The Challenge of Decision Making in the Business World and Institution

Oct 13, 2025 by leolavanderia.com.br 71 views

The Challenge of Decision Making in the Business World and Institution

In the business world and institution, decision making is often a challenge for stakeholders. Often, decisions taken by management must consider many complex factors and criteria. In this context, a computer-based approach emerges as an effective solution, through a computer-based decision support system. Various methods and criteria are used in decision making, where experts are currently utilizing several approaches to obtain values and ratings that are close to the desired decision. The complexity of decision making is a major obstacle that many organizations face, and it requires a structured and systematic approach to overcome.

The Promising Combination of AHP and Topsis Methods

One of the promising combinations of methods in helping the decision making process is the merging of the Analytical Hierarchy Process (AHP) and the Technique for Others Preference by Similarity to Ideal Solution (Topsis). The AHP method can strengthen the weaknesses of the topsis method, especially in determining the weight of criteria manually. Through AHP, we can assess the interrelated criteria to get a more accurate weight value. After the criteria weight is determined, the value is then implemented in the topsis method for the ranking process. The combination of AHP and Topsis offers a powerful approach to decision making, as it provides a systematic and structured way to evaluate complex criteria and make informed decisions.

In-Depth Explanation of the AHP and Topsis Methods

Analytical Hierarchy Process (AHP)

Analytical Hierarchy Process (AHP) is a method developed by Thomas L. Saaty in the 1970s. This method aims to help decision making by breaking up complex problems into simpler parts. AHP uses a hierarchical approach, where the main problems are described into criteria, sub-criteria, and alternative decisions. Users can provide a pair's assessment or comparison (PairWise Comparison) to determine the priority among existing criteria. These values are then analyzed to calculate the weight of each criterion, thus facilitating more measurable decision making.

Technique for Others Preference by Similarity to Ideal Solution (Topsis)

Technique for Others Preference by Similarity to Ideal Solution (Topsis), on the other hand, is a method used to assist in the best alternative selection of an alternative set based on established criteria. This method assumes that the best alternative is the closest to positive ideal solutions and farthest from negative ideal solutions. In topsis, the steps taken include the normalization of the decision matrix, determining the weight based on the criteria given, and the calculation of the distance to the ideal positive and negative solutions to get an alternative final rank.

Synergy AHP and Topsis in Decision Making

The combination of AHP and Topsis offers significant benefits in complex decision making, such as in the case of receiving Bidik Misi scholarship. Through this process, the weight generated from AHP can strengthen the basis of decision making in the topsis. This allows the institution to process data and information more efficiently, so that the resulting decisions will be more accurate and based on the criteria that have been clearly formulated. The synergy between AHP and Topsis provides a robust approach to decision making, as it combines the strengths of both methods to produce a more accurate and reliable outcome.

Benefits of Implementing AHP and Topsis Combination Method

By implementing this combination method, institutions will not only get a more valid alternative rating, but will also increase transparency and accountability in the decision making process. In addition, the use of computer-based systems in data processing also accelerates the decision making process, allows institutions to respond quickly to the needs and aspirations of scholarship recipients. The benefits of implementing AHP and Topsis combination method are numerous, including increased transparency, accountability, and efficiency in decision making.

Conclusion

The combination of Analytical Hierarchy Process (AHP) and Technique for Others Preference by Similarity to Ideal Solution (Topsis) is an effective approach in overcoming decision making problems in various organizations. By utilizing these two methods, the organization can ensure that the decisions taken are not only based on intuition, but are also supported by in-depth and structured analysis. This is very important, especially in a competitive context where the speed and accuracy of decision making can be a determinant of success. In conclusion, the AHP and Topsis combination method provides a powerful approach to decision making, and its implementation can lead to more accurate, reliable, and efficient decision making outcomes.

Future Research Directions

Future research directions can focus on the application of AHP and Topsis combination method in various fields, such as business, education, and healthcare. Additionally, researchers can explore the use of other decision making methods, such as fuzzy logic and artificial neural networks, to enhance the accuracy and reliability of decision making outcomes. Future research directions can also focus on the development of computer-based systems that can implement AHP and Topsis combination method, and provide real-time decision making support to organizations.

Limitations and Challenges

Despite the benefits of AHP and Topsis combination method, there are some limitations and challenges that need to be addressed. For example, the method requires a significant amount of data and information, which can be time-consuming and costly to collect. Additionally, the method assumes that the decision maker has a clear understanding of the criteria and their weights, which may not always be the case. The limitations and challenges of AHP and Topsis combination method need to be addressed through further research and development, to make the method more practical and effective in real-world decision making scenarios.

Conclusion

In conclusion, the AHP and Topsis combination method provides a powerful approach to decision making, and its implementation can lead to more accurate, reliable, and efficient decision making outcomes. The method has been successfully applied in various fields, and its benefits are numerous. However, there are some limitations and challenges that need to be addressed through further research and development. The AHP and Topsis combination method is a valuable tool for decision makers, and its implementation can lead to better decision making outcomes in various organizations.

Q: What is the Analytical Hierarchy Process (AHP) and Technique for Others Preference by Similarity to Ideal Solution (Topsis) method?

A: The Analytical Hierarchy Process (AHP) and Technique for Others Preference by Similarity to Ideal Solution (Topsis) method is a decision-making approach that combines the strengths of both methods to produce a more accurate and reliable outcome. AHP is a method developed by Thomas L. Saaty in the 1970s, which helps decision makers break down complex problems into simpler parts and evaluate them using a hierarchical approach. Topsis, on the other hand, is a method used to assist in the best alternative selection of an alternative set based on established criteria.

Q: What are the benefits of using the AHP and Topsis combination method?

A: The benefits of using the AHP and Topsis combination method include increased transparency and accountability in the decision-making process, more accurate and reliable decision-making outcomes, and the ability to process data and information more efficiently. Additionally, the use of computer-based systems in data processing can accelerate the decision-making process and allow institutions to respond quickly to the needs and aspirations of scholarship recipients.

Q: How does the AHP and Topsis combination method work?

A: The AHP and Topsis combination method works by first using AHP to determine the weight of each criterion, and then using Topsis to rank the alternatives based on the established criteria. The weight generated from AHP is used to strengthen the basis of decision making in Topsis, allowing the institution to process data and information more efficiently and produce a more accurate and reliable outcome.

Q: What are the limitations and challenges of the AHP and Topsis combination method?

A: The limitations and challenges of the AHP and Topsis combination method include the requirement of a significant amount of data and information, which can be time-consuming and costly to collect. Additionally, the method assumes that the decision maker has a clear understanding of the criteria and their weights, which may not always be the case.

Q: Can the AHP and Topsis combination method be used in various fields?

A: Yes, the AHP and Topsis combination method can be used in various fields, including business, education, and healthcare. The method can be applied to a wide range of decision-making scenarios, from selecting the best alternative to evaluating complex criteria.

Q: How can the AHP and Topsis combination method be implemented in real-world decision-making scenarios?

A: The AHP and Topsis combination method can be implemented in real-world decision-making scenarios by using computer-based systems that can process data and information efficiently. Additionally, the method can be used in conjunction with other decision-making methods, such as fuzzy logic and artificial neural networks, to enhance the accuracy and reliability of decision-making outcomes.

Q: What are the future research directions for the AHP and Topsis combination method?

A: Future research directions for the AHP and Topsis combination method include the application of the method in various fields, the development of computer-based systems that can implement the method, and the exploration of other decision-making methods that can be used in conjunction with AHP and Topsis.

Q: Can the AHP and Topsis combination method be used to evaluate complex criteria?

A: Yes, the AHP and Topsis combination method can be used to evaluate complex criteria by breaking down the criteria into simpler parts and evaluating them using a hierarchical approach. The method can also be used to determine the weight of each criterion and rank the alternatives based on the established criteria.

Q: How can the AHP and Topsis combination method be used to improve decision-making outcomes?

A: The AHP and Topsis combination method can be used to improve decision-making outcomes by providing a more accurate and reliable approach to decision making. The method can also be used to increase transparency and accountability in the decision-making process and to process data and information more efficiently.

Q: What are the advantages of using the AHP and Topsis combination method over other decision-making methods?

A: The advantages of using the AHP and Topsis combination method over other decision-making methods include its ability to provide a more accurate and reliable approach to decision making, its ability to increase transparency and accountability in the decision-making process, and its ability to process data and information more efficiently.

Q: Can the AHP and Topsis combination method be used to evaluate multiple criteria?

A: Yes, the AHP and Topsis combination method can be used to evaluate multiple criteria by breaking down the criteria into simpler parts and evaluating them using a hierarchical approach. The method can also be used to determine the weight of each criterion and rank the alternatives based on the established criteria.

Q: How can the AHP and Topsis combination method be used to improve the quality of decision-making outcomes?

A: The AHP and Topsis combination method can be used to improve the quality of decision-making outcomes by providing a more accurate and reliable approach to decision making. The method can also be used to increase transparency and accountability in the decision-making process and to process data and information more efficiently.

Q: What are the implications of using the AHP and Topsis combination method in real-world decision-making scenarios?

A: The implications of using the AHP and Topsis combination method in real-world decision-making scenarios include the potential to improve decision-making outcomes, increase transparency and accountability in the decision-making process, and process data and information more efficiently.