Comparison of IT services organizational units on the basis of Human Capital measures

摘要

In this paper, we compare organizational units using Data Envelopment Analysis (DEA) on the basis of Human Capital (HC) measures. HC based performance measurement has become an important aspect for organizations to sustain long-term growth. With the inclusion of HC measures, the variable selection for DEAmodel becomes challenging. We propose an automated model discovery method for variable selection. The guideline for variable selection is based on the information obtained from the executives about the variables. This information about the variables could be complete, partial or incomplete. We demonstrate our method under these various scenarios. The methodology is applied to compare 40 units of an IT service firm. Further, we discuss in detail the managerial insights for improvement of the inefficient units.