Int. j. econ. manag. soc. sci., Vol(4), No (1), January, 2015. pp.

27-32

TI Journals

International Journal of Economy, Management and Social Sciences

www.tijournals.com

ISSN:
2306-7276

Copyright 2015. All rights reserved for TI Journals.

Explaining Effective Factors on Human Resource Productivity using

Multi- Attribute Decision Making Techniques
Sanjar Salajeghe
Department of Management, Kerman Branch, Islamic Azad University, Kerman, Iran.

Narges Hosseini*
Department of Management, Kerman Branch, Islamic Azad University, Kerman, Iran.

Abolfazl Hosseini
Department of Economic, Central Tehran Branch, Islamic Azad University, Tehran, Iran.
*Corresponding Author: f_shab2007@yahoo.com

Keywords

Abstract

Human resource productivity

MADM
Individual factors
Occupational factors
Organizational factors

This study examines the effective factors that increase human resources productivity. The study is applied and
descriptive- survey method is used for its implementation. A questionnaire has been used for data collection.
Content validity is used to assess questionnaire validity that is estimated through professors comments and its
reliability is calculated through Cronbach's alpha coefficient as 0.84. The statistical population of study
consisted of 448 employees of Tehran Infrastructure Communications Co. Sample size of 207 patients was
estimated using krejcie and Morgan Tables. The aim of this study was to prioritize the effective factors on
increasing human resource productivity using multi-attribute decision making techniques. In examining these
factors, human resource productivity has been considered as a function of individual, occupational,
organizational and environmental factors. T test, Spss software, MADM model have been used in addition to
descriptive statistics indices in order to analyze the data. Considering the results of comparisons in MADM
model, the greatest impact is related to individual factors and organizational, occupational and environmental
factors are in next priorities.

1.

Introduction

In terms of purpose, development of human resources is summarized in this short term: "enabling people to improve the quality of individual,
social and organizational life." Regardless of views, what seems important is that human resource is the only eternal and immortal source that is
not only easily accessible, but also, it is a phenomenon that, if it is managed properly on a regular basis it will enhance its capacity and synergy.
The human resource development is a tool to improve human productivity in workplace. Human resource of any state is the most important
factor of states development from any aspect that is concerned, either as decision makers and legislators at the macro level or managers and
employees at micro-level [6].
Koopman (1986) believes that human resource productivity is affected by four factors, these factors include:
1. Environmental factors, including cultural, economic, social, political and administrative status factors.
2. Organizational factors includes factors such as the rate of employees, employee service compensation system, employee proper
selection, training programs, leadership style, organizational structure, organizational support and organizational culture.
3. Occupational factors includes channels in order to amend timely and accurately performance results based on objective criteria, job
plan programs and job plan scheduling that includes a variety of skills, task identity, task significance, autonomy, feedback, job
knowledge and a clear understanding of their role and knowledge on career goals, clear task descriptions and timely notice of their
performance results.
4. Individual factors include knowledge and skills plan, work experience, abilities, beliefs, values, attitudes and incentive.
Here, all of the above factors affect on person's occupational behavior and determine favorable or unfavorable occupational behavior level.
Occupational behavior effects on persons occupational performance and ultimately, individual productivity in this study involves his
occupational aims.
As behavior assessment and occupational productivity are possible only having accurate and clear objective criteria, in this study, productivity is
analyzed in general concept and as depended variable and function of quad factors including environmental, organizational, occupational and
individual.

2.

Literature

Effective factors on human resource productivity

Individual factors
Individual factors are abilities (knowledge, experience and skill), ability in successful way of works that must be done. We should consider that
all people are not similar in terms of abilities. Ability components include:
The relationship between individual education and task. (This means that formal or informal education associated with occupation facilitates
successful implementing its works) [8].
1. Views and values
The way of treating beliefs or views of organization employees associated to different dimensions of occupational life have tangible effects on
their performance method and their productivity. Then, and organization managers must be familiar with main principles and use ways to change
employee views [7].

Sanjar Salajeghe, Narges Hosseini *, Abolfazl Hosseini

28

International Journal of Economy, Management and Social Sciences Vol(4), No (1), January, 2015.

2. Incentives
If employee faces with incentive problems, the first step to solve that problem is to study the reward and punishment methods. Employee should
know that their performance is depended on salary, promotion, to be addressed and occupational security. Researches show that people with high
incentive have better performance than people with more abilities. Then school manager must remember three general rules on incentive.
1. Employees needs must be always met through work itself (the importance of incentive work).
2. The workplace state must be appropriate (the state that supports work).
3. Employees freedom of action in determining needs that are met through work, for example freedom of action in determining how
much skill they have obtained and progressed.
If triple rules and mentioned expectations are considered, organization progress towards increasing high performance [11].
Occupational factors
Everyone considers his occupation as his introducer and performance as the reason for pride, dignity and fame [5]. Then, employees must have
good knowledge on what they do. Porter and Laler consider occupational recognition and person understanding from his job as effective factors
on performance.
Employee must have clear understanding of works main aims, know work implementation methods and recognize performance priorities. If
employee encounters with problem in occupational recognition or understanding his roles, this problem may continue in execution steps.
Moreover, in most cases, the verbal understanding is not sufficient on performance issues. Management must be sure that all cases have been
recorded formally. Employee must be encouraged to ask questions in order to make clear the subject [8].
Clear task explanation
The presence of written, clear explanation of tasks and its essence is one of the important issues in organization. Knowledge on tasks makes
clear the work reasons. Employee must be aware of long term, middle term, short term aims and organizational and environmental priorities in
order to increase their knowledge on work [13].
Organizational factors
1. Employee participation
Human resource spends practically most of his occupational life related to organizations. If people can integrate and harmonize individual and
organizational aims during this time, their efficiency will be more. Peter Draker discussed this matter early second half of 20th century entitled
management for results or management based on aims that indicates employee incentive increase and applying management control through
integrating aims and assessing them [1].
If employee cooperate in regulating occupational aims, they will effort more to reach that aims [10]. It is understood that employee participation
will increase effectiveness and employee participation in decisions related to organization will include below benefits. Manager who can create
these factors in organization, his effectiveness will be increased due to the higher subjects effect.

It will reduce employee resistance against considered changes.

It will cause employee active participation in organization.

It will increase manager and employee power.

It will increase legitimacy.

It will give complete information and knowledge [3].

2. Proper selection of employee
The occupation must be analyzed before any measurements in order to employ the best and more competent people to tenure an occupation and
then needed features and properties for successful occupational task must be determined. Then, human resources can be employed through
proper testing. If necessary accuracy is not applied in selecting and employing employee, chaos will happen and people will enter into
organization that dont have necessary competency in order to do effectively their tasks and this will cause that organization life to face with
risks. As employee selection method is important, valuable task of candidate assessment who want to enter into organization must be given to
professionals and experts and conditions must be provided so that the best and most suitable candidates for each occupation to be selected in any
organization [14].
3. Service compensation system
Payment system must be effective and efficient and it must be designed so that the maximum output is obtained for organization and individual.
For this reason, considering main needs of individual, having reward distribution justice both within and outside the organization is the basic
principle of any payment system. In payment systems, rule observance is one of the main areas of human resource management and service
compensation management as one of the areas of this field is responsible for designing and implementing law systems and employee benefits
[14].
4. Methods of leadership
One of the aims that a leader must try to achieve it, is promoting cognitive, emotional and behavioral skills so that he can lead others in the way
that they can conduct themselves [9]. When employees find the conductive state then they require less external controls [14].
5. Organizational Structure
There are many prominent theorists who believe that proper structure is of fundamental importance for organization productivity and hence it is
known itself as one of the investigation focuses. Organizational structure has various forms; the basis of works that have been done on structure
is Weber works (1947). There are ones who focus on structural aspects more than its types and there are ones who insist on appropriateness of
organizational structure with its environment constitutes as productivity basis [2].
Environmental factors
The term environment refers to external factors which can effect on organizational performance even despite having all power, clarity, support
and motivation for occupation. Key environmental factors are:
1. Cultural factors: It is applied for general tendency towards productive work and the position of work and production in social culture.
2. Economic factors: Effective economic factors on productivity include economic situation of state, payment system, unemployment and
inflation.
3. Social factors: It includes the spirit of individualism and collectivism, cooperative spirit, social discipline and personal relationships,
health and literacy rates and population growth rates [4].
4. Political factors: It includes international policies, pricing and custom tariff policies, the political climate in the country [15].

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Explaining Effective Factors on Human Resource Productivity using Multi- Attribute Decision Making Techniques
International Journal of Economy, Management and Social Sciences Vol(4), No (1), January, 2015.

5.

Administrative Status: governmental laws and regulations, governmental regulations and circulars must act Consistent with their
environmental restrictions [8].
Individual factors
Occupational factors

Human source efficiency

Organizational factors
Environmental factors
Fig 1. research conceptual model (researcher made)

3.

Research Questions
1.
2.
3.
4.
5.

4.

How is individual factors prioritization on human resource productivity?

How is organizational factors prioritization on human resource productivity?
How is occupational factors prioritization on human resource productivity?
How is environmental factors prioritization on human resource productivity
How is effective factors (individual, occupational, organizational, environmental) prioritization (ranking) on human resource
productivity?

Methods

This research is descriptive- survey. The statistical population of study consisted of 448 employees of Tehran Infrastructure Communications
Co. 207 subjects were studied Using Krejcie and Morgan Tables in order to determine the sample size of questionnaire. A questionnaire that was
previously used by Mr. Vahid Mehri Nia in Master thesis was used for data collection. In this study, firstly prepared questionnaire was
distributed and collected among 30 community members in order to determine the reliability of questionnaire and then Cronbach's alpha
coefficient was calculated as 0.84%. Finally, Multi-Attribute Decision Model was used in order to prioritize the effective factors and elements on
productivity of employees. In this method, after binary compare of each agent options, tables were prepared and prioritization, selection and
ranking are done after determining each factors index weight, determining four factors weigh and one group T test at significance level of 0.05
was used for statistical analysis of data.

5.

Data analysis
Table 1. One group t-test results among studied four dimensions
Mean
34.7083
109.8756
15.2727
33.1911

Individual factors
Organizational factors
Environmental factors
Occupational factors

Standard deviation
5.85474
15.6552
3.13521
5.14927

Deviation error
0.40693
1.08796
0.21791
0.35790

t
26.314
34.8134
15.0185
25.6806

Based on one group t-test and table (1), quad factors difference is significant at statistical level less than 0.001. Comparing quad factors means
shows that organizational aspect with mean of 109.8756 has first priority, individual factor with mean of priority 34.7083 has second priority,
occupational factor with mean of 33.1911 has third priority and environmental factor with mean of 15.2727 has fourth priority.
First question
How is the prioritization of individual indices on human resource productivity?
In this study, paired comparisons table in selecting individual factor criterion includes:
Table 2. Judgment matrix
Individual factors

Educational
degrees

Experience and
skill

Educational degrees

Experience and skill

1
7

Progress possibility

Respect to personality
View on organization
Occupational success

1
8
1
9

1
7

Progress
possibility
1
5

Respect to
personality

View on
organization

Occupational
success

1
5

1
7

1
7
1
7

1
8
1
7
1
5

1
7

1
6
1
6

Sanjar Salajeghe, Narges Hosseini *, Abolfazl Hosseini

30

International Journal of Economy, Management and Social Sciences Vol(4), No (1), January, 2015.

This table compares the degrees of the five individual criteria contributing factor in increasing the productivity of human resources. This table
compares the academic degrees with five other indices in individual factor which are effective on increased human resources productivity. This
table provides the results of paired comparison of dimensional indices with other indices.
Judgments that have been obtained from paired comparisons must be combined in order to develop a set of priorities for an issue. This means
that an operation must be performed via which a number is obtained that represents the priority of each element. We must combine the
judgments together in order to obtain the relative priority of each index according to the individual factor. Then, all cells of table will be
completed.
Table 3. Judgment Integration Matrix
Educational
degrees
1
0.14285
5
0.125
0.111
0.14285
6.5217

Individual factors
Educational degrees
Experience and skill
Progress possibility
Respect to personality
View on organization
Educational success
Total

Experience and
skill
7
1
0.1666
0.1666
5
8
21.333

Progress
possibility
0.2
6
1
0.14285
7
7
21.3428

Respect to personality
8
6
7
1
7
5
34

View on
organization
9
0.2
0.14285
0.14285
1
0.14285
10.6285

Educational
success
7
0.125
0.14285
0.2
7
1
15.4678

Firstly, we add numbers in each column together and divide the numbers in each column on total number of that column in order to obtain the
relative priority of each index; this matrix makes significant comparison among elements. Finally, we add the numbers in each row of matrix
together, and then we get the relative priority of each index.
Table 4. Weighted Average Matrix
Individual factors

Educational
degrees

Experience
and skill

Progress
possibility

Respect to
personality

View on
organization

Occupational
success

Educational degrees
Experience and skill
Progress possibility
Respect to personality
View on organization
Occupational success

0.1533
0.0209
0.7666
0.0191
0.01686
0.0209

0.3281
0.0468
0.0068
0.0078
0.2343
0.3750

0.0093
0.2811
0.0468
0.0067
0.3279
0.3279

0.2352
0.1764
0.2058
0.0294
0.2058
0.1470

0.8467
0.0189
0.0135
0.0135
0.0941
0.0135

0.4525
0.0081
0.0129
0.0092
0.4526
0.95

2.0251
.05532
1.0534
0.5222
1.4833
0.95

0.3375
0.0922
0.1755
0.0870
0.2472
0.1583

The second question

How is the prioritization of organizational indices in human resource productivity?
Table 5. Weighted Average of organizational indicators
Organizational
factors

Selection

Law
system

Participation

Competent
managers

Equipment

Accountability

Occupational
security

Related
training

Logical
division

Selection
Right system
Participation
Competent managers
Equipment
Accountability
Occupational security
Related training
Logical division

0.1929
0.1042
0.1152
0.0971
0.0493
0.0780
0.1248
0.1491
0.0897

0.1719
0.1447
0.0376
0.2717
0.0438
0.0694
0.0710
0.0929
0.0966

0.1416
0.3247
0.0849
0.1333
0.0583
0.0343
0.0929
0.0750
0.0545

0.2615
0.1158
0.0839
0.1322
0.0301
0.0397
0.1708
0.0740
0.0917

0.1795
0.1520
0.0671
0.2015
0.0462
0.0406
0.0717
0.1080
0.1331

0.1499
0.1251
0.0929
0.1991
0.0636
0.0488
0.1218
0.0977
0.1008

0.1921
0.2528
0.1135
0.0961
0.0800
0.0620
0.1245
0.0369
0.0417

0.1096
0.087
0.0759
0.1476
0.0291
0.0284
0.3839
0.0829
0.0577

0.1476
0.1125
0.1232
0.1193
0.02741
0.0465
0.2360
0.1134
0.0792

1.5439
1.4186
0.7942
1.3925
0.4278
0.4477
1.3972
0.8299
0.745

0.1715
0.1576
0.0882
0.1547
0.0475
0.0497
0.1552
0.0922
0.0827

Based on MADM model, the highest priority among organizational factors, related to "peoples selection based on Merit principle" index is
0.1715% and the final priority, related to "providing equipment and facilities that are needed to do the occupational" index is 0.0475%.
Third question
How is the prioritization of environmental indices in human resource productivity?
Table 6. Weighted Average Matrix of environmental indices
Environmental factors

Economical

Official

Economical
Official

0.8097
0.1902

0.8090
0.1909

1.6187
0.3811

6
0.8093
0.1905

The first priority, among environmental factors, related to "nations economic state" is 0.8093% and the next priority, related to "nations
administrative state" is 0.1905%.

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Explaining Effective Factors on Human Resource Productivity using Multi- Attribute Decision Making Techniques
International Journal of Economy, Management and Social Sciences Vol(4), No (1), January, 2015.

Fourth question
How is the prioritization of occupational indices in human resource productivity?
Table 7. Weighted average Matrix of occupational indices
Occupational factors

Awareness of
aims

Duty
explanations

Controversial
effort

Freedom of
action

Various
tasks

Fair
assessment

Awareness of aims
Written tasks explanation
Controversial effort
Freedom of action
Various tasks
Fair assessment

0.2007
0.2072
0.1167
0.0887
0.0721
0.3142

0.2047
0.2116
0.0736
0.0997
0.0900
0.3201

0.1944
0.3249
0.3211
0.0913
0.0931
0.1829

0.1093
0.2286
0.1109
0.1078
0.1340
0.3092

0.1228
0.2883
0.1491
0.0986
0.1228
0.2182

0.1667
0.1725
0.1616
0.09090
0.1468
0.2613

0.9986
1.6321
0.7251
0.577
0.6588
1.6059

6
0.1664
0.2388
0.1208
0.0961
0.1098
0.2676

The first priority among occupational factors, related to "work fair assessment and honest expression of one's strengths and weaknesses" index is
0.2676% and the last priority, related to "freedom of action in work and decision making" index is 0.0961%.
Fifth question
How is the prioritization of effective factors on human resource productivity using multi-attribute decision making model?
Table 8. Comparing quad factors of productivity

Individual
Occupational factors
Environmental factors
Organizational factors

Individual factors

Occupational
factors

Environmental
factors

Organizational factors

0.5123
0.1426
0.1744
0.1705

0.4810
0.1610
0.05334
0.3044

0.3483
0.3573
0.1187
0.1754

0.5437
0.0958
0.1791
0.1813

1.8853
0.7567
0.5256
0.8316

6
0.47
0.18
0.13
0.20

According to the results of comparing attributes in MADM model, the first priority, related to "individual" factor is 0.47% and the last priority,
related to "environmental" factor is 0.13%. So, prioritizing quad factors has not affected equally on human resources productivity.

6.

Discussion and conclusion

First question
In determining priorities of individual factor components using multi-attribute decision-making model, the research findings show that academic
qualification is at first priority, organizational attitude, progress possibility, occupational success, experiences related to occupation and respect
to character components are at next priorities. On the other hand, the results of ranking components with this technique suggests that we must
note components that effect on promoting human resource productivity in order to enhance and improve human resource productivity, and these
components must be more important and effective so that we can increase considerably human resource productivity.
The second question
The study results for determining the priority of environmental factor components using multi-attribute decision making model suggests that
economic component is of priority. Most personnel indicated that everyday life and macro-economic turmoil conditions have the most effect on
productivity of personnel. The administrative status components and complex bureaucracy in company and social factors (population growth
rate, unreasonable output of universities in terms of quantity and quality ...) as well as macro-level political conditions clearly effect on human
resource productivity.
Third question
The results showed that personnel selection component in company based on Merit principle is the first priority of organizational factors. Full
implementation of these components in companies is a missing ring. Unfortunately, majority of personnel indicated that this issue has not been
addressed in proper manner during their work lifetime in companies. Monitoring the upstream management and codifying laws this can be done
in optimal way. The presence of codified systems of salary, reliable occupational security, educational programs, pleasant employee partnership
and accountability are next priorities that effect on increase and improvement of effective organizational factors on human resource productivity.
This study is on factors such as providing equipment and facilities that are needed to do a work and trainings that improve personnel knowledge
as well as people participation in decision-making and presence of worthy and high persistence managers in organizations in order to increase
human resource productivity.
Fourth question
The results showed that in prioritizing occupational factor components, fair assessment component of occupation by upstream management has
priority in increased productivity of personnel. They must be remembered of supervising personnel in organization and codifying programs for
their control and their assessment and telling personnel the problems in order to achieve more productivity, and components of clear and written
task explanation, knowledge of aims, efforts, wide variety of tasks and freedom of action are in next priorities.
Fifth Question
According to the results of comparisons in MADM model, first priority belongs to individual factors, second priority to organizational factors,
third priority to occupational factors and fourth priority belongs to environmental factors. So prioritizing quad factors does not affect equally on
human resource productivity. The greatest effect is related to individual factors and the least effect is related to environmental factors.

Sanjar Salajeghe, Narges Hosseini *, Abolfazl Hosseini

32

International Journal of Economy, Management and Social Sciences Vol(4), No (1), January, 2015.

7.

Suggestions
1.

2.

3.

4.
5.

Given that environmental factors include economic- social situation of country such as (population growth rate, the amount of health),
economic situation of country such as (inflation, unemployment) political situation of country such as (political stability) and
administrative status of country such as (the way of management of country), it is suggested that organizations external and
environmental factors to be considered in addition to internal factors. This means that taking appropriate decisions and necessary
measures, the negative effect of external factors in occupational environment reduced.
As organizational factors include the presence of qualified and competent managers, managers who provide career growth and
advancement, selection is based on reward and job-related education and fair system of rewards and as they have significant role in
human resources productivity, therefore it is necessary to consider wage, training and development of human resources in adjusting
employment policies and merit factors in selecting managers.
The results showed that occupational factors include knowledge of aims and occupational tasks and understanding their importance, to
have feeling of something important, having freedom of action in work and work-related decisions and given that knowledge of aims
and occupational tasks and understanding their importance have the greatest effect on their productivity, and as respondents believe
that if they have a clear understanding of works main aims, and know how to work it will be useful in workplace. Therefore, it is
recommended that managers and employees must be informed on long-term, short-term aims, organizational and environmental
priorities through adoption of appropriate methods of participation in order to increase their understanding of work and participate in
decision making.
As individual, occupational, organizational and environmental factors are effective in productivity of human resources, therefore,
managers and employees should not rely only on just one factor but they must consider all variables in their policies.
It is suggested that management core and productivity improvement cycle are formed through using expert groups , the task of this
core is to find implementing solutions for identified factors and formulating policies, strategies and other personnel programs.

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