A multi-attribute approach to ranking departments based on performance: a balanced scorecard pilot study

Abstract

Departments are assessed using performance evaluation systems (PES) based on their important performance criteria. The sum of the weighted KPIs’ actualization scores creates the departments' performance ratings, which are used to rank departments from highest to lowest performing. However, this strategy does not account for departmental variances. We used multi-attribute decision-making (MADM) techniques in this study to ascertain the performance of several divisions inside a business. Our study's structure is divided into two distinct parts. In the first stage, pair-wise evaluation matrices are built and attribute weights are established using the Analytic Hierarchical Process (AHP) to determine attribute precedence. The second step employs the Elimination and Choice Expressing the Reality (ELECTRE) methodology to rank the departments using the attribute weights generated in the first stage using the AHP method. At the conclusion of the paper, a case study is presented to demonstrate how departments are organized in accordance with performance management principles within a corporation that use the balance-scorecard program for performance evaluation.