Performance Measurement–An DEA-AHP Based Approach

Performance measurement of various organizations has been addressed by different researchers using various approaches with varied levels and dimensions of consideration. This paper presents a unique approach of combining Data Envelopment Analysis and Analytic Hierarchy Process for evaluating the performance of an organization. The said model overcomes the limitation of DEA model as well as AHP without affecting their unique properties. This technique eliminates the ranking inefficiency of DEA and able to rank all Decision Making Units (DMUs) under consideration. Finally the paper presents an application of the proposed model for measuring the organizational performance with a suitable example of an Indian integrated steel plant.