgess ◽  
Andrew Street
Keyword(s):  
Health Care ◽  
Organizational Performance ◽  
Production Process ◽  
Stochastic Frontier Analysis ◽  
Health Care Organizations ◽  
Stochastic Frontier ◽  
Health Sector ◽  
Analytical Techniques ◽  
Frontier Analysis ◽  
Principal Agent Model

This article describes econometric approaches to comparing the efficiency of health care organizations. It deals with organizational performance measurement by first formulating a principal-agent model in which a regulator (principal) delegates responsibility to health care organizations (agents) to advance a subset of overall health sector objectives. Both effort and efficiency have to be estimated indirectly, after taking account of measurable phenomena, such as inputs, outputs, and constraints on the production process. This article considers four issues fundamental to the development of an efficiency model in an economic context, regarding appropriate unit of analysis, relevant system outputs, and constraints on the production process. This is followed by a review of the main analytical techniques used to assess efficiency, namely, stochastic frontier analysis and data envelopment analysis. Finally, it concludes that despite the challenges in measuring and comparing organizational performance, considerable analytical advances allow greater confidence to be placed in the results of analysis.

scholarly journals Productive efficiency analysis of quantitative economics journals through Stochastic Frontier Analysis using panel data

2020 ◽  
Vol 30 ◽  
pp. 297-311
Author(s):  
José Manuel Gavilan Ruiz ◽  
Francisco Javier Ortega Irizo
Keyword(s):  
Production Process ◽  
Stochastic Frontier Analysis ◽  
Scientific Journal ◽  
Stochastic Frontier ◽  
Productive Efficiency ◽  
Mathematical Methods ◽  
Frontier Analysis ◽  
Economics Journals ◽  
Using Data ◽  
Number Of Citations

The main goal of a scientific journal is to diffuse new knowledge. The number of citations received by a journal can be considered as a measure of this objective and, in turn, as a measure of productivity in relation to the production process in which the journals are involved. In order to assess this production process, in this paper econometric models using data panel are employed to obtain measures of efficiency for those journals belonging simultaneously to the areas of “economics” and “social science, mathematical methods” in the Web of Science database. This efficiency is measured in terms of the distance between the actual production of the journals and their estimated maximum achievable number of citations based on their available resources.

scholarly journals Efficiency of social sector expenditure in India: a case of health and education in selected Indian states

2014 ◽  
Vol 2 (1) ◽  
Author(s):  
Brijesh C. Purohit
Keyword(s):  
Health Care ◽  
Private Sector ◽  
Nutrition Education ◽  
State Government ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Social Sector ◽  
Indian States ◽  
Free Disposal Hull ◽  
Frontier Analysis

Social sector expenditure in India captures a number of important aspects including health, nutrition, education, water supply, sanitation, housing and welfare, among others. Over a period of time, besides budgetary outlay on this sector, private sector has also played a considerable role. Thus, efficiency of expenditure in this sector by state government has to be reckoned both in terms of relative levels of various aspects across the states and in terms of comparable benchmarks for different aspects of the sector. This paper attempts an analysis of social sector efficiency focusing on two major aspects: health and education. Unlike other studies on the Indian context, this analysis focusing on major states in India uses both non-parametric and parametric approaches. Although both approaches provide benchmarks to judge relative efficiency across states, the former provides a yardstick more at an aggregative level without parametric restrictions, whereas the latter is used for major focus on health care aspects. Results of free disposal hull analysis are suggestive of a considerably more scope for improvement in efficiency of public expenditure in health relative to education. Our results of stochastic frontier analysis indicate considerable state level disparities which could be reduced through a mix of strategies involving reallocation of factors (namely, manpower and supply of consumables) within the sector, mobilizing additional resources possibly through enhanced budgetary emphasis, or encouraging more private sector participation. Based on our results, this may enhance efficiency by nearly 20% in health care sector and increase availability and equity across low performing and poorer states like Madhya Pradesh and Uttar Pradesh.

scholarly journals Efficiency Across Hospitals in Bangladesh: Results from Stochastic Frontier Analysis

2021 ◽  
Vol 37 (2) ◽  
pp. 145-159
Author(s):  
Sharmeen Mobin Bhuiyan ◽  
Nasrin Sulatana
Keyword(s):  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Health Sector ◽  
Utilization Rate ◽  
Secondary Source ◽  
Efficient Production ◽  
Frontier Analysis ◽  
District Hospitals ◽  
Financing Gap ◽  
Low Efficiency

The health sector of Bangladesh achieved many of its goals. The sector, however, faces challenges. One major challenge is low efficiency. In a resourcepoor country, inefficiency leads to the waste of available resources widening the financing gap of the health sector. A technically efficient production unit produces a large amount of output with a given amount of inputs using a given state of technology. Technical efficiency of the district hospitals in Bangladesh is measured using the secondary source of data applying stochastic frontier analysis. Results show that the efficiency of some facilities is quite low and there is a mismatch of utilization rate and efficiency levels of the district hospitals. Measures like reducing absenteeism, increasing healthcare demand, and ensuring proper functioning of all inputs should be taken to enhance the efficiency and utilization of the district hospitals. Social Science Review, Vol. 37(2), Dec 2020 Page 145-159

scholarly journals Technical efficiency of health-care systems in selected middle-income countries: an empirical investigation

2020 ◽  
Vol 5 (4) ◽  
pp. 267-287
Author(s):  
Heba Nassar ◽  
Hala Sakr ◽  
Asmaa Ezzat ◽  
Pakinam Fikry
Keyword(s):  
Health Care ◽  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Health Care Systems ◽  
Stochastic Frontier ◽  
Middle Income ◽  
Content Type ◽  
Frontier Analysis ◽  
Middle Income Countries ◽  
Care Systems

Purpose This paper aims to evaluate the technical efficiency of the health-care systems in 21 selected middle-income countries during the period (2000–2017) and determine the source of inefficiency whether it is transient (short run) or persistent (long run). Design/methodology/approach The study uses the stochastic frontier analysis technique through employing the generalized true random effects model which overcomes the drawbacks of the previously introduced stochastic frontier models and allows for the separation between unobserved heterogeneity, persistent inefficiency and transient inefficiency. Findings Persistent efficiency is lower than the transient efficiency; hence, there are more efficiency gains that can be made by the selected countries by adopting long-term policies that aim at reforming the structure of the health-care system in the less efficient countries such as South Africa and Russia. The most efficient countries are Vietnam, Mexico and China which adopted a social health insurance that covers almost the whole population with the aim of increasing access to health-care services. Also, decentralization in health-care has assisted in adopting health-care policies that are suitable for both the rural and urban areas based on their specific conditions and health-care needs. A key success in the implementation of the adopted long-term policies by those countries is the continuous monitoring and evaluation of their outcomes and comparing them with the predefined targets and conducting any necessary modifications to ensure their movement in the right path to achieve their goals. Originality/value Although several studies have evaluated the technical efficiency both across and within countries using non-parametric (data envelopment analysis) and parametric (stochastic frontier analysis) approaches, to the best of the authors’ knowledge, this is the first attempt to evaluate the technical efficiency of selected middle-income countries during the period (2000–2017) using the generalized true random effects stochastic frontier analysis model.

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