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Performance Evaluation of Military Corps with Categorical Environmental Variables  

Lee, Kyung-Won (고려대학교 경영대학)
Park, Myung-Seop (고려대학교 경영대학)
Im, Jae-Poong (고려대학교 경영대학)
Publication Information
Journal of the military operations research society of Korea / v.32, no.1, 2006 , pp. 51-72 More about this Journal
Abstract
There are many occasions that the performance of a corps is influenced not only by its own efforts but by the commander of the next higher unit in a vertical organizational structure. When the direction of the commander in the next higher organization is different from that of the actual evaluation agency, the unit under evaluation may get rated lower than what it should deserve. This study suggests an alternative method to evaluate the performance of military units in the situation that there exist critical environmental factors which affect the performance. This method employes DEA, a non parametric method, and Constrained Canonical Correlation Analysis(CCCA), a parametric method which is used to estimate a efficient frontier with multiple dependent variables and constraints. This article also exploits a set of categorical environmental variables in the CCCA to improve the fairness of performance evaluation. It is shown that the introduction of the categorical variables helps evaluating the true performance of individual units such as battalions subordinated to different next higher commanders.
Keywords
performance measurement; efficiency; DEA; environment;
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