Comparing appropriate decision support of human resource practices on organizational performance with DEA/AHP model

Authors:
Ya-Fen Tseng;Tzai-Zang Lee
Affiliations:
Department of Industrial and Information Management, National Cheng Kung University, Tainan, 701 Taiwan, ROC;Department of Business Administration, Kun Shan University of Technology, Tainan, 710 Taiwan, ROC
Venue:
Expert Systems with Applications: An International Journal
Year:
2009

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Abstract

The issue of human resource practices has been widely applied to examine the organizational performance for multiple industries. Few researches have realized that the relationships of human resource practices to organizational performance in different culture types support the meaningful information. In this paper, an Analytical Hierarchical Process/Data Envelopment Analysis (AHP/DEA) model that helps in investigating the associated importance of human resource practices and organizational performance variables is proposed. This research involving 129 companies in the Taiwanese electronics industry and 112 branches in China are used to demonstrate and compare the impact of human resource practices on organizational performance in each organizational type with the proposed AHP/DEA model. The study contains five human resource practice variables and seven organizational performance variables through Linear Structure Relation (LISREL). The main findings suggest: (1) asking employee to participate company activities, because doing so may greatly consume the employees' relationships in each organizational type for both the Taiwanese and branches electronics industry; and (2) the importance of employee relations is more significant in stratum and rational culture than in development and common culture regardless of Taiwanese companies or branches in China. Discussion and implication with respect to decision support are also addressed.