Special Issue INTERNATIONAL JOURNAL OF HUMANITIES AND December 2015 CULTURAL STUDIES ISSN 2356-5926

Evaluation of the Performance of Post Bank of (the branches of province) Using the Data Envelopment Analysis (DEA)

Farideh Haqh Shenas Kashani (PhD) Assistant professor in College of Management, Islamic Azad University, branch of Central Tehran- corresponding author

Arefeh Fadavi Asqari (PhD) Assistant professor in College of Management, Islamic Azad University, branch of Central Tehran

Mahdi Javanmard M.A. Graduated in College of Management, Islamic Azad University, branch of Central Tehran

Abstract

Any organization requires an evaluation system in order to becoming aware from the extent of desirability of its subsets’ activities to assess this desirability. Also, as an organization, banks are not exceptions. But the investigation of the existing methods of assessing bank performance indicates that these methods are from the experimental type and include a series of financial proportions which their results are not comparable in different branches due to the standards and heterogeneity of the banks’ activities. Today, new techniques are used in order to assess the banks’ performances and one of their most applicable ones is data envelopment analysis (DEA). This technique is based on the linear programming approach and its main purpose is to compare and assess a number of the similar decision maker units (DMUs) which have different values of consuming inputs and producing outputs. In this paper and in order to assess the relative efficiency of branches of Post Bank of Iran in Tehran province, we used the models of basic data envelopment analysis technique, model BBC (o) with the output oriented nature and by means of DEA-SOLVER software and the extent of the efficiency for each branch for the years of 2013 and 2014 as following: 23 branches have been efficient in both years. 2 branches have been inefficient in both years. 4 branches have been efficient in 2013 but inefficient in 2014. 13 branches have been inefficient in 2013 but efficient in 2014. The extent of efficiency of the branches in 2013 was 62.7 and in 2014, it was 83.7 which indicates that the branches of Tehran province have had a high efficiency in 2014, and finally, using Kruskal Wallis test and SPSS software, it was determined that regarded to the fact that about all output variables (such as deposits, facilities, services and dividends received) the significance level of sig is lower than the probability of error level (α= 0.05), so, the rank of branches is not the same in each of these 4 variables.

Keywords: Post Bank of Iran, Data Envelopment Analysis, evaluation, performance.

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Special Issue INTERNATIONAL JOURNAL OF HUMANITIES AND December 2015 CULTURAL STUDIES ISSN 2356-5926

Introduction: In the contemporary world, banks play a considerable role in growth and development of the economic systems, because today, the economic development, increase in prosperity and improvement of the life level in any country depend upon the extent of investments through banking system. There is several methods in order to assess the efficiency of firms and consequently the banks which the financial proportions and parametric and nonparametric methods like the data envelopment analysis can be named from their examples. Statement of the Problem: Banks play the fundamental role in the following cases: 1. navigation and management of the dispersed funds 2. controlling the inflation pressure in the country’s economy 3. optimum use of the resources and the existing costs Currently, like the other banks, in Post Bank, the efficiency is determined based on the resources and consumptions of the branches not the academic methods. The Importance and Necessity of Conducting the Research: Correction and improvement of banking services, paying attention to the financial statements, marketing, innovation in provision of services and competing with the other banks Research’s Purposes: 1. Identifying factors affecting the efficiency of the inefficient units (selecting appropriate inputs and outputs regarding too the purposes of the organization) 2. determining the efficient and inefficient branches 3. measuring the efficiency of each of the branches of Post Bank of Iran (branches in Tehran province) 4. comparing and ranking the branches in terms of each of the outputs Research’s Model:

Specify the Input Efficiency Ranking DEA the Units

Output

Specify the

reference

Models with Output Nature: In this category, with assuming the input levels constant, we try to maximize the rate of producing the outputs. Research Hypotheses:

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Special Issue INTERNATIONAL JOURNAL OF HUMANITIES AND December 2015 CULTURAL STUDIES ISSN 2356-5926

1. the branches of Post Bank of Iran in Tehran province are different in terms of efficiency in the aspect of deposits. 2. the branches of Post Bank of Iran in Tehran province are different in terms of efficiency in the aspect of facilities. 3. the branches of Post Bank of Iran in Tehran province are different in terms of efficiency in the aspect of services. 4. the branches of Post Bank of Iran in Tehran province are different in terms of efficiency in the aspect of dividends received. Research’s Questions: 1. how much is each of the branches efficient? 2. how is the ranking of the efficiency of the branches? 3. what are the efficient and inefficient branches? 4. how much is the optimum amount of the output variables in order for maximizing the efficiency?

Literature Review: In recent decades, assessing performance and productivity has been paid a significant attention to both by the scientific communities and managers and the other consumers. Many methods and techniques have been created for this assessment and each of them introduces a set of indices in order to balance the traditional and single dimensional viewpoints about the performance; one of the problems of utilizing DEA models in the “lack of resolution power” (in case of inadequate DMUs) and unreal distribution of weight into the inputs and outputs of the model and compared to the classic models, the data envelopment model has more ability in the resolution power and provision of real weights based on the goal model programming (Mehregan, 2004, 65). Performance Evaluation: Performance evaluation refers to the set of measurements and activities done in order to increase the optimum use level of the facilities and resources for achieving purposes and economic methods along with efficiency and effectiveness. In this way, the progress rate towards achieving the determined purposes is evaluated (Aqa Rafiei, 2004, 43). Performance Assessment Purposes: Performance assessment purposes have been designed in six major goals: 1. putting the strategies and activities in one direction 2. controlling operations 3. management and interaction with the stakeholders 4. accountability 5. motivating and rewarding the employees 6. The Concept of Efficiency: Efficiency is the ratio of the real output to the standard output, or indeed, the ratio of the works done to the works to be done. Types of Efficiency: 1. Technical efficiency, 2. Professional efficiency, 3. Structural efficiency, 4. Scale efficiency, and 5. Economic efficiency Methods of Measuring Efficiency:

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1. parametric methods: in this method, a specific production function is estimated by using different statistical and economical methods and then the efficiency is determined by using this function (Mehregan, 2004, 47). 2. nonparametric methods: in this approach, there is no need for determination of production function or the functional relational form among the inputs and outputs, value or price of the inputs and outputs of the evaluated units. The data envelopment analysis is a nonparametric method which evaluates the relative efficiency of the units compared to each other. In this method, there is no need for identifying the type of production function and there is no limitation in the number of inputs and outputs (Mehregan, 2008, 67).

Research Methodology: - this study is an applicable in terms of the purpose and a descriptive study in terms of nature and method. Given that the investigated data is related to the past, it is from the kind of secondary data and the mentioned data has been extracted from the statistical system existing in the bank. - because of the limitation of the statistical society (43 branches), all of the statistical society are used and no sampling is done. - the time territory of this study is the years of 2013 and 2014 (1393 and 1394 Solar Hijri) and the time of conducting it is from March 2015 to November 2015. - the objective territory of this research is to assess the performance of branches of Post Bank of Iran (Tehran province branches) by using the data envelopment analysis and using specific inputs and outputs. The research conducting method can be divided into three stages. 1. according to the review of research literature, there are three approaches for selecting inputs and outputs; with the idea of the bank’s experts, the productive approach was selected. 2. extraction of the input and output rates from the bank’s statements 3. the relative efficiency of the branches has been determined by using DEA model and DEA SOLVER software. The software used for solving the model and extracting the solutions: in this research, DEA SOLVER software which is a very strong software and has a high flexibility due to the completeness of responses for evaluation of the efficiency of the branches. Also Excel software has been widely used for collecting data and classifying it. Data Analysis: Investigation of normality/abnormality of the variables: H0: distribution is normal H1: distribution is not normal Test’s result Possibility of error Significance level Variables )α (level Distribution is 0.05 0.000 Deposits not normal Distribution is 0.05 0.000 Received dividends not normal Distribution is 0.05 0.000 Received and

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not normal commitment facilities (Loans) Distribution is 0.05 0.000 Services not normal Table 1-4: the results of normality of distribution of the variables in 2013

Test’s result Possibility of error Significance level Variables )α (level Distribution is 0.05 0.000 Deposits not normal Distribution is 0.05 0.000 Received dividends not normal Distribution is 0.05 0.000 Received and not normal commitment facilities (Loans) Distribution is 0.05 0.000 Services not normal Table 1-4: the results of normality of distribution of the variables in 2014 According to the above tables, it is determined that the data distribution of none of them is normal. Prioritization of the branches in Post Bank in terms of each of the output variables using Kruskal Wallis in year 2013 H0: the branches are similar in terms of the studied output variables H1: the branches are not similar in terms of the studied output variables

Dividends received from Deposits Facilities Services the central account Chi Square (statistic of 42.000 42.000 42.000 42.000 the test) Freedom degree 42 42 42 42 Significance level 0.000 0.000 0.000 0.000 The result of Kruskal Wallis test for the studied output variables in 2013

Regarding to fact that about all variables (the deposits, facilities, services and received dividends) the significance level is smaller than the possibility of error level (α=0.05), therefore, the rank of the branches in each of these 4 variables is not the same. Year 2014

Dividends received from Deposits Facilities Services the central account Chi Square (statistic of 42.000 42.000 42.000 42.000 the test) Freedom degree 42 42 42 42

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Significance level 0.000 0.000 0.000 0.000 The result of Kruskal Wallis test for the studied output variables in 2014 Regarding to fact that about all variables (the deposits, facilities, services and received dividends) the significance level is smaller than the possibility of error level (α=0.05), therefore, the rank of the branches in each of these 4 variables is not the same.

The necessary rate of Necessary dividends to amount to 1. become achieve Efficiency Efficiency Received efficient efficiency Branch rate rate dividend (dividend) Services (services) Sarcheshme 0.91768116 1.0897031 225 245.1831975 1358 1479.81681 15 Khordad 0.862016759 1.1600703 1862 2160.050899 598 693.7220394 Kashani 0.751339432 1.3309564 0 0 2321 3089.149804 Iran 0.727679767 1.3742309 4833 6641.65794 Khodro 0 0 Valieasr 0.694710728 1.439448 8130 11702.71224 2463 3545.360424 Shahid 0.669984825 1.4925711 6143 9168.864267 Beheshti 3011 4494.131582 Azadi 25 25 25 625 1591 39775 The necessary amount (dividend / services) to become efficient of the inefficient branches in the year 2014 Branch Necessary The necessary amount to 1. rate to become achieve Efficiency Efficiency efficient efficiency rate rate Facilities (facilities) Deposit (deposit) Sarcheshme 0.91768116 1.0897031 1408 1534.301965 11312 12326.72147 15 Khordad 0.862016759 1.1600703 487 564.9542361 13728 15925.44508 Kashani 0.751339432 1.3309564 36247 48243.17663 74279 98862.11044 Iran 0.727679767 1.3742309 40486 55637.11222 50603 Khodro 69540.20623 Valieasr 0.694710728 1.439448 2787 4011.741576 110204 158632.9274 Shahid 0.669984825 1.4925711 17831 26614.03528 107451 Beheshti 160378.2573 Azadi 25 25 1175 29375 109293 2732325 The necessary amount (facilities / deposit) to become efficient of the inefficient branches in the year 2014 Conclusion: In this study the amount of efficiency of the branches of Tehran province has been calculated based on the BBC (O) model with the output nature and the obtained average efficiency is as follows:

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1393 1392 Model / Year 83.7 62.7 BCC (O)

The amount of efficiency of the branches of Tehran province with BCC (O) method for the studied years This result indicates that in 2014, more branches in Tehran province have been efficient compared to the year 2013. The following branches have been efficient (1) in both studied years (23 branches). Ferdowsi Shahre Shahisd Kargar Kuye Daneshgah Rey Fallahi Varamin Mirzaye Shahid Pirouzi Tehran Shirazi Mofatteh Nabovat Satarkhan Bazare Sa’adat Abad Molasadra Miveh va Tareh Mobl Bar Square Majles Shahriar Eslam Shahr Pars Shahrake Qarb Navard () The efficient branches in both of the years The following branches have been inefficient in 2013 but efficient in 2014 (13 branches). Afsarieh Damavand Rostam Africa Blvd (Aqa Abad Babaei) Imam Roudehen Firouzkouh Doctor Shari’ati Khomeini Pole Choubi Pakdasht Eastern Shoush The efficient branches in 2014 The following branches have been efficient in 2013 but inefficient in 2014 (4 branches). Iran Khodro Valieasr Tehran Shhaid Beheshti Azadi Tehran Efficient branches in 2013 The following branches have been inefficient in both of the years (3 branches). Sarcheshmeh Ayat Allah Kashani 15 Khordad Inefficient branches in both of the years In the following table, the rate of efficiency and the rank of each of the branches during the studied years have been determined.

The Priority Efficiency rate Efficient / inefficient Name and Variable’s branch through (measured based on the code of the name rank in the data envelopment branch terms of Kruskal analysis) bank Wallis test 93 92 93 92 93 92

Level 5 36 43 Efficient inefficient Afsarieh Deposits 1 0.3133052 (00215)

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Level 4 24 18 Efficient inefficient Imam Khomeini 1 0.6710564 (00016) Level 1 8 5 Efficient inefficient Africa Blvd 1 0.8135017 (00147) Level 3 15 12 Efficient Efficient Pars Navard 1 1 (00328) Level 5 39 30 inefficient inefficient 15 Khordad 0.8620168 0.4486806 (03664) Level 5 32 35 Efficient inefficient Pakdasht 1 0.4613544 (00287) Level 5 34 43 Efficient inefficient Pole Choubi 1 0.4365875 (00224) Level 1 13 19 Efficient Efficient Pirouzi 1 1 (00206) Level 2 12 9 Efficient Efficient Pole Tajrish 1 1 (00301) Level 5 41 39 Efficient inefficient Damavand 1 0.3677805 (00165) Excellent 17 13 Efficient inefficient Doctor Shari’ati 1 0.4971669 (00296) Excellent 10 6 Efficient Efficient Resalat 1 1 (00156) Level 5 42 32 Efficient inefficient Rostam Abad 1 0.8432698 (00319) Level 5 30 28 Efficient inefficient Roudehen 1 0.6083633 (00174) Level 5 38 33 inefficient inefficient Sarcheshmeh 0.9176812 0.5540312 (00025) Level 2 6 10 Efficient Efficient Shahre Rey 1 1 (00233) Level 2 14 17 Efficient Efficient Shahid Beheshti 0.6699848 1 (04078) Excellent 3 4 Efficient Efficient Shahid Fallahi 1 1 (00183) Level 1 2 8 Efficient Efficient Shahid Mofatteh 1 1 (00111)

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Level 3 26 27 Efficient inefficient Eastern Shoush 1 0.7911552 (00034) Level 5 35 31 Efficient inefficient Firouzkouh 1 0.350627 (00192) Level 3 19 25 Efficient Efficient Majles 1 1 (00138) Level 2 29 14 Efficient Efficient Nabovvat 1 1 (03949) Level 3 22 26 Efficient Efficient Varamin 1 1 (00278) Level 1 18 16 inefficient Efficient Azadi (0061) 005652611 1 Level 4 23 24 Efficient Efficient Eslamshahr 1 1 (00242) Excellent 16 23 inefficient Efficient Iran Khodro 0.7276798 1 (04087) Level 4 37 36 Efficient Efficient Bazare Mobl 1 1 (00129) Level 5 31 37 Efficient inefficient Robat Karim 1 0.7486737 (04268) Level 4 28 38 Efficient Efficient Sattarkhan 1 1 (00097) Level 4 9 42 Efficient Efficient Sa’adat Abad 1 1 (00088) Level 3 27 11 Efficient Efficient Shahriar 1 1 (0035) Level 5 40 41 Efficient Efficient Shahrake Qarb 1 1 (03899) Excellent 11 7 Efficient Efficient Ferdowsi 1 1 (00414) Excellent 4 2 Efficient Efficient Molasadra 1 1 (03596) Excellent 5 1 Efficient Efficient Mirzaye Shirazi 1 1 (03637) Level 5 33 29 Efficient Efficient Mive va Tareh Bar Square 1 1 (00269)

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Level 5 43 40 Efficient inefficient Nazi Abad 1 0.5116985 (00251) Excellent 20 15 inefficient Efficient Valieasr 0.6947107 1 (00079) Excellent 1 3 Efficient Efficient Vanak 1 1 (03922) Level 2 7 22 Efficient Efficient Kargar 1 1 (00043) Level 2 25 20 inefficient inefficient Kashani 0.7513394 0.7148014 (00102) Level 4 21 21 Efficient Efficient Kouye Daneshgah 1 1 (04155)

Level 5 29 37 Efficient inefficient Afsarieh Facilities 1 0.3133052 (00215) Level 4 17 9 Efficient inefficient Imam Khomeini 1 0.6710564 (00016) Level 1 5 5 Efficient inefficient Africa Blvd 1 0.8135017 (00147) Level 3 11 8 Efficient Efficient Pars Navard 1 1 (00328) Level 5 36 39 inefficient inefficient 15 Khordad 0.8620168 0.4486806 (03664) Level 5 27 35 Efficient inefficient Pakdasht 1 0.4613544 (00287) Level 5 25 27 Efficient inefficient Pole Choubi 1 0.4365875 (00224) Level 1 19 17 Efficient Efficient Pirouzi 1 1 (00206) Level 2 9 18 Efficient Efficient Pole Tajrish 1 1 (00301) Level 5 40 38 Efficient inefficient Damavand 1 0.3677805 (00165) Excellent 14 14 Efficient inefficient Doctor Shari’ati 1 0.4971669 (00296) Excellent 7 11 Efficient Efficient Resalat 1 1 (00156) Level 5 37 23 Efficient inefficient Rostam 1 0.8432698 Abad

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(00319)

Level 5 28 30 Efficient inefficient Roudehen 1 0.6083622 (00174) Level 5 32 33 inefficient inefficient Sarcheshmeh .09176812 0.5540312 (00025) Level 2 8 15 Efficient Efficient Shahre Rey 1 1 (00233) Level 2 20 10 inefficient Efficient Shahid Beheshti 0.6699848 1 (04078) Excellent 4 3 Efficient Efficient Shahid Fallahi 1 1 (00183) Level 1 15 16 Efficient Efficient Shahid Mofatteh 1 1 (00111) Level 3 22 21 Efficient inefficient Eastern Shoush 1 0.7911552 (00034) Level 5 31 29 Efficient inefficient Firouzkouh 1 0.350627 (00192) Level 3 26 40 Efficient Efficient Majles 1 1 (00138) Level 2 21 19 Efficient Efficient Nabovvat 1 1 (03949) Level 3 18 22 Efficient Efficient Varamin 1 1 (00278) Level 1 24 26 inefficient Efficient Azadi (0061) 0.5622611 1 Level 4 38 34 Efficient Efficient Eslamshahr 1 1 (00242) Excellent 13 6 inefficient Efficient Iran Khodro 0.7276798 1 (04087) Level 4 10 13 Efficient Efficient Bazare Mobl 1 1 (00129) Level 5 43 32 Efficient inefficient Robat Karim 1 0.7486737 (04268) Level 4 23 42 Efficient Efficient Sattarkhan 1 1 (00097) Level 4 6 43 Efficient Efficient Sa’adat Abad 1 1 (00088)

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Level 3 39 4 Efficient Efficient Shahriar 1 1 (0035) Level 5 35 28 Efficient Efficient Shahrake Qarb 1 1 (03899) Excellent 2 2 Efficient Efficient Ferdowsi 1 1 (00414) Excellent 16 25 Efficient Efficient Molasadra 1 1 (03596) Excellent 3 1 Efficient Efficient Mirzaye Shirazi 1 1 (03637) Level 5 43 41 Efficient Efficient Mive va Tareh Bar Square 1 1 (00269) Level 5 41 36 Efficient inefficient Nazi Abad 1 0.5116985 (00251) Excellent 33 24 inefficient Efficient Valieasr 0.6947107 1 (00079) Excellent 1 12 Efficient Efficient Vanak 1 1 (03922) Level 2 30 20 Efficient Efficient Kargar 1 1 (00043) Level 2 12 7 inefficient inefficient Kashani 0.7513394 0.7148014 (00102) Level 4 34 31 Efficient Efficient Kouye Daneshgah 1 1 (04155)

Level 5 29 34 Efficient inefficient Afsarieh Services 1 0.3133052 (00215) Level 4 14 11 Efficient inefficient Imam Khomeini 1 0.6710564 (00016) Level 1 4 4 Efficient inefficient Africa Blvd 1 0.8135017 (00147) Level 3 10 20 Efficient Efficient Pars Navard 1 1 (00328) Level 5 40 37 inefficient inefficient 15 Khordad 0.8620168 0.4486806 (03664)

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Level 5 18 28 Efficient inefficient Pakdasht 1 0.4613544 (00287) Level 5 36 25 Efficient inefficient Pole Choubi 1 0.4365875 (00224) Level 1 9 3 Efficient Efficient Pirouzi 1 1 (00206) Level 2 13 30 Efficient Efficient Pole Tajrish 1 1 (00301) Level 5 42 39 Efficient inefficient Damavand 1 0.3677805 (00165) Excellent 8 16 Efficient inefficient Doctor Shari’ati 1 0.4971669 (00296) Excellent 7 1 Efficient Efficient Resalat 1 1 (00156) Level 5 43 40 Efficient inefficient Rostam Abad 1 0.8432698 (00319) Level 5 23 24 Efficient inefficient Roudehen 1 0.6083622 (00174) Level 5 33 31 inefficient inefficient Sarcheshmeh 0.9176812 0.5540312 (00025) Level 2 5 7 Efficient Efficient Shahre Rey 1 1 (00233) Level 2 22 10 inefficient Efficient Shahid Beheshti 0.6699848 1 (04078) Excellent 2 18 Efficient Efficient Shahid Fallahi 1 1 (00183) Level 1 16 8 Efficient Efficient Shahid Mofatteh 1 1 (00111) Level 3 25 11 Efficient inefficient Eastern Shoush 1 0.7911552 (00034) Level 5 35 33 Efficient inefficient Firouzkouh 1 0.350627 (00192) Level 3 34 41 Efficient Efficient Majles 1 1 (00138) Level 2 26 15 Efficient Efficient Nabovvat 1 1 (03949)

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Level 3 3 7 Efficient Efficient Varamin 1 1 (00278) Level 1 24 28 inefficient Efficient Azadi (0061) 0.5652611 1 Level 4 11 9 Efficient Efficient Eslamshahr 1 1 (00242) Excellent 12 12 inefficient Efficient Iran Khodro 0.7276798 1 (04087) Level 4 20 13 Efficient Efficient Bazare Mobl 1 1 (00129) Level 5 27 26 Efficient inefficient Robat Karim 1 0.7486737 (04268) Level 4 31 29 Efficient Efficient Sattarkhan 1 1 (00097) Level 4 37 43 Efficient Efficient Sa’adat Abad 1 1 (00088) Level 3 19 32 Efficient Efficient Shahriar 1 1 (0035) Level 5 39 42 Efficient Efficient Shahrake Qarb 1 1 (03899) Excellent 21 21 Efficient Efficient Ferdowsi 1 1 (00414) Excellent 6 17 Efficient Efficient Molasadra 1 1 (03596) Excellent 1 2 Efficient Efficient Mirzaye Shirazi 1 1 (03637) Level 5 41 36 Efficient Efficient Mive va Tareh Bar Square 1 1 (00269) Level 5 38 35 Efficient inefficient Nazi Abad 1 0.5116985 (00251) Excellent 30 22 inefficient Efficient Valieasr 0.6947107 1 (00079) Excellent 17 5 Efficient Efficient Vanak 1 1 (03922) Level 2 28 19 Efficient Efficient Kargar 1 1 (00043) Level 2 15 23 inefficient inefficient Kashani 0.7513394 0.7148014 (00102)

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Level 4 32 38 Efficient Efficient Kouye Daneshgah 1 1 (04155)

Level 5 29 28 Efficient inefficient Afsarieh The (00215) received dividends from central 1 0.3133052 account Level 4 29 41 Efficient inefficient Imam Khomeini 1 0.6710564 (00016) Level 1 8 25 Efficient inefficient Africa Blvd 1 0.8135017 (00147) Level 3 7 12 Efficient Efficient Pars Navard 1 1 (00328) Level 5 29 20 inefficient inefficient 15 Khordad 0.5620168 0.4486806 (03664) Level 5 29 34 Efficient inefficient Pakdasht 1 0.4613544 (00287) Level 5 29 41 Efficient inefficient Pole Choubi 1 0.4365875 (00224) Level 1 10 7 Efficient Efficient Pirouzi 1 1 (00206) Level 2 6 3 Efficient Efficient Pole Tajrish 1 1 (00301) Level 5 14 32 Efficient inefficient Damavand 1 0.3677805 (00165) Excellent 29 21 Efficient inefficient Doctor Shari’ati 1 0.4971669 (00296) Excellent 2 6 Efficient Efficient Resalat 1 1 (00156) Level 5 29 23 Efficient inefficient Rostam Abad 1 0.8432698 (00319) Level 5 11 22 Efficient inefficient Roudehen 1 0.6083622 (00174) Level 5 29 30 inefficient inefficient Sarcheshmeh 0.9176812 0.5540312 (00025)

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Level 2 4 5 Efficient Efficient Shahre Rey 1 1 (00233) Level 2 5 18 inefficient Efficient Shahid Beheshti 0.6699848 1 (04078) Excellent 3 41 Efficient Efficient Shahid Fallahi 1 1 (00183) Level 1 1 4 Efficient Efficient Shahid Mofatteh 1 1 (00111) Level 3 13 36 Efficient inefficient Eastern Shoush 1 0.7911552 (00034) Level 5 12 26 Efficient inefficient Firouzkouh 1 0.350627 (00192) Level 3 9 24 Efficient Efficient Majles 1 1 (00138) Level 2 29 9 Efficient Efficient Nabovvat 1 1 (03949) Level 3 29 31 Efficient Efficient Varamin 1 1 (00278) Level 1 29 8 inefficient Efficient Azadi (0061) 0.5652611 1 Level 4 29 19 Efficient Efficient Eslamshahr 1 1 (00242) Excellent 29 41 inefficient Efficient Iran Khodro 0.7276798 1 (04087) Level 4 29 33 Efficient Efficient Bazare Mobl 1 1 (00129) Level 5 29 41 Efficient inefficient Robat Karim 1 0.7486737 (04268) Level 4 29 27 Efficient Efficient Sattarkhan 1 1 (00097) Level 4 29 35 Efficient Efficient Sa’adat Abad 1 1 (00088) Level 3 29 13 Efficient Efficient Shahriar 1 1 (0035) Level 5 29 29 Efficient Efficient Shahrake Qarb 1 1 (03899)

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Excellent 29 16 Efficient Efficient Ferdowsi 1 1 (00414) Excellent 29 2 Efficient Efficient Molasadra 1 1 (03596) Excellent 29 10 Efficient Efficient Mirzaye Shirazi 1 1 (03637) Level 5 29 17 Efficient Efficient Mive va Tareh Bar Square 1 1 (00269) Level 5 29 37 Efficient inefficient Nazi Abad 1 0.5116985 (00251) Excellent 29 11 inefficient Efficient Valieasr 0.6947107 1 (00079) Excellent 29 1 Efficient Efficient Vanak 1 1 (03922) Level 2 29 14 Efficient Efficient Kargar 1 1 (00043) Level 2 29 41 inefficient inefficient Kashani 0.7513394 0.7148014 (00102) Level 4 29 15 Efficient Efficient Kouye Daneshgah 1 1 (04155) Comparing the efficiency (based on the data envelopment analysis) and the rank of the branches (with Kruskal Wallis). The Results of the Research Hypotheses: The test results Test’s Significance Hypothesis title Hypothesis statistic level number H0 hypothesis is 42.000 0.000 Different branches in terms of deposits 1 rejected H0 hypothesis is 42.000 0.000 Different branches in terms of facilities 2 rejected H0 hypothesis is 42.000 0.000 Different branches in terms of services 4 rejected H0 hypothesis is 42.000 0.000 Different branches in terms of the 3 rejected received dividends from the central account

The Results of the Research Hypotheses Regarding to the above table, it is determined that the branches of Post Bank are different in terms of the output rates; thus, in the following tables, the status of the major efficient branches has been determined in terms of the rate of efficiency and rank.

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Deposits Level of the Rank (Kruskal Wallis) Efficiency rate Branch branch ( in name terms of bank) 1393(2014) 1392(2013) 1393(2014) 1392(2013) Excellent 1 3 1 1 Vanak Level 1 2 8 1 1 Shahid Mofatteh Excellent 3 4 1 1 Shahid Fallahi Excellent 4 2 1 1 Molasadra

Excellent 5 1 1 1 Mirzaye Shirazi Comparison of efficiency (based on the data envelopment analysis) and ranking the major efficient branches (with Kruskal Wallis) based on the deposits Facilities Level of the Rank (Kruskal Wallis) Efficiency rate Branch name branch ( in terms of (2014)1393 1392(2013) (2014)1393 1392(2013) bank) Excellent 1 12 1 1 Vanak Excellent 2 2 1 1 Ferdowsi Excellent 3 1 1 1 Mirzaye Shirazi Excellent 4 3 1 1 Shahid Fallahi Level 3 39 4 1 1 Shahriar Comparison of efficiency (based on the data envelopment analysis) and ranking the major efficient branches (with Kruskal Wallis) based on the facilities Services Level of the Rank (Kruskal Wallis) Efficiency rate Branch name branch ( in terms of 1393(2014) 1392(2013) 1393(2014) 1392(2013) bank) Excellent 1 2 1 1 Mirzaye Shirazi Excellent 2 18 1 1 Shahid Fallahi Level 3 3 7 1 1 Varamin Level 2 5 7 1 1 Shahre Rey Level 1 9 3 1 1 Pirouzi Excellent 7 1 1 1 Resalat Excellent 17 5 1 1 Vanak Comparison of efficiency (based on the data envelopment analysis) and ranking the major efficient branches (with Kruskal Wallis) based on the services Received dividends from the central account

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Special Issue INTERNATIONAL JOURNAL OF HUMANITIES AND December 2015 CULTURAL STUDIES ISSN 2356-5926

Level of the Rank (Kruskal Wallis) Efficiency rate Branch name branch ( in terms of 1393 1392(2013) 1393(2014) 1392(2013) bank) (2014) Level 1 1 4 1 1 Shahid Mofatteh Excellent 2 6 1 1 Resalat Excellent 3 41 1 1 Shahis Fallahi Level 2 4 5 1 1 Shahre Rey Level 2 5 18 1 1 Shahid Beheshti Excellent 29 1 1 1 Vanak Excellent 29 2 1 1 Molasadra Level 2 6 3 1 1 Pole Tajrish Comparison of efficiency (based on the data envelopment analysis) and ranking the major efficient branches (with Kruskal Wallis) based on the Received dividends from the central account The results obtained from the data envelopment analysis are consistent with the results obtained from the Kruskal Wallis test.

Research Limitations: - one of the problems of this study is that due to the lack of mechanization of the statistic collection and its locative dispersion and also its time consuming feature for the studied period, the possibility of analyzing efficiency in the branches all over the country was not provided and accordingly, the analysis of efficiency of branches of Post Bank in Tehran province was investigated. Recommendations Based on the Research’s Findings: 1. the efficient units can be used as the pattern (reference unit) for the inefficient units. 2. see tables number 4-6 and 4-7 in order for the inefficient branches to achieve the technical efficiency 1. For example, if the inefficient branch of Sarcheshmeh wants to turn into an efficient branch, it is necessary for it to increase the dividend rate from 225 to 245, the facilities rate from 1408 to 1534, services from 1358 to 1479 and deposits from 11312 to 12326. 3. the senior managers of Post Bank are recommended to use the model presented in this study for evaluating the performance, ranking and comparing the branches. 4. it is recommended to use the data envelopment analysis for evaluation of performance of the bank’s branches. 5. the senior managers of Post Bank are recommended to use the ranking of this study in order to rank the branches.

Recommendations for Future Researches: 1. in this study, only the quantitative factors have been considered, it is suggested to consider the qualitative factors such as the services’ quality, employees’ satisfaction and so on in the future researches. 2. this study has been conducted for the years 2013 and 2014 (1392 and 1393 Solar Hijri). It is suggested to continue it for the future years.

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Special Issue INTERNATIONAL JOURNAL OF HUMANITIES AND December 2015 CULTURAL STUDIES ISSN 2356-5926

3. in order to conduct completing researches, it is suggested to do a similar study to this research for all branches all over the country and in different provinces, also the provinces be compared with each other and be ranked based on this method. 4. in this study, evaluation has been done based on the outputs; it is recommended to use the integrated models which include inputs and outputs. 5. it is recommended to investigate the effects of change in management on the efficiency of the branches of Post Bank.

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Special Issue INTERNATIONAL JOURNAL OF HUMANITIES AND December 2015 CULTURAL STUDIES ISSN 2356-5926

References Persian References:  Asqar Pour, M.J. (2004), the Standard Decision Maker, (the third edition), Tehran: University of Iran Publication Institute  Omidi Nezhad, M., September (2009), The Report of Efficiency of the banking System of the Country, Tehran: Iran Institute for Banking Training  HaqhShenas Kahshani, F. (2011), The Statistic and Probability in Management and Economy, the first volume, the third edition, Avaye Nour publication  Alizadeh, Q.R. (2001), Comparing the Results of Elevation or Descend of Ranking of Efficiency of the Bank Branches Based on DEA Model of the Efficiency Index  Mehregan, M.R. (2008), Qualitative Models for Assessing the Efficiency of Organizations, (the second edition, DEA), Tehran: University of Tehran Publication Institute  Nik Ne’mat, Z. (2003), Evaluation of the Efficiency of Tejarat Bank by Means of the Data Envelopment Analysis Method (DEA) English References:  Banker, R. D., Charnes, A.; Cooper, W. W., (1984), “Some Models for Estimating Technical Efficiencies in DEA”, Management Science, 30(9):1078-920  Charnes, A.; Cooper, W. W. and Golany, B, Seiford, L, Stutz, J. (1985). "Foundation of data envelopment analysis for pareto-koopmans efficient empirical production function", Journal of Econometrics, 35, pp: 91- 107  Coelli, T, et al (1998), An Introduction to Efficiency and Productivity Analysis, Kluwer Academic Publishers.  Cooper, W. W. and Golany, B, Seiford, L, Zhu, J. (2004). Handbook on data envelopment analysis, physical-verlay.  Cooper, W. W. and Golany, B, Seiford, L, Kauro Tone (2000). data envelopment analysis: A comprehensive text whit models, applications, references and DEA-solver software, Springer 2000  Farrell, M.J.( 1957), “ The measurement of productivity efficiency”, Journal of Economics 13,5-25.

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