Efficiency and Companies An Empirical Study of Performance Measurement

Abstract

Ranking of companies with the help of traditional accounting based methods has its own pros and cons. In this paper a new method has been used to measure the performance of companies which is based on the efficiency defined by optimum use of limited resources for the maximum possible level of output. A tool of operation research sciences (Data Envelopment Analysis) which uses linear programming, has been put in use to rank the companies on the basis of efficiency.