Assessing Labor Efficiency Management in a Power Plant Company Using Data Envelopment Analysis

To achieve company goals, labor is an essential resource. The presence and quality of labor, as aligned with the company’s strategy and operations, can improve or develop company performance in the future. The importance of the workforce makes its management equally important because the strategy or method used in managing the workforce can determine its success. This research focuses on evaluating labor management in a power plant company that has a workforce with two statuses, namely permanent labor and outsourced labor. In order to evaluate the labor management in this power plant company, we use the Data Envelopment Analysis (DEA) approach, aiming to measure the efficiency of its labor management and then provide improvement recommendations for better labor management. The DEA calculation model is input-oriented, focusing on minimizing inputs with constant outputs. Input variables directly related to labor management are the reason for choosing this calculation model. The results of the evaluation show that labor management in the last year of the evaluation was already running optimally. However, implementing digitalization in the future could improve efficiency by reducing the number and cost of permanent workers. Keywords: Data Envelopment Analysis (DEA), efficiency, labor, management, outsource