Che Razak, Razli
(2003)
Productivity Measurement Of Malaysian
Government Hospitals Using Data
Envelopment Analysis.
Asian Academy of Management Journal (AAMJ), 8 (2).
pp. 1-13.
ISSN 1394-2603
Abstract
Traditionally, productivity is defined in terms of the efficiency of transforming inputs into
outputs. However, researchers have always argued that the concept of productivity should
not be limited to efficiency only, ignoring the phenomenon of effectiveness. This is particularly
true in an organization that is not profit-oriented, such as non-governmental and
governmental organizations, where efficiency may take a back seat as opposed to
effectiveness. This paper takes the approach of measuring productivity by incorporating both
efficiency and effectiveness, when measuring the productivity of public hospitals in Malaysia.
However, given the different unit of measures as well as the differences in the nature of the
data measuring efficiency and effectiveness, we needed a method that was able to combine
both subjective as well as objective data. Thus, we found the Data Envelopment Analysis
(DEA) most useful for a composite measure of productivity. The main findings show that
productivity measures using both efficiency and effectiveness through the DEA is more
meaningful than a measure with efficiency only. The effectiveness variable is found to have an
impact on measuring productivity
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