Decision support for target-based resource allocation of public services in multiunit and multilevel systems

A target-based resource allocation (TABRA) model is presented as a way to connect performance measurement and resource allocation in multiunit multilevel organizations (MULOs). A combination of data envelopment analysis and goal programming methods were applied. A principal-agent concept was applied with central and decision-making unit management as the principal and agent, respectively. TABRA was developed from a goal programming model that finds the effect of individual agents with regards to marginal rates of conversion between inputs and outputs of the operation, the impact of the principals with regards to global performance goals and the modeling of the measures of equitable distribution. Said model was demonstrated through a sample of 20 fire departments.