Study on Internship Employee Performance Evaluation Based on the Gray Correlation Analysis and Analytic Hierarchy Process Ze-hong Li, Meng-zhu Chen Department of Economics and Management,North China Electric Power University, Baoding, China (chenmengzhu1989@163.com) Abstract- Currently, more and more company find out and reserve talents through intern’s enrollment. In order to help the company evaluate the potential and performance of the intern effectively and scientifically, this paper introduce an evaluation method based on the gray correlation analysis and Analytic Hierarchy Process (AHP) and take a case to further explain this method. Keywords- AHP, evaluation , gray correlation analysis, interns Ⅰ Introduction At present, most companies have realized the advantage of interns, they can found and cultivate the backup talents through the intern trial and it is good for the enterprise personnel echelon construction. Generally, large enterprises, especially foreign-funded enterprises, have a complete set of intern recruitment, assessment and application systems[1]. However, companies often have problems in the performance evaluation of the intern. At present, it is difficult to find a method that is effective and feasible and can truly reflect the performance of the intern. This makes difficult for enterprises to judge whether the intern into the enterprise truly bring benefits for the enterprises. The paper use the AHP method, which combines the qualitative and quantitative characteristics, to determine the weights of various performance indicators, again according to the uncertainty of the performance evaluation and gray characteristics, use the gray connection analytic method to extract the gain target and the business goal target interrelatedness, to determine the level of the internship employees, and ultimately help the enterprise to make decisions. Ⅱ Particularity of intern performance evaluation and the limitations of traditional methods Firstly, the working time of the intern is very short. General practice time ranging from 2 to 6 months, in such a short period of time an employee's work performance is not adequate. The enterprise is difficult to find clear and ____________________ This article is the outcome of the Social Science Fund of Hebei Province (project number: HB11YDG010) quantifiable indicators to judge the employees. Therefore, usually applied scale assessment method, comparing the assessment method and 360-degree performance appraisal method does not apply2. Secondly, the internship period is actually a learning period. During this period they usually do some simple task, contact people are ordinary people in the inner circle around, application of critical incident technique and the opinion poll method are inappropriate. Therefore, from the traditional evaluation method is difficult to find a method suitable for companies to judge the performance of the intern3. However, it is suitable for the AHP to determine the weight of each index to find out the correlation between the target index and the getting index. Ⅲ The principle of performance evaluation based on the AHP and gray correlation analysis The AHP method is proposed by the United States Operations Research expert T.L. Saaty in the 1970s, it is refers to break down the elements about decisions into goals, standards, programs and other levels4. On this basis, carries on qualitative and the quantitative analysis. An important part is to determine the judgment matrix. In making this judgment, Satie use 1 ~ 9 and its reciprocal as signs. 1 indicates that the two elements have the same importance, 9 expressed that the former is extremely more important than the latter, reciprocal indicates the importance comparison when exchange the order of the corresponding two factors5. A. Establish stratification structure Establish stratification structure, break the problem into several levels. The first layer is the overall goal; the middle layer according to the nature of the problem can be divided into the target layer, departmental layer and constrained layer; the lowest level is program layer or measures layer. After full discussion and analysis, and finally draw the hierarchy chart B. Using AHP to determine the weight of each indicator Seek the right value from the top layer to the bottom layer. Set the current level factors as C1, C2,…,Ci, Related upper layer is B (Can be more than one). Then aim at factor B, carries on pairwise comparisons to all factors. According to the scale of judgment matrix, get the value as aij (i,j=1,2,…,n): a11 a m1 CB=(aij)m×n= a1n amn (1) CB is the judgment matrix of the factors C1, C2,…,Ci’s relative upper level B. CB's maximum characteristic root is λmax. Standardized eigenvectors of λmax is 1 2 n T , then gives a sort based on the relative importance of the factors C1, C2,…,Ci to B. Standardized i i (i 1, 2, n k 1 i , n) ni n n i a ki k 1 k ni k 1 Calculate the combination scaling coefficient on the same level. Set the current level factors for the C1, C2,…,Cn, related upper layer factors for the B1 , B2 , , Bn , every Bi has a weight vector i 1i 2i ni i 1,2, , n T The weight of the factors in the upper layer is b b1 b2 bn T currently, each factor's combination scaling coefficient is[6][7] m m b ,b , ,b i 1 i 1 i 1 i i 2 i 1 i i n (5) Go on, until all the combination scaling coefficient of the bottom layer is worked out. Finally, find out the weight of every index according to the coefficient of the bottom layer. So, the combination of the weight coefficient vector of the K-th layer is WK YK YK 1 Test the , m) Consistency. yij xij x0 j (i 1, 2, , m; j 1, 2, , n) (7) min min xoj xij max max xoj xij Generally speaking, max n n 1 r j r j xoj xij max max xoj xij r (8) j ρ is the distinguishing coefficient, generally select between 0 and 1, usually take 0.5[10][11]. Calculate the gray relational grade, 1 n ij n j 1 (9) In the gray relational analysis, the index set is the time series, each time interval should be the average weight, but it is not suitable for the assessment of the internship positions, therefore, in accordance with the second step in the AHP method to calculate the weight of the index in this layer relative to the upper layer[12][13]. 1 2 n n Ri r ( x0 , xi ) k ij (k is the k-th layer) (10) j 1 if Use equation (10) to calculate the correlation of every layer from the bottom layer. Finally draw the correlation of the target layer. In order to judge the performance level of each tested internship positions. , Ⅳ The example analysis Y1 (Y1 1) CI 0.1 , we think CB is good. CI set CR , xin (i 1, 2, (6) Ri (4) i xi xi1 , xi 2 , (xij is the original sequence; xoj is the reference sequence) Calculate the correlation coefficient. Use the following formula to calculate the correlation coefficient between xi and xo based on the element j. (j=1,2,…,n) (3) m , xm Standardize the sequence. Usually use the following formula to standardize9 A k 1 x1 , x2 , unit. k This is the i-th component of the eigenvectors ω, the maximum characteristic root is: max Determine the reference sequence and comparative sequence. Set a reference sequence x0 ( x01 , x02 , , x0 n ) and some comparative sequence The elements in x0 is selected from the best intern or the goal index in the company. In the comparative sequence, xi1 , xi 2 , , xin is the value for the evaluation : (2) n C. Gray correlation analysis CI , is a random consistency ratio, if CR<0.1, RI the judgment matrix has satisfied consistency. Otherwise need to adjust the judgment matrix, to reach a satisfied consistency8. Set one company has four internship positions and four interns P1,P2,P3,P4. Use AHP and gray relational analysis to assess their performance. A. Determine the index system According to the characteristics of the interns and corporate focus to develop the four-layer index system (enterprise can adjust this standard according to its own characteristics and requirements) 14, as shown in Figure 1. Goal Performance A1 Attitude B1 Work seriousl y C1 Behavior A2 Skill B2 Effort B3 Temperament B4 Respons ibility Degree Knowle dge Workin g time C2 C3 C4 C5 Efficien cy Speakin g manner Character B5 Clothes C6 C8 Fig. C7 1 Intern performance evaluation index Intelligence B6 Social skill Recover ability Innovati on ability Study ability C9 C 10 C 11 C 12 B. Construct judgment matrix C. The relative weight calculations and the consistency test According to Figure 1, we can elect 1 contrast matrix in the second layer, 2 in the third layer and 6 in the Calculate the relative weight of the comparative element to the reference element and test the consistency. fourth layer. AZ’s judgment matrix is AZ 1 3 , AZ 1/ 31 is the judgment matrix is 1 1/ 4 1/ 3 1 1/ 5 2 , BA1 4 1 3 / 2 BA2 5 1 4 3 2/3 1 1/ 2 1/ 4 1 BA1 is the comparison of B B1 B2 B3 and A1, BA2 is the comparison of B B4 B5 B6 and A2. CiBj’s judgment matrix is 1 C12 B1 1/ 2 1 C56 B 3 1/ 8 2 1 , 8 1 , 1 C34 B 2 1/ 4 1 C78 B 4 1/ 5 4 1 , 5 1 , 1 4 C910 B 5 , 1/ 4 1 C12B1 1 1/ 6 C1112 B 6 6 1 is the comparison of C C1 C2 and B1, C34B2 is the comparison of is the comparison of C C3 C4 and B2, C56B3 C C5 C6 and B3, C78B4 is the comparison of C C7 C8 and B4, C910B5 is the comparison of C C9 C10 and B5, C1112B6 is the comparison of C C11 C12 and B6. 1 1/ 5 2 Standardization BA1 5 1 4 1/ 2 1/ 4 1 0.153 0.151 0.182 Sun the line 0.770 0.755 0.727 0.077 0.094 0.091 0.486 Decide the number of the columns 2.252 0.262 0.162 3 0.751 = 2 0.087 3 BA2 2 The 1 1/ 5 2 0.162 0.486 5 1 4 0.751 2.252 1/ 2 1/ 4 1 0.087 0.262 largest 1 0.486 eigenvalue 2.257 0.262 max 3.006 3 0.162 0.751 0.087 max 3 Consistency index CI 3 1 , is . 0.003 . Look-up the table, the random consistency index RI=0.58, so CR CI 0.003 0.005 0.1 , BA2's inconsistency IR 0.58 can accept. So the weight of A2 is B B4 2 0.125 0.517 0.087 3 B6 to B5 T , go on, 2 0.5 0.5 T , 13 0.125 0.517 0.358 T According to the equation (7), dimensionless 0 , 1 , 2 , 3 , 4 , we can get x0 , x1 , x2 , x3 , x4 x0 1,1,1,1,1,1,1,1,1,1,1,1 x1 0.7,0.5,0.4,0.5,0.33,0.7,0.714,0.25,0.83,0.7,0.2,0.714 x2 0.8,0.625,0.5,0.7,0.67,0.5,0.57,0.625,0.83,0.4,0.7,0.57 T 1 0.67 0.33 2 0.2 0.8 T 3 0.89 0.11 4 0.89 0.11 x4 0.7,0.625,0.6,0.4,0.83,0.8,0.714,0.5,0.67,0.3,0.8,0.85 5 4 0.2 0.8 6 4 0.89 0.11 G. Calculate the correlation coefficient 4 4 4 T 4 T T x3 0.5,0.875,0.6,0.9,0.83,0.6,0.714,1,0.83,0.9,0.5,0.286 T D. Experts to evaluate the interns According The expert group organized by the Human Resources Department, as well as department heads and colleagues around, who is very familiar with their corresponding work15. The result is shown in Table 1. Table Ⅰ Index score to the equation (10), calculate 0 j x0 j xij 01 0.3,0.5,0.6,0.67,0.3,0.286,0.75,0.17,0.3,0.8,0.286 02 (0.2,0.375,0.5,0.3,0.33,0.5,0.43,0.375,0.17,0.6,0.3,0.43) 03 (0.5,0.125,0.4,0.1,0.17,0.4,0.286,0,0.17,0.1,0.5,0.714) Reference 04 (0.3,0.375,0.4,0.6,0.17,0.2,0.286,0.5,0.33,0.7,0.2,0.143) score So, min min xoj xij 0, min min xoj xij 0.8, s index P1 P2 P3 P4 C1 7 8 5 7 10 C2 4 5 7 5 8 C3 4 5 6 6 10 C4 5 7 9 4 10 C5 2 4 5 5 6 correlation C6 7 5 6 8 10 coefficient C7 5 4 5 5 7 C8 2 5 8 4 8 r j r j et 0.5 , take the equations above into equation (8), we can get a correlation coefficient table, as follows: Table Ⅱ Correlation coefficient table P1 P2 P3 P4 C1 0.570 0.670 0.440 0.570 C2 0.440 0.516 0.762 0.516 C9 5 5 5 4 6 C3 0.400 0.440 0.500 0.500 C10 7 4 9 3 10 C4 0.440 0.570 0.800 0.400 C11 2 7 5 8 10 C5 0.374 0.548 0.702 0.702 C12 5 4 2 6 7 C6 0.570 0.440 0.500 0.670 C7 0.583 0.482 0.583 0.583 C8 0.348 0.516 0.000 0.440 E. Determine the comparative sequence and reference sequence Reference sequence: 0 10,8,10,10,6,10,7,8,6,10,10,7 comparative sequence: 1 7, 4, 4,5, 2,7,5, 2,5,7, 2,5 2 8,5,5,7, 4,5, 4,5,5, 4,7, 4 C9 0.702 0.702 0.702 0.548 C10 0.570 0.400 0.800 0.364 C11 0.330 0.570 0.440 0.670 C12 0.583 0.482 0.351 0.730 Calculate the correlation of the third layer (B), according to the equation (10) 3 5,7,6,9,5,6,5,8,5,9,5, 2 RB1 B1C12 1 4 0.5271 0.6192 0.5463 0.5222 4 7,5,6, 4,5,8,5, 4, 4,3,8,6 RB 2 B 2C 34 2 4 0.432 0.6588 0.74 0.42 T T RB3 B3C 56 3 4 0.3956 0.5361 0.6798 0.6985 T F. Dimensionless RB 4 B 4C 78 4 4 0.5572 0.4857 0.5189 0.5494 T RB5 B5C 910 5 4 0.5964 0.4604 0.7804 0.4008 T RB 6 B 6C1112 6 4 0.5471 0.4945 0.3636 0.7275 T Calculate the correlation of the second layer (A) RA1 r1 , r2 , r3 RB1 , RB 2 , RB 3 1 3 0.4307 0.6094 0.6011 0.5364 T RA 2 r4 , r5 , r6 RB 4 , RB 5 , RB 6 2 3 0.5824 0.4697 0.6756 0.4721 T Calculate the correlation of the goal layer R0 RA1 , RA2 4 0.4307 0.5824 0.6094 0.4697 0.5 0.60110.6756 0.5 0.5364 0.4721 0.5066 0.5396 0.6384 0.5043 T ⅤResults According to R0 ,we can draw the conclusion that P3 P2 P1 P4 , that is to say, P3 is the best while P4 is the worst. Companies can make hiring decisions according to this Ⅵ Conclusion At present, companies recruit more and more interns. It becomes a hot topic that how to evaluate these people. This paper integrates the advantages of the AHP method and gray relational analysis. Use these two methods gives an effective method to evaluate the performance of the interns. 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