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Selecting Best Employee of the Year Using Analytical Hierarchy Process

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Nur Idalisa Norddin at MARA University of Technology
Nur Idalisa Norddin
Noraini Ahmad at MARA University of Technology
Noraini Ahmad
Zanariah Mohd Yusof
Zanariah Mohd Yusof
Zanariah Mohd Yusof
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In the organization system, employee plays an important role in achieving the company goals. Motivating the employee by giving them a reward such as bonus, vacation and promotion that can optimize the productivity of each employee. In the selection of the best employee of the year, a model is developed by using Analytical Hierarchy Process (AHP) which uses both qualitative and quantitative decision making approaches. The developed model contains 4 levels of hierarchy which starting with the goal, 4 criteria and 22 sub-criteria, and finally the employee. The result is evaluated by using an excel spreadsheet,which shows the best employee of the year with the highest priority value of quality of work.
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J. Basic. Appl. Sci. Res., 5(11)72-76, 2015
© 2015, TextRoad Publication
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Journal of Basic and Applied
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Corresponding Author: Nur Idalisa Norddin, Faculty of Computer Science and Mathematics, UniversitiTeknologi MARA,
Dungun, Terengganu, Malaysia. Email: nuridalisa@tganu.uitm.edu.my
Selecting Best Employee of the Year Using Analytical Hierarchy Process
Nur Idalisa Norddin, Noraini Ahmad, Zanariah Mohd Yusof
Faculty of Computer Science and Mathematics, Universiti Teknologi MARA, Dungun, Terengganu, Malaysia
Received: July 18, 2015
Accepted: October 14, 2015
ABSTRACT
In the organization system, employee plays an important role in achieving the company goals. Motivating the
employee by giving them a reward such as bonus, vacation and promotion that can optimize the productivity of each
employee. In the selection of the best employee of the year, a model is developed by using Analytical Hierarchy
Process (AHP) which uses both qualitative and quantitative decision making approaches. The developed model
contains 4 levels of hierarchy which starting with the goal, 4 criteria and 22 sub-criteria, and finally the employee.
The result is evaluated by using an excel spreadsheet,which shows the best employee of the year with the highest
priority value of quality of work.
KEYWORDS: Analytical Hierarchy Process, Best Employee.
INTRODUCTION
In the organizational context, an employee is an important asset for the organization to achieve their goal and
objectives. Employee performance appraisal is an important aspect of human resources management in order to
assess each employee’s contribution to the company. Performance is usuallydefined as the extent to which an
organizational member contributes to achieving the goals of the organization. Performance appraisal is defined as
“the process of identifying, evaluating and developing the work performance of the employee in the organization, so
that organizational goals and objectives are effectively achieved while, at the same time, benefiting employees in
terms of recognition, receiving feedback, and offering career guidance” [4]. Recognition from the company can
motivate the employee to being the best. It is a big challenge to create a system that helps the human resource
development in the industry to make their work easier without missing an opportunity to select a best
employee.There are many methods which available in the performance appraisal such as informal appraisals that
involve the assessment of an individual’s performance by their supervisor. In [5] develops the decision making and
evaluating system for employee recruitment by using fuzzy analytical hierarchy process.Analytic Hierarchy Process
(AHP) is a powerful tool that widely used in evaluating and ranking complex decisionproblems,where it is a multi-
attribute decision making method which proposed by [7].This study will investigate the application of the AHP
model in seeking a best employee of the year.
There are some related criteria that most employers shall consider during the selection process. In
[6]categorized the criteria in6 main categories namely quality/quantity of work, planning, commitment, cooperation,
communication and external factors.In [8] studied the employee performance evaluation at PT. Kereta Api
Indonesiaby using expert choice software and categorizes the criteria in6 main categories such as integrity,
professional, orientation toward safety, innovation and innovation of service.
Since there are many criteria that must be considered during the selection process of best employee, then there
exists a problem to evaluate the employee. This problem can be solved by using Multi Criteria Decision Making
(MCDM). There have been many methods proposed to solve MCDM such as Weighted Sum Model [2], Analytical
Network Process (the generalized AHP) [7] and ELECTRE [1]. However, many comparison reviews have revealed
that AHP process a number of benefits over other multi-criteria decision making methods. This process involves
pair-wise comparisons. The decision maker starts by laying out the overall hierarchy of the decision. This hierarchy
reveals the factors to be considered as well as the various alternatives in the decision. Then, a number of pair-wise
comparisons are done which result in the determination of factor weights and factor evaluations
METHODOLOGY
The main purpose of this study is to propose a model for the best employee of the year by using AHP. Often,
the selection of the best employee is done by the top management of the company by using informal appraisals and
72
Norddin et al.,2015
making them facing difficulty in assessing and causing merely a subjective assessment. Therefore, this paper
proposed a model where all criteria are fairly evaluated in the selectionprocess.This model has two phases that is to
determine theweight of each criterion and to calculate the overallpriority/ranking of all employees.
Determine Weight of Each Criterion
The following 5 steps are required to determinethe weight of each criterion:
Step 1: Identify the criteria, sub-criteria and employees (tobe evaluated) for evaluation and put them into theAHP
hierarchy.
Step 2: Assign scores for each criterion.
Step 3: Construct a pair-wise comparison matrix.
Step 4: Normalize the pair-wise comparisonmatrix.
Step 5:Test for consistency.
Step 1: Identify the Criteria, Sub-Criteria and Employees (to be Evaluated) for Evaluation and Put Them
Into theAHP Hierarchy
This model contains 4 levels of hierarchy starting with the goal (best employee of the year) followed by more
than 2 sub-criteria for each 4 major criteria. The full formsand necessary details of the criteria and sub-criteria
areprovided in Table 1.
Table 1: Description of criteria
Criteria Meaning Sub-Criteria
Quality of Work(QW) This is concerned about the employee is able to manage
multiple projects and produce an appropriate quantity of work.
The work done is expected to maintain the high standards and
regularly produces accurate work. Furthermore, the employee is
responsible to complete work in a timely.
•
Quantity (Qu)
• Quality (Ql)
• Punctuality (P)
• Work Effectiveness (WE)
• Up to Standard (US)
• Dedication (D)
• Systematic (S)
Personal Quality(PQ) In a company, individuals must be able to work harmoniously
with others such as staff, co-workers, peers and managers to
make a job done. The employee must be responds positively to
instructions and procedures. The employee must also be willing
to share critical information with everyone involved in a project
and makes constructive suggestions.
•
Organize (Or)
• Discipline (Dc)
• Competence (Ct)
• Teamwork/Cooperation (TC)
• Sense of Humor (SH)
• Leader instruction (LI)
• Opinion/Ideas (OI)
• Well dressed (WD)
Knowledge and Skills(KS) This criterion evaluates how individuals demonstrate
knowledge of techniques, skills, equipment, procedure and
materials. The employee must be able to exercise a professional
approach with others by using all appropriate tools of
communication.
•
Knowledge (K)
• Skill (SK)
• Policy Implementation (PI)
• Communication (CM)
• Leadership (L)
External Factor(EF) The employee must be able to contribute job knowledge or
technical knowledge to the society.
•
Contribution to Society (CS)
• Involvement of the Non-Organizational
Activity (IN)
Step 2: Assign Score for Each Criterion
The score for each criterion(t)in this study is basedon 1-9 preferences scale [9] (where 1 is theleast preferred
and 9 is the most preferred).For example, the evaluation for 5employees that have been done shortlisted by the
management are given as shown in Table 2:
Table 2: Evaluation for five employees for each criterion
73
J. Basic. Appl. Sci. Res., 5(11)72-76, 2015
Step 3: Construct Pair-Wise Comparison Matrix
Afterthe hierarchical structure of the problem and the score is finished, the next step is to use a pair-wise
comparison to evaluate itselements and determine the priority. The weightage of respective items in each level of the
hierarchy is determined by developing the pair-wise comparison matrix,
[
]
ij
aA
=
which based on the score from
the entire selection process. The formula for pair-wise comparison between 2 criteria with score tiand tjis given by
the following equation [3]:
+−
≥+−
=otherwiseif
tt
ttiftt
a
ij
jiji
ij
1
1
1
(1)
The decision maker uses a 9 point scale to assess the priority score. The procedure focuses on two factors at a
time and their relation to each other with the scores 1, 3, 5, 7 and 9. The score 1 refers to equal importance, 3 refers
to slightly more importance, 5 refers to strong more importance, 7 refers to the very strong importance and 9 denotes
extremely more importance. The scores of 2, 4, 6 and 8 are intermediate scores between the two judgments. The
following is the pair-wise comparison matrix base on Quality of Work (Qu) for each employee:
Table 3: Pair-wise comparison matrix based on Qu
Qu E1 E2 E3 E4 E5
E1 1 1 2 3 2
E2 1 1 2 3 2
E3 0.5 0.5 1 2 1
E4 0.333333 0.333333 0.5 1 0.5
E5 0.5 0.5 1 2 1
Step 4: Normalize the Pair-Wise Comparison Matrix
Consequently, the pair-wise comparison matrix needs to be normalized in order to obtain the priority of the
criteria and also for consistency analysis. The weights or the priorities of the criteria are the average of each row.
Next, calculate the weights and priority of these sub-criteria and also the employeein the same manner.Therefore,
the normalized pair-wise matrix base on Quality of Work (Qu) for each employee as shown as follows:
Table 4: The normalized pair-wise matrix base on QU and the priority value
Qu E1 E2 E3 E4 E5 Priority
E1 0.3 0.3 0.307692 0.272727 0.307692 0.297622
E2 0.3 0.3 0.307692 0.272727 0.307692 0.297622
E3 0.15 0.15 0.153846 0.181818 0.153846 0.157902
E4 0.1 0.1 0.076923 0.090909 0.076923 0.088951
E5 0.15 0.15 0.153846 0.181818 0.153846 0.157902
Total 1 1 1 1 1 1
Step 5: Test for Consistency
The consistency test provides the validation and also a measurement of consistency among the pair-wise
comparison that have been done throughout the judgment process. Generally, the consistency ratio is set to be less
than 0.1.
Develop Overall Priority/Ranking of Employees
There are 4 levels of hierarchy in this selection model. Take one employee at a time and measure
his/herperformance intensity under each sub-criterion.Add the global priorities of the intensities for theemployee.
Repeat the process for all the employees.
Suppose that the weightage of sub-criterion QW are 0.119241543 (Qu), 0.228959276 (Ql), 0.065115277 (P),
0.119241543 (WE), 0.119242 (US), 0.228959 (D) and 0.119242 (S). Next, the priority vector of employee (E1) for
Quality of Work (QW) criterion is computed as follows:
Priority of QW for E1 = (weightage of Qu x priority Qu for E1) + (weightage of Ql x priority Ql for E1) +
(weightage of P x priority P for E1) + (weightage of WE x priority WE for E1) + (weightage of US x priority US for
E1) + (weightage of D x priority D for E1) + (weightage of S x priority S for E1) = 0.308164608 (2)
74
Norddin et al.,2015
Table 5 shows a sample of priorities of criteria for each level with 5 employees. The overall priority/ranking
will be computed from the lowest level to the upper level in order to achieve the goal of selecting the best employee
of the year.
Table 5: Overall priority vectors
QW PQ KS EF
E1 0.308164608 0.257967762 0.16770955 0.25174486
E2 0.287338271 0.267944542 0.159660164 0.319990474
E3 0.127092058 0.284653285 0.315219005 0.253625466
E4 0.103675998 0.080363731 0.167451532 0.0873196
E5 0.173729064 0.10907068 0.189959748 0.0873196
RESULTS AND DISCUSSION
Priorities of employee from Table 5 are used to rank the employee of the final selection decision. An employee
with the highest priority value is the most preferred and assigned to rank 1, employee with the second highest
priority is assigned to rank 2 and so on. Therefore, in this particular case, candidate E1 who obtained the highest
priority value is the most preferred employee where employee E4 will be the least preferred employee. The ranking
of those employees is shown in Table 6.
Table 6: Ranking of employee
Employee Priority Ranking
E1 0.257556 1
E2 0.255075 2
E3 0.221011 3
E4 0.111896 5
E5 0.154461 4
From Table 6, the employees E1 and E2 have highest priority value for quality of work and external factor
respectively.Employee E3 has highest priority value for two criteria which are personal quality and knowledge and
skills. Even though the employee E3 has the highest priority for two criteria, employee E1 is rank 1 wherethe first
criteria which isthe quality of work contributes more on the value of the priority followed by personal quality,
knowledge and skills and external factors. To be precise in our case, the weightage is 0.432789, 0.239122, 0.239122
and 0.088967 for criterion QW, PQ, KS and EF respectively.
CONCLUSION
In this study, a model of the best employee for the year was developed based on AHP and the result is
computedby using an Excel Spreadsheet. By using the AHP methodology, employees can be ranked by considering
all required criteria. The ranking can assist the organization to select the best employee.
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2. Fishburn, P.C., 1967. Additive utilities with incomplete product set: Applications to priorities and sharings.
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4. Lansbury, R., 1988. Performance management: A process approach.Asia Pacific Journal of Human Resources,
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  • Jan 2006
Employee performance evaluation is designed to assess each individual's contribution to the organization. The performance of individuals against organizational goals determines whether the organization meets its goals. The basic objectives of performance evaluations are two-fold: firstly to reward employees for meeting organizational objectives and secondly to identify which objectives are not met and to develop action plans to ensure they are achieved in future. The present paper uses analytic hierarchy process (AHP) to evaluate employees performances based upon the criteria: quantity/quality of the work, planning/organization, initiative/commitment, teamwork/cooperation, communication and external factors. Each of these criteria has been divided into 3 subcriteria. Two hundred and ninety-four employees of Inter System Maintenance Services Sdn. Bhd. are evaluated on these subcriteria. Overall ranking of the employees has been obtained using the absolute measurement procedure of AHP.
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Employee Performance Appraisal in a Logistics Company
Article
Full-text available
  • Jan 2015
This paper develops a multi-criteria decision making method (MCDM) method to evaluate the employee performance in a logistics company. Analytic Hierarchy Process (AHP) is used for the weights of criteria and employees. Technique for order preference by similarity to an ideal solution (TOPSIS) is used for ranking the overall performance of the employees. Result shows that the proposed method is a generalized method and is applicable for the performance appraisal problem.
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Selecting New Lecturers Using The Analytical Hierarchy Process (AHP)
Conference Paper
Full-text available
  • Sep 2012
In the educational system, lecturers play important role in producing marketable graduates. This can be achieved by employing potentially competent lecturers. The process of selecting new lecturers in a public university in Malaysia involves three phases: academic qualification consideration, mock teaching and face-to-face interview. The eligible candidates will be shortlisted after performing the mock teaching session. Then, the shortlisted candidates will be called for the face-to-face interview. In this paper, we developed lecturer's selection model using Analytical Hierarchy Process (AHP), which uses both qualitative and quantitative decision making approaches. This model will consider all scores from the three phases in order to rank the candidates. The developed model contains 5 levels of hierarchy, starting with the goal (new lecturer), 3 types of interview, 13 criteria of the interview, 8 sub-criteria, and finally the candidates. The computation is done using Excel Spreadsheet.
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Personnel selection using ELECTRE
Article
Full-text available
  • Dec 2010
Selecting personnel are an important problem, yet often difficult task. It is complicated because of more than one dimension. This study considers a real application of personnel selection with using the opinion of experts by one of the group decision making model, it is called ELECTRE method. This study has applied seven criteria that they are qualitative and positive for selecting the best one amongst five personnel and also ranking them. The personnel that were in the same grade in ELECTRE method were identified and were re-ranked by using AHP method. We have also used from five expert’s opinion. Finally the introduced method is used in a case study.
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Letter to the Editor--Additive Utilities with Incomplete Product Sets: Application to Priorities and Assignments
Article
  • Jun 1967
A previous paper discusses the notion of additive utilities in the expected-utility context when the set of consequences X can be written as the product of n other sets: X = X1 × X2 × ⋯ × Xn. The present paper continues this investigation for cases where X is a subset of the product of n other sets: X ⊂ X1 × X2 × ⋯ × Xn. Under a finiteness restriction, an additivity axiom leads to an additive utility representation for the elements in X. The potential usefulness of the theory in connection with incomplete product sets is demonstrated with priority orderings and assignments.
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Decision making and evaluation system for employee recruitment using fuzzy analytic hierarchy process
  • Jan 2013
  • 24-31
  • R K Ablhamid
  • B Santoso
  • M A Muslim
Ablhamid, R.K., B. Santoso and M.A. Muslim, 2013. Decision making and evaluation system for employee recruitment using fuzzy analytic hierarchy process. International Refereed Journal of Engineering and Science, 2 (7): 24-31.
Employee performance evaluation using the AHP with expert choice software (Case study: PT. kereta api Indonesia)
  • Jan 2013
  • 444-450
  • Q Widayati
Widayati, Q., 2013. Employee performance evaluation using the AHP with expert choice software (Case study: PT. kereta api Indonesia). In the Proceedings of the 2013 Technology, Education, and Science International Conference, pp: 444-450.