Human capital in public research laboratories: a method proposal for assessing actual and target scores

Abstract

PurposeThis work aims to propose an alternative method of human capital calculation for research laboratories of public university, taking into account some drawbacks of the methods currently applied in this field.Design/methodology/approachThis method is implemented via a linear program extracted from Data Envelopment Analysis based on slack movement. This is the formulation of Copper et al. (2000), which is used as the starting point for developing the proposed method through important transformations.FindingsThe proposed method is supported by an illustration related to a Moroccan public university. This illustration showed that 57 per cent of the laboratories and all the research activities that they perform are in deficit with respect to target scores.Research limitations/implicationsThe proposed method has technical limitations related to scores equal to 1 and to variables when those are numerous. To solve them, it is possible to use peer benchmarking system for the first limitation, and methods of regrouping the variables when those are numerous for the second limitation. Equally, the proposed method does not associate slack with important factors like governance and the impact analysis of research on innovation, competitiveness, and societal aspects. Likewise, it does not use the slack to measure individual efficiency at the same laboratory. Future research can fill these gaps.Practical implicationsThis work allows making appropriate budgetary and research policy within university, through budgeting process and management control by using raw and adjusted target values as well as actual ones. Also, the highlighting of the excessive slacks leads the university to take actions to reduce them, according to the most loss-making research activities.Originality/valueThe proposed method is original, since it fills a deficit in terms of human capital target values calculation and of the slack movement concept in relation to the efficient frontier. Additionally, it transforms the Data Envelopment Analysis program into a program that eliminates the slacks linked to the inputs, the radial movement related to the outputs and treats only the outputs and slacks related to these outputs.