1. Introduction
Companies operate in a turbulent environment of constant change and increasingly global competition. HR professionals are challenged to design and implement human resources practices to address these business environmental threats [
1,
2]. Human resource management (HRM) is a fundamental activity in companies because it is responsible for making all management decisions that affect the relationship between employees and the organization—to succeed in organizational performance [
3,
4].
The recruitment and selection process involves attracting and placing the right person in the appropriate position [
5]. In addition, as Xiao and Björkman [
6] pointed out, careful selection procedures are essential in recruitment. The selection process includes information gathered from various tools (e.g., interviews, tests, work samples) to evaluate candidates for the position, thus creating numerous barriers for applicants, and may result in choosing people who have superior abilities and behavioral scripts [
7]. Furthermore, it is specified that this process should be based on candidate competencies rather than experience and academic qualifications, and interviews should focus on interpersonal skills and attitudes to ensure a cultural fit [
8]. This process is not just about filling vacancies but about having the right people from the start to gain benefits through people who will contribute their efforts and skills to ensure the organization achieves its goals. Therefore, a careful selection that seeks the organization’s similarity of individual and cultural values will enhance the work environment where cooperative behaviors emerge more efficiently [
9].
One of the most important contributions made by Pfeffer and Veiga [
10] specifies that several key elements are required:
- (a)
The organization must have a broad pool of candidates for selection. The more options there are, the greater the chances of finding the right candidate. This broad base of candidates provides a solid foundation for the selection process.
- (b)
A precise understanding of the critical skills and attributes for the position is necessary. Interview questions addressing specific cases related to these skills are crucial for accurately assessing the candidate’s competencies.
- (c)
The skills and capabilities sought for jobs should be carefully aligned with the specific requirements of the job and the organization’s strategy in its market. This alignment ensures that the candidates selected are in sync with the organization’s objectives and values.
- (d)
A selection process focusing on finding candidates with a solid cultural fit is more likely to succeed.
Therefore, careful selection processes, i.e., strategically designed and focused on the right attributes of people, can positively impact the organization by ensuring that the right people fill the correct positions from the start [
11]. Therefore, selecting the right candidate for the right job becomes more sophisticated as internal organizational changes directly impact HR selection methods [
12].
Several decision methods for personnel selection processes have been found in the literature review. Among them, we have the fuzzy multi-criteria decision-making (MCDM) method [
13], the ordered weighted average operator (OWAS), and the fuzzy multi-criteria decision-making methodology (TOPSIS) [
14], among others. This study did not address multi-objective optimization techniques that could be explored and adapted to multi-criteria decision-making. Moreover, these techniques can be enriched with deep learning [
15], collaborative neural networks [
16], and other data science methods. However, we did not want to present an exhaustive list of techniques, but only those we have tested with companies that have worked well.
In previous studies, various methods have been applied to personnel selection. A concrete example comes from a study in Greece, where the fuzzy multi-criteria decision-making methodology, TOPSIS, was used to select employees for a bank. In this context, it was found that it is crucial to consider specific criteria, the weighting of these criteria, and the distances to both the ideal and the anti-ideal solution to identify the most suitable candidate [
12]. Another study in Iran addressed the shortage of experienced personnel for the project manager position in the railway industry. A competency-based selection method using multigene genetic programming regression (CSPR) was implemented. The results were satisfactory, reducing the time and costs associated with implementing the project [
17].
Similarly, a study in India compared two advanced methods (AHP-LP and TOPSIS-LP) for selecting supply chain employees. Both are effective, but TOPSIS is more accessible to implement, ranking applicants only once. AHP involves pairwise comparisons and is more reliable, considering consistency. The integrated approach minimizes costs by suggesting relevant positions to form an efficient team [
18]. Another study examines using the ordered weighted average operator (OWA) in human resource selection in sports management. Various business decision-making techniques are applied, focusing on the OWA distance operator (OWAD), the OWA adequacy ratio (OWAAC), and the OWA index of maximum and minimum level (OWAIMAM). As a result, they found that, depending on the particular type of index used, the results may be different and lead to different decisions [
19]. Likewise, a study developed the Canós–Liern method based on the definition of an ideal candidate. The aggregate fuzzy ratings of each candidate are obtained considering the individual ratings provided by the experts and then ranked according to their similarity to the ideal candidate [
20]. In previous studies, there is a notable absence of research that compares the utilization of various methods, such as those chosen in this investigation, to assess diverse scenarios for ranking candidates in a selection process.
In the field of HRM, the utilization of mathematical methods to underpin decision-making is increasingly prevalent. Specifically delving into examples within personnel selection, the significance of conducting a comparative study centered on four multi-criteria decision-making methods has emerged [
18]. The study will delve into a meticulous analysis of the intrinsic characteristics of each method. It will explore how these particularities can be effectively tailored and applied within each business organization’s unique circumstances.
In order to accomplish this, four distinct methods will be employed:
TOPSIS: This method will rank candidates based on their relative distance from an ideal and anti-ideal solution, considering evaluations and a predefined weight vector;
OWA: This approach will prioritize identifying a candidate who globally outperforms competitors without a specific focus on any single competency;
Canós–Liern: This method aims to identify the candidate that best fits a predefined ideal profile set by the company;
Expert Evaluation Replication: Using competency evaluations of a candidate group by an expert, a linear programming model will generate a weight vector replicating the expert’s evaluation for a broader candidate pool.
The main objectives of this article are listed below:
Establish a ranking of candidates in a selection process to facilitate decision-making for identifying the most suitable candidates based on multi-criteria decision techniques;
Identify different scenarios to apply each multi-criteria decision method according to the different levels of knowledge of the required profiles according to the specific characteristics and needs of the companies;
Displaying the validity of candidate assessments across all competencies is crucial, as it forms the basis for employing an appropriate method to arrive at a beneficial selection.
2. Materials and Methods
HRM entails a multitude of challenges, particularly regarding social dynamics and the integration of each employee into the organizational framework [
21]. Moreover, companies have the potential to harness the benefits generated by employees in their job performance through socialization and integration into the organizational culture [
20,
22]. As a result, the strategic formulation of acquisition policies (recruitment, selection, hiring) and development strategies (training, career progression, promotions) becomes crucial.
This work will focus on the part of acquisition policies: personnel selection. This is crucial for the company’s survival, aiming to achieve an optimal workforce [
20,
22].
To objectify and quantify human resource magnitudes, we will use some multi-criteria decision-making techniques to support decision-making and be useful for company executives.
The methods employed in this study are widely used tools, such as OWA and TOPSIS. Additionally, two additional methods will be included: one that will replicate the results of an expert evaluator through an optimization method using a quadratic optimization program and another method to classify candidates if the company has an established ideal profile [
22].
The situation we aim to address with this work is as follows:
A company has
n candidates
P1,
P2, …,
Pn for
R0 < n job positions. The evaluation of each candidate in
m competencies
C1,
C2, …,
Cm is available, as shown in
Table 1.
To select the most suitable R0 candidates, the n candidates will be ranked, and the top R0 candidates will be chosen. In this work, we start with the evaluated competencies, meaning we must consider how and by whom they are evaluated.
To obtain an indicator capable of providing an overall assessment of each candidate based on the evaluations of their partial competencies, we will resort to two sorting options, as shown in
Figure 1.
- (a)
Based on distances: Calculate the distance to an ideal profile using the Canós–Liern method [
20,
22], or determine the ratio between the distance to an anti-ideal profile and the sum of an ideal profile and an anti-ideal profile using the TOPSIS method [
14].
- (b)
Based on aggregation operators: If the relative weight of each competency is known, we will use an ordered weighted average (OWA) with weighted means, as proposed by Filev and Yager [
23] and further developed by Yager [
23,
24,
25]. If the relative weights are unknown, we will first resort to an overall assessment of a subset of candidates and then apply an ordered weighted average (OWA) with weighted means, known as Expert + OWA [
22].
Figure 1.
Sorting methods according to company reality. Source: Own elaboration.
Figure 1.
Sorting methods according to company reality. Source: Own elaboration.
Each case and scenario will be explained below.
The company has an ideal profile for each competency and can assess candidates in these competencies. Subsequently, the candidate closest to this ideal profile will be the most suitable.
The method enables candidate selection by comparing the evaluated competencies C1, C2, …, Cm with a predefined optimal ideal profile I = (). Each competency is weighted using the weight vector , facilitating the selection of the candidate who best meets the company’s specific requirements.
Step 1. Establishing the ideal profile for the position: Determining the value of competencies that, in line with the sought-after position, best align with the performance of duties . If there is a preference for one competency over others in candidate selection, a weighting of competencies based on the selector’s needs will be conducted. This necessitates establishing a vector with weights assigned to each evaluated competency .
Step 2. Normalize the values of the data matrix: Once the competency assessments are obtained, it is necessary to normalize them. This involves dividing each term by the Euclidean norm of the column vector, as follows:
where
tij represents the normalized value. This will result in a new matrix with the normalized values:
Step 3. Introducing the weighting of evaluated competencies: Once the candidates’ data have been normalized, they should be multiplied by the vector containing the weights assigned to each competency. This process allows the prioritization of one or several evaluated competencies over others.
To construct the matrix normalized by weights
, each row of the normalized matrix is multiplied by the vector of weights
assigned to the
m evaluated criteria, i.e.,
,
Step 4. Calculate the distance to the ideal profile: To perform this calculation, we employ the Euclidean distance of each candidate
Pi to the ideal profile I.
Step 5. Sort the candidates: Once this process is completed for all candidates, they should be arranged in ascending order based on distance. This allows for the selection of one or multiple candidates with the closest resemblance to the ideal profile and/or who meet the assigned weightings for each competency.
From these obtained distances , we organize the candidates in the following manner.
Definition 1.
Given the candidates and distances , we can state that: Applying Definition 1, all candidates are arranged in order, and the top-rated candidates are selected.
This scenario occurs when the company needs a specific evaluation of the optimal profile for the position it aims to fill. It is understood that the hired candidate must meet specific requirements, but there is yet to be a previously established ideal profile. The decision in this scenario will be made using the TOPSIS method. It involves taking the best score for each competency and constructing ‘ideal’ and ‘anti-ideal’ profiles using the available data.
Each candidate is evaluated based on these created profiles, aiming to find the candidate whose scores deviate the least from the ‘ideal profile’ and the most from the ‘anti-ideal profile’ generated from the data.
The application algorithm of TOPSIS is based on evaluating a set of alternatives based on multiple criteria. It requires two fundamental elements for its application: an evaluated data set and a weight vector assigned to each of the evaluated criteria. The evaluated data matrix should contain information about each alternative and its performance relative to each evaluated criterion, and the weight vector should be used to establish the relative importance of each criterion in the evaluation [
26].
Once the necessary data and weights have been established, the TOPSIS application algorithm proceeds to normalize the data matrix, identify ideal solutions for each criterion, calculate the proximity of each alternative to these solutions, and rank the alternatives based on their similarity scores. This process helps identify alternatives closest to the ideal solutions, thus aiding decision-making aligned with relevant objectives and criteria [
14].
The algorithm is described below:
Step 1. Generate the decision matrix (
D): This matrix contains the information of the n evaluated candidates across m criteria.
Step 2. Construct the normalized matrix (
), where each element is divided by the Euclidean norm of the column vector, i.e.,
and we obtain a new matrix with normalized values (
):
Step 3. Construct the weighted and normalized matrix
. By using the weight vector
we calculate
1 ≤
i ≤
n, 1 ≤
j ≤
m, i.e.,
Step 4. We obtain the ideal and anti-ideal solutions. In each column, we search for the maximum and minimum values. These values will be considered ideal or anti-ideal based on the criteria used for the analyzed feature. For instance, if the criterion is a feature we want to maximize, we take the maximum value in the column as the ideal solution and the minimum value as the anti-ideal solution. Conversely, if the criterion is to be minimized, we would proceed oppositely [
14,
27,
28,
29].
Calculate the ideal,
and the anti-ideal,
solutions:
where
J is associated with “the more, the better” criteria and
J′ is associated with “the less, the better” criteria.
Step 5. Calculate the distance between each evaluated option and the ideal and anti-ideal solutions. For this calculation, the Euclidean distance between the weighted normalized vector Z and the ideal solution I is used, and the process is repeated to calculate the distance to the anti-ideal solution U.
The relative similarity of each evaluated option can be calculated as the ratio of the distance to the anti-ideal divided by the sum of the distance to the ideal and the distance to the anti-ideal [
26]:
The value is between 0 and 1. The value 0 indicates that the option is anti-ideal, and the value 1 indicates that it is ideal. Therefore, from the value, we can order the alternatives according to the following definition:
Definition 2.
Given the evaluated alternatives and the relative similarities , we can state that: Applying Definition 2, all candidates are arranged in order, and the top-rated candidates are selected.
Differing from the previous two methods, here, the weights are not associated with competencies but rather with a rearrangement of these. For instance, each candidate’s ratings can be sorted from highest to lowest, and based on this ranking, weights can be assigned [
23]. In this scenario, two perspectives can be considered: an optimistic one, where greater weight is given to the best scores, or a pessimistic option, where less weight is given to the initial scores. Any possibility between these two options is plausible.
To formalize this, we define ordered weighted averaging (OWA) operators.
Definition 3.
An OWA operator of dimension n is a function associated with a weight vector where such that , defined as:where is the i-th largest value in .
This scenario aims to find the ‘best’ candidate without considering the inherent ratings for each competency. Instead, these ratings will be arranged, and the assessment will be based on this order to find the ideal candidate.
Step 1. Sorting ratings obtained from candidates: Once the data have been presented, the rows should be sorted to have the best value from each candidate at the beginning of each column, regardless of which competency this value represents.
where
is the best-rated competency of candidate
and
is their worst-rated competency.
Step 2. Global assessment of each candidate: The solution obtained from this model provides the weight solution vector, aiding in the assessment of all candidates using a weighted sum of the ordered features with the obtained weight vector.
Step 3. Sorting candidates, presenting chosen options: Once this operation is performed, finding the best global assessment among all candidates participating in this selection model is possible. It is necessary to arrange the candidates’ results from highest to lowest, thereby obtaining the best-evaluated candidates.
After evaluating all candidates and all competencies with OWA, there is a collection that allows sorting candidates as follows:
Definition 4.
Given the candidates and the global assessments , we can state that: Applying Definition 4, all candidates are arranged in order, and the top-rated candidates are selected.
At times, when the number of candidates is high, obtaining expert and comprehensive evaluations for all of them proves to be a highly costly process, both in terms of time and finances. Hence, one option is to assess fewer candidates and attempt to ‘uncover’ the weights used, even if performed intuitively. Extensive literature [
20,
22,
23,
24,
25,
30] advocates that, for a global assessment not based on specific competency scores, the expert focuses more on what the candidate does best and worst, regardless of the competency involved.
Let us assume we have the opinion of a unique expert, E, who needs to be made aware of each candidate’s competency ratings. This expert globally evaluates L candidates, denoted as
,
, …,
, where
as follows:
Additionally, we have evaluated and ranked the competencies of these L candidates. In
Table 2, the rows are ordered from highest to lowest.
To incorporate this idea, we will use OWA operators in three steps.
Step 1. Through a least squares problem, we approximate the weights experts use in the small sample.
Step 2. We use the obtained weights to conduct an OWA analysis with the remaining candidates.
Step 3. We rank the candidates based on their aggregated evaluations.
We obtain the weights that best fit the evaluations using the following quadratic optimization program (
P).
The solution to
is the weight vector
. With this solution, considering the evaluations (arranged from highest to lowest in each row) of each candidate, we obtain:
Definition 5.
Given the candidates and their global evaluations , we can state that: 3. Results
Below are the candidate evaluations used for solving the cases in this study. The competencies (
Table 3) and their ratings for 50 candidates are presented in the
Appendix A (
Table A1 and
Table A2).
Table A1 displays the original data of the assessed competencies; these values will be used to solve Cases A and B.
Table A2 shows each candidate’s competencies arranged from highest to lowest; these values will be used to solve Cases C and D.
To present the values ordered from highest to lowest of the evaluated competencies in
Table A2, please note that C(j) does not represent the j-th competency, but rather the one that, once ordered, occupies the j-th position.
In
Figure 2, you can observe the necessary inputs and the formulation of the scenarios required or most suitable for utilizing each of the four proposed methods. Subsequently, you will find the development, and the results of each method applied to the problem in this study will be presented.
For solving this method, we will use the parameters given in
Table 4.
Applying Definition 1, we have the following ranking of candidates as expressed in
Table 5.
This time, it will be solved as an multi-criteria decision-making problem with 10 criteria (the 10 competencies studied). In this scenario, for all criteria, the aim is to maximize the value of each competency, and the weights used will be the same as in Case A.
Following the steps described in Definition 2, based on the evaluations of all candidates in all competencies, the ideal and anti-ideal solutions are presented in
Table 6.
The ranking of candidates is displayed in
Table 7.
Following the steps described in Definition 4, based on the values of
Table A2, the results are presented in
Table 8.
For the resolution of this case, the global evaluation performed by an expert on 10 candidates will be considered. These evaluations are presented in
Table 9:
Based on these evaluations, the programming model described in the case has been created.
The following weights have been obtained (see
Table 10), which will allow replicating the evaluation performed by the expert.
With these weights, as explained in Definition 5, the ranking of candidates is presented in
Table 11.
To facilitate the comparison between the rankings obtained with the four methods, we present a graph (see
Figure 3) and a summary where the coincidences in ranking between the different methods are highlighted by shading the cells (see
Table 12). Although exact matchings in the order are not numerous, looking at
Figure 3 suffices to confirm that the rankings in this case do not have a significant difference.
For instance, Candidate 12 is very well positioned with the three methods that do not require the involvement of an external expert. However, upon their participation, this candidate drops from the top position to position number 18.
4. Discussion
This study aims to analyze different approaches to multi-criteria decision-making concerning personnel selection. The aim is to decide on the choice of candidates, considering different levels of knowledge of the ideal profile being required. This study has analyzed and compared four scenarios to identify similarities and differences in applying each method. Specific parameters have also been defined to determine when the utilization of one method is preferable over another.
Our results demonstrate the following: In Case A, we identified the candidate who best fits the ideal profile defined by the company. The obtained order is determined by each candidate’s proximity to the ideal profile. These findings align with prior research. For instance, it has been determined that when a company is acquainted with the ideal profile and weighs each assessed competency for the job position, it can establish an optimal evaluation criterion to find the best candidate. This criterion leads to selecting candidates closely aligned with the company’s needs [
20].
In Case B, our results are determined by evaluating the relative proximity of each candidate, calculating their distance from both the “ideal” and “anti-ideal” solutions derived from the model. This analysis not only assesses candidates’ performance but also requires that competencies with lower scores are not excessively deficient. Preference is given to an outstanding candidate, even in areas where they could perform better. These findings align with prior research [
12]. Classification methods like TOPSIS enable us to conduct a candidate selection that ensures finding the most suitable individuals for the available positions. Implementing this model ensures that selected candidates not only excel in their strongest competencies but also that areas with lower scores are positioned as far as possible from the “anti-ideal” solution within the model.
In the third case, Case C, candidates’ ranking is based on their overall performance in evaluations, detached from specific performances in individual competencies. This approach emphasizes candidates’ highest scores, as the ratings are arranged from highest to lowest for the final assessment. This model offers a solution that can be highly beneficial in specific scenarios, such as when the company does not have any preference for the competencies evaluated. Through this model, priority can be given to higher scores to seek outstanding candidates in three or four competencies or to select the candidate with the most minor deficit, focusing solely on the three or four weakest competencies and basing the decision on that outcome. This finding indicates that aggregation methods like OWA have been extensively researched in decision-making environments, and their application in personnel selection has evolved into a valuable tool for team development. This outcome parallels the satisfactory outcomes achieved by Dwivedi and Vakil Zadeh [
18] in their research.
Finally, in Case D, the outcomes stem from emulating the preferences of a human resources expert, expressed within a small group of candidates, and replicated through a mathematical model. Theoretically, the results obtained using this method mirror the expert’s viewpoint, suggesting that this ranking would resemble the outcome if the expert had evaluated all candidates. These findings support previous research signifying the crucial role of the economic factor in establishing a quality selection process that aligns with corporate interests [
22,
24]. Also, emphasizing how leveraging an expert’s evaluation within a small group of candidates can be the starting point for a successful selection process [
22].
The use of these methodologies can significantly aid in human resources practices. Those leading these processes must have access to or know how these mathematical models can benefit this field. Particularly, small- and medium-sized enterprises can leverage these multi-criteria decision-making techniques to ensure that their hiring decisions align with the company’s objectives. Different models can be tailored to the specific needs of each company and can significantly enhance their selection processes. Additionally, these models can be extended to other areas of the company, such as promotions and compensation, among others.
This study encountered several limitations, with access to evaluated individuals’ data being one of the most significant. While the 50 subjects in this study provide relevant information, having more data from the evaluated individuals could generate more robust results that support decision-making. Additionally, this study did not consider the evaluation method used for these individuals; only data collected after the evaluation were included. Furthermore, one of the inherent challenges in using multi-criteria decision methods in real personnel selection situations arises from the subjectivity associated with assigning weights to the various criteria, which is compounded by variations among different decision-makers. Determining the relative importance of each criterion thus becomes a complex process that often lacks consensus. In addition, the effective implementation of these methods requires a certain level of expertise, which implies that decision-makers must be adequately trained to understand and apply these methodologies, which can be a limitation in real-world environments.
Future research could involve implementing fuzzy logic, allowing the development of more robust and versatile multi-criteria decision-making or optimization models capable of considering a broader range of scenarios to enhance the decision-making process. It would also be pertinent to integrate these models, whether fuzzy or not, into candidate evaluations to enhance the quality of information before utilization. Expanding the use of multi-criteria decision-making to other areas of human resources will enable companies to manage their most valuable resource, their employees, more effectively.