Evaluation of Management Efficiency in Cement Industry of Iran Using Data Envelopment Analysis Technique

Subject Areas : Industrial Management

Akbar Valizadeh Oghani ¹ , Nasser Fegh-hi Farahmand ² , Farzin Modarres Khiabani ³

1 - Department of Management, Sarab Branch, Islamic Azad University, Sarab, Iran
2 - Department of Management, Tabriz Branch, Islamic Azad University, Tabriz, Iran
3 - Department of Mathematical, Tabriz Branch, Islamic Azad University, Tabriz, Iran

Received: 2017-07-23 Accepted : 2018-02-07 Published : 2018-04-09

Keywords:

Abstract :

The management ability affects activities such as R & D, cost, financial costs, assets and firm's income. Their efficiency also depends on these factors. The purpose of this study is to measure the ability of management in the cement industry with a new pattern has been member of the Iranian stock exchange. To do this, data from financial statements of companies at 2012 to 2016 years were used. First, by implementing a suitable model and regional Data Envelopment Analysis model, Relative efficiency for each of the companies is calculated and efficient units also have been ranking with Anderson-Peterson method. Then estimate a regression model, the index is calculated to management ability each of the firms. For evaluating the relative efficiency optimization software GAMS and to determine the ability of management software E-Views is used. We aim to achieve non-inherent ability of managers in units. The results of the research show that the efficiency or Inefficiency of the companies can be related to the inherent and acquired ability of managers. The results indicate that companies that have been evaluated with a score efficiently (For example; Iran Chalk Co. & Ardabil Cement Co.), not simply guarantee for high ability of their managers. While, some companies have been efficiently evaluated the ability of their managers is also high. For example; Khuzestan Cement Co. & Mazandaran Cement Co. 

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