An Application of the Analytical Hierarchy Process (Ahp)

Topics: Decision making, Hierarchy, Analytic Hierarchy Process Pages: 6 (2111 words) Published: February 26, 2013
An Application of the Analytical Hierarchy Process (AHP) in the Selection of Functional Areas of a Business Organization of the Industrial Engineering (IE) Students Class of 2013 of the University of Santo Tomas (UST) Authors: Eunice Bianca L. Agpasa, Mikhail George C. Agustin, Arlene Leah L. Chua, 5IEB, 5th Year Industrial Engineering Students, University of Santo Tomas, España, Manila, Philippines I. Abstract Career selection is crucial in determining future plans of students, particularly Industrial Engineering students. Their decision is vital in shaping their future and will have a great effect throughout their lives so this study aims to determine the process of how students make decisions in selecting functional areas of a business organization, and the factors affecting the selection of career opportunities. The process intended to be used by the researchers is the Multi-Criteria Decision-Making (MCDM) tool Analytical Hierarchy Process (AHP). This process is widely used in decision-making which covers complex problems. The results obtained using AHP determined which among the three functional areas is the most important, that is the Marketing function followed by Finance, and the least important is the Operations. However, the level of inconsistency of the criteria and alternatives are unacceptable, since all consistency ratios are greater than one tenth. For the level of inconsistency of criteria and alternatives, the consistency ratio for the 3 Criterion ( feeling of interest ( career opportunity ( and salary ( are 1.52, 1.52, 1.80 and 1.98 respectively are less than 0.1. The level of inconsistency of the criteria and alternatives are unacceptable, because all CR > 0.1.This is because of the survey respondents’ inconsistent answers, since respondents have different selection of functional areas of a business organization. Consistency implies coherent judgment on the part of the decision maker regarding pair-wise comparisons. It is unusual for all comparison matrices to be consistent. Indeed, given that human judgment is the basis for the

construction of the three matrices, some “reasonable” degree of inconsistency is expected and tolerated. (Taha, H., 2007). Keywords: Career Selection, Multi-Criteria Decision-Making (MCDM), Industrial Engineering, Analytical Hierarchy Process (AHP), University of Santo Tomas, Functional Areas of a Business Organization II. Introduction Career selection is one of many important choices Industrial Engineering (IE) students will make in determining future plans. This decision will impact them throughout their lives of what the student wants to do with his life-long work. Every student carries the unique history of their past and this determines how they view the world. That history created, in part by the student’s environment, personality, and opportunity, will determine how students make career choices. It then follows that how the student perceives their environment, personality, and opportunity also will determine the career choices students make. The focus on careers and career preparation for Industrial Engineering students has long been a major component of Industrial Engineering education programs. Not only is the mission of Industrial Engineering education to prepare and support individuals for careers but also for setting career and educational goals to attain. More importantly, all schools need to provide opportunities for students to prepare for their future careers. The level of career aspiration usually affects curriculum choice hence career choice (Herr and Cramer, 1996). Also, career aspirations are influenced by numerous factors including gender, race, parental support, academic achievement, socioeconomic status, and selfesteem. Similarly, several factors which have been found to be theoretically and empirically related to career aspirations also influence the career choice process. Career selection involves deciding on which functional area of an organization you...
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