Good morning everyone, today I will be presenting my analysis on factors that most influence employee

performance using the Analytic Hierarchy Process (AHP) method. Before I begin, I would like to briefly
explain what AHP is and what it does.

AHP is a decision-making tool that helps to break down complex decisions into simpler, more
manageable components. It is a multi-criteria decision-making technique that allows us to prioritize
factors based on their relative importance. AHP is based on the principle that decisions should be made
in a logical, systematic, and transparent way.

Now, let's move on to my analysis. In this project, I have used AHP to calculate the weights of the four
factors that most influence employee performance: training times last year, monthly income, work-life
balance, and years of experience

The first step in my analysis was to create a pairwise comparison matrix for each of the four factors. The
matrix allows us to compare each factor with every other factor in terms of their relative importance. I
used a 5-point scale to assign values to each comparison, ranging from 0 (not so relatively important
important) to 5 (extremely more important).

Once I had completed the pairwise comparison matrix for each factor, I calculated the weighted average
for each factor. This involves multiplying each comparison value by the corresponding weight of each
factor and summing the values for each column. This gives us a score for each factor that reflects its
relative importance compared to the other factors.

In order to ensure the consistency of my analysis, I calculated the Consistency Ratio (CR) for each
pairwise comparison matrix. The CR is a measure of the consistency of the comparisons made. If the CR
is less than or equal to 0.1, then the comparisons are considered to be consistent. In my analysis, all of
the CR values were below 0.1, indicating that the comparisons were consistent.

Finally, I calculated the lambda max (λmax) and the Consistency Index (CI) for each matrix. The λmax is
the largest eigenvalue of the matrix and the CI is the difference between the λmax and the number of
criteria being compared, divided by the number of criteria minus one. This allowed me to check the
consistency of the matrix and ensure that the comparisons made were accurate.

Based on my analysis, the factor that has the most influence on employee performance is training times
last year, with a weight of 0.492. The second most important factor is monthly income, with a weight of
0.267. Work life balance and years of experience were found to be the least important factors, with
weights of 0.158 and 0.077 respectively.

In conclusion, my analysis using AHP has provided a systematic and transparent way to prioritize the
factors that most influence employee performance. By using the pairwise comparison matrix, weighted
average, consistency ratio, lambda max, and consistency index, I was able to arrive at a set of weights
that accurately reflect the relative importance of each factor. This information can be used by HR
professionals to make more informed decisions about employee performance and to design strategies
that optimize employee satisfaction and productivity.

Fuzzy AHP is an extension of the traditional AHP that allows decision-makers to incorporate fuzzy or
uncertain information into the decision-making process. Fuzzy AHP is used when the decision criteria or
alternatives are not clear-cut and the decision-maker needs to incorporate their personal judgment and
intuition into the process.

The main difference between AHP and Fuzzy AHP is that AHP is a crisp or deterministic method, while
Fuzzy AHP is a probabilistic method. In AHP, each criterion is given a crisp numerical weight, while in
Fuzzy AHP, each criterion is given a fuzzy weight that represents the degree of uncertainty associated
with that criterion.

In your case, it might not be applicable to use Fuzzy AHP on your dataset because your data is based on
factual information, not opinions. Fuzzy AHP is useful when dealing with subjective or vague
information, which is not the case with your dataset. Additionally, Fuzzy AHP requires a more extensive
and complex mathematical modeling process, which might be difficult to execute as a student.

Therefore, using traditional AHP would be more appropriate for your dataset, as it provides a clear and
straightforward methodology to analyze the decision-making process based on factual information.

In AHP, consistency ratio (CR) is used to measure the consistency of judgments made by the decision
maker. It is calculated by dividing the consistency index (CI) by the random index (RI), which is a measure
of the average consistency of random judgments.

The value of RI depends on the number of criteria being compared. For example, if there are 4 criteria
being compared, the RI value is 0.9. If there are 5 criteria being compared, the RI value is 1.12. These
values are pre-defined and tabulated in AHP literature.

In order to determine whether the judgments made by the decision maker are consistent or not, the CR
value is calculated by comparing the CI value to a threshold value. This threshold value is typically set at
0.1, which is considered an acceptable level of inconsistency. If the CR value is less than 0.1, then the
judgments are considered to be consistent enough for decision making.

Therefore, the CR value is compared to the number 0.1 because it is a standard threshold value used to
determine whether the judgments made by the decision maker are consistent enough for decision
making.

In your analysis, Lambda represents the principal eigenvalue of the pairwise comparison matrix. It is the
sum of the pairwise comparison matrix columns divided by the number of factors.

Lambda max is the maximum eigenvalue of the pairwise comparison matrix. It represents the largest
value of the principal eigenvalue of the matrix.

Eigenvalues, in general, represent the values that satisfy the equation Ax=λx, where A is a matrix, λ is a
scalar, and x is a non-zero vector. In the context of AHP, the eigenvalues represent the weights assigned
to each factor based on the pairwise comparison matrix. The larger the eigenvalue, the more important
the corresponding factor is.

In short, Lambda is a measure of the consistency of the pairwise comparison matrix, while Lambda max
and eigenvalues represent the importance of each factor based on the pairwise comparison matrix.