Making Intangibles Into Tangible Results With the Data Envelopment Analysis Method

• In Event: 52.076 - Effects of Design and Methods in Evaluating Policies and Programs

Abstract

This study intended to evaluate human performance of private companies in terms of relative efficiency by DEA. The DEA method is useful in evaluating human performance, which is difficult due to intangible inputs and outcomes. Total 287 companies in Human Capital Corporate Panel data were analyzed. The evaluation index included the inputs of HR department, HRM, and HRD activities, and the outputs such as employees competencies, employees morale, sales by individual worker, and patent registration. The results of DEA analysis indicated 71 companies were designated as best practices, showing 100% efficiency. The lowest ranked companies were analyzed based on their efficiency with the consideration of the balance between inputs and outputs, and made suggestions for their performance improvement.

Author

• Soyoung Kim, Seoul National University of Science & Technology