Int. J. Services and Operations Management, Vol. 16, No. 2, 2013 225 Copyright © 2013 Inderscience Enterprises Ltd. Performance evaluation of HESA laboratory units: an integrated DEA-BSC approach S. Mohammad Arabzad* Young Researchers Club, Najafabad Branch, Islamic Azad University, Najafabad, Isfahan, 8199657581, Iran E-mail: m.arabzad@yahoo.com Ahmad Kamali and Badia Naji General Foreman of Planning Department of HESA Laboratories Center, Isfahan, 8199964343, Iran E-mail: ahmadekamali@yahoo.com Mohammad Mehdi Tavakoli Department of Industrial Engineering, Najafabad Branch, Islamic Azad University, Isfahan, 8154918631, Iran E-mail: mt_iau@yahoo.com Abstract: For development, growth and sustainability in today’s competitive environment, all public and private organisations require a performance evaluation system, which can evaluate the efficiency and effectiveness of their programmes, processes and human resources. For this reason, the need to design an integrated performance evaluation system is seen clearly. The purpose of this study is providing a systematic approach to evaluate performance of laboratory units. In this paper, a three-phase approach based on the BSC is proposed. In the first phase, evaluation criteria are defined considering BSC concept. In the second phase, performances of the units are measured within determined criteria in a specified period. Finally, in the last phase, laboratory units are evaluated and ranked using DEA ranking model. To show the applicability of proposed approach, laboratory centre of HESA Company has been conducted as a case study. Keywords: performance evaluation; laboratory units; balanced scorecard; BSC; data envelopment analysis; DEA. Reference to this paper should be made as follows: Arabzad, S.M., Kamali, A., Naji, B. and Tavakoli, M.M. (2013) ‘Performance evaluation of HESA laboratory units: an integrated DEA-BSC approach’, Int. J. Services and Operations Management, Vol. 16, No. 2, pp.225–239. Biographical notes: S. Mohammad Arabzad graduated in Iran 2009 and 2012 with BS and MS degrees, in Industrial Engineering at Najafabad Branch, Islamic Azad University, Isfahan, Iran. He is the author of more than 30 published papers at national and international levels in refereed journals and conferences since 2010.