Advances in Management and Applied Economics

AHP Competency Model in the Service Chain Industry

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  • Abstract

    Due to the increasing importance of the service industry and the highly competitive environment in the chain business, it is essential for enterprises to develop their own core competitiveness in industry. This study discusses the high-level manager’s competency development model in the chain business from the perspective of competency-based human resource management. This study develops the competency model using a literature review and expert interview and divides the competency model into three major factors including “core competency”, “management competency” and “specialized competency,” and further divides the three factors into 15 sub-factors. To understand the weight ratio and importance order of the major and sub-factors, this study adopts the analytic hierarchy process (AHP) method to conduct a three-level and four-combination analysis. This study reveals that in the second level of analysis, mid- and high-level managers share the same view points,and a mid-level manager should focus on building up the “core competency”, hereas a high-level manager should focus on the “management competency”; At the third level of analysis of the sub-factors, this study present conflicting point of views between mid and high-level managers. Mid-level managers believe that they should concentrate more on “organization commitment”, “franchise development,” and “target execution”, hereas high-level managers see “indignity,”, “branch management,” and “target execution” as the main competency for mid-level managers.

    JEL classification numbers: M13; M14; M38
    Keywords: Competency, Chain Service Industry, Analytical Hierarchy Process (AHP)