Multidimensional assessment of organizational performance: Integrating BSC and AHP

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

Journal of Business Research, 2012, vol. 65, issue 12, 1790-1799

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.

Keywords: Performance measurement; BSC; Balanced scorecard; AHP; Analytic hierarchy process; Multi-criteria decision-making (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (24)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:65:y:2012:i:12:p:1790-1799

DOI: 10.1016/j.jbusres.2011.10.039

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