Recruitment of Personnel in a Bank Using AHP-FLP Model

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1 MS JOURNLS-MS IIT publication-7-sris: dvancs Vol. 5 N pp 7- Submittd Oct., 7 Rvisd Dc. 6, 7 ccptd Jan., 8 Rcruitmnt of Prsonnl in a Bank Using HP-FLP Modl *Trupti Thakr, **Onkar K Chaudhari, ***Nita R Dhawad *Rsarch Scholar, R.T.M. Nagpur Univrsity, Nagpur trupti.arvind.thakr@gmail.com **G. H. Raisoni Collg of nginring, Nagpur, India onkar.chaudhary@raisoni.nt ***rts, Commrs & Scinc Collg, Koradi, Nagpur, India dhawadnr.acs@gmail.com bstract For vry organization, dpartmnt of human rsourc plays vry important rol as it can slct right prsonnl who can rndr quality srvic to th clints of organization thrby giving comptitiv advantag to it. Hnc slction procss should b dsignd by considring various critria as pr choic of mployr for slcting bst mploy for particular post in an organization. In this papr, various slction critria hav bn dcidd for th post of managr and cashir in privat bank with th intgration of HP mthodology and fuzzy multi-objctiv linar programming modl slction of bst mploy for ths posts has bn mad. It was obsrvd that HP-FLP modl is mor rlvant than HP mthod for th slction of mploy in bank. Ky words nalytic hirarchy procss, Fuzzy multi objctiv linar programming modl, Human rsourc.. Introduction Human rsourc is a bas of any ntrpris. In this comptitiv world, vry organization has to striv rally hard for survival. Th succss dpnds largly on th quality of srvic rndrd to th clints, which dpnds on th comptnc and th quality of th mploys of th organization []. This mans that succss of th organization dpnds on wll traind, ddicatd and quality mploys. So slcting right prsonnl bcoms an important function of HR dpartmnt for mting futur survival dmands. For rcruiting th candidats, th organization has to map carfully th availabl human rsourcs bcaus thy can provid th comptitiv advantag for th organization []. Th practic has bn alrady startd in many of th organizations to slct mploy by valuating thir skills and capabilitis. Succssful 7

2 rcruitmnt dpnds upon finding popl with th ncssary skills, xprtis and qualifications to dlivr organizational objctivs and th ability to mak a grat contribution to th valus and aims of th organization for th achivmnt of goals. Slction procss is dsignd by considring various critria for slction of th mploy in an organization. For xampl, in a bank, various critria or skills such as managmnt skill, tchnical skill, banking knowldg or skill may b rquird which vary according to th typ of roll bing playd thr. Such multi-critria dcision-making problm can b solvd using a wllknown tchniqu HP i.. nalytic Hirarchy Procss. This papr contributs for intgratd mthod calld nalytic Hirarchy Procss wightd Fuzzy Linar Programming modl for slction of two posts i.. managr and cashir in a bank.. Litratur Rviw Various rsarch works hav bn proposd in this dirction. Nw approach to th valuation of th suitability of job applicants has bn providd by [] in 999. In th yar 9, a fuzzy multipl critria dcision making modl in mploy rcruitmnt is discussd to idntify appropriat prsonality traits and ky profssional skills through th information statistics and analysis of analytic hirarchy procss, in ordr to xpct th rcruitmnt procss b mor rasonabl basd on th fuzzy multipl critria dcision making modl to achiv th goal of mrit-basd slction []. Turkay Drli t al. in applid a fuzzy approach for prsonnl slction procss which prsnts novl prsonnl slction framwork for finding th bst possibl prsonnl for a spcific job [5]. Fuzzy multi-objctiv linar programming problm whr both th rsourcs and th tchnological cofficints ar fuzzy with linar mmbrship function was studid by C. Vramani t al. in th yar, in solving fuzzy multi-objctiv linar programming problms with linar mmbrship functions [7]. In, th procss of making an optimal-prfrntial dcision by application of fuzzy logic and a fuzzy systm is proposd by Zvonko Saajfrt t al. [8]. Th papr prsntd on analytical hirarchy procss approach an application of nginring ducation aims at giving an application of analytical hirarchy procss HP, a multi critria dcision making mthod in th sam yar [9]. In, Dcision making and valuation systm for mploy rcruitmnt using fuzzy analytic hirarchy procss by Ramadan Krbish blhamid t al. givs calculation of vry singl data on all participants as a numbr and compars it with fuzzy analytical hirarchy procss wights calculatd from pair matrix and showd a rsult in th form of rank which shows th fittst applicant to th availabl job vacancy []. Rmica ggarwal in, providd hybrid multi-attribut HP-FLP approach for slction of IT prsonnl []. Mohsn Varmazyar and 8

3 Bhrouz Nouri in th yar, hav suggstd a fuzzy HP approach for mploy rcruitmnt. Thy hav dvlopd a computr application whr it rcivs th configuration of th mploy slction problm, valuats th candidats and ranks thm using th appropriat voting systm [6]. Rol of rcruitmnt & slction policis in cntral co-oprativ banks is studid by Dr. Rimjhim Gupta and Tanuja Jain in to idntify gnral practics that organizations us to rcruit and slct mploys and to dtrmin how th rcruitmnt and slction practics affct mploy fficincy in cntral cooprativ banks [5]. In th yar 5, a structurd framwork has bn proposd using MCDM mthods both in fuzzy as wll as non-fuzzy nvironmnts whr svn candidats undr fiftn diffrnt sub critria ar valuatd and rankd by C. L. Karmakr and M. Saha, in tachr s rcruitmnt procss via MCDM mthods: a cas study in Bangladsh [7]. In th sam yar, fuzzy multiobjctiv linar programming, whr problm is rducd to crisp using ranking function and thn th crisp problm is solvd by fuzzy programming tchniqu by M. Kiruthiga t al., in thir papr fuzzy multi-objctiv linar programming problm using fuzzy programming modl [8]. Solving multi-objctiv fuzzy linar optimization problm using fuzzy programming tchniqu is givn by Bna T Balan in 6, which prsnts solution procdur of multi objctiv fuzzy linar programming with triangular mmbrship function with illustration of mthod using numrical xampl [].. Mthodologis In this papr, slction of IT prsonnl through hybrid multi-attribut HP-FLP approach [] is modifid by th rsarchr to apply for th rcruitmnt of branch managr and cashir in th privat bank of Maharashtra, India on th basis of various critria suggstd by thm.. Th nalytic Hirarchy ProcssHP It is a structurd tchniqu for organizing and analyzing complx dcisions, basd on mathmatics and psychology and was dvlopd by Thomas L. Saaty in 98 [9]. H provids a comprhnsiv and rational framwork for organizing a dcision problm, for rprsnting and quantifying its lmnts, for rlating thos lmnts to ovrall goals, and for valuating altrnativ solutions. It dcomposs dcision problm into hirarchy lmnts which can rlat to any aspct of th dcision problm. Onc th hirarchy is mad, th dcision makrs systmatically valuat its various lmnts by comparing thm to ach othr, two at a tim, with rspct to thir impact on an lmnt abov thm in th hirarchy and thn wights cofficints for ach lmnt ar dtrmind whr sum of th lmnts at ach hirarchy lvl is qual to. 9

4 In making th comparisons, th dcision makrs can us concrt data about th lmnts, but thy actually us thir judgmnts about th lmnts rlativ maning and thir importanc. Th pair wis comparisons using fuzzy scal was givn by Satty that rangs from qually prfrrd to xtrmly prfrrd = qually prfrrd = slightly mor prfrrd 5 = much mor prfrrd 7 = vry much mor prfrrd 9 = xtrmly prfrrd. Through this comparison matrix of th lmnts is formd and thn consistncy ratio CR is calculatd to chck th consistncy of rsponss. Th rliability of rsponss is maintaind if CR is lss or qual to.. This CR is givn by CR=CI/RI whr CI is consistncy indx and RI is random indx. If CR is gratr than. thn judgmnt in th matrix would b considrd as an inconsistnt and in that cas, w shall hav to rvis th matrix.. nalytical Hirarchy Procss wightd Fuzzy Linar Programming HP-FLP Data rlatd to slction is fuzzy in natur. This fuzzinss can b handld using fuzzy st concpt givn by [] to obtain optimal solution. Fuzzy linar programming problm in fuzzy nvironmnt is introducd by Zimmrmann [6]. Fuzzy Multi-Objctiv Linar Programming is usd for solving travling salsman problm with vagu and imprcis paramtrs by []. If thr ar m numbr of critria thn vctor = {,,...,n}, n bing no of mploys, which maximizs th mploy prformanc using objctiv function is to b find out. Th objctiv function is incorporatd as a fuzzy constraint with a rstriction lvl i.. aspiration lvl k whr k =,,..m. So w can writ, Find n ~ ~ K cki i K k,,...m i subjct to n a br ri i...m r,,...m i cki, ari and br ar crisp valus. K is th aspiration lvl to b rach. vry objctiv function * valu K changs linarly from minimum valu K to maximum valu K. Th symbol ~ is usd to dnot th modl in fuzzy nvironmnt. This modl M can b solvd using wightd additiv modl. Maximization goals K can b givn through linar mmbrship function as

5 K K K * K K K* K K K K* K K K,,...m... M To solv abov wightd additiv modl M, a singl objctiv modl M can b solvd using standard mathmatical programming approach. m Maximiz w K K K...M Subjct to K K m w K K K [,], wk k,,...m, i i,,...n Whr wk and K rprsnts th wighting, cofficints stating rlativ importanc of fuzzy goals and mmbrship function.. pplication Th abov HP-FLP modl is modifid to us in th slction of mploy of on of th privat banks in India. In this papr, two posts Branch managr and cashir hav bn takn into considration for rcruitmnt.. Dtrmination of critria for slction of both posts Bank managrs ar in charg of all aspcts of a bank, so thy nd a broad st of skills and knowldg such as dtaild knowldg of th financial mattr or banking knowldg, particularly in th aras of prsonal or commrcial loans, mortgags, knowldg of th latst ruls and laws govrning th banking sctor. lso, managr must hav an undrstanding of markting and sals tchniqus, th intrprsonal skills ndd to hir, train, and manag mploys and to dal with customrs proprly. Similarly cashir who dals with cash plays vry important rol in th fild of banking. Th job of cashir includs many things and it is job of mor rsponsibility as h/sh has to dal with cash and intract with customr on daily basis for solving quris, handling mony tc. Following figur rprsnts th hirarchical structur for slction critria for post i.. branch managr and post B i.. cashir dcidd aftr discussion with xprts.

6 Figur. Hirarchical Structur of Slction Critria. Calculating th wights of th critria ftr a discussion with th xprts of bank, various critria with thir sub-critria hav bn dcidd which ar shown in figur. In this papr, mploys hav bn slctd which ar to b xamind against ths critria and sub-critria. For this purpos, pair wis comparison of sub-critria and pair wis comparison of main slction critria hav bn don to know th wights of ach job using Satty s scal. lso pair wis comparison of mploys with sub-critria and critria has bn don to know th wights of mploys givn by tabl 6 for post and tabl for post B. Tabl shows pair wis comparison of main slction critria for post.

7 Tabl. Intr Comparison of main critria for post Critria MK TK BK MS Priority MK 5.55 TK /5 /7 /5.57 BK MS / 5 /.7 CR:.6 Tabl to tabl 5 show pair wis comparison of sub-critria for th post. Tabl. Intr Comparison of sub-critria with rspct to main critria MK for post MK L C S IR DM D PRIORITY L / 5 /.776 C 5 7 ½.675 S / /5 / /6.9 IR /5 /7 / / /8.7 DM / / ¼.95 D CR.78 Tabl. Intr Comparison of sub-critria with rspct to main critria TK for post TK CP NT IT Priority CP.6 NT / /.7 IT /.6869 CR:.78 Tabl. Intr Comparison of sub-critria with rspct to main critria BK for post BK BB P Priority BB /5.889 P /7 /.896 CR:.6857 Tabl 5. Intr Comparison of sub-critria with rspct to main critria MS for post MS WM MM CM Priority WM ¼.556

8 MM CM / /5.65 CR:.876 Tabl 6 givs wights of mploys against ach sub-critria for post. Tabl 6. Wights of mploys for ach sub-critria for post Sub-critria Wight Wt of Wt of Wt of L C S IR DM D CP NT IT BB P WM MM CM Similarly tabl 7 shows th pair wis comparison of main critria for post B. Tabl 7. Intr Comparison of main critria for post B Critria MK TK BK MS Priority MK /5 /8 /.95 TK 5 /.57 BK MS / /5.87 CR:.8869 Tabl 8 to giv pair wis comparison of sub-critria for th post B.

9 Tabl 8. Intr Comparison of sub-critria with rspct to main critria MK for post B MK C S IR DM D Priority C 6 /.66 S /6 /5 / /7.885 IR / 5 ¼.666 DM / / / D CR.65 Tabl 9. Intr Comparison of sub-critria with rspct to main critria TK for post B TK CP NT PRIORITY CP.8 NT /. CR Tabl. Intr Comparison of sub-critria with rspct to main critria BK for post B MS WM CM PRIORITY WM /7.5 CM CR SUM Tabl. Intr Comparison of sub-critria with rspct to main critria MS for post B BK BB PRIORITY BB 5.8 / CR SUM Tabl givs wights of mploys against ach sub-critria for post B. Tabl. Wights of mploys for ach sub-critria for post B Sub-critria Wight Wt of Wt of Wt of C S IR DM D CP NT BB WM CM

10 Tabl and tabl giv final wights of ach of th mploys for both positions for main slction critria i.. managmnt skill, tchnical skill, banking knowldg/skill and markting skill. Tabl. Final wights of mploys for ach main critria for post Critria Wight Wt of Wt of Wt of MK TK BK MS FINL WIGHT Tabl. Final wights of mploys for ach main critria for post B Critria Wight Wt of Wt of Wt of MK TK BK MS. FINL WIGHT Multi-objctiv linar programming modl In this application thr ar four main critria so thr will b four objctiv functions namly to. For position of branch managr multi-objctiv linar programming modl can b writtn as Maximiz...M Subjct to,, {,} Similarly for th position B of cashir, multi-objctiv linar programming modl can b writtn as 6

11 Maximiz...M Subjct to,, {,}. Limitations of main critria Tabl 5 givs limitations for ach of th main critria i.. bounds for thm. Minimum valu K* & maximum valu K for ach of th main critria ar givn for both posts & B Tabl 5. Uppr & Lowr bounds for ach critrion Post Post B Min K Max K* Min K Max * K.5 Fuzzy multi-objctiv Linar Programming Modl From M, th fuzzy multi-objctiv linar programming modl for post is givn as follows Find ~ ~ Maximiz ~... M ~ Subjct to,, {,} From M5, th fuzzy multi-objctiv linar programming modl for post B is statd as 7

12 ~ ~ ~ ~ M Maximiz Find {,},, to Subjct For abov objctiv functions, mmbrship functions can b writtn as follows: For Post : Similarly for post B:

13 HP-FLP modl construction From M, w can writ crisp singl objctiv programming modl quivalnt to Fuzzy multiobjctiv modls M6 and M7 for th post and post B rspctivly. Maximiz Subjct to m ,,, [,],, {,} Maximiz Subjct to m ,,, [,],, {,} It is important to not that wights takn with all K ar takn as wights of ach of th main critria calculatd using HP in comparison matrix. Modl M8 is solvd to gt optimal solution for post. 9

14 W gt, =, =, =. This mans that mploy is suitabl for slction of th post of branch officr. W can also gt th valus of objctiv functions and mmbrship functions. =.58, =.7, =.7, = ,,, From ths mmbrship functions w can say that achivmnt lvls of & ar mor than th achivmnt lvls of &. Similarly, modl M9 is solvd to gt optimal solution for post B. W gt, =, =, =. This mans hr also mploy is suitabl for slction of th post of Cashir. =.7, =.96, =.56, = ,,, Th achivmnt lvls of & ar mor than th achivmnt lvls of &. 5. Rsults and Discussion Tabl 6 and tabl 7 shows comparison of HP and HP-FLP rsults for thr mploys for post of branch managr and post of cashir. Tabl 6. Comparison of HP and HP-FLP for post of Branch Managr pproach HP HP-FLP Tabl 6 shows that through HP-FLP approach mploy is th bst choic for th post with scor of on as compar to th HP approach which suggsts that mploy is th bst choic with ovrall scor of.55. So th snsitivity of HP-FLP mthod is analyzd by considring various skills usd in th modl according to th rquirmnt of organization whr undr this approach, critria managmnt skill and banking skill ar considrd as most important as compard to othr two, tchnical skill and markting skill for th post.

15 Tabl 7. Comparison of HP and HP-FLP for post of Cashir pproach HP..5.6 HP-FLP From tabl7 w obsrvd that, undr HP approach, mploy is bst suitabl for th post of cashir with ovrall scor of.5. Hr banking and tchnical skill ar found to b mor important than othr two undr this approach, whras undr HP-FLP approach mploy is bst for this post. lso viws of HR hads ar matching with th rsults of HP-FLP approach. This hybrid modl HP-FLP is applid in IT company in papr [] but in this papr, it is applid in a banking sctor. Conclusion Slction of mploy in any corporat with complx xpctations of th dcision makr has bcom vry tough du to th ovrwhlming comptition amongst th candidats sking job. Fuzzy dcision making is obsrvd mor significant tool as compard to th dirct rcruitmnt mthod. HP mthodology with th fuzzy multi-objctiv linar programming modl is intgratd and mployd instad of applying convntional HP mthod as an altrnativ. HP mthod and HP-FLP modl ar usd sparatly. Through HP-FLP approach mploy is th bst choic for th post of branch managr and for post of cashir mploy is suitabl whras undr HP approach, mploy is th bst choic for th post of branch managr and for post of cashir mploy is suitabl. Fuzzinss and vagunss involvd in th problm may contribut to imprcis judgmnt in HP but HP-FLP modl allows dcision makrs to considr th vagunss and uncrtain conditions concluding that HP-FLP modl is mor rlvant than HP mthod for th slction of bank mploy for th post of managr and cashir. Findings of th study show that th wights of mploy slction critria calculatd by HP-FLP modl ar bttr than th actual prsonnl slction dcision of th bank. Rcommndations Th hybrid modl HP-FLP can b usd on larg scal for slction of th mploy with complx rquirmnt skills as pr th nd of th organization of othr sctors. Th study can also b implmntd by rstructuring th slction critria & rquirmnt tim to tim and usd in a spcific way dpnding on th nds of organization for all kind of rquirmnts in that organization. Futur rsarch on mploy slction using intgratd modl of HP and FLP can

16 b concntratd on application of diffrnt mthods for valuating multipl attributs in mploy slction and a comparison of rlativ ffctivnss of th rsults. Rfrncs. bu Zafar Mahmudul Haq, Rcruitmnt and Slction of th Dhaka Bank Ltd. in Bangladsh, 5, Currnt Rsarch Journal of Commrc and Managmnt, vol., no... ggarwal Rmica, Slction of IT Prsonnl through Hybrid Multi-attribut HP-FLP approach,, Intrnational Journal of Soft Computing and nginring, vol., no. 6.. rindam Chaudhuri, Kajal D, Fuzzy multi-objctiv linar programming for travling salsman problm,, frican Journal of Mathmatics and Computr Scinc Rsarch, vol., no., Bna T. Balan, Solving Multi-Objctiv Fuzzy Linar Optimization Problm Using Fuzzy Programming Tchniqu, 6, IOSR Journal of Mathmatics, pp Rimjhim Gupta, Tanuja Jain, Rol of rcruitmnt & slction policis in cntral co-oprativ banks,, Intrnational Monthly Rfrd Journal of Rsarch in Managmnt & Tchnology, vol.. 6. H. J. Zimmrmann, Fuzzy programming and linar programming with svral objctiv functions, 978, Fuzzy sts and Systm, pp Karmakr C. L., M. Saha, Tachrs rcruitmnt procss via MCDM mthods: cas study in Bangladsh, 5, Managmnt Scinc Lttrs, vol. 5, pp Kiruthiga M. and Loganathan C., Fuzzy multi-objctiv linar programming problm using fuzzy programming modl, 5, Intrnational Journal of Scinc, nginring and Tchnology Rsarch, vol., no Kousalya P., G. Mahndr Rddy, S. Supraja, V. Shyam Prasad, nalytical Hirarchy Procss approach n application of nginring ducation,, Mathmatica trna, vol., no., pp Misha Lovrich, Sonja Ptrovic-Lazarvic & Bruc Brown, fuzzy approach to Prsonnl slction, 999, Monash Univrsity, Faculty of Businss and conomics.. Pin-Chang Chn, Fuzzy Multipl Critria Dcision Making Modl in mploy Rcruitmnt, 9, Intrnational Journal of Computr Scinc and Ntwork Scurity, vol. 9, no. 7.. Ramadan Krbish blhamid, Budi Santoso, M. ziz Muslim, Dcision Making and valuation Systm for mploy Rcruitmnt Using Fuzzy nalytic Hirarchy Procss,, Intrnational Rfrd Journal of nginring and Scinc, vol., no. 7, pp. -.

17 . R. G. Bllman, L.. Zadh, Dcision making in fuzzy nvironmnt, 97, Managmnt Scinc, vol. 7, no., pp Syamala Dvi Bhoganadam, Dasaraju Srinivasa Rao, study on rcruitmnt and slction procss of sai global yarntx India privat limitd,, Intrnational Journal of Managmnt Rsarch & Rviw, vol., no., rticl No-5, pp Turkay Drli, lptkin Durmuşoğlu, Srap Ulusam Sçkinr, Nvra vlanmaz, fuzzy approach for prsonnl slction procss,, Turkish Journal of Fuzzy Systms, vol., no., pp Varmazyar Mohsn, Bhrouz Nouri, fuzzy HP approach for mploy rcruitmnt,, Dcision Scinc Lttrs, vol., pp C. Vramani, C. Duraisamy,. Nagoorgani, Solving fuzzy multi-objctiv linar programming problms with linar mmbrship functions,, ustralian Journal of Basic and pplid Scincs, vol. 5, no Zvonko Sajfrt, Prdrag tanaskovic, Dragan Pamucar, Milan Nikolic, pplication of fuzzy logic into procss of dcision making rgarding slction of managrs,, frican Journal of Businss Managmnt, vol. 6, no. 9, pp Saaty T. L., Th nalytic Hirarchy Procss, 98, Nw York: McGraw-Hill.. Zadh L.., Fuzzy Sts Information and Control, 965.

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