The measurement of university performance using concepts derived from data envelopment analysis (DEA)

Abstract

Performance measurement in higher education is examined during this study, in particular university performance indicators are reviewed and discussed. The conclusion is made that appropriate input and output indicators require some form of combination in order to allow practical consideration to be made. The technique of Data Envelopment Analysis (DEA) is reviewed and found to have a number of conceptual drawbacks. The model is considerably developed within the thesis, primarily by the introduction of weight restrictions on the variables. Taken as a whole the developments, coined the DEAPMAS process, create a technique which can be used to assess cost effectiveness rather than simply efficiency. Data for two examples of subject areas, defined by recognised accounting units, are applied to the program as inter-university comparison was felt to be impractical at institutional level; due to differing subject mixes. A considerable computer implementation of the developed theory was written and utilised to provide results over a number of data runs for the examples. It was concluded that the results obtained represented a considerable improvement over separate consideration of numerous performance indicators.