Multidimensional assessment of organizational performance: Integrating BSC and AHP

  • Bentes A
  • Carneiro J
  • da Silva J
 et al. 
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Abstract

Measurement of organizational performance is a complex issue given that performance is a multifaceted phenomenon whose component elements may have distinct managerial priorities and may even be mutually inconsistent. This paper presents the case of a Brazilian telecom company to illustrate and critically analyze the integration of two methodologies, Balanced Scorecard (BSC) - a multiple perspective framework for performance assessment - and Analytic Hierarchy Process (AHP) - a decision-making tool to prioritize multiple performance perspectives and indicators and to generate a unified metric for the ranking of alternatives (in this case, performance of functional units). An iterative and interactive procedure coupled with an agreement-building approach among managers generates priority values for performance dimensions and respective indicators. The paper discusses the advantages and disadvantages of the design. © 2011 Elsevier Inc.

Author-supplied keywords

  • AHP
  • Analytic hierarchy process
  • BSC
  • Balanced scorecard
  • Multi-criteria decision-making
  • Performance measurement

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