Performance evaluation and prioritization of organizations based on knowledge management and safety management approaches using DEA

Abstract

Purpose The purpose of this paper is to propose a method for performance assessment of organizations based on integrated approach of knowledge management and safety management using data envelopment analysis, and the proposed model is then applied in the car industry in Isfahan province to be checked. Therefore, deficiencies can be highlighted and possible strategies can be evolved to improve the performance. Design/methodology/approach As data envelopment analysis is a robust mathematical tool, it has been used to evaluate organizational performance. For discovering the organizational performance of knowledge management and safety management by data envelopment analysis (DEA), the first step is to specify proper criteria. To this end, in this method, the indices in both approaches of knowledge management and safety management were identified. Then, inputs and outputs were specified. Knowledge management and safety management were determined as input indices, and customer satisfaction and accident indicators were the output indices. It is noteworthy that each output index was used one time. In the next stage, performance of organizations was assessed based on both determined approaches and via data envelopment analysis. Finally, the organizations were ranked. Findings The suggested method was implemented in the car industry in the Isfahan province. The obtained results disclosed that among 12 decision-making units, 4 units are efficient when customer satisfaction is the output and 5 units are efficient when accidents indices are the output. In ranking with customer satisfaction as the output, Sepahan Atlas Pump Company was ranked first via super efficiency method, data envelopment analysis and similarity to ideal solution. In ranking with accidents as the output, Sepahan Atlas Pump Company ranked first via strong efficiency method and Sanatgar Company ranked first via data envelopment analysis and similarity to ideal solution. Originality/value Knowledge has been recognized as one of the valuable resources, and knowledge management would greatly effect improvement of job quality. Knowledge level increase is led by better performance and less errors. Consequently, it can enhance the organizational health and safety. There are some studies which have been conducted on safety management or knowledge management performance analysis. The organizational performance evaluation based on integrated approach of knowledge management and safety management is an important issue which is less considered in theory and practice. Thus, the authors have proposed a method which is able to evaluate the organization based on this integrated approach with functional indices, which resulted in accurate results, and finally, ranking can show the organization status to determine proper strategies.