UNIVERSITI TEKNOLOGI MARA
AN EVALUATION OF PERSONNEL PERFORMANCE IN PORT
LOGISTICS INDUSTRY USING HYBRID MULTI CRITERIA DECISION MAKING METHODS
MUHAMMAD SAFUAN BIN SHAMSHOL BAHRI
Thesis submitted in fulfillment of the requirements for the degree of
Master of Science (Transport and Logistics)
Malaysia Institute of Transport
January 2022
ABSTRACT
Every area of logistics, particularly maritime logistics, is expanding not only in a given country but worldwide. This indicates the demand for competent, imaginative, and capable people to join the workforce. The demand for talents and labour to serve the maritime logistics business, particularly in port operations, is growing as the industry expands globally. To do so, professional competency in terms of manpower and skills must be developed effectively. Furthermore, considering the current pandemic COVID- 19 situation, a capable professional in port management is crucial for reviving the business after it has been harmed, as well as maintaining its long-term growth and viability. As a result, a good business performance measurement system is a very powerful instrument for engaging and monitoring a company's employees. Despite the fact that there is a lot of interest and research into developing performance assessment models, finding a well-designed system is rare. This study explores the criteria for needed talent in view of port logistics experts using of multicriteria decision making (MCDM) approaches which is analytical hierarchy process (AHP), technique for order of preference by similarity to ideal solution (TOPSIS) and preference ranking organization system method for enrichment evaluation (PROMETHEE). The objective of this study is to identify the important criteria for personnel performance evaluation in port marine logistics industry. The three (3) approaches are selected based on its ability to consider many criteria simultaneously as well as considering the subjective judgement of importance by the participating experts. For second objective, in order to determine the performance evaluation framework for personnel performance evaluation, the study uses a tri-level hierarchical criteria structure, with three (3) criteria at the first level, six (6) sub-elements at the second level, and 18 sub-elements at the third level (three for each sub-element of the second level). AHP method is used to calculate the weightage of the criteria where the highest weightage is Work Attitude (0.560) followed by Job Performance (0.298) and Work Ability (0.120). Work Attitude scored more than 50% of weightage compared to Job Performance and Work Ability.
For last objective, in order to identify the suitable hybrid MCDM approaches for personnel performance evaluation in port marine logistics industry, the weightage from AHP is used to rank the personnel by using three (3) different of MCDM approaches which are AHP, TOPSIS and PROMETHEE. Based on the results, it shows that AHP is the best MCDM method to rank the personnel in port industry by getting the highest Kendall’s Tau coefficient with 0.619 coefficient compared to TOPSIS and PROMETHEE with 0.524 and 0.429 respectively. The same calculation method of Kendall’s Tau rank correlation is used to reconfirm that the proposed weightage of the criteria agrees with the actual evaluation from Sabah Port Sdn Bhd. The results of Kendall’s Tau coefficient are 0.490 which means the variables are correlated. As conclusion, experts in the port logistics industry agreed that AHP application for performance appraisal at the industry is a success, increasing the process accuracy and fairness. It is recommended for researchers to have respondents from more diverse fields in marine logistics such as shipping lines, forwarding and supply chain. By having a diverse range of respondents and experts, the sensitivity of the data is more accurate.
ACKNOWLEDGEMENT
Firstly, I wish to thank God for giving me the opportunity to embark on my Master and for completing this long and challenging journey successfully. My gratitude and thanks go to my supervisor Assoc Prof Ts. Dr S.Sarifah Radiah Shariff and my co-supervisor Dr Nazry bin Yahya.
My appreciation goes to all respondents in port industry for their willingness to spend time answering the questionnaires. Special thanks to my colleagues and friends for helping me with this study.
Lastly, this thesis is dedicated to the strongest person I know: me
“Thank you, Next”
TABLE OF CONTENTS
Page
CONFIRMATION BY PANEL EXAMINER ii
AUTHOR’S DECLARATION iii
ABSTRACT iv
ACKNOWLEDGEMENT v
TABLE OF CONTENTS vi
LIST OF TABLES ix
LIST OF FIGURES xii
LIST OF ABBREVIATIONS xiii
CHAPTER ONE: INTRODUCTION
1.1 Research Background 1
1.2 Problem Statement 4
1.3 Research Questions 5
1.4 Research Objectives 5
1.5 Research Scope and Limitations 5
1.6 Significance of Study 6
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction 7
2.2 Logistics Management 7
2.2.1 Human Resource Management in Logistics Industry 8
2.3 Personnel Evaluation Performance 9
2.3.1 Job Performance 12
2.3.2 Work Ability 13
2.3.3 Work Attitude 14
2.5 Multiple Criteria Decision Making (MCDM) 17
2.5.1 Type of MCDM Techniques 18
2.6 MCDM Approaches and Methods 19
2.6.1 Analytical Hierarchy Process (AHP) 19
2.6.2 Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS)
21
2.6.3 Preference Ranking Organization Method for Enrichment Evaluation (PROMETHEE)
23
2.7 Hybrid MCDM 24
2.8 Design of Performance Evaluation Framework 26
2.8.1 Discussion on Criteria Chosen in Performance
Evaluation of Port Logistics Personnel based on Previous Studies
27
2.9 Application of MCDM to the Personnel Performance Evaluation 29
2.10 Summary 31
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction 32
3.2 Research Methodology 32
3.2.1 Research Approach 33
3.2.2 Data Collection Methods 35
3.3 Framework Performance Evaluation 35
3.4 Pilot Test 38
3.4.1 Profile of Experts In Marine Logistics Industry 40
3.4.2 Descriptive Analysis 41
3.4.3 Result of Expert Judgement 42
3.5 Method of Analysis 46
3.5.1 Analytical Hierarchy Process (AHP) 47
3.5.2 Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS)
50
3.5.3 Preference Ranking Organization System for Enrichment Evaluation (PROMETHEE)
53
3.6 Comparison between Approaches 55
