1. Abstracts (with objective) By carrying out this home assignment, we can recognize the importance of AHP methods and master the way that how AHP would be used in actual exercises. 2. Introduction The AHP (Analytic Hierarchy Process) is a structured technique for organizing and analyzing complex decisions. Based on mathematics and psychology, it was developed by Thomas L. Saaty in the 1970s and has been extensively studied and refined since then.
It has particular application in group decision making, and is used around the world in a wide variety of decision situations, in fields such as government, business, industry, healthcare, and education. Rather than prescribing a “correct” decision, the AHP helps decision makers find one that best suits their goal and their understanding of the problem. It provides a comprehensive and rational framework for structuring a decision problem, for representing and quantifying its elements, for relating those elements to overall goals, and for evaluating alternative solutions.
Users of the AHP first decompose their decision problem into a hierarchy of more easily comprehended sub-problems, each of which can be analyzed independently. The elements of the hierarchy can relate to any aspect of the decision problem—tangible or intangible, carefully measured or roughly estimated, well- or poorly-understood—anything at all that applies to the decision at hand. Once the hierarchy is built, the decision makers systematically evaluate its various elements by comparing them to one another two at a time, with respect to their impact on an element above them in the hierarchy.
In making the comparisons, the decision makers can use concrete data about the elements, but they typically use their judgments about the elements’ relative meaning and importance. It is the essence of the AHP that human judgments, and not just the underlying information, can be used in performing the evaluations. The AHP converts these evaluations to numerical values that can be processed and compared over the entire range of the problem. A numerical weight or priority is derived for each element of the hierarchy, allowing diverse and often incommensurable elements to be compared to one another in a rational and consistent way.
This capability distinguishes the AHP from other decision making techniques. In the final step of the process, numerical priorities are calculated for each of the decision alternatives. These numbers represent the alternatives’ relative ability to achieve the decision goal, so they allow a straightforward consideration of the various courses of action. Several firms supply computer software to assist in using the process. 3. Data & Results ? Assuming the choice of MBA course / Selecting 4 alternative models / Characteristics We are considering applying domestic MBA.
To make various important elements of decision easier, we want to apply our decision situations to AHP. We selected 4 possible alternatives which have top name value in Korea. So we considered 4 alternatives which is Yonsei, Korea, Sung Kyun Kwan (SKK) and Sogang MBA. Each MBA course has a specified characteristics and it is reflected in criteria and subcriteria which is selected by our team. In general, The Master of Business Administration (MBA or M. B. A. ) is a master’s degree in business administration, which attracts people from a wide range of academic disciplines.
The MBA designation originated in the United States, emerging from the late 19th century as the country industrialized and companies sought out scientific approaches to management. The core courses in the MBA program are designed to introduce students to the various areas of business such as accounting, finance, marketing, human resources, operations management, etc. Students in MBA programs have the option of taking general business courses throughout the program or can select an area of concentration and focus approximately one-fourth of their studies in this subject. From now on, let’s study the each MBA course characteristics.
University| Categories| Characteristics| Yonsei| Corporate MBA| ? Periods : 2 years (22 months) ? Credits to graduate : 45 credits? Sections : Finance / Marketing / Strategy ; Management? Focus on middle class managers who has a working experience| Korea| Korea MBA| ? Periods : 2 years (4semesters)? Credits to graduate : 45 credits? Sections : 8 specialized majors? Focus on educating workers with concept of consumers| SKK| Asia MBA| ? Periods : 2 years (4semesters)? Credits to graduate : 45 credits? Focus on education being based on globalization| Sogang| SIMBA| ? Periods : 2 years (4semesters)? Credits to graduate : 45 credits?
Sections : Management / Finance? Subdivide the 3 tracks when applicants enter? Focus on getting a deep knowledge ; applying it to exercise| *Each graduated school has a lot of MBA course. But we choose the one course which is main categories ? Setting own criteria ; cubcriteria The first step is to model the problem as a hierarchy. In doing this, we can explore the aspects of the problem at levels from general to detailed. And to evaluate the each MBA course, we select 4 criteria and subcriteria which is NO. | Criteria| Subcriteria| 1. | Competition ratio| No subcriteria| 2. | Supporting| # of foreign professor| | # of dual degree with graduated school| 3. | Tuition| Tuition| | | Admission Fee| 4. | Curriculum| # of Lectures| | | # of English Lectures| – Competition ratio (represent the name value of school) In Korea, when applicants choose the university, the name value and traditionality of school is main factors. We think that competition ratio represent the name value of school. So it is deserved to rank in 1st. – Supporting (# of foreign professor / # of dual degree with graduated school) Of course, supporting option has to be considered in important factor. But this factor is not a main option to choosing the school.
So we rank it in 4th. And in the aspects of subcriteria, we think that # of dual degree can be considered more heavily than # of foreign professor. So, we attach bigger weighted factor to # of dual degree than # of foreign professor. – Tuition (Tuition / Admission Fee) In financial situation of applicants, tuition of MBA course is very expensive. So, it can be a main factor of choosing the school. But it isn’t deserved to rank upper than competition ratio. So, we rank it in 2nd. Furthermore, in the aspects of subcriteria, we think that tuition can be considered more heavily than admission fee.
Because admission fee have to be paid just one time when the applicants enter the school. So, we attach bigger weighted factor to tuition than admission fee. – Curriculum (# of Lectures / # of English Lectures) When applicants select the school, curriculum is serious factor that have to be concerned. But, as usual, each MBA course open the subject in similar. It means that it can’t be a main factor. So, we rank it 3rd. Furthermore, in the aspects of subcriteria, we think that # of lecture can be considered more seriously than # of English lecture. Of course, in globalization is realized widely, English is needed whatever we do.
But, diversity of subjects can be considered more important than # of English lectures. So, we attach bigger weighted factor to # of lecture than # of English lecture. So, we rank the each criteria ; subcriteria like Ranking (Scoring)| Criteria| Subcriteria| 1st| Competition ratio| No subcriteria| 2nd| Tuition| 1st| Tuition| | | 2nd| Admission Fee| 3rd| Curriculum| 1st| # of Lecture| | | 2nd| # of English Lecture| 4th| Supporting| 1st| # of dual degree| | | 2nd| # of foreign professor| ? Collecting the basic data of criteria ; subcriteria 1. Competition ratio
University| Categories| # of Recruitment| # of Applicant| # of Successful Candidate| Competitiveness ratio| Yonsei| Corporate MBA| 128| 502| 128| 3. 9 : 1| Korea| Korea MBA| 187| 920| 187| 4. 9 : 1| SKK| Asia MBA| 18| 39| 23| 2. 2 : 1| Sogang| SIMBA| 60| 127| 42| 2. 1 : 1| *Seoul University didn’t recruit the student in 2012. So, it is excluded. 2. Supporting (# of foreign professor / # of dual degree with graduated school) University| Categories| # of foreign professor| # of dual degree| Yonsei| Corporate MBA| 9| 2| Korea| Korea MBA| 14| 3| SKK| Asia MBA| 39| 4| Sogang| SIMBA| 2| 5| 3.
Tuition (Tuition / Admission Fee, unit : ?? ) University| Categories| Tuition| Admission Fee| Yonsei| Corporate MBA| 4000| 120| Korea| Korea MBA| 4200| 120| SKK| Asia MBA| 5000| 100| Sogang| SIMBA| 3700| 110| 4. Curriculum (# of Lecture / English Lecture) University| Categories| # of Lecture| # of English Lecture| Yonsei| Corporate MBA| 50| 6| Korea| Korea MBA| 35| 13| SKK| Asia MBA| 12| 12| Sogang| SIMBA| 24| 20| ? Applying AHP to choose a final model So, we determine the weighted factors like | Weighted factor of criteria| Weighted factor of subcriteria| Competition ratio| 0. 360| No subcriteria| Supporting| 0. 55| # of foreign professor| 0. 303| | | # of dual degree| 0. 697| Tuition| 0. 265| Tuition| 0. 909| | | Admission Fee| 0. 091| Curriculum| 0. 220| # of Lecture| 0. 602| | | # of English Lecture| 0. 398| 4. Discussion By using a AHP method, we can get a objective information which can make for us a wise decision in selecting the MBA school. Of course, it provides the verified standard in making a choice. But applicants’ preference can pass over that data. Furthermore, applicants’ specifications are different. So, choice is depending on own their decision. The AHP method is the only tool that can provide the objective data.