Analysis Of Efficiency Measures Research Articles

Efficiency of electricity distribution companies

Purpose After assessing papers on efficiency, most of the studies available are focused on the analysis of efficiency measures, without providing a deep discussion of the factors that determine efficiency. This study aims to evaluate the efficiency of Brazilian electricity distribution companies based on a structural model that enables the identification of a network of relationships among representative variables that contribute to efficiency. Design/methodology/approach Structural equation modeling was applied in a sample of 62 electricity distribution companies operating in Brazil, forming a balanced panel from 2010 to 2014. Then, the authors verified the model compliance according to the empirical evidence of the entities analyzed. This verification included a survey of the variables, which was supported by theoretical references related to the phenomenon studied. The data collected were statistically treated, and benchmarking models and multivariate techniques were used. Once the adjustments were made, the re-specified model was estimated using the maximum likelihood method. Findings The empirical model reached good adjustment rates. The analysis concluded that the constructs information system, structural system, management system and sociocultural system affect efficiency. Originality/value This study adds to several other papers, and this is one of its main contributions. Relationships among the constructs have been systematized according to literature in the form of a structural model, which will enable future researchers to have a reference frame of relevant studies and a research foundation in this area of knowledge. A third contribution is the model tested in a sample of Brazilian electricity distribution companies, whose results can be compared to other utility sectors (e.g. telecommunications) or to other countries' electrical sectors, thus providing an empirical basis for the proposed hypotheses. Finally, this study also offers a contribution to the Brazilian Electrical Energy Agency (Aneel, in Portuguese), a regulatory agency, providing mechanisms to guide tariff adjustments, seeking a balance between costs and the need for investments allied to tariff affordability.

Robust approach for efficiency measurement of employee performance under profit sharing system

This study estimates the efficiency of employees’ performances under profit sharing system using data envelopment analysis (DEA). This method is one of the most common methods used in efficiency measurement analysis. However, a robust approach is used to deal with the complexity of the traditional DEA estimators. Robust Data Envelopment Analysis (RDEA) is very useful when outliers contaminate the data. The sample includes five divisions which cover as many as 102 employees of a shipping company in Malaysia are analyzed by using R program. The results reveal that the initial DEA efficiency is an over-estimate of the true efficiency. RDEA provides better accuracy of the results. Further, the robust approach is appropriate to be used in the measurement of the efficiency of company divisions under profit sharing program.

The Value of Efficiency Measures: Lessons from Workforce Development Programs

ABSTRACTIn 2007, the Employment and Training Administration was required to implement an outcome-based measure or measures of efficiency for its programs. This paper identifies outcome-based efficiency measures for 11 ETA-administered programs. The research involved interviews with state officials; analysis of efficiency measures used by other federal workforce programs; and analysis of cost and outcome data for the 11 ETA programs to investigate the potential for developing regression models to adjust expected performance for states. A key lesson is that it is critical to anticipate the behavioral changes likely to be induced by the performance policies adopted. The paper recommends that efficiency measures be tied to outcome performance measures. It also recommends use of program expenditures as the measure of program costs. Efficiency measures recommended include cost per entered employment, cost per retained in employment, cost divided by post-program (average) earnings, and cost divided by change in earnings.