Comparison of simple additive weighting (SAW) and composite performance index (CPI) methods in employee remuneration determination

Abstract

The process of determining the employee remuneration for PT Sepatu Mas Idaman currently are still using Microsoft Excel-based spreadsheet where in the spreadsheet there is the value of criterias that must be calculated for every employee. This can give the effect of doubt during the assesment process, therefore resulting in the process to take much longer time. The process of employee remuneration determination is conducted by the assesment team based on some criterias that have been predetermined. The criteria used in the assessment process are namely the ability to work, human relations, job responsibility, discipline, creativity, work, achievement of targets, and absence. To ease the determination of employee remuneration to be more efficient and effective, the Simple Additive Weighting (SAW) method is used. SAW method can help in decision making for a certain case, and the calculation that generates the greatest value will be chosen as the best alternative. Other than SAW, also by using another method was the CPI method which is one of the calculating method in decision making based on performance index. Where SAW method was more faster by 89-93% compared to CPI method. Therefore it is expected that this application can be an evaluation material for the need of training and development for employee performances to be more optimal.