Universities contribute significantly to the development of human capital and socio-economic improvement of a country. Due to that, Malaysian universities carried out various initiatives to improve their performance. Most studies have used the Data Envelopment Analysis (DEA) model to measure efficiency rather than effectiveness, even though, the measurement of effectiveness is important to realize how effective a university in achieving its ultimate goals. A university system has two major functions, namely teaching and research and every function has different resources based on its emphasis. Therefore, a university is actually structured as a parallel production system with its overall effectiveness is the aggregated effectiveness of teaching and research. Hence, this paper is proposing a parallel network DEA model to measure the effectiveness of a university. This model includes internal operations of both teaching and research functions into account in computing the effectiveness of a university system. In literature, the graduate and the number of program offered are defined as the outputs, then, the employed graduates and the numbers of programs accredited from professional bodies are considered as the outcomes for measuring the teaching effectiveness. Amount of grants is regarded as the output of research, while the different quality of publications considered as the outcomes of research. A system is considered effective if only all functions are effective. This model has been tested using a hypothetical set of data consisting of 14 faculties at a public university in Malaysia. The results show that none of the faculties is relatively effective for the overall performance. Three faculties are effective in teaching and two faculties are effective in research. The potential applications of the parallel network DEA model allow the top management of a university to identify weaknesses in any functions in their universities and take rational steps for improvement.
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