Literary Review of Methods of Efficiency Evaluation in Public Sector

If an organization decides to introduce a new method or an instrument, it must compare the costs of implementing it with the benefits that the method would bring. This is true for public service organizations as well, mainly because of the fact that they manage public funds. The introduction of these methods can help increasing efficiency in the spending of public funds. If businesses want to survive and prosper in the public sector under the current global and competitive environment, they have to change their way of thinking and managing. It is common to see efficiency as a key problem in the public sector. The present paper deals with several methods of efficiency evaluation and tries to describe some of them. Based on our own research, methods of efficiency are divided into 5 groups. Each group is described separately, while the methods that we looked at, we can include cost-minimizing analysis (CMA), Technique for Order Preference by Similarity to Ideal Solution (TOPSIS), Common Assessment Framework (CAF), marketing mix in public administration products and many others. There are several methods which can be used for efficiency evaluation. Each situation should be analyzed individually and therefore we are not able to choose one of them and say it is the best or most appropriate.