Applying data envelopment analysis in analysing the organizational change for credit departments of farmers’ associations in Taiwan

Abstract

This study attempts to apply the data envelopment analysis to approach the performance of the credit departments of farmers’ associations in Taiwan. Based on the structure of the data envelopment analysis approach, this study measures the relative efficiency for credit departments of farmers’ associations in Taiwan via resource redistribution. When the amount of resource is fixed, it can be distributed to each unit within an organization in a better way. It is intended to find the possible improvements for those inefficient credit departments of farmers’ associations. The empirical results show that the overall efficiency scores of the teams indicate is not best and scale for credit departments of farmers’ associations in Taiwan is relatively small. It implies that the reorganization of the credit departments of farmers’ associations may be appropriate if more efficient organization is to be pursued. Finally the reorganization of the credit departments of farmers’ associations are studies, evidences show the results are really be improved and acceptable.

Acknowledgement

The authors would like to thank the Council of Agriculture of the Republic of China, Taiwan for financially supporting this research under Contract No. COA 91AS-1.6.1-FS-#1(3).