ENHANCING THE EMPLOYEE DEVELOPMENT PERFOMANCE USING MULTI CRITERIA DECISION MAKING AT KOMATSU REMANUFACTURING ASIA

Abstract

Human resource is the key part in running business, so its presence should be very concern, especially the employee development activity. The accuracy aspect plays important role because wrong decisions in choosing employee development program may lead to both financial or time losses, while the right employee development will provide competent employees to reduce turnover, increase morale and provide better career growth. Therefore, this study aims to identify and apply the Multi-Criteria Decision Making (MCDM) methods which are Analytical Hierarchy Process (AHP) and Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) in determining the level of employee development to increase the program accuracy for better development perfomance at a heavy equipment component remanufacturing company. This research used both qualitative and quantitative approaches, including Forum Group Discussion with leaders, field observation, and data analysis. According to the results, the development level would fall into three categories i.e. level I (Bottom level), level II (Middle level) and level III (Upper level) where the number form each level is 7, 10 & 2 respectively. Furthermore, the improvement can increase 62% development program accuracy from 35% to 97%. In conclusion, the model can be used as Decision Support System to help leaders to make decisions regarding development activity which is to be given to employees by linking the employee development level and competency gaps.