Application of ahp method in the formation of a performance indicator for operational level professionals

The studied company is a major insurer that has experienced some operational problems due to an imbalance between the evaluation criteria of employess in the regulation sector of car accidents. The company evaluates each employee according to four indicators: cost, efficiency, productivity and professionalism. However, the scores of these criteria are aggregated in the form of a simple arithmetic mean, which does not align with the company’s strategic planning. Thus, while maintaining the four criteria presented, this paper intends to suggest a weighting that is more consistent with the managerial context of the insurer, that aligns the strategic objectives of the insurance company, and based on a transparent and technically established weighting, encouraging meritocracy among the company’s employees. Due to the hierarchical and compensatory nature of the problem, the Analytic Hierarchy Process (AHP) was used, which later was validated by the sector management, and was finally adopted by the company.