Application of PCA/DEA method to evaluate the performance of human capital management A case study

Abstract

During recent years, organizations have been aware of the importance of their assets and have sought to maximize their use. Hence, human capital as one of the assets making a competitive advantage for the company has been highlighted by many organization, and managers who try to surpass their entire rivals. In many cases, managers have regarded human capital as crucial as financial assets and therefore, try to achieve some benefits such as organizational commitment and staffs participations increase through investing in this field. Due to the importance of human capital management, in this paper, performance of Foolad Technic Company was evaluated by human capital management approach and hence, employs PCA/DEA merging method. In this study, first inputs and outputs were determined through DEA model and their values were found by using a questionnaire. Afterward, principle component analysis method helped to remove correlation between input data. Also, data envelopment analysis was used to evaluate the performance of organizational units. At last, unit ranking was done by using TOPSIS.