A Value-Focused Approach to Multi-Attributes Decision Making: Applications in Human Resource Management and Supply Chain Management

Li Xiayu

Abstract

There exist abundant circumstances where difficult decisions needed to be made- making choice among a number of alternatives and actions or candidates based on a set of attributes. Decision arrived through conventional decision-making, also known as problem-solving approach, lacks clarity of action as there is no logical match between alternatives and objectives for they are derived even before the objectives are identified. Hereby, the paper proposes a logical and organized approach to assist decision makers to think about the decision problems systematically, addressing the critical elements that result in a defensible decision: Value-Focused Multi-Attribute Decision Making (VFMADM).

VFMADM combines Value-Focused Thinking, Analytical Hierarchy Process, Multiple Attribute Trade-off Analysis and Function-Driven Alternative Generation techniques, to addresses the knowledge gaps of the current decision making methodologies. The proposed VFMADM facilitates the emergence of new enhanced properties that helps in the making of defensive decisions including guiding systematic thinking, ensuring all alternatives to be aligned with the fundamental objectives of business, incorporating decision makers’ experience, knowledge and subjectivity in decision making, and providing an accurate numerical measurement of alternatives even with limited precise information.

Through application of VFMADM in Human Resource Management and Supply Chain Management, the framework proves to be well-grounded, and is pragmatically built with great rigor to withstand real-world imperfections.