Combining balanced scorecard and data envelopment analysis in kitchen employees performance measurement: An exploratory study
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Abstract
The purpose of this study is to develop a comprehensive research framework to combine the BSC and DEA approaches for evaluating management efficiency in the kitchen areas. Kitchens' performance measurements are focused on financial performance. However, relying solely on financial focus is detrimental to the restaurant because it may lead managers or chefs to under-invest in the nonfinancial components that are essential to long-term success. In recent years, the balanced scorecard (BSC) is widely used in many industries because the BSC provides a comprehensive performance measurement of both financial and non-financial perspectives. Also, the data envelopment analysis (DEA) has been widely applied for measuring the efficiency of a particular decision-making unit (DMU) against a projected point on an efficiency frontier. Therefore, DEA is suitable for measuring the efficiency of kitchens based on the BSC indicators, and the efficiency frontier of DEA can be used to calculate the efficiency of kitchens. To investigate the research objectives, this study employs BSC for defining evaluation variables, while BSC-DEA and Scale BSC-DEA are used for analyzing the efficiency scores of kitchens. The results indicate that the BSC-DEA can be applicable as a performance measurement tool for evaluating a kitchen's efficiency, and the BSC-DEA identifies the best DMUs which allows chefs and managers to identify specific areas that need to be improved and offers solutions as to how improvements in efficiency can be made. Also, this research provides an example of a weighted scheme using the culinary competency theory. The findings show that culinary competency weighted variables could help improve the accuracy of the BSC-DEA analysis.