Question

Please give me your ideas about;

      Investigate and use the analytical hierarchy process (AHP) to resolve the some sources of divergent goals in organizations?

Answer 1

AHP is a Multi criteria decision making , this method is used to calculate the weights of criteria .For example In a simple decision matrix with 4 criteria 1)Price 2) storage space 3) camera and 4) looks with 5 alternatives . Each alternative have their own value of criteria assosiated with them .

The first and formost step in AHP is to create the hierarchial structure in which the goal is kept in the first level in this example goal is to buy best mobile phone. Criteria is kept at the second level and the alternatives is kept at the third level. Each alternative have their own value of cirteria assosiated with them. (Example each mobile phone will have their own price and cost associated with them. similarly each phone will have their own value of storage space.)

Second step is to create a pair wise compaision matrix by determining the relative importance of different attributes or criteria with respect to the goal. (Example how important is price while buying the phone and what is the imporatnce of storage space while buying the phone.)This Pair wise matrix is created with the help of scale of relative imporatance . Where 1 to 9 the scales are mentioned and given as starting from equal importance to moderate and Extremely importanyt values.

The length of the matrix is equal to the nuber of criteria use in Decision making process . In this case the 4*4 matrix will be made and assigning the values as per scale . Then alloting the weights according to the criteria divided by the total number of criteria which will give the criteria weight..

Third step is to calculate the consistancy to check whether the calculated value is correct or not . By multiplying the Criteria weights and the matrix values and add raw wise which will give the weighted sum values. Then the ratio of weighted sum Value and criteria weight for all the raws and then calculate the average of all these values.After this the consistance index is calculated using the formula:

C.I = (Lambda-max. – n) / (n – 1), where 'n' is the number of criteria

Then calculte the consistancy ratio by dividing the CI to consistancy ratio.

Since the value of consistancy ratio CR is less then the standard 0.10 , then we can assume that our matrix is reasonably consistant so we may continue to the decision making .

The above method can be use to resolve the some sources of divergent goals in organizations by using all these steps and the decision maker can go futher using the above matrix and formuls to resolve the sources of divergent goals in organisation.