A modified analytic hierarchy approach in ranking human-capital indicators

Evaluation on human-capital development and a knowledge-based economy becomes increasingly important as several approaches have been proposed. one of the popular methods in multi-criteria evaluation is the pair-wise comparison of analytic hierarchy process (ahp). however,single evaluation in pair-wise comparison of ahp seems not very comprehensive in handling of human judgement. therefore,this study aims to propose a modified analytical-hierarchy process by considering two-sided conflicting judgement and test the proposed approach to ranking indicators of human capital in malaysian organisations. the theory of conflicting bifozzy sets (cbfs) was hybridised into ahp to form a modified version of decision-making tool that employed linguistic judgement and pair-wise comparison. the modified approach was employed to integrate the multi-facets preferences of five criteria of human capital in establishing the importance of the four identified indicators. a case study of human-capital measurement is presented and the proposed model is applied to facilitate the decision-making process. interviews with three decision-makers were administered to collect linguistic data over the comparative judgement of human-capital measures in malaysia. the results show that succession rate of training programmes is the most important measurement indicator and creating result by using knowledge is the least-important measurement indicator. the overall ranking reflects the importance of measurement indicators in steering malaysia to become a worthy human-capital investment.