Lecture 6

Question 1

Benchmarking is the process of …

Answer 1

comparing an organization’s performance, processes, or products against industry standards, competitors, or best practices. Measurements include both/either financial or non-financial.

Question 2

Benchmarking identify:

Answer 2

Best Practices and Performance Gaps

Question 3

By conducting benchmarking it transforms …

Answer 3

managerial mind-sets & perspectives thruouhg its comparisons, focus on present & future, and as a part of the identification of processes that produce best results.

Question 4

DEA

Answer 4

Data Envelopment Analysis

Question 5

DEA is

Answer 5

a non-parametric method used to measure the efficiency of decision-making units (DMUs), such as businesses, hospitals, or universities. It compares multiple inputs (e.g., resources) and outputs (e.g., production, services) to determine which DMUs are operating efficiently.

Question 6

IN a DEA we Identify

Answer 6

Inputs(/resources) and Outputs(/result)

Question 7

efficient frontier

Answer 7

Frontier of of the best-performing units

Question 8

”100% efficiency is attained (for a unit) only when:

Answer 8

a) None of its outputs can be increased without either (i) increasing one or more of its inputs, or (ii) decreasing some of its other outputs;
b) None of its inputs can be decreased without either (i) decreasing one or more of its outputs, or (ii) increasing some of its other inputs.”

Question 9

The Evaluation Principle refers to …

Answer 9

the process of assessing the value, effectiveness, or performance of something based on predefined criteria or standards.

Question 10

Discretionary:

Answer 10

(Flexible & Controllable): Something that can be adjusted or changed based on choice or management decisions.

Question 11

Non-Discretionary

Answer 11

(Fixed & Uncontrollable): Something that must be spent or used, regardless of circumstances.

Question 12

The CSR frontier modifies …

Answer 12

the standard DEA approach by ensuring that the sum of efficiency scores across all DMUs is fixed at a predefined value. This approach is useful in scenarios where they have a budget.

Question 13

PERFORMANCE MANAGEMENT FRAMEWORK: OTLEY (1989) are….

Answer 13

Five questions that are not novel, but an integrated framework for performance management in practice and ”theory” is (relatively novel).