Human resource rightsizing using centralized data envelopment analysis: Evidence from Taiwan's Airports

Centralized human resource reallocation involves deciding how to fit change in a way that maximizes aggregated outputs. This paper presents an alternative approach to reallocating human resources. Specifically, an aggregated concept in the form of data envelopment analysis (DEA) is used to construct a modified centralized DEA model that is combined with a Russell measure and applied to three different human resource reallocation policies. An application to illustrate manpower rightsizing in an airport organizational setting in Taiwan is also demonstrated using centralized DEA for regular and/or contracted employees. The results demonstrate that the application is effective in reducing and/or transferring staff, while maximizing organizational output levels and implementing smooth downsizing. The results also present directions for possible improvements in workplace efficiency.

► A centralized DEA model was modified to combine with a Russell measure and applied to human resource reallocation policies. ► The proposed approaches provided both dismissing and transferring abilities for human resource rightsizing. ► A fit change approach is developed to lessen organizational resistance.