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Goal congruence analysis in multi-Division Organizations with shared resources based on data envelopment analysis
- Source :
- European Journal of Operational Research. 263:961-973
- Publication Year :
- 2017
- Publisher :
- Elsevier BV, 2017.
-
Abstract
- In multi-division organizations, goal congruence between different divisions and top management is critical to the success of management. In this paper, drawing upon a nonparametric framework to model production technology, we derive a necessary and sufficient condition for a firm with multiple divisions to be goal-congruent, and then extend it to a goal congruence testing measure, which coincides with a data envelopment analysis (DEA) model. The goal congruence measure not only shows empirically whether the firm is goal-congruent or not, but also provides a measurement for the degree of goal incongruence. To be goal-congruent, resources shared among divisions are suggested to be allocated so that the conditions for an optimizable operation are satisfied. In addition, goal-congruent firms are verified to be cost efficient. All findings in this research are examined and illustrated with a dataset of 20 bank branches with shared resources for service and sales divisions.
- Subjects :
- 021103 operations research
Information Systems and Management
General Computer Science
Operations research
Cost efficiency
05 social sciences
0211 other engineering and technologies
Nonparametric statistics
02 engineering and technology
Management Science and Operations Research
Industrial and Manufacturing Engineering
Congruence (geometry)
Modeling and Simulation
0502 economics and business
Data envelopment analysis
Economics
Top management
050203 business & management
Subjects
Details
- ISSN :
- 03772217
- Volume :
- 263
- Database :
- OpenAIRE
- Journal :
- European Journal of Operational Research
- Accession number :
- edsair.doi...........8c987a150a942f6751adcbca88bf8690