Financial Performance Assessment based on Efficiency and Productivity, using Data Envelopment Analysis (Case Study: The Social Security Organization of Iran)

Varedi, Shayesteh; Azimi, Azam

Financial Performance Assessment based on Efficiency and Productivity, using Data Envelopment Analysis (Case Study: The Social Security Organization of Iran)

Authors

Shayesteh Varedi ¹

Azam Azimi ²

¹ Assistant professor, Department of Economics, Qaemshahr Branch, Islamic Azad University, Qaemshahr, Iran

² Master of Public Administration, Qaemshahr Branch, Islamic Azad University, Qaemshahr, Iran.

Abstract

This research, using data envelopment analysis (DEA), assesses financial performance based on efficiency and productivity in 36 organizational units of the country's Social Security Organization. For this purpose, the output-oriented DEA model was used. The considered model was estimated using the quantitative indicators of the Social Security Organization during 2019-2020. The results indicated that the average technical and managerial efficiency of organizational units has increased on average in 2018-2019). The obtained average scale efficiency of the organizational units for the years 2018-2019 (0.970) from the study of productivity (scale efficiency) indicates that the understudy units have not been operating at an optimal scale and this situation needs to be improved by adopting new measures. Out of all the organizational units under investigation, scale efficiency in 24 units was below and in 12 units was above the average.

Keywords

Performance

Performance assessment

Efficiency

Data envelopment analysis (DEA)

The Social Security Organization