A model for business performance improvement: a case of the postal company
Abstract
The aim of this paper is to propose a management model which would assess the state of the business and indicate the improvement points, as well as to demonstrate the applicability of the model in a case of the postal company. An A’BA model is proposed which represents a combined application of Analytic Hierarchy Process – AHP method as a multi-criteria decision making tool and theory of business areas. The research consists of two parts. To define the most important influencing factor on business performance, the experts are interviewed. A new concept is proposed and applied in the process of aggregating experts’ assessments based on their mapping in a plane. This creates the appropriate surface, and the position of its centroid in relation to the Saaty’s scale defines the final score of pairwise comparison - an indicator of the relationship between two elements that are compared. In the second part, additional experts from the determined area are involved to define an approach for detailed analysis of the most important factor. In this case, the approach included a survey of employees based on the specialized questionnaire. The guidelines for business performance improvement are obtained.
Keyword : business process, business performance, improvement, decision-making, postal company, management, experts’ assessments aggregation, Saaty’s scale in the plane
How to Cite
Lazarević, D., Dobrodolac, M., Švadlenka, L., & Stanivuković, B. (2020). A model for business performance improvement: a case of the postal company. Journal of Business Economics and Management, 21(2), 564-592. https://doi.org/10.3846/jbem.2020.12193
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Ismail, A., Ibrahim, D. K. A., & Girardi, A. (2009). The mediating effect of distributive justice in the relationship between pay design and job satisfaction. Proceedings of Rijeka Faculty of Economics: Journal of Economics and Business, 27(1), 129–148.
Jasinskas, E., Emeljanovas, A., & Bilan, Y. (2015). Features of qualification improvement of human resources in public and private sector. Transformations in Business & Economics, 14(2B), 462–480.
Jovčić, S., Průša, P., Dobrodolac, M., & Švadlenka, L. (2019). A proposal for a decision-making tool in third-party logistics (3PL) provider selection based on multi-criteria analysis and the fuzzy approach. Sustainability, 11(15), 4236. https://doi.org/10.3390/su11154236
Kil, S. H., Lee, D., Kim, J. H., Li, M. H., & Newman, G. (2016). Utilizing the analytic hierarchy process to establish weighted values for evaluating the stability of slope revegetation based on hydroseeding applications in South Korea. Sustainability, 8(1), 58. https://doi.org/10.3390/su8010058
Kim, J. H., Lee, C., & Ahn, S. B. (2013). Analyzing the importance of reinforcement factors of competitiveness in Korea parcel service. Korea Logistics Review, 23(5), 31–49.
Kim, Y. J., & Park, J. (2019). A sustainable development strategy for the Uzbekistan textile industry: The results of a SWOT-AHP analysis. Sustainability, 11(17), 4613. https://doi.org/10.3390/su11174613
Kişi, N. (2019). A strategic approach to sustainable tourism development using the A’WOT hybrid method: A case study of Zonguldak, Turkey. Sustainability, 11(4), 964. https://doi.org/10.3390/su11040964
Kotler, P. (1988). Marketing management: Analysis, planning, implementation, and control. Prentice-Hall International.
Liu, R., Wang, Y., & Qian, Z. (2019). Hybrid SWOT-AHP analysis of strategic decisions of coastal tourism: A case study of Shandong Peninsula blue economic zone. Journal of Coastal Research, 94(sp1), 671–676. https://doi.org/10.2112/SI94-133.1
Mowday, R. T., Porter, L. W., & Dubin, R. (1974). Unit performance, situational factors, and employee attitudes in spatially separated work units. Organizational Behavior and Human Performance, 12(2), 231–248. https://doi.org/10.1016/0030-5073(74)90048-8
Ossadnik, W., Schinke, S., & Kaspar, R. H. (2016). Group aggregation techniques for analytic hierarchy process and analytic network process: a comparative analysis. Group Decision and Negotiation, 25(2), 421–457. https://doi.org/10.1007/s10726-015-9448-4
Porter, L. W., & Smith, F. J. (1970). The etiology of organizational commitment (unpublished paper). University of California at Irvine.
Porter, L., Crampon, W, & Smith, F. (1976). Organizational commitment and managerial turnovers: A longitudinal study. Organizational Behavior and Human Performance, 15(1), 87–98. https://doi.org/10.1016/0030-5073(76)90030-1
Saaty, T. L. (1977). A scaling method for priorities in hierarchical structures. Journal of Mathematical Psychology, 15(3), 234–281. https://doi.org/10.1016/0022-2496(77)90033-5
Saaty, T. L. (1989). Group decision making and the AHP. In The analytic hierarchy process (pp. 59–67). Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-50244-6_4
Shahba, S., Arjmandi, R., Monavari, M., & Ghodusi, J. (2017). Application of multi-attribute decisionmaking methods in SWOT analysis of mine waste management (case study: Sirjan’s Golgohar iron mine, Iran). Resources Policy, 51, 67–76. https://doi.org/10.1016/j.resourpol.2016.11.002
Singh, R. K., Gunasekaran, A., & Kumar, P. (2018). Third party logistics (3PL) selection for cold chain management: a fuzzy AHP and fuzzy TOPSIS approach. Annals of Operations Research, 267(1–2), 531–553. https://doi.org/10.1007/s10479-017-2591-3
Solangi, Y. A., Tan, Q., Mirjat, N. H., & Ali, S. (2019). Evaluating the strategies for sustainable energy planning in Pakistan: An integrated SWOT-AHP and Fuzzy-TOPSIS approach. Journal of Cleaner Production, 236, 117655. https://doi.org/10.1016/j.jclepro.2019.117655
Stare, J., & Klun, M. (2008). Improving public administration performance demands investment in human resources. Proceedings of Rijeka Faculty of Economics: Journal of Economics and Business, 26(1), 151–173.
Teichmann, D., Dorda, M., & Ivan, M. (2014, May 28–30). Multi-criteria optimization of distribution system structure – comparison of selected methods and their effectiveness. In XVII International Scientific Conference – Quantitative methods in Economics-Multiple Criteria Decision Making, Virt, Slovakia.
Toth, W., & Vacik, H. (2018). A comprehensive uncertainty analysis of the analytic hierarchy process methodology applied in the context of environmental decision making. Journal of Multi‐Criteria Decision Analysis, 25(5–6), 142–161. https://doi.org/10.1002/mcda.1648
Vieira, J. G. V., Toso, M. R., da Silva, J. E. A. R., & Ribeiro, P. C. C. (2017). An AHP-based framework for logistics operations in distribution centres. International Journal of Production Economics, 187, 246–259. https://doi.org/10.1016/j.ijpe.2017.03.001
Wang, X. P., Zhang, J., & Yang, T. (2014). Hybrid SWOT approach for strategic planning and formulation in China worldwide express mail service. Journal of Applied Research and Technology, 12, 230–238. https://doi.org/10.1016/S1665-6423(14)72339-9
Wang, Y. J., Han, T. C., & Chou, M. T. (2016). Applying fuzzy AHP in selection of transport modes for Kinmen military logistics. Journal of Marine Science and Technology, 24(2), 222–232.
Wheelen, T. L., & Hunger, J. D. (1995). Strategic management and business policy. Addison Wesley, Reading, MA.
Aczél, J., & Saaty, T. L. (1983). Procedures for synthesizing ratio judgements. Journal of Mathematical Psychology, 27(1), 93–102. https://doi.org/10.1016/0022-2496(83)90028-7
Alkharabsheh, A., Moslem, S., & Duleba, S. (2019). Evaluating passenger demand for development of the urban transport system by an AHP model with the real-world application of Amman. Applied Sciences, 9(22), 4759. https://doi.org/10.3390/app9224759
Borajee, M., & Yakchali, S. H. (2011, July 2–3). Using the AHP-ELECTREIII integrated method in a competitive profile matrix. In International Conference on Financial Management and Economics (pp. 68–72), Hong Kong, China.
Bulgurcu, B., & Nakiboglu, G. (2018). An extent analysis of 3PL provider selection criteria: A case on Turkey cement sector. Cogent Business & Management, 5(1), 1469183. https://doi.org/10.1080/23311975.2018.1469183
Cerlyawati, H., Anggoro, S., & Zainuri, M. (2017). Environmental management of mangrove area in Northern coast, Central Java by using SWOT and AHP analysis. Advanced Science Letters, 23(3), 2501–2503. https://doi.org/10.1166/asl.2017.8656
Cho, Y. G., & Cho, K. T. (2008). A loss function approach to group preference aggregation in the AHP. Computers & Operations Research, 35(3), 884–892. https://doi.org/10.1016/j.cor.2006.04.008
Cullen, J., Johnson, J., & Sakano, T. (1995). Japanese and local partner commitment to IJVs: psychological consequences of outcomes and investments in the IJV relationship (international joint ventures). Journal of International Business Studies, 26(1), 91–115. https://doi.org/10.1057/palgrave.jibs.8490167
Cyril, A., Mulangi, R. H., & George, V. (2019). Performance optimization of public transport using integrated AHP–GP methodology. Urban Rail Transit, 5(2), 133–144. https://doi.org/10.1007/s40864-019-0103-2
Dobrodolac, M., Lazarevic, D., Svadlenka, L., & Zivanovic, M. (2016). A study on the competitive strategy of the universal postal service provider. Technology Analysis & Strategic Management, 28(8), 935–949. https://doi.org/10.1080/09537325.2016.1180357
Dobrodolac, M., Markovic, D., Cubranic-Dobrodolac, M., & Denda, N. (2014). Using work stress measurement to develop and implement a TQM programme: A case of counter clerks in Serbian Post. Total Quality Management & Business Excellence, 25(11–12), 1262–1279. https://doi.org/10.1080/14783363.2012.704280
Dubin, R., Champoux, J. E., & Porter, L. W. (1975). Central life interests and organizational commitment of blue-collar and clerical workers. Administrative Science Quarterly, 20(3), 411–421. https://doi.org/10.2307/2392000
Etongo, D., Kanninen, M., Epule, T. E., & Fobissie, K. (2018). Assessing the effectiveness of joint forest management in Southern Burkina Faso: A SWOT-AHP analysis. Forest Policy and Economics, 90, 31–38. https://doi.org/10.1016/j.forpol.2018.01.008
Forman, E. H. (1993). Facts and fictions about the analytic hierarchy process. Mathematical and Computer Modelling, 17(4–5), 19–26. https://doi.org/10.1016/0895-7177(93)90172-U
Forman, E., & Peniwati, K. (1998). Aggregating individual judgments and priorities with the analytic hierarchy process. European Journal of Operational Research, 108(1), 165–169. https://doi.org/10.1016/S0377-2217(97)00244-0
Görener, A. (2012). Comparing AHP and ANP: An application of strategic decisions making in a manufacturing company. International Journal of Business and Social Science, 3(11), 194–208.
Görener, A., Toker, K., & Uluçay, K. (2012, June 21–23). Application of combined SWOT and AHP: A case study for a manufacturing firm. In 8th International Strategic Management Conference, Barcelona, Spain.
Gottfried, O., De Clercq, D., Blair, E., Weng, X., & Wang, C. (2018). SWOT-AHP-TOWS analysis of private investment behavior in the Chinese biogas sector. Journal of Cleaner Production, 184, 632–647. https://doi.org/10.1016/j.jclepro.2018.02.173
Harold, L. A., & James, L. P. (1981). An empirical assessment of organizational commitment and organizational effectiveness. Administrative Science Quarterly, 26(1), 1–14. https://doi.org/10.2307/2392596
Huang, Y. S., Liao, J. T., & Lin, Z. L. (2009). A study on aggregation of group decisions. Systems Research and Behavioral Science: The Official Journal of the International Federation for Systems Research, 26(4), 445–454. https://doi.org/10.1002/sres.941
Ismail, A., Ibrahim, D. K. A., & Girardi, A. (2009). The mediating effect of distributive justice in the relationship between pay design and job satisfaction. Proceedings of Rijeka Faculty of Economics: Journal of Economics and Business, 27(1), 129–148.
Jasinskas, E., Emeljanovas, A., & Bilan, Y. (2015). Features of qualification improvement of human resources in public and private sector. Transformations in Business & Economics, 14(2B), 462–480.
Jovčić, S., Průša, P., Dobrodolac, M., & Švadlenka, L. (2019). A proposal for a decision-making tool in third-party logistics (3PL) provider selection based on multi-criteria analysis and the fuzzy approach. Sustainability, 11(15), 4236. https://doi.org/10.3390/su11154236
Kil, S. H., Lee, D., Kim, J. H., Li, M. H., & Newman, G. (2016). Utilizing the analytic hierarchy process to establish weighted values for evaluating the stability of slope revegetation based on hydroseeding applications in South Korea. Sustainability, 8(1), 58. https://doi.org/10.3390/su8010058
Kim, J. H., Lee, C., & Ahn, S. B. (2013). Analyzing the importance of reinforcement factors of competitiveness in Korea parcel service. Korea Logistics Review, 23(5), 31–49.
Kim, Y. J., & Park, J. (2019). A sustainable development strategy for the Uzbekistan textile industry: The results of a SWOT-AHP analysis. Sustainability, 11(17), 4613. https://doi.org/10.3390/su11174613
Kişi, N. (2019). A strategic approach to sustainable tourism development using the A’WOT hybrid method: A case study of Zonguldak, Turkey. Sustainability, 11(4), 964. https://doi.org/10.3390/su11040964
Kotler, P. (1988). Marketing management: Analysis, planning, implementation, and control. Prentice-Hall International.
Liu, R., Wang, Y., & Qian, Z. (2019). Hybrid SWOT-AHP analysis of strategic decisions of coastal tourism: A case study of Shandong Peninsula blue economic zone. Journal of Coastal Research, 94(sp1), 671–676. https://doi.org/10.2112/SI94-133.1
Mowday, R. T., Porter, L. W., & Dubin, R. (1974). Unit performance, situational factors, and employee attitudes in spatially separated work units. Organizational Behavior and Human Performance, 12(2), 231–248. https://doi.org/10.1016/0030-5073(74)90048-8
Ossadnik, W., Schinke, S., & Kaspar, R. H. (2016). Group aggregation techniques for analytic hierarchy process and analytic network process: a comparative analysis. Group Decision and Negotiation, 25(2), 421–457. https://doi.org/10.1007/s10726-015-9448-4
Porter, L. W., & Smith, F. J. (1970). The etiology of organizational commitment (unpublished paper). University of California at Irvine.
Porter, L., Crampon, W, & Smith, F. (1976). Organizational commitment and managerial turnovers: A longitudinal study. Organizational Behavior and Human Performance, 15(1), 87–98. https://doi.org/10.1016/0030-5073(76)90030-1
Saaty, T. L. (1977). A scaling method for priorities in hierarchical structures. Journal of Mathematical Psychology, 15(3), 234–281. https://doi.org/10.1016/0022-2496(77)90033-5
Saaty, T. L. (1989). Group decision making and the AHP. In The analytic hierarchy process (pp. 59–67). Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-50244-6_4
Shahba, S., Arjmandi, R., Monavari, M., & Ghodusi, J. (2017). Application of multi-attribute decisionmaking methods in SWOT analysis of mine waste management (case study: Sirjan’s Golgohar iron mine, Iran). Resources Policy, 51, 67–76. https://doi.org/10.1016/j.resourpol.2016.11.002
Singh, R. K., Gunasekaran, A., & Kumar, P. (2018). Third party logistics (3PL) selection for cold chain management: a fuzzy AHP and fuzzy TOPSIS approach. Annals of Operations Research, 267(1–2), 531–553. https://doi.org/10.1007/s10479-017-2591-3
Solangi, Y. A., Tan, Q., Mirjat, N. H., & Ali, S. (2019). Evaluating the strategies for sustainable energy planning in Pakistan: An integrated SWOT-AHP and Fuzzy-TOPSIS approach. Journal of Cleaner Production, 236, 117655. https://doi.org/10.1016/j.jclepro.2019.117655
Stare, J., & Klun, M. (2008). Improving public administration performance demands investment in human resources. Proceedings of Rijeka Faculty of Economics: Journal of Economics and Business, 26(1), 151–173.
Teichmann, D., Dorda, M., & Ivan, M. (2014, May 28–30). Multi-criteria optimization of distribution system structure – comparison of selected methods and their effectiveness. In XVII International Scientific Conference – Quantitative methods in Economics-Multiple Criteria Decision Making, Virt, Slovakia.
Toth, W., & Vacik, H. (2018). A comprehensive uncertainty analysis of the analytic hierarchy process methodology applied in the context of environmental decision making. Journal of Multi‐Criteria Decision Analysis, 25(5–6), 142–161. https://doi.org/10.1002/mcda.1648
Vieira, J. G. V., Toso, M. R., da Silva, J. E. A. R., & Ribeiro, P. C. C. (2017). An AHP-based framework for logistics operations in distribution centres. International Journal of Production Economics, 187, 246–259. https://doi.org/10.1016/j.ijpe.2017.03.001
Wang, X. P., Zhang, J., & Yang, T. (2014). Hybrid SWOT approach for strategic planning and formulation in China worldwide express mail service. Journal of Applied Research and Technology, 12, 230–238. https://doi.org/10.1016/S1665-6423(14)72339-9
Wang, Y. J., Han, T. C., & Chou, M. T. (2016). Applying fuzzy AHP in selection of transport modes for Kinmen military logistics. Journal of Marine Science and Technology, 24(2), 222–232.
Wheelen, T. L., & Hunger, J. D. (1995). Strategic management and business policy. Addison Wesley, Reading, MA.