Prioritization of human capital measurement indicators using fuzzy AHP

People in an organization constitute an important and essential asset which tremendously contributes to development and growth of that company by the help of their collective attitudes, skills and abilities. This is why the human capital (HC) can be considered the most important sub-dimension of the intellectual capital. Since you cannot manage what you cannot control, and you cannot control what you do not measure, the measurement of HC is a very important issue. This study aims at defining a methodology to improve the quality of prioritization of HC measurement indicators under fuzziness. To do so, a methodology based on the extent fuzzy analytic hierarchy process (AHP) is proposed. Within the model, five main attributes; talent, strategical integration, cultural relevance, knowledge management, and leadership; their sub-attributes, and 20 indicators are defined. The proposed model can be used for any country. However, the results obtained in the numerical example reflect the situation of HC in Turkey, since the experts are asked to make their evaluations considering the cultural characteristics of Turkey. The results of the study indicate that ''creating results by using knowledge'', ''employees' skills index'', ''sharing and reporting knowledge'', and ''succession rate of training programs'' are the four most important measurement indicators for the HC in Turkey.

[1]  Hsiao-Cheng Yu,et al.  Establishing a MAN access strategy for future broadband service: a fuzzy MCDM analysis of SONET/SDH , 2005 .

[2]  Ching-Hsue Cheng Evaluating naval tactical missile systems by fuzzy AHP based on the grade value of membership function , 1997 .

[3]  Bing Jiang,et al.  The development of intelligent decision support tools to aid the design of flexible manufacturing systems , 2000 .

[4]  Gerhard O. Mensch,et al.  TIMS Studies in the management sciences : Burton V. Dean and Joel L. Goldhar (eds.), Management of Research and Innovation, North-Holland Publishing Company, Amsterdam, Vol. 15, 1980, 300 pp. , 1983 .

[5]  Lotfi A. Zadeh,et al.  Fuzzy Sets , 1996, Inf. Control..

[6]  Andrew Y. C. Nee,et al.  A fuzzy set AHP-based DFM tool for rotational parts , 2003 .

[7]  Ching-Lai Hwang,et al.  Multiple attribute decision making : an introduction , 1995 .

[8]  Andy Neely,et al.  Assessing strategic knowledge assets in e-business , 2002 .

[9]  James Guthrie,et al.  Human Capital Reporting in a Developing Nation , 2003 .

[10]  Da Ruan,et al.  Fuzzy group decision making for selection among computer integrated manufacturing systems , 2003, Comput. Ind..

[11]  Minghe Sun,et al.  Artificial neural network representations for hierarchical preference structures , 1996, Comput. Oper. Res..

[12]  Chun Wei Choo,et al.  The Strategic Management of Intellectual Capital and Organizational Knowledge , 2002 .

[13]  Ahmet Beskese,et al.  Prioritization of organizational capital measurement indicators using fuzzy AHP , 2007, Int. J. Approx. Reason..

[14]  N. Bontis,et al.  Intellectual capital and business performance in Malaysian industries , 2000 .

[15]  J. Buckley,et al.  Fuzzy hierarchical analysis , 1999, FUZZ-IEEE'99. 1999 IEEE International Fuzzy Systems. Conference Proceedings (Cat. No.99CH36315).

[16]  F. A. Lootsma,et al.  Multicriteria decision analysis with fuzzy pairwise comparisons , 1989 .

[17]  Da Ruan,et al.  Measuring flexibility of computer integrated manufacturing systems using fuzzy cash flow analysis , 2004, Inf. Sci..

[18]  Bernard Marr,et al.  Measuring and benchmarking intellectual capital , 2004 .

[19]  Jiuh-Biing Sheu,et al.  A hybrid fuzzy-based approach for identifying global logistics strategies , 2004 .

[20]  D. E. Bell,et al.  Conflicting Objectives in Decisions , 1978 .

[21]  Daniela Carlucci,et al.  The knowledge value chain: how intellectual capital impacts on business performance , 2004, Int. J. Technol. Manag..

[22]  N. Bontis Intellectual capital: an exploratory study that develops measures and models , 1998 .

[23]  D. Ulrich Human Resource Champions , 1996 .

[24]  Felix T.S. Chan,et al.  Evaluation methodologies for technology selection , 2000 .

[25]  Ching-Lai Hwang,et al.  Fuzzy Multiple Attribute Decision Making - Methods and Applications , 1992, Lecture Notes in Economics and Mathematical Systems.

[26]  Thomas L. Saaty,et al.  Multicriteria Decision Making: The Analytic Hierarchy Process: Planning, Priority Setting, Resource Allocation , 1990 .

[27]  F. T. Bozbura Measurement and Application of Intellectual Capital in Turkey. , 2004 .

[28]  Ying-Feng Kuo,et al.  Using the Fuzzy Synthetic Decision Approach to Assess the Performance of University Teachers in Taiwan , 2002 .

[29]  Da Ruan,et al.  A fuzzy multi-criteria decision approach for software development strategy selection , 2004, Int. J. Gen. Syst..

[30]  Hoang Pham,et al.  A methodology for priority setting with application to software development process , 1999, Eur. J. Oper. Res..

[31]  L. C. Leung,et al.  On consistency and ranking of alternatives in fuzzy AHP , 2000, Eur. J. Oper. Res..

[32]  H. Zimmermann,et al.  Fuzzy Set Theory and Its Applications , 1993 .

[33]  Da Ruan,et al.  Fuzzy group decision-making for facility location selection , 2003, Inf. Sci..

[34]  Bertrand Mareschal,et al.  Prométhée: a new family of outranking methods in multicriteria analysis , 1984 .

[35]  A. S. Saravanan,et al.  Comparative justification on intellectual capital , 2004 .

[36]  Jean-Marc Martel,et al.  A fuzzy outranking relation in multicriteria decision making , 1986 .

[37]  M. Gupta,et al.  FUZZY INFORMATION AND DECISION PROCESSES , 1981 .

[38]  Cengiz Kahraman,et al.  Multi-attribute comparison of catering service companies using fuzzy AHP: The case of Turkey , 2004 .

[39]  Fritz Klocke,et al.  Evaluating alternative production cycles using the extended fuzzy AHP method , 1997, Eur. J. Oper. Res..

[40]  E. Spires Using the Analytic Hierarchy Process to Analyze Multiattribute Decisions. , 1991, Multivariate behavioral research.

[41]  Yu Jing,et al.  A discussion on Extent Analysis Method and applications of fuzzy AHP , 1999, Eur. J. Oper. Res..

[42]  N. Brennan,et al.  Intellectual Capital: Current Issues and Policy Implications , 2000 .

[43]  Ingoo Han,et al.  Prioritization and selection of intellectual capital measurement indicators using analytic hierarchy process for the mobile telecommunications industry , 2004, Expert Syst. Appl..

[44]  Hepu Deng,et al.  Multicriteria analysis with fuzzy pairwise comparison , 1999, FUZZ-IEEE'99. 1999 IEEE International Fuzzy Systems. Conference Proceedings (Cat. No.99CH36315).

[45]  Jac Fitz-enz,et al.  The ROI of human capital , 2009 .

[46]  C. Kahraman,et al.  Fuzzy multi-attribute selection among transportation companies using axiomatic design and analytic h , 2005 .

[47]  Z. Irani,et al.  Quantification of flexibility in advanced manufacturing systems using fuzzy concept , 2004 .

[48]  D. Chang Applications of the extent analysis method on fuzzy AHP , 1996 .

[49]  Ching-Hsue Cheng,et al.  Evaluating attack helicopters by AHP based on linguistic variable weight , 1999, Eur. J. Oper. Res..

[50]  W. Pedrycz,et al.  A fuzzy extension of Saaty's priority theory , 1983 .