Developing a Performance Evaluation Model for Bank Branches Using a Hybrid Approach of Pca and Dea: Case of Third Level Branches of Keshavarzi Bank

Authors
emad nobahar
Adel Azar
Head of the Department of Industrial Management, Tarbiat Modares University
Abstract
Performance evaluation has always been considered as one of the critical issues in every and each organization. In order to identify, adjust and apply the changes in their short-term and long-term goals, every organization needs to evaluate its performance continuously. Considering the key role of banks as one of the most important financial and economic parts of any society, it is important to evaluate the performance of these financial institution. In this study, 100 third level branches of Keshavarzi Bank were evaluated with 36 sub-indicators (7 inputs and 29 outputs) and these 36 sub-indicators were clustered in 3 inputs and 7 outputs. In this research, CCR-O model is used as the main model and to reduce the number of sub-indicators and obtain main-indicators three scenarios were performed (simple average, weighted average by using weights from AHP and Principle Component Analysis (PCA)) and outputs of these three scenarios were used as CCR-O inputs. Finally, increasing of discrimination power in all three scenarios was examined using coefficient of variation and it was understood that discrimination power in PCA-DEA scenario increased more than the other two.
Keywords
performance evaluation
Data Envelopment Analysis
Principle Component Analysis
[1]    
[1]     Wu, D., Yang, Z., Liang, L. (2006) "Using DEA-neural network approach to evaluate branch efficiency of a large Canadian bank", Expert Systems with Applications. Vol. 31, pp. 108-115.
[2]    جانسون و دین دبلیو (1379) تحلیل آماری چند متغیره کاربردی، ترجمه حسینعلی نیرومند، چ. 1، انتشارات دانشگاه فردوسی.
[3]     Cinca, C. Serrano, Molinero, C. M.(2004)"Selecting DEA specifications and ranking units via PCA", Journal of the Operational Research Society, Vol. 55, No. 5, pp. 521–528.
[4]     Jenkins, Larry, Anderson, Murray(2003)"A multivariate statistical approach to reducing the number of variables in data envelopment analysis", European Journal of Operation Research, Vol. 147, pp. 51–61.
[5]    کلاین، پل، راهنمای آسان تحلیل عاملی، ترجمه سید جلال صدرالسادات و اصغر مینایی، انتشارات سمت، 1380.
[6]     Zhu(1998)"Data envelopment analysis vs principal component analysis: An illustrative study of economic performance of Chinese cities", European Journal of Operational Research, Vol. 111, pp. 61-150.
[7]     Adler, N., Golany, B.(2002)"Evaluation of deregulated airline networks using data envelopment analysis combined with principal component analysis with an application to Western Europe", European Journal of Operational Research, Vol. 132, pp. 260–273.
[8]     Adler, N., Berechman, J.(2001)"Measuring airport quality from the airlines’ viewpoint: An application of data envelopment analysis", Transport Policy, Vol. 8, No. 3, pp.171-181, 2001.
[9]     Bruce Ho, C., Wu, D.D.(2008)"Online banking performance evaluation using data envelopment analysis and principal component analysis", Computers & Operations Research, Vol. 4, No. 97, pp.83-97.
[10] Adler, N., Yazhemsky, E., (2010), "Improving discrimination in data envelopment analysis: PCA–DEA or variable reduction", European Journal of Operational Research, 202 (2010), pp. 273–284.
[11] Shanmugam, R., Johnson, C., (2007), "At a crossroad of data envelopment and principal component analyses", Omega, Vol. 35, No. 4, pp. 351–364.
[12]خزایی، مجتبی، ایزدبخش، حمید‌رضا، «رتبه‌بندی کامل واحدهای تصمیم‌گیری با ترکیب DEA چند هدفه وPCA»، نشریه مدیریت صنعتی، دوره 1، 1388.ص 92-114
[13]مهرگان، محمد‌رضا، مدل‌های کمی در ارزیابی عملکرد سازمان‌ها، انتشارات دانشکده مدیریت دانشگاه تهران، 1383.
[14] Charnes A., Cooper, W. W., Golany, B., Seiford, L. M.(1985)"Fondations of data envelopment analysis for Pareto Koopmans efficient empirical production function", Journal of Economics 30, pp. 91-107.

[15]هومن، حیدر (1385) تحلیل داده‌های چند متغیره در پژوهش رفتاری، انتشارات پیک فرهنگ.


[16] Golany B., Roll, Y.(1989)“An application procedure for DEA”, Omega, 1(3), pp. 237-250
[17]حسین‌زاده بحرینی، محمد حسین، میدانی، علی‌ اکبر، چمانه‌گیر، فرشته (1387) «مقایسه کارآیی اقتصادی بانک‌های خصوصی و دولتی در ایران با استفاده از روش تحلیل پوششی داده‌ها)، مجله دانش وتوسعه، س 15،ش 25.ص 74-89
[18] Berger, A. N., Humphrey D.(1998)"Efficiency and financial institution", InternationalSurvey and Directions for Future Research, European Journal of OperationResearch, Vol. 6, No. 180, pp. 175-212.
[19] Siriopoulos C., Tziogkidis P.,"How do Greek banking institutions react after significant events? A DEA Approach". Omega, Vol. 38, pp. 294-308.2010
[20] Chin K. S., Wang Y. M., Poon G. K. K., Yang J. B., (2009), "Failure mode and effects analysis by data envelopment analysis", DecisionSupport Systems, Vol. 48, pp. 246-256.
[21] El-Mashaleh M. S., Rababeh S. M., Hyari K. H.(2010)"Utilizing data envelopment analysis to benchmark safety performance of construction contractors", International Journal of Project Management, Vol. 28, pp. 61-67.
[22] Wongrassamee, S., Gardiner, P. D., Simmons, J. E. L. (2003) "Performance measurement tools, the balanced scorecard and EFQM excellence model", Measuring Business Excellence, 7(1), pp. 14-29.
[23]آذر، عادل، خدیور، آمنه (1393) کاربرد تحلیل آماری چند متغیره در مدیریت، چ. 1، انتشارات نگاه دانش.
Organizational Resources Management Researches
Volume 5, Issue 3
December 2015
Pages 1-22