This paper presents the application of Electre multi-criteria methodology and Data Envelopment Analysis, as a part of a small commercial bank’s ongoing effort to reengineer its branch network. We focus on two particular problems: first, categorization of the branches so as to apply adequate equivalent organizational schemas and second the assessment of relative efficiency of human resources. | Yugoslav Journal of Operations Research 15 (2005), Number 2, 259-276 APPLICATION OF ELECTRE III AND DEA METHODS IN THE BPR OF A BANK BRANCH NETWORK Xenofon DAMASKOS, Glykeria KALFAKAKOU Aristotle University of Thessaloniki, Civil Engineering Department, Division of Transport, Infrastructure, Management and Regional Planning xdam@, riak@, Received: June 2003 / Accepted: March 2005 Abstract: Operational research methodologies are a powerful tool assisting managers in their effort to critically review business data and decide on future business actions. This paper presents the application of Electre multi-criteria methodology and Data Envelopment Analysis, as a part of a small commercial bank’s ongoing effort to reengineer its branch network. We focus on two particular problems: first, categorization of the branches so as to apply adequate equivalent organizational schemas and second the assessment of relative efficiency of human resources. Keywords: Classification, ranking, efficiency, ELECTRE methods, Data Envelopment Analysis, banking. 1. INTRODUCTION Political and economic changes in Eastern Europe and Balkan countries, in the recent years, have caused significant transformations in their banking systems as well. Commercial banks in these countries, faced with the pressures of deregulation, seek ways to add value to their services and resist national and international competition. Therefore, the need of process reengineering, reduction of operating expenses and, perhaps, repositioning in the local market for these banks becomes apparent. The case presented in this paper refers to a certain phase of the reengineering plan of a Balkan bank, regarding the operations of its branches. It mainly has to do with two specific aspects of the business process reengineering (BPR) project: rearrangement of the organizational structure of branches and rationalization of human resources utilization. The methodologies applied are Electre III for ranking and .
