Evaluating the efficiency of university departments: an application of data envelopment analysis

The paper aimed at examining the efficiency of academic departments within a university as efficiency estimation provides information about weaknesses and opportunities which would be helpful in further improvement. The study evaluated the efficiency of 35 academic departments within Guru Nanak Dev University for the period 2016-17. Efficiency was calculated for two samples, i.e.: 1) departments with post graduate enrolment only; 2) departments with both post graduate and undergraduate enrolment. Secondary data was collected from budgets and annual reports of the university. Data envelopment analysis was used for the purpose of analysis. Four models were built with different combinations of outputs and same number of inputs for both samples. The findings revealed that on average departments were operating at moderate level of efficiency. The findings of the study also provide information to university regulators which can be used for further improvement of academic departments. It will be helpful in decision making regarding allocation and utilisation of resources to produce outputs. The research provides application of data envelopment analysis in evaluating the efficiency of academic departments.