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Multidimensional assessment of organizational performance: Integrating BSC and AHP

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  • Bentes, Alexandre Veronese
  • Carneiro, Jorge
  • da Silva, Jorge Ferreira
  • Kimura, Herbert

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.

Suggested Citation

  • Bentes, Alexandre Veronese & Carneiro, Jorge & da Silva, Jorge Ferreira & Kimura, Herbert, 2012. "Multidimensional assessment of organizational performance: Integrating BSC and AHP," Journal of Business Research, Elsevier, vol. 65(12), pages 1790-1799.
    • Handle: RePEc:eee:jbrese:v:65:y:2012:i:12:p:1790-1799
    DOI: 10.1016/j.jbusres.2011.10.039
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    21. Behrooz Noori, 2014. "Prioritizing strategic business units in the face of innovation performance: Combining fuzzy AHP and BSC," Proceedings of International Academic Conferences 0802059, International Institute of Social and Economic Sciences.
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