CONTINUOUS PERFORMANCE EVALUATION OF EMPLOYEES USING AHP AND MODIFIED PUGH MATRIX METHOD: CONTRASTING WITH TOPSIS, PROMETHEE AND VIKOR

Abstract

Applications of the AHP for employee performance evaluation in organizations are widely discussed in the literature. Contemporary organizations are increasingly discarding the traditional periodic appraisal systems and moving towards a real-time continuous process of evaluation. The existing multi-criteria decision making method (MCDM)-based employee performance evaluations are not suitable for such continuous evaluations, due to the complexity of the MCDM method. The current appraisal system is notoriously difficult to administer which prevents organizations from using it as an ongoing evaluation. There is a need for a simple yet robust multi-criteria decision making method for continuous performance evaluation of employees (CPEE). In this article, a modified version of the Pugh Matrix Method (MPMM) is proposed as a robust outranking method. The MPMM in combination with the AHP can function as an effective tool for CPEE. The MPMM is compared with other established and popular methods including TOPISIS, PROMETHEE and VIKOR. A statistical comparison using correlation validates the evaluation by the MPMM. There appears to be no significant difference in the evaluation of the MPMM with the other MCDM methods. Owing to its robustness and ease of use, the MPMM can easily be adopted by organizations for CPEE. The managerial implications and agenda for future research are also discussed.