A Fuzzy MCDM Approach for Evaluating Listed Private Banks in Tehran Stock Exchange Based on Balanced Scorecard

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1 A Fuzzy MCDM Approach for Evaluating Listed Private Banks in Tehran Stock Exchange Based on Balanced Scorecard Mansour Moeni Associated Professor of Tehran University, Tehran, Iran Mohaad Hassan Maleki PhD Candidate of Operation Research, University of Tehran, Tehran, Iran Mohaed Ali Afshari (Corresponding author) Master of Operations Manageent, Kar University, Qazvin, Alborz Industrial City, Iran Tel: E-ail: Javad Siahkali Moradi Master of Operations Research, Science and Research University, Tehran, iran E-ail: Javad Mohaadi Master of Business Manageent, University of Tehran, Iran E-ail: Received: Noveber, 00 Accepted: Deceber 3, 00 doi:0.5430/ijba.vnp80 Abstract In today copetitive world, banks in order to proote and progress should constantly utilize approaches and patterns for evaluating their function in organization. Concerning the iportance of discussion, evaluating banks functions sees to be necessary for using an approach in order to deterine all criterions and key factors. Thus, in resultant research of this article, balanced score card odel was ipleented. In resultant research of this article, firstly, four aspects of BSC for evaluating and assessing banks have been designated through studying perspectives, issions, solutions, banks' ais, overview of research literature, criterions, and sub criterions and then gravity of every criterion and sub criterion was deterined by newspaperen help being specialized in the field of banking. And after gathering data related to every criterion, decision atrix was fored and banks were ranked by utilization of SAW, VIKOR, and TOPSIS techniques. Whereas it was possible that the ethods results would be different, in the final step, borda ethod was ebraced for consolidation of resultant outcoes and final ranking. In this research, Parsiyan bank got first rank, and Eghtesade Novin bank, KarAfarin Bank got second and third ranks respectively. Keywords: Perforance easureent, Balanced scorecard, Private banks, Techniques of TOPSIS, VIKOR, SAW. Introduction In this period, agencies, different industries and even countries encounter with situations and challenges have influenced on their business and threatened their life in the field of econoy and business, globalis of business, coplication and growth of consuption arkets and increase of fast changes in consuption and deand saples, are the types of threats and opportunities with which agencies encounter. In such situations and spaces, the ain question is that what is the resistive and survival secret of agencies and industries in the field of business? And principally, what factor, index or, ore iportant, anaging and control systes provide situation of copetitive benefits for organizations beside each other? 80 ISSN E-ISSN

2 Organizations due to deterine their position and iproveent in today copetitive world, should use ethods and patterns in order to evaluate and iprove their continuance application and current activities in organization. Measureent systes of organizations' Perforance that are to control consistency of organization's plan and activities having coission and perspective for deterining organization's growth and oveent and to get copetitive benefit in growth and success processes and indexes, today are the ost iportant plans and functions of progressive organizations that ascertain their strategic goals by effective and precise control of their activities and processes in all aspects (financial and procedurals).. Literature Review.. Perforance Evaluation Fro the foration of anageent science and contextual evolution of work and organization division, ters of control and supervision were continually used in anageent literature. Totally, evaluative syste of Perforance can be understood as a systeatic process of easureent and coparison of quantity and achieveent way to particular situation. In fact, it is a coparison between whatever is existed and whatever is particular. Although, new science of current anageent doesn't breach processes of control and supervision by traditional way, but changes in principal context and effect of different political and econoical variables of the world have replaced new ethods. Today, intellectuals and anagers of organization found that traditional systes of perforance evaluation having been typically based on financial views are incoplete in evaluating Perforance of organization and presenting effective feedback (Andersen, 006). Traditional ethod of easureent of net sales and like it was used for easuring Perforance. This financial data due to definite and real extent have advantages, but there are iportant reasons beside such easureents which are as following:. Financial easureents present suary of organization's activities in last period, even by presentation of the best saple of perforance results, it is not a reason for continuity of these results in the future.. Excessive financial easureents effects on short-ter profit and loss of organization and regards all relative proceedings of reducing expenditure and increasing incoe positively. While ost of expenditures' reduction (like reduction of educational progras) increases organization's profit, but bring about losing copetitive situation and threatens long-ter profit. Principle power of valuation in organization is in intangible assets (knowledge and ability of personals, relationship with custoers and suppliers) and financial aspect is not able to evaluate intangible assets (Kravchuk & Schack, 996)... Perforance evaluation of banks and financial institutions In current econoic literature of the world, financial systes, currency arkets as well as finance and credit institutions being as adinistrative ars of this syste and instruent of growth and econoic developent of countries are tangible, so that resistant developent of econoy without growth and developent of financial arkets is not possible. Hence, finance and credit organizations possess the pivotal rule in this field (lebas, 995). Traditional hierarchy is utilized on perforance evaluations of banks on the basis of easy and consistent factors like return on assets (ROA) and return on investents (ROI). However, this hierarchy of fulfilled perforance in this ethod is possible that to don't precisely show institutions being involved in strategies for getting high perforance (Hanley & Suter, 997). Non-financial criterions like custoer's satisfaction and relationship between eployers can be necessary for strategic success of bank, since using criterions as ROA and ROI don't deterine hierarchy of perforance as what bank present ore return on capital. Perforance evaluation of banks can be very different and variant (Kosidou, & Zopounidis, 006). Previous studies of evaluating banks and econoic criterions used traditional-statistical ethods as associational analysis, coverage analysis of data and other instruents (Arshadi & Lawrence, 987). All finance and credit institutions like banks evaluate their perforances on the basis of financial indexes and don't pay attention to other indexes like eployees' satisfaction (custoer and investor), internal processes of organization and even other indexes like level of eployees' incoe (Schaffnit,997). Mayer (007) arranged principle factors of success of evaluating banks in 8 groups:. Profitability;. Efficiency and productivity; 3. Huan resource anageent; 4 Risk anageent; 5. Sales effectiveness; 6. Service quality; 7. Capital anageent; 8. Copetitive positioning (Meyer & Markiewicz,997) Published by Sciedu Press 8

3 Coiler (995) used soe of structural equation odels in order to assess perforance process of banks by criterions like process quality errors, eployee turnover rate, on-tie delivery and eployee efficiency (Collier,995). Utilized indexes by Lavens (987) include profitability, price of bank services, and share of local arket. In accordance with literature of analysis, selective criterions which custoers use for evaluation of banks include price, speed, achieveent, custoer service, place, credit and popularity, new facilities, interest rate, tie of giving service and banking incentives (Anderson & Fulcher, 976)..3. Balanced scorecard Balanced scorecard is one of the ost iportant posed instruents in the field of business in the last century. In the beginning of 990, Robert Kaplan, professor of coercial acadey of Harvard University along with David Norton being anager of a research copany in this tie, began a research progra in order to assess successes factors of top Aerican copanies and to study perforance evaluation of these copanies. Thus, Kaplan and Norton announced that due to do a coplete evaluation of perforance, perforance of the organization should be evaluated in four perspectives:. Financial Perspective,.Custoer Perspective, 3.Internal Processes Perspective, 4.Learning & Growth Perspective Kaplan and Norton's findings deterined that successful copanies define their objectives fro the four perspectives of ais and select easures for evaluation, they designate lower ais fro these easures during evaluative period, then they plan and fulfill adinistrative proceedings and innovations for achieveent of these ais. Kaplan and Norton called this ethod of perforance evaluation as a ethod of balance or balanced scorecard. (Kaplan & Norton 004, p-6) Balanced scorecard copletes the financial indexes of last perforances with the deteriner indexes of future perforances. Ais and indexes of balanced scorecard are deterined by strategy and perspective of organization. These ais and indexes look at perforance of organization in four aspects: financial, custoer, internal process and growth and learning. As it is shown in Figure, these four perspectives provide a frae for balanced scorecard (Kaplan & Norton, 996). <Figure about here> Perspective and strategy: Financial perspective: in order to achieve financial success, how should we encounter shareholders? Custoer perspective: in order to achieve our ais, how should we behave with custoers? Internal processes perspective: what coercial processes are necessary in order to satisfy shareholders and custoers? Growth and learning perspective: how do we proote individuals' abilities in order to achieve perspective? Financial perspective In Financial perspective of balanced scorecard, econoical results of utilizing strategies are evaluated. As financial operation can be evaluated with indexes like operational interest, capital return and surplus value rate in systes of planning, before strategic planning and control systes, it can be evaluated in balanced scorecard as an operation for perforance evaluation and an instruent for controlling as well as financial perforance with siilar indexes and relations (Robert & Sions, 000). Custoer perspective In custoer perspective of balanced scorecard, anagers firstly designate custoer and arket's parts trending to copete. Designated parts will include custoers as well as present and potential arkets. This perspective balanced scorecard involves several public indexes and a series of secondary indexes. Essential indexes consist of custoer satisfaction, custoer preservation, attraction of new custoer, profit per custoer, arket share in custoer and arket's parts (Kaplan and Norton, 996). Learning and growth perspective Learning and growth of organization derives fro three principle sources of huanitarian power, inforation systes, instructions and organizational processes. Level of achieveent to capabilities and special power are evaluated in these sources of learning and growth perspective of balanced scorecard. In order to evaluate ais related to this perspective, factors like achieveent rate of custoer to inforation and internal processes by anagers and operational eployees are evaluated regarding inforation systes and coextensive rate of eployees' otivations with goal of organization about instructions and organizational procedures (Robert & Sions, 000). 8 ISSN E-ISSN

4 Internal processes perspective In internal processes perspective of balanced scorecard, anagers firstly designate key internal processes that should be ephasized due to fulfill strategy on the (these process enable the organization to value for the custoer attraction and preservation and to provide shareholders' expectations) (Robert & Sions, Every business involves a collection of special processes in order to put a value on custoer and financial results for shareholders. Procedure of balanced scorecard selects the concatenate odel of Porter value as a public pattern for using in perspective of internal processes which include three processes of innovation, operation and after-sales service (Kaplan & Notron, 996). 3. Fuzzy Logic 3.. Fuzzy nubers and verbal variables Theory of Fuzzy collections are forally presented for the fist tie in an article published in inforation and control agazine in 969 by Professor Lotfi Asgarzadeh, Iranian scientist and professor of California University in Berkley. Fro that tie till now, it has been iproved and editated very uch and has had various applications in different fields. Fuzzy collection is the generalization of a classic collection that allows to generalization every aount in [, 0], whereas a classic collection can only have [0, ]. Theory of Fuzzy collections ake possible for planning and atheatic operations in the sphere of Fuzzy nubers (Cengiz, 003). 3.. Triangular fuzzy nubers Calculation with Fuzzy nubers due to their special structure is very coplex and need long tie. In order to facilitate and ake functional the fuzzy nubers, special fuzzy nubers are used in calculation. In this research, the triangular fuzzy nubers are utilized. A triangular fuzzy nuber can be deonstrated with a regular triad of (l,, u)that l and u are the lower and upper and is iddle aount; x is between l and u. l X u 3.3. Verbal variable Verbal variable is a variable that its quantity is defined according to verbal ters. Concept of verbal variable in encounter with positions is coplex; and very useful in the situation which can not be nicely defined. For exaple, weight is a verbal variable that includes aounts like very little, little, ediu, uch and very uch. Fuzzy nubers show verbal variables. Whereas coparisons between utilized criterions are qualitative and can not been indicated as a nuber, fuzzy data is used in order to turn qualitative criterions to quantitative criterions and find proportional nubers. <Figure about here> Steps of Calculating weight indexes with the ethod of dual coparisons Matrix (ethod of Yoong-Chang). Creating levels of criterions: the first step in calculating weight of indexes is to create graphical presentation being as levels of probles indexes in which ai, criterions, factors and sub factors are represented.. Creating dual coparison atrixes: in this step, a atrix of judgent is created in order to achieve weights being related to eleents of every level for every criterion's levels, factors and sub factors. 3. Calculating incopatibility rate of dual judgent atrixes: copatibility of atrix represents how uch a person is incopatible in dual coparisons; in other words, it presets credit rate of decision aker. According to Saati stateent, rate of incopatibility of a atrix should not be ore than %, otherwise it is better to revise in judgents. 4. Calculating nubers of cobinative degree of atrix: if we have exponent of T and a t ij=[l t ij, t ij, u t ij], T would be the specialized triangular nuber, a geoetric ean is cobined. After cobining theories in a atrix, every level of Published by Sciedu Press 83

5 valuable dual atrix under Sj being a triangular fuzzy nuber is calculated as following equation: S j j M j gi n i j M j gi Rate of j M gi j j M gi j = being addition of fuzzy nuber in every level is achieved by additive operations of fuzzy: j l j, j j, j u j And then: n i j j M = gi n i u i, n i i, n i l i 5. if M and M show two triangular fuzzy nubers, possible degree of bigness for M and M is defined as following equation : V ( M y x M ) sup in( ( x ), ( x )) And also can be calculated as following forula: if V( M M) hgt( M M) M ( d) 0 if l u lu otherwise ( u) ( l) In above forula, (d) is the highest coon point between and M and.in order to copare M, we needed V ( M M ) and V ( M M). V ( M M, M,..., M k ) [ V ( M M ) andv ( M M ) and... andv ( M M k )] inv ( M M i ), i,,3,..., k 6. Possible Degree of bigness: in order that a gibbous fuzzy nuber of (k) be bigger than a gibbous fuzzy nuber, do the following forula: V ( M M, M,..., M k ) [ V ( M M ) andv ( M M ) and... andv ( M M k )] in V ( M M ), i,,3,..., k d ( A ) in ( Suppose i V S i S k i ) k,,..., n; k i., if we have, vector of weight will be as following ethod: T w ( d ( A ), d ( A ),..., d ( A )), i,,..., n. n 84 ISSN E-ISSN

6 M M V ( M M ) u u d l l Coon between M and M 7. Through noralizing the resultant vector, vector noralized weight will be achieved. In order to noralize, every nuber is divided on the su of vector nubers in which the following vector is achieved: w ( d( A), d( A),..., d( A )) T n And in this case, W is unfuzzy nuber (Kahraan, 003). 4. Explanation of TOPSIS, VIKOR and SAW ethods 4.. Method of TOPSIS Method of TOPSIS (Technique for Order Preference by Siilarity to Ideal Solution) is suggested by Hwang & Yoon in 98. This odel is one of the best odels of ulti-criteria decision aking and it can be used so uch. In this ethod, is evaluated by n criteria. This technique is based on the concept that selective alternative should have the nearest distance with ideal positive solution (best possible anner) and farthest distance with ideal negative solution (worst possible anner). It is supposed that popularity of every index is regularly increasing or decreasing (Husseini, 00). TOPSIS operations are as following steps: Step one: atrix fors decision aking and is noralized by non-scaling ethods Step two: Matrix is calculated by noral weighty decision aking. Value of noral weight of vij is calculated as following forula: () While wj is the square of character of criterion and algebraic addition of weights is. Published by Sciedu Press 85

7 Step three: ideal solution of positive and negative is deterined: a+ is depended on profit index and a- is depended on expenditure's index Step four: calculation of separation easures. Distance of every ideal solution is as following equation: () Also, distance of negative solution is as following: (3) (4) Step five: coparative- nearness calculation of ideal solution. Coparative nearness of a j is defined as following: (5) Step six: hierarchy of precedence application In this alternative, if the rate of ci be ore, higher rank will achieve in coparison with other alternatives. 4.. Method of VIKOR Method of VIKOR is one of ulti-criterions solutions. In probles of disproportionate criterions, decision aker needs a solution being near to ideal solution and all alternatives are evaluated in accordance with criterions in a situation that decision aker is not able to designate and state preponderances of a proble at the beginning and planning. This ethod can be defined as an effective instruent for aking decision. This ethod has been used by Tzeng and Opricovic in soe parts like engineering of earthquake and environent (Tzeng & Opricovic, 00). If there would be a proble of aking decision of ulti-criterions, will be criterion and n will be alternative. In order to select best alternative in this ethod, use following steps (Tzeng & Opricovic, 00):. Constituting atrix of decision aking: Concerning nubers of criterions, alternatives and evaluation of all alternatives for different criterions, atrix of decision aking is fored by following forula: W= [w, w,,wn] xij is the perforance of j (j=,,,n) in relationship with criterion of i (j=,,,n). Deterining weighting atrix of criterions: In this step in ters of the iportance of different criterions in aking decision, atrix is defined as following equation: W= [w, w,,wn] 3. Deterining the best and worst rate fro the existent rates for every criterion in decision aking atrix: The best and worst rates for positive and negative criterions are calculated as following forula: <Table about here> 4. Calculating ratings of s and r 86 ISSN E-ISSN

8 Ratings of s and r are calculated in accordance with 6 and 7 relationship. w i is concerned as weighty rating for criterion. (6) 5. Calculating q: Q: is calculated in accordance with nuber 8 relationship. (7) (8) Paraeter of V is selected in accordance with agreeent degree of decision akers group, if there would be high agreeent it will be ore than 75%, if there would be ost voters' agreeent it will be 5% and there would be lower agreeent it will be lower than 5%. 6. Ranking alternatives on the basis of ratings' reduction of r, s and q 7. In this step, concerning s and q ratings, alternatives are ranked in three groups and finally an alternative is selected as better one that is designated as the better alternative in all three groups. Arrangeent of setting alternatives is concerned in ters of reduction of ratings': r, s and q. it should be said that in group of q, an alternative is selected as the better one which satisfies the following two requireents: (9) A. First requireent: A() and A() deonstrate regularly the first and second better alternatives in group of q and n, following relationship is: (0) B: Second requireent: alternative of a() should be designated as better rank in one of r and s groups. While the first requireent would not be existed, a collection of alternatives is selected as the better alternatives as following forula Better alternative = A(), A(),... A(M) The highest rating of is calculated as following forula: () While the second requireent would not be existed, two alternatives of A(), A() are selected as the better alternatives Method of SAW Method of SAW (Siple Additive Weighting Method) is one of the oldest ethods being used in MADM. As with assuption of w (weight is iportant in indexes) for it, the best alternative (a*) is calculated as following forula: And if it would be w j =, we have: Published by Sciedu Press 87

9 4.4. Method of Borda It is one of consolidating ethods which is based on the rule of ajority. When several ethods are used due to rank alternatives, ethod of Borda can be used to consolidate resultant results. Way of working in Borda is that while i is preferred on j in ost ethods, this case is shown with in dual coparisons; also if there would not be vote of ajority in dual coparison or there would be siilar vote, it is coded with x. priary criterion in this ethod is that Bordars of alternative are with the ajority in several ties in every line (Moeni, 008). 5. Research Methodology and Design Principally, research is a systeatic process that always begins with planning issue or question which its ai is to answer the propounded issues in scientific ethod. In respect to research's ai, it is as practical studies because these exained theoretical studies have firstly analyzed to recognize and solve probles statistically and then they have paid attention to recognition and evaluation of effective factors on behaviors of anagers and decision akers and it has slightly considered reasons of anifestation. Practical studies ephasize chiefly on the ost affecting functions and consider slightly reasons of factors. This article is a descriptive research (not experiental). It eans that its ai is to describe situation or phenoena of the evaluative case. It should be said that the descriptive research is ipleented for ore recognition of present situation or help decision aking process. Managers of different parts of adopted private banks in bourse and technical experts of inforation in statistical banking industry constitute this research. Whereas volue of society is low and all individuals of the society are experts and specialists, hence all of the are selected as the statistical saple. Two ethods of library and field are used due to collect data in this article. In order to review literature, ethod of library and reference to libraries, scientific agazines, and different scientific bases on internet network are used. But principle inforation of research is collected through field ethod and distribution of questionnaires as well as interview with superior anagers and related experts. 5.. Introducing the odel and its coponents Step : deterination of indexes of every group concerning business identity Through studying perspectives and issions of banks of Parsian, Eghtesad Novin and Kar-Afarin, it is distinguished that all three banks follow siilar ajor perspectives and ais, but their functions are different in achieveent of this ai. Strategic plan of banks is represented in table. <Table about here> After reviewing literature of research, principal indexes were educed for evaluating banks in four perspectives in odel of balanced scorecard and rendered experts in the field of banking in order to represent their suggestions about these indexes. After collecting experts' suggestions and ideas, 6 principal indexes being proportional to this field were achieved for evaluation of banks. Indeed, in function, for evaluation of banks, 3 principal indexes have been used due to lack of necessary data in this field which have been shown in table. Fro these indexes, 4 indexes to custoer perspective, 3 indexes to internal process of perspective, 4 indexes to financial perspective and indexes to growth and learning perspective are related. The indexes that are put away in this research due to lack of data are indexes of availability to inforation and regulating affairs being in perspective of growth and learning as well as index of custoer's loyalty. Through recognizing principle indexes in four perspectives, BSC was used in order to precise evaluation of banks in the way of Delphi and deterining secondary indexes being proportional to principal indexes. Subsequent to final collection, 86 secondary indexes were recognized for evaluating banks that were presented in tables 3 to 6. Step : constitution of dual coparisons of atrix and deterination of effective criterions in evaluation of banks perforance are to assess coparative iportance of effective criterions in evaluation of banks. Also, questionnaires {evaluating coparative iportance of effective criterions in evaluation of banks perforance} were provided and distributed aong experts, then they were collected and incopatibility of decision aking atrixes was calculated. Whereas the coparisons between used criterions were qualitative and were not stated as a nuber, they were presented as the verbal ters like, very uch, uch, iddle, a little and very a little. In this step, due to convert qualitative criterions to quantitative criterions and find appropriate nubers with concerned ters, fuzzy nubers were used. Then dual coparisons atrixes were converted to decision aking atrixes by geoetric ean (cobined atrixes of dual coparisons) and weight of criterions were recognized by ethod of Chang. Step 3: constitution of decision aking atrixes and evaluation of banks with ethod of MADM After recognizing weight of criterions, decision aking atrix was constituted through gathering related data with every 88 ISSN E-ISSN

10 criterion in order that possibility of evaluation of banks perforance were utilized by techniques of TOPSIS, VIKOR and SAW. Decision aking atrix was represented in every size of balanced scorecard along with weight of every perspective, index and sub index in tables 3-6. <Table 3 to Table 6 about here> Step 4: whereas it was possible that results of ranking would be different in every ethod, so ethod of Borda has been used in final ranking being one of cobination ethods. 6. Ranking of Banks by TOPSIS, VIKOR and SAW Methods 6.. Method of TOPSIS This technique is based on the selected alternative that should have the nearest distance with positive ideal resolution (best resolution) and farthest distance with the negative ideal resolution (worst resolution). Decision aking atrix was firstly constituted by ethods of noralized non-easuring ethods and then was calculated by noral weight. Final result of TOPSIS is represented in table 7. <Table 7 about here> 6.. Method of SAW Resultant ranking of SAW technique is as following: <Table 8 about here> 6.3. Method of VIKOR After constitution of decision aking atrix, the best and worst ranking fro the current ratings for every criterions in decision aking was deterined and then ratings of s, r and q were calculated. Achieved solution of inj sj has the axiu of collaborative desirability (on the basis of ajority rule), it can be said that this solution provides coparative satisfaction of ajority criterions, fro nearness to ideal. Achieve solution of inj rj has the lowest rate of the ost atters for every criterions fro the lack of selecting ideal or nearness to anti-ideal. (it is siilar to inas and it is conservative). Coefficient of v has been introduced as the strategic weight of decision aking of ajority criterions or axiu of collaborative desirability; here, it is considered 75% Alternatives on the basis of r, s and q are ranked reductionaly that brought about ranking in three lists. Alternative of a is suggested as a agreeable solution concerning q and following two requireents is ranked as the best case. Alternative of "a is ranked in the list of q, dq=/(j-) and j is the nuber of alternatives. Second requireents: acceptable stability in decision aking. Alternative of a has the highest rank in the list of ranking s or r. such agree solution in the process of decision aking reains stable. If one of two requireents doesn't fulfill, a collection of agreeable solution is represented. While the first requireent doesn't exist, a collection of alternatives is selected like the following forula as the best alternatives. Hyper alternatives=a(), A(), A(M) Maxial rate of is calculated as following equation: While the second requireent would not be existed, both alternatives are concerned as the best alternative. As it is said, final ranking of banks by the ethod of VIKOR is that Parsiyan and Eghtesad Novin are in the first rank and Kar-Afarin is in the last rank. Calculation of s, r and q is represented in table 9. <Table 9 about here> 6.4. Final ranking by ethod of Borda Borda is one of consolidation ethod that is based on ajority rule. In this research, the achieved rankings are consolidated by three ethods of TOPSIS, SAW and VIKOR that its results are represented in table 0. M eans that line foregoes colun and x shows that colun forgoes line. <Table 0 about here> 7. Conclusion and suggestions Published by Sciedu Press 89

11 In this research, criterions and sub-criterions of banks evaluation were distinguished in four perspectives of BSC and weight of criterions and sub-criterions were deterined by experts. Hence this odel is able to evaluate other private banks. One of iportant functions of represented odel in this article is evaluation and coparison of governental banks privatizing with private banks so that governental banks can recognize their status and utilize their politics in the field of copetition with private banks In order to use this odel for the evaluation of different organizations' perforance, quantitative and qualitative indexes in every organization were firstly distinguished by relative characters of principle indexes of balanced scorecard and then weight of indexes was deterined by dual coparisons atrixes. This odel is able to include relative indexes with the odel of balanced evaluation. So, it can be used for evaluation of different organizations. It is necessary to say that indexes of every organization can be distinguished in ters of field research and review in literature of research. References Andersen, B., Henriksen, B., and Aarseth,W. (006). Professional practice holistic perforance anageent: an integrated fraework. International Journal Productivity and Perforance Manageent. Vol. 55, No., pp doi:0.08/ , Arshadi, N., & Lawrence, E. C. (987). An epirical investigation of new bank perforance. Journal of Banking and Finance, (), Asgharpoor, M.J. (998), Multi Criterion Decision Making, Tehran University, st edition. Azar, A., and Rajab Zadeh, A. (00), Practical decision Making, Negah Danesh, st edition. Bellan, R. E., & Zadeh, L. A. (970). Decision-aking in a fuzzy environent. Manageent Science, 7(4), Bernard, W., Guo, L., Li, W., & Yang, D. (006). Reducing conflict in balanced scorecard evaluations. Organizations and Society. Buckley, J. J. (985). Fuzzy hierarchical analysis. Fuzzy Sets and Systes, 7(3), doi:0.06/065-04(85) , Busi, M., and Bititci, U.(006). Collaborative perforance anageent: present gaps and future research. Collaborative Perforance Manageent. Vol. 55 No.. Collier, D. A. (995). Modeling the relationships between process quality errors and overall service process perforance. International Journal of Service Industry Manageent, 6(4), 4 9. doi:0.08/ , Frigo, M. L., Pustorino, P. G., & Krull, G. W. (000). The balanced scorecard for counity banks: translating strategy into action. Bank Accounting and Finance, 3(3), 7 9. Hwang, C. L., & Yoon, K. (98). Multiple attribute decision aking ethods and applications. New York: Springer-Verlag. Kaplan, and Norton. (005), Robert S. and David P., plan of strategy, translated by Hussein Akbari and Masood Soltani and Air Maleki, Cultural-artist Group of Aryana. Kloot, L. & John, M. (000). Strategic perforance anageent: a balanced approach to perforance anageent issues in local governent. Manageent Accounting Research,, pp 3-5. Kravchuk, R., & Ronald w, S. (996). Designing effective perforance easureent systes under the governent perforance and results act of 993. Public Adinistration Review, vol. 56. Lee, A. H. I., Chen, W. C., & Chang, C. J. (008). A fuzzy AHP and BSC approach for evaluating perforance of it departent in the anufacturing industry in Taiwan. Expert Systes with Applications, 34(), doi:0.06/j.eswa , Lee, A. H., Chen, W., and Chang, C. (006). A fuzzy AHP and BSC approach for evaluating industry in Taiwan. Expert systes with applications. Mehragan, M. R., Shahbandarzadeh, H. (005). Representing a ethod for perforance evaluation of banks branches by the technique of ulti-indexes decision aking. Financial Researches Quarterly. Meyer, D. W., & Markiewicz, M. K. (997). Developing a balanced scorecard at Wachovia Corporation. Bank Accounting and Finance, (), 3 9. Moeni, Mansoor (006), odern discussion about operational research, st edition, Tehran, Manageent College of Tehran University. Norton, D. P., Contrada, M. G., & Lofruento, T. (997). Case study: how chase Manhattan bank uses the balanced scorecard. Banking Accounting and Finance, (), 3. Opricovic, S., & Tzeng, G. H. (003). Defuzzification within a fuzzy ulticriteria decision odel. International journal of uncertainty, Fuzziness and Knowledge-based Systes, (5), ISSN E-ISSN

12 Opricovic, S., & Tzeng, G. H. (007). Extended VIKOR ethod in coparison with outranking ethods. European Journal of Operational Research, 78(), Phuong, H., & Yin, K. (000). Study of bank selection decisions in Singapore using the analytical hierarchy process. International Journal of Bank Marketing, 8:3, Robert, S., Kaplan, and Norton, D. (996). Translating strategy into action 'the balanced scorecard. Harvard Business s.p. Schaffnit, D., Rosen, J., & Paradi, C. (997). Best practice analysis of bank branches: an application of DEA in a large Canadian bank. European Journal of Operational Research, 98, Sions, R. (000). Perforance easureent & control systes for ipleenting strategy, Prentice Hall. Wang, T. C., & Chang, T. H. (007). Application of TOPSIS in evaluating initial training aircraft under a fuzzy environent. Expert Systes with Applications, 33(4), doi:0.06/j.eswa , Wua, H., Tzeng, G., Chen, Y. (009). A fuzzy MCDM approach for evaluating banking perforance based on balanced scorecard. Journal hoepage: Yeo, R. (003). The tangibles and intangibles of organizational perforance. Tea Perforance Manageent. Volue 9. Nuber 778. pp doi:0.08/ , Zadeh, L. A. (965). Fuzzy sets. Inforation and Control, 8(3), doi:0.06/s (65)904-x, Zeleny, M. (98). Multiple criteria decision aking. New York: McGraw-Hill. Table. The best and worst aount for positive and negative criterions Type of criterion best worst Positive criterion F i * =ax f ij F i - =in f ij Negative criterion F * i =in f ij - F i =ax f ij fi* is the best rating of criterion aong all alternatives. Table. Strategic plan of bank in BSC odel Perspective Financial Custoer Internal process Eployees' growth and learning Strategic ais Increase in benefits, Profitability, shareholders' efficiency and optial anageent of costs and incoes. keep and expand arket's share and provide services and production with various quality and copetitive prices to the custoers, active presence in currency, internal and external financial arkets of the country and expand and provide foreign exchange services and products Expand extended sphere of odern banking services, electronic banking, processes related to services, recognition of requireents and ranking custoers Iprove eployees' efficiency in effectiveness educations, coextend ais and eployees' benefits with shareholders and turn bank to a learning organization Published by Sciedu Press 9

13 Table 3. Decision aking atrix in internal processes Concept Perspective of Internal Processes Factors Production (0.89) Expansion of Production (0.444) Sales Services (0.67) Variables Rate of incoe of bank given facilities (billion Riyal) Volue of total discounts Rate of bank investents (billion Riyal) Rate of incoe resulting fro bank investents (billion Riyal) Rate of incoe in banking coission (billion Riyal) Other operational incoes of bank (billion Riyal) Mean of attracted discounts of every branch (billion Riyal) Rate of discount growth (percentage) Rate of growth in given facilities (percentage) Rate of growth in bank cards (percentage) Rate of annual growth of branches Rate of growth in cash achines Rate of growth in storable cash achines (percentage) Volue of given facilities given facilities to the total discounts Nubers of given facilities Mean of given facilities of every branch Nubers of opened docuentary credits Volue of opened docuentary credits (illion Riyal) Per capita bank card Weight %57 % %58 %093 %0 %074 %096 %33 %40 %37 %00 %5 %080 %47 %4 %3 %07 %08 %55 %09 Parsiyan Eghtesad Novin KarAfrin ISSN E-ISSN

14 Table 4. Decision aking atrix in financial perspective Concept Financial Perspective (0.337) Factors Financial Data (0.45) Profitability (0.354) Financial Proportions (0.) Growth of Incoes Variables The total fixed tangible assets (billion Riyal) Intangible assets (billion Riyal) Operational costs (billion Riyal) Heaps of profits (billion Riyal) Su total of shareholders' salary (billion Riyal) The total assets of bank The total debits Mean of net profit of branches (billion Riyal) discounts profits to incoe of given facilities Revenue of any share Growth of net profit (percentage) Return of shareholders' eoluent Return of assets Net profit (billion Riyal) operational costs to total costs operational costs to total incoes official costs to ean of assets The balanced proportion of given facilities to total assets sufficiency to assets (percentage) debits possession (percentage) incoe of facilities to total incoes Share of incoes fro services coission Annual incoe for every person (billion Riyal) The total incoes to ean of assets Growth of incoes (percentage) Annual incoes in every branch (billion Riyal) Weight % %095 %3 %5 %93 %87 %48 %09 %5 %33 %85 %50 %38 %60 %09 %46 %6 %3 %7 %48 %68 %7 %36 %40 %86 %0 %47 Parsiyan Eghtesa d Novin KarAfrin Published by Sciedu Press 93

15 Table 5. Decision aking atrix in custoer perspective Concept Custoer Perspective (0.338) Factors Operational Benefits (0.60) Custoer's Satisfaction (0.338) Share of Market (0.87) Leading Products (0.65) Variables Nubers of short run deposits Nubers of long run deposits Nubers of interest-free checking and savings accounts Given interest to depositors Balance of short run deposits Balance of long run deposits Balance of interest-free checking and savings deposits Nubers of custoers Nubers of cash achines Nubers of storable and banking cash achines Nubers of telephone bank and SMS users Nubers of bank cards Nubers of internet-bank users Nubers of branches of banking syste Share of bank for banking syste deposits Share of bank for given facilities of banking syste share of bank for bank cards of banking syste Share of bank for nubers cash achines Share of bank for nubers of storable cash achines Share of bank for nubers of the total branches of banking syste Volue of Riyal exported guarantees Volue of foreign exchange exported guarantees Volue of exported bills of exchange Volue of iported bills of exchange Nubers of credit cards Nubers of gift cards Weight %8 %38 %07 %73 %55 %60 %39 %9 %4 %00 %40 %68 %0 %38 %37 %9 %6 %4 %079 %00 %06 %76 %79 %4 %0 %095 Parsiyan Eghtesad Novin KarAfrin ISSN E-ISSN

16 Table 6. Decision aking atrix in growth and learning perspective Concept Growth and Learning Perspective (0.) Factors Ability of Eployees (0.47) Eployees Satisfaction (0.583) Rate of Education (0.338) Gender Educational Progra Variables MA and higher eployees' to the total eployees (percentage) BA eployees' to the total eployees (percentage) eployees' being lower than BA to the total eployers (percentage) woan eployees' to the total eployees an eployees' to the total eployees per capita education of eployees at the beginning of eployent-hour per capita education of eployees during eployenthour educational cost to the total costs (percentage) Mean of eployees' salaries per year (illion Riyal) eployees' salaries' cost to the total incoes Per capita rate of distributed rewards aong eployees (illion Riyal) Percentage of eployees' increased salaries Annual given facilities to eployees (illion Riyal) Weight %585 %337 %078 %47 %583 %433 %359 %08 %349 %34 %4 %56 %7 Parsiyan Eghtesad Novin KarAfrin Published by Sciedu Press 95

17 Table 7. Ranking banks by ethod of TOPSIS Ranking banks C i Bank Parsian Eghtesad Novin Kar-Afarin Table 8. Ranking bank by SAW ethod Ranking Bank A * Bank Parsiyan Eghtesad Novin Kar-Afarin Table 9. Rates of s, r and q and ranking banks by ethod of VIKOR Ranking Q i Place R i S i Bank Parsiyan Eghtesad Novin Kar-Afarin Table 0. Final ranking of banks by the ethod of Borda C KarAfarin Eghtesad Novin Parsiyan Bank M M _ Parsiyan M _ X Eghtesad Novin 0 _ X X Kar-Afarin 0 As it is noticed, Parsiyan is in the first rank and Eghtesad Novin is in the second rank and Kar-Afarin is in the third rank. Financial Internal Processes Balanced Scorecard Learning and Growth Custoers Figure. Perspectives of balanced scorecard 96 ISSN E-ISSN

18 Equal Low Middle Very Extraordinary iportant iportant iportant iportant iportant Figure. Fuzzy syste of quintuple criterion due to convert qualitative criterions to quantitative criterions. Published by Sciedu Press 97