Performance measurement of SMEs´ employees by fuzzy multi-criteria decision theory

The performance of employees of small and medium-sized enterprises (SMEs) is usually evaluated by supervisors´ perceptions, recognitions and preferences. This phenomenon is very common in Taiwanese family controlled enterprises. To improve this inequitable performance evaluation structure, a multi-criteria decision method associated with fuzzy sets is proposed. The ranking approach integrates the Nominal group technique (NGT), fuzzy sets theory and VlseKriterijumska Optimizacija I Kompromisno Resenje (VIKOR) method to determine the ranking of employees. Based on the multi-criteria decision theory, a win-win approach is developed for managers and employees. The approach can help decision makers evaluate the employee performance in a more rational structure.