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Centralized Super-Efficiency and Yardstick Competition – Incentives in Decentralized Organizations

Armin Varmaz, Andreas Varwig () and Thorsten Poddig
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Armin Varmaz: University of Freiburg
Andreas Varwig: University of Bremen
Thorsten Poddig: University of Bremen

A chapter in Operations Research Proceedings 2010, 2011, pp 53-58 from Springer

Abstract: Abstract Due to deficient instruments of performance management, decentralized organizations often produce inefficiently. Promising approaches to dynamic incentives and performance management have recently been developed based on Data Envelopment Analysis (DEA). These, however, are not yet able to account for the specific needs of central performance management. We develop two new intra-organizational performance measures for defining dynamic incentive schemes and increasing overall performance. For suggestive evidence we evaluate the performances of 11 bank branches.

Keywords: Data Envelopment Analysis; Performance Management; Data Envelopment Analysis Model; Central Management; Payment Scheme (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:spr:oprchp:978-3-642-20009-0_9

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DOI: 10.1007/978-3-642-20009-0_9

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