Efficiency analysis of university departments An empirical study

• Published in: Omega (Oxford) Vol. 36; no. 4; pp. 653 - 664
• Main Authors: Kao, Chiang, Hung, Hsi-Tai
• Format: Journal Article
• Language: English
• Published: Exeter Elsevier Ltd 01.08.2008; Elsevier; Elsevier Science Publishers; Pergamon Press Inc
• Series: Omega
• Subjects: Applied sciences; Benchmarking; Cluster analysis; Cluster analysis Data envelopment analysis Efficiency Efficiency decomposition; Clusteranalyse; College administration; Colleges & universities; Data envelopment analysis; Departments; Efficiency; Efficiency decomposition; Empirische Methode; Exact sciences and technology; Firm modelling; Hochschule; Leistungsmessung; Management; Mathematics; Nonparametric inference; Operational research and scientific management; Operational research. Management science; Portfolio theory; Probability and statistics; School environment; Sciences and techniques of general use; Services; Social aspects; Statistics; Studies; Taiwan; United States; Universities and colleges; United States; Taiwan; Cluster analysis; Efficiency decomposition; Efficiency; Data envelopment analysis; Performance evaluation; Government; Empirical method; Banking; Non parametric estimation; Subsidy; Relative efficiency; Flexibility; Credit; Economy; University; Classification; Multiplier; Aggregate; Age
• ISSN: 0305-0483; 1873-5274
• DOI: 10.1016/j.omega.2006.02.003

Universities play an important role in the development of a country in this age of the knowledge economy. As government subsidies to universities have been reducing in recent years, the more efficient use of resources becomes an important issue for university administrators. This paper applies data envelopment analysis (DEA) to assess the relative efficiency of the academic departments at National Cheng Kung University in Taiwan. The outputs considered are total credit-hours, publications, and external grants; and the inputs utilized by the departments are personnel, operating expenses, and floor space. An assurance region is constructed by the top administrators of the university to confine the flexibility in selecting the virtual multipliers in DEA. Four groups of departments of similar characteristics are categorized via an efficiency decomposition and cluster analysis. The aggregate efficiency indicates whether the resources have been utilized efficiently by a department and the efficiency decomposition helps identify the weak areas where more effort should be devoted so that the efficiency of the department can be improved.