Performance Evaluation of Social Security Branchesbyusing BSC and MADM techniques

Transcription

1 International Research Journal of Applied and Basic Sciences 2013 Available online at ISSN X / Vol, 6 (5): Science Explorer Publications Performance Evaluation of Social Security Branchesbyusing BSC and MADM techniques Reza Abbasi 1, FatemehTayebi 2, Eshagh Emami Nasirmahalle 3 1. M.A. Master of Business Management, Rasht Branch, Islamic Azad University, Rasht, Iran 2. M.A. Master of Business Management, Rasht Branch, Islamic Azad University, Rasht, Iran 3. M.A. Master of Business Management, Rasht Branch, Islamic Azad University, Rasht, Iran corresponding author Abasireza65@yahoo.com ABSTRACT: Today all managers in all organizations, asking better use of resources and capacities are available in different parts. So existence a model in order to provide feedback to improve the performance of the different branches of the organization and management a tool to assess the need for, and reasonable looks very essential. Balanced Scorecard (BSC) is a management technique that helps managers to the organization and activities of growing or declining the organization to review from different angles. Successful implementation of the balanced scorecard approach, using the BSC as a tool for the design and evaluation of performance indicators and appropriate organizational measures within the four perspectives of customer, internal, innovation and financial growth is. The social Security Organization is also interested in the necessary direction, try applying a model for assessing the performance of its subsidiaries in order to improve the performance of appropriate strategies to branches the formulation of. In this research the AHP technique is used and for weighting indicators for ranking the branches of TOPSIS technique has been used. Keywords: AHP, Branches of social security, Performance Evaluation, TOPSIS INTRODUCTION Balanced Score card (BSC) is a management technique that helps managers of organization to review activities of growing or declining of the organization from different angles. The best way in the balanced score card approach to making use of BSC Performance indicators as a tool for designing and evaluating appropriate organizational measures within the four customer perspective, internal growth, and financial innovation (Azar Adel and Poor darvishi, 1971). Measure of performance because of their importance in assessing the performance of a company or organization has always been considered by researchers. Balanced Score card technique, resulting in a research study that was done in 1990, was born and since then one of the most important business tool for organizations around the world. In fact, recently has been estimated that more than 50 percent of companies such as Fvrchan 1000 Balanced Scorecard as a performance management approach adopted (Neon, 1989). Problem Statement With the increasing competition in the field of manufacturing and service, organizations neededindicators and benchmarks to review their performance. Weakness of traditional is measurement criteria and the competitive environment and need for redesigning performance measurement systems in organizations.one successful tool in the implementation of strategic planes to achieve a new performance measurement systemis the balanced scorecard system. Model BSC Creates a link between the objectives and criteriaareorganizedin four aspects.in order to obtainfinancialgain(in financial terms)in order to create value for their customers (the customer perspective) and it would not be practical unless they're in the process of its operational excellence with the demands of our clients consistent with ( internal process perspective) and it is not possible to live unless a suitable workspace for staff development and learning and growth, innovation and creativity, and to reinforce the organization (increscent perspective of learning and) (Kaplan, 1996).

2 Due to the complexity of decision-making,especially in organizations can evaluate the performanceof multicriteria decision making techniques;(mcdm) can be used.one of the techniques of analytic hierarchy processwhich is derived from graph theory s technique invented in 1980 by Thomas L. hour.the method of paired comparisons requires the addition of a strong logic technology AHP Advantage of this technique is that compatibility with other techniques, the index makesit through to the assessment questionnaire respondentspaid to the way people are inconsistent in their own responses to removefrom the group (Azar, 1971). TOPSIS Is technique (TOPSIS including compensatory methods (MCDM)).This method was first proposed in 1981 by Huang Yun.In this way, m Option n Indicators are evaluated,based on the technique of taking away a choice ofpositive idealpointand interval negative ideal point of it being considered.option means that the minimum distance fromthe ideal, yet most ideal distanceis negative (Mehregan, 2009). Social Security is a social insurance organization whose main mission covering salaried workers, day laborers (as required) and Self Employed (optional) is.inadequacy of financial measures to assess the performance of organizations, including social security branches it has on other activitiessuch as customer relationships, process innovationand training of staff as consider.the balanced scorecard in the organizational environment of the past few years has led to the creation of a database thatcan beused to studythe activity realized through focusing on weaknesses and strengthsin order to overcome shortcomings and strengthen the strengths and areas for growth and development of theinternationalfirm to enter the marketand compete with superpowersfield provided.the basic problem in evaluating the performance indicators used by the branches of social security, which is thebasic social security does not coverall activities.most of these indicators are derived from the financial implications of the relationship between these indicators to show a cause and effect relationship analysisisnot set in the planning of.now the question is: 1.Performance indicators, which are harmonious social security? 2.What is the significance of these factors and prioritize them? 3. Prioritize social security branches of the scorecard approach towards the people? Literature review In a study entitled integrated approach BSC-TOPSIS to evaluate top management faculties of Tehran universitiesin 2009, by taking into account the strengths of the balanced scorecard model in strategic performance evaluation that deals moderately with all aspects of the organization, have used the composition of that with TOPSIS technique for evaluating and ranking some top management faculties in Tehran. In other words, in this paper by using compensatory model of TOPSIS the evaluation results of BSC model has been summarized. Not only the results of this study is applied to improve the planning of management faculties and other management faculties of Iran, but also in the development of balanced scorecard in the universities is effective, and the proper combination of these two techniques has provided to summarize the results of the evaluation of various aspects of BSC model (Mehregan, 2009). M. Momeni, S. khodaee in a study entitled "Evaluation of the model using a combination of Social SecurityBSCAndFDEA"It was studied., In this study the researcher wants to use a suitable method to evaluate the performance of the social security branches in Tehran city as the unitsof similar decisionsin the first eight months of 1386 using a combination of two approaches to the analysis offuzzy data (FDEA) And balanced scorecard is.the results show thatthe input parameters of HR Khdr more weight.among the indicators of output, employee satisfaction index and weight are more important.the values of the inputsand outputsto the conclusion that multiple branches, 19 branches and Fshafvyh Qarchak, Branch and Jerusalem are the highest levels of performance,revenue growth and employee satisfaction and output indicatorsofhigher levels than other branches are. Adel Azar and Zahra alipour darvishi, the paper presented improved "balanced scorecard system BSC Based on fuzzy logic "to try to increase the effectiveness and credibility BSC Through a comprehensive model is designed to quantify BSC Have, so that deficiencies due to imprecise and subjective and selective attention Managers (assessors) to assess performance indicators using Fuzzy Logic, Data reduction and integration with respect to the contribution of each of the indicators BSC In achieving the goals provided. Evaluationcriteriaand indicatorsof social securitybranchesusingmadm,withprevious researchstudieshave beenselectedusing thebscmodel. Studyconsistsof4main criteriaand18indicators. InTable 1have beendetermined. 573

3 Figure1. Indicators of performance evaluation using balanced scorecard branches of social security RESEARCH METHODOLOGY First, library researches to find a suitable model for the performance evaluation criteria and indicators of social security branches have been using the BSC.Then, using thecriteriaandindicators ofresults, and comparison oftheahp techniquetoindexand rankthese criteriahave beencompared toeach other.the help ofdata from adatamatrix,decision matrix, and weightsandtopsismethodtorank thebranchesof social securityis paid.the populationinthis study, the threebranchesof social securityisin Rasht. Analytic Hierarchy process (AHP) The AHP methodology, which was developed by Saaty (1980), is a powerful tool in solving complex decision problems. AHP integrates experts opinions and evaluation scores, and devises the complex decision-making system into a simple elementary hierarchy system. AHP helps decision-makers specify the interactive and simultaneous effects of most of complex and undetermined conditions. This process also helps decision-makers adjust priority according to their objectives, knowledge and experience, while they take into account their feelings and judgments completely (Momeni, 2008). This method is used in this paper because judgment on decision alternatives is indefinite in this research. Training quality is considered as an imprecise and linguistic case, so the AHP method is used only to calculate the attributes weights. In this investigation 8 principle criterions are presented. They are compared in a process of paired comparison. Then attributes related to each criterion are compared relative to each other. TOPSIS METHOD TOPSIS (The technique for order preference by similarity to ideal solution) was developed by Hwang and Yoon (1981) as an alternative to the ELECTRE method (Performance, 2001).The basic concept of this method is that the selected alternative should have the shortest distance from the ideal solution and the farthest distance from the negative-ideal solution in a geometrical sense. The best alternative is the one, which is closest to the ideal solution and farthest from the negative ideal solution. The procedure of TOPSIS can be expressed in a series of steps: 1-Form the decision matrix 2-Make decision matrix quantitative 3- Normalize the decision matrix (N) using the Euclidean normalization 4- Calculate the weighted normalized decision matrix (V) using equation below: (1) 574

4 5-Determine the ideal and negative-ideal solutions: {( ( )} { } (2) {( ( )} { }(3) 6-Calculate the Euclidean distances of each alternative from the ideal solution and the negative-ideal solution, respectively: ( ) (4) ( ) (5) 7- Calculate the relative closeness (CL*) of each alternative to the ideal solution (6) 8- Rank the alternatives according to the relative closeness to the ideal solution. The best alternative is the one with the greatest relative closeness to the ideal solution(abbasi, 2013) Table 1. Weights for each of the indicator, criteria and the weighting of each indicators Criteria Growthand Learning Weights of criterions R & D Human Resources The finalweight indicators Academic skills Empiricalskills The satisfactory staffs Internal processes Income Enforcement Technical Enlistment Inspection Administrative Pension Market The market share Customer capital Technicaldocumentsofthe relation cost ofdocuments issued Financial CostsratioemployeewagestoNumber of employees Cost Management Growthand Income

5 Data analysis Final weight of attributes AHPtechniqueresultsinTable 1shows theweightsof eachcriterionand theweightsof eachindexarecompared toitscriterion. Thefinal weightvalues areimportantindicatorsofperformance evaluationindexshows. Final ranking Using thealgorithminthe third parttopsismethodand therankingscoresofeach of thebranchesclose tothe positiveidealsolutionand thedistancefromthe negativeidealsolution, asdescribed intable 2are. The weights for each criterion on the table (2) has also been shown to be important in general terms, to the branch table face (2) the ranking. Table2. The final ranking of each of the branches of social security Rank Name of Branch Scores 1 Branch Branch Branch Results indicate that the branch has achieved the first rank among the three branches. Branch 3 second and 2 second branch has achieved. Inthisstudy,social securitybranches, Gilan Provincewere studiedusingthe Balanced Scorecard. In which criterion techniques using the AHP and BSC indicators were weighted and balanced assessment of performance indicators into five parts (very important indicators, leading indicators, indicators average, less important indicators, the indicators are very least important) were divided. And finally by using the TOPSIS ranking techniques covered branches. With regard to the first rank among the Branch 1 Branch 1 Branch concluded that earns more indexes in the BSC has been observed.and the branches are the most important factors to consider has a better ranking (in terms of performance) will, among other branches. For the Branch 2 and Branch 3 of the performance of the first branch closer (aligned with the branch 1) must be the branches of important factors (the cost of workers' wages to employees, cost management, growth and income) and the most important indicators (research and development (R & D), market share empirical skills, human resources) more attention to direction of branches operated a branch in the future will lead to better performance. Suggestions Applications The branches of social security in this model can be used to identify the important factors affecting the success and achieve better performance and assess its strengths and weaknesses,actually we can say that the results are much more balanced between the four The branches financial perspective, market, internal process and learning and growth, they will have a better performance.proposals this study can be applied include the following: According to the experience in the field of the implementation of the Balanced Scorecard model for healthcare organizations and present results, it seems that this model can improve the localization and function of social security hospitals may impact. The model is implemented in all social security hospitals of the country. Model requires the measurement of defined goals and performance measures in hospitals are promoting. Themodelisproposedasevaluation mechanismused in hospitalstocomparehospitalperformance. Research suggestions for future research A more comprehensive performance evaluation using balanced scorecard as a sustainable model, in addition to the four dimensions of balanced scorecard perspective, environmental, and social perspective view of the completed model considers the future. According to MADM and MODM techniques and knowledge on this subject that the similar problem may get a different answer,account is proposed in this research process is repeated using other techniques and compatibility of results will be compared with each other. Present study to determine the weights of criteria and indicators using AHP techniques that are recommended in future studies of other techniques such as ANP (which is an extended form of AHP) is used for this purpose and the results compared to place. 576

6 REFERENCES Abbasi R Evaluating Educational Courses Quality Using MCDM fuzzy Technique. Master's thesis,islamic Azad University, Rasht, Iran. Azar A Analytical Hierarchy Process method for determining research priorities in higher education. Journal of Research and Planning in Higher Education, Kaplan RN the balanced scorecard : translating Strategy in to action,. Boston: : harvard Business School press. Mehregan MN integrated BSC-TOPSIS approach to evaluate top management colleges of the university of Tehran. Industrial management, No 1, Momeni Mk performanse evaluation. Industrial Management, momeni M new issues of operations research. tehran: university press. Performance TS European: european transport safety council. Saaty T Highlights and critical points in the Theory and Application of the Analytical Hierarchy process,. European Journal of Operational, Vol, 74, No, 12, Saaty T Decision Making For Leaders,. USA: RWS publication. 577