Abstract
Classical Data Envelopment Analysis (DEA) models have often been used to evaluate the public organizations effectiveness. However, such models, by ignoring the managers preferences, can classify as efficient organizations that, in fact, are not. Based on this motivation, the objective of this paper was to evaluate, through a DEA model that incorporates managerial preferences, the efficiency of the 25 superintendencies of the National Department of Mineral Production (DNPM), an autarchy linked to the Ministry of Mines and Energy. For this purpose, the number of servers in the middle and end areas and, as outputs, the number of mining titles granted in 2016 was considered as input. Manager preferences regarding outputs were incorporated into classical DEA models using the assurance region method. The results showed that when management preferences were incorporated into classic DEA models, the DNPM superintendencies number that showed maximum operational efficiency was reduced from eight to five. For superintendencies classified as inefficient, the benchmarks and performance targets were identified, which is useful, since they can support the action planning aimed at reducing the high liabilities pending processes for analysis by the municipality. This would reduce DNPM's slowness in granting mining bonds, which would stimulate investments in the mineral sector, which is of paramount importance to the Brazilian economy. It should be emphasized that the methods used in this research can be applied in the evaluation of the organizations efficiency whose managers have different preferences on inputs and outputs.
Highlights
The New Public Management movement, which emerged in the 1970s, presented itself with the primary objective of "transform the government" into a private company, thereby acquiring efficiency, reducing costs, and achieving greater productivity in service delivery (MOTTA, 2013)
A major limitation of classical Data Envelopment Analysis (DEA) models is the flexibility in the selection of weights to assign to the choiced output / input in determining the efficiency of each Decision Making Unity (DMUs) (Charnes, Cooper 1978; Banker, Charnes, & Cooper, 1984), that is, the classical models do not incorporate information on the managers' preferences (LIU; SHARP; WU, 2006; THANASSOULIS; PORTELA; ALLEN, 2004)
This paper aims to apply DEA models with preferences to evaluate the efficiency of the National Department of Mineral Production (DNPM) superintendencies, a federal authority responsible for promoting the granting of mining titles
Summary
The New Public Management movement, which emerged in the 1970s, presented itself with the primary objective of "transform the government" into a private company, thereby acquiring efficiency, reducing costs, and achieving greater productivity in service delivery (MOTTA, 2013). A major limitation of classical DEA models is the flexibility in the selection of weights to assign to the choiced output / input in determining the efficiency of each Decision Making Unity (DMUs) (Charnes, Cooper 1978; Banker, Charnes, & Cooper, 1984), that is, the classical models do not incorporate information on the managers' preferences (LIU; SHARP; WU, 2006; THANASSOULIS; PORTELA; ALLEN, 2004). This flexibility makes the method benevolent, (ROLF; SHAWNA; DIMITRIS, 2015; ZHU, 2015), enabling a bias in the analysis (FERREIRA; GOMES, 2009). The choice of DEA models with preferences is justified because DNPM managers, depending on the goals they have to fulfill to be entitled to a performance bonus (BRASIL, 2004), have different preferences on the titles granted
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