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Centralized Super-Efficiency and Yardstick Competition – Incentives in Decentralized Organizations

In: Operations Research Proceedings 2010

Author

Listed:
  • Armin Varmaz

    (University of Freiburg)

  • Andreas Varwig

    (University of Bremen)

  • Thorsten Poddig

    (University of Bremen)

Abstract

Due to deficient instruments of performance management, decentralized organizations often produce inefficiently. Promising approaches to dynamic incentives and performance management have recently been developed based on Data Envelopment Analysis (DEA). These, however, are not yet able to account for the specific needs of central performance management. We develop two new intra-organizational performance measures for defining dynamic incentive schemes and increasing overall performance. For suggestive evidence we evaluate the performances of 11 bank branches.

Suggested Citation

  • Armin Varmaz & Andreas Varwig & Thorsten Poddig, 2011. "Centralized Super-Efficiency and Yardstick Competition – Incentives in Decentralized Organizations," Operations Research Proceedings, in: Bo Hu & Karl Morasch & Stefan Pickl & Markus Siegle (ed.), Operations Research Proceedings 2010, pages 53-58, Springer.
    • Handle: RePEc:spr:oprchp:978-3-642-20009-0_9
    DOI: 10.1007/978-3-642-20009-0_9
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