A New Hybrid AHP-TOPSIS Method for Ranking Human Capital Indicators by Normalized Decision Matrix

Abdul Kadar Muhammad Masum,Mohammad Anas,Faisal Bin Al Abid,Saiful Islam,A.N.M Rezaul Karim

doi:10.3844/jcssp.2019.1746.1751

Abstract

Human Capital or HC plays a significant role in the field of economic growth. Advancement on human capital and knowledge-based economy are of core importance for developing countries. Active representatives of capital accumulation are the people and utilizing natural resources for contributing to the socio-economic growth of the country. Evaluation of HC helps organizations to concern about their present position taking Human Capital Management into account. The core goal of this work is to measure performance of each organization individually based on criteria and rating the individual depending on the measurements. The technique used in this paper is based on the integration of "AHP" and "TOPSIS" as "AHP-TOPSIS" Hybrid method. The Analytic Hierarchy Process determines criteria's weight and significance of the indicators or alternatives. The final ranking of HC is done by TOPSIS method considering the importance of the indicators. The proposed MCDM approach is effective, compatible and reliable considering the goal of the study.

Highlights

The decision matrix comprises rows and columns that make it possible to allow the assessment of options related to different criteria for the decision
The established model in this paper evaluates the Human Capital (HC) of various municipal districts
We considered p alternatives and q to be the number of decision criteria

Summary

Introduction

The decision matrix comprises rows and columns that make it possible to allow the assessment of options related to different criteria for the decision. In today’s era, Human Capital (HC) is one of the most prominent classifications of Intellectual Capital (IC) (Lazim et al, 2013). In 1998, Huszc defined HC as to be a function of time, experience, knowledge and potential within an institution. Few experts named Beskese and Kahraman defined HC to be of utmost important aspect acting as a source of originality and innovation (Lazim et al, 2013). People represents one of the key strategic resource of an organization and with which all other resources either material or nonmaterial resources are connected. The ultimate success, creativity and efficiency of an organization or institution depend upon the quality of its employees

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