A DEA-based incentives system for centrally managed multi-unit organisations

In multi-unit organisations such as a bank and its branches or a national body delivering publicly funded health or education services through local operating units, the need arises to incentivize the units to operate efficiently. In such instances, it is generally accepted that units found to be inefficient can be encouraged to make efficiency savings. However, units which are found to be efficient need to be incentivized in a different manner. It has been suggested that efficient units could be incentivized by some reward compatible with the level to which their attainment exceeds that of the best of the rest, normally referred to as “super-efficiency”. A recent approach to this issue (Varmaz et. al. 2013) has used Data Envelopment Analysis (DEA) models to measure the super-efficiency of the whole system of operating units with and without the involvement of each unit in turn in order to provide incentives. We identify shortcomings in this approach and use it as a starting point to develop a new DEA-based system for incentivizing operating units to operate efficiently for the benefit of the aggregate system of units. Data from a small German retail bank is used to illustrate our method

South African approaches to measuring, reporting and verifying: a scoping report

The South African government announced its intention to make emissions data reporting mandatory for emitters of more than a 0.1Mt of greenhouse gases per year in the 2011 National Climate Change Response White Paper. The government intends to establish a ‘climate change response monitoring and evaluation system’, that ‘evolves with international measuring, reporting and verification (MRV) requirements.’ MRV is one of the key topics in the international climate negotiations to create trust and legitimacy. This report presents a mapping exercise of South African approaches to MRV. Research shows that a lot of databases and collections exist already, particularly in the emissions intensive energy sector. However, there is no coherent overall approach to the management of these data. Coordination is necessary for a comprehensive system. Government needs to lead this process ensuring the participation of all departments. It will be necessary to build on the existing structures and capacities to achieve the commitments in the White Paper. Three case studies present existing approaches to GHG reporting, besides the overall scoping. This scoping report is the result from the first phase of the Measurement and Performance Tracking Project that the World Resource Institute conducts in cooperation with the German Ministry for Environment and the Energy Research Centre

The political economy of decarbonisation: exploring the dynamics of South Africa’s electricity sector

South Africa’s coal-dominated electricity sector, a key feature of the country’s minerals-energy complex, is in crisis and subject to change. This offers potential opportunities for decarbonisation. Despite positive examples of decarbonisation in South Africa’s electricity sector, such as a procurement programme for renewable energy, there are structural path dependencies linked to coal-fired generation and security of supply. Decarbonisation goes far beyond what is technologically or even economically feasible, to encompass a complexity of political, social and economic factors. Meanwhile, decision-making in electricity is highly politicised and lack of transparency and power struggles in the policy sphere pose key challenges. Such power struggles are reflected in national debates over which technologies should be prioritised and the institutional arrangements that should facilitate them

The Global University: The Role of Senior Managers

Contributors address the role of senior managers in relation to internationalisation, globalisation, and sustainable development and share how these often overlapping challenges can be addressed. Consideration has been given to a range of potentially competing demands including the relationship between what Paul Luker describes as the 'core mission and values of HE' and what Caruana and Hanstock describe as 'marketisation discourse'. The Global University: The Role of Senior Manager is written by higher education institution senior managers, for HEI senior managers. Supported by HEFCE Leadership, Governance and Management Funding, 'The Global University: the role of senior managers' is a companion publication to 'The Global University: the role of the curriculum'. Many of the contributors are regarded as critical champions of internationalisation in the UK as well as thoughtful strategists in the process of affecting sustainable university-wide change. To provide further food for thought, in addition to the UK contributions, a case study on university-wide approaches to the development of global citizens at the University of British Columbia and a perspective on the barriers affecting the process of internationalisation in Latin American Universities have also been included. Contributors address key concepts from a variety of perspectives and what will quickly become apparent is that the terms are not always translated in quite the same way (a way of seeing is also a way of not seeing) but in spite of this, collectively, considerable insight for moving the agenda forward is provided. At the very least, the publication will serve to inspire debate on what should constitute the vision, mission and values of a global university, within the context of global society. Given the global footprint of universities and the ability of our graduates to influence change in global society, the publication maintains that universities cannot ignore their corporate and social responsibilities: senior managers have a critical role to play as leaders of this agenda and of change that results in positive benefits for a wider stakeholder group

Policies, Natural Resource Governance and Local Development

The role that agriculture should play in economic development has been recognised for years. In recent years, concern has been expressed over rising agricultural and food prices. The world market prices for major food commodities have risen sharply to historic highs of more than 60 percent above levels just two years ago. Many factors have contributed to the rise in food commodity prices. Some factors reflect trends of slower growth in production and more rapid growth in demand that have contributed to a tightening of world balances of grains and oilseeds over the last decade. Other factors that have added to global food commodity price inflation include the declining value of the US dollar, rising energy prices, increasing agricultural costs of production, growing foreign exchange holdings by major food-importing countries, and policies adopted recently by some exporting and importing countries to mitigate their own food price inflation (Trostle, 2008). Mozambique has a vast extension of land and diversity of natural resources. Resources are inadequately used, the rural income continues to fall, and poverty is increasing. The rural standard of living has been deteriorating year by year. To date, estimations reveal that between 60 and 80 percent of cultivated land in all the provinces is concentrated in areas between 0.2 and 1 ha. For a sample of 192 farmers, using a translog stochastic production frontier like that of Bravo-Ureta and Pinheiro (1993), who estimated a Cobb-Douglas total value product frontier for analysis purposes, the study found that the average economic efficiency (EE), technical efficiency (TE) and allocative efficiency (AE) for the sample were 11.6%, 83.0% and 13.7% respectively. These results suggest that there is considerable room to maximise resource usage and increase agricultural output without additional input and given the existing technology. The adoption of new technologies designed to enhance farm output and income has received particular attention as a means to accelerate economic development. However, output growth is not only determined by technological innovations, but also by the efficiency with which available technologies are used in the absence of inefficiency factors. As Bravo-Ureta and Pinheiro (1993)noted, the evidence presented in this study suggests that there is much room for improving the efficiency of natural resource management in general. The results based on frontier methodology are generally consistent with the notion that local actors play an important role in the management of local resources; consequently, public investments designed to enhance human and social capital at local level can be expected to generate additional skills and output even in the absence of new technologies. The participation of citizens in all stages is crucial.Data envelopment analysis, Efficiency, Decentralisation, Natural resource management, Land reform, Agricultural development, Governance, Participation, Local development, Agricultural and Food Policy, Community/Rural/Urban Development, Institutional and Behavioral Economics, International Development, Political Economy, Resource /Energy Economics and Policy,

Measurement of hospital performance

The rationale for carrying out this research was to address the clear lack of knowledge surrounding the measurement of public hospital performance in Ireland. The objectives of this research were to develop a comprehensive model for measuring hospital performance and using this model to measure the performance of public acute hospitals in Ireland in 2007. Having assessed the advantages and disadvantages of various measurement models the Data Envelopment Analysis (DEA) model was chosen for this research. DEA was initiated by Charnes, Cooper and Rhodes in 1978 and further developed by Fare et al. (1983) and Banker et al. (1984). The method used to choose relevant inputs and outputs to be included in the model followed that adopted by Casu et al. (2005) which included the use of focus groups. The main conclusions of the research are threefold. Firstly, it is clear that each stakeholder group has differing opinions on what constitutes good performance. It is therefore imperative that any performance measurement model would be designed within parameters that are clearly understood by any intended audience. Secondly, there is a lack of publicly available qualitative information in Ireland that inhibits detailed analysis of hospital performance. Thirdly, based on available qualitative and quantitative data the results indicated a high level of efficiency among the public acute hospitals in Ireland in their staffing and non pay costs, averaging 98.5%. As DEA scores are sensitive to the number of input and output variables as well as the size of the sample it should be borne in mind that a high level of efficiency could be as a result of using DEA with too many variables compared to the number of hospitals. No hospital was deemed to be scale efficient in any of the models even though the average scale efficiency for all of the hospitals was relatively high at 90.3%. Arising from this research the main recommendations would be that information on medical outcomes, survival rates and patient satisfaction should be made publicly available in Ireland; that despite a high average efficiency level that many individual hospitals need to focus on improving their technical and scale efficiencies, and that performance measurement models should be developed that would include more qualitative data

A parallel approach to analysis of costs/benefits and efficiency changes resulting from privatisation of health services

The marketisation of public health care systems is part of a long process, which is not necessarily clearly set out or understood at the beginning. Public policy plays an important role in creating internal markets and changing public health care systems. The findings of this review show that there are now recognisable steps in the process of moving from a state/ government run health care system to a marketised and privatised system but this can take place over many years