Overcoming the pitfalls in employee performance evaluation: An application of ratings mode of the Analytic Hierarchy Process

PURPOSE: Employee performance evaluation is a common exercise conducted in many organizations. Employees need to know the feedback on their from management. Often results of exercises are used for promotion, confirmation service and awarding bonuses employees. However, often meets with criticism due presence subjective factors and, specifically, way which these handled. The purpose present paper show how Ratings mode Analytic Hierarchy Process (AHP) can be applied evaluate employee using objective as well criteria. METHODOLOGY: whole AHP has been shown through case study CLSB, company Kuala Lumpur, Malaysia. Four senior managers Managing Director were involved all phases exercise, including elicitation criteria, sub-criteria assigning weights them. data analyzed software called Calc version 24.12.13 developed by Klaus D. Goepel available online. In particular, was employees’ at CLSB. FINDINGS: Five namely Services, Quality, Financial, Timing, Teamwork, found important Each criteria sub-criteria. Harmonious work, Skills, Punctuality three most exercise. outcome provides an ordered set ranks 20 employees working company. Apart application evaluation, detailed rubrics have developed. provide precise guidelines evaluators time evaluating performance. IMPLICATIONS: An scheme that scientific systematic, such one, will minimize levied against Once aware along associated weighting process itself, they motivated perform tasks discharge duties accordingly. Hence, job satisfaction productivity expected increase. This bolster not only morale but also organization’s overall ORIGINALITY AND VALUE: literature, schemes But often, methods criticized either take equally or lack capability strike balance between factors. main contribution work alleviate above drawbacks existing methods. research method, simple straightforward, steps elaborated method actually measure other companies necessary modification appropriate