Use of the Analytic Hierarchy Process and Selected Methods in the Managerial Decision-Making Process in the Context of Sustainable Development

Abstract

This article describes the Analytic Hierarchy Process (AHP) method which can be calculated by several methods. The AHP method is essential for the managerial decision-making to recognize which method is efficient for the calculation and to determine the proper order of criteria. In the article there are included methods that can be used in order to calculate the matrix in the AHP process for setting criteria such as Geometric mean, Arithmetic mean, Row sum of the adjusted the Saaty matrix, Reverse sums of the Saaty matrix columns and Row sums of the Saaty matrix. The paper is focused on the accuracy of the methods used. The results show that the most accurate method is the Saaty method, and the second most accurate method is the geometric mean in order to determine the ranking. This method is easier to use when the same order is achieved as in the Saaty method, followed by Geometric mean, which is favourable for fast and easy determination of alternatives using in the AHP process. The survey carried out among managers graduated from Universities and Colleges in Slovakia showed that the respondents considered the Saaty method as the most complex and also the most difficult method and the geometric mean average method the simplest method. 44% of respondents stated that they are capable to use a program to calculate the AHP. 46% of respondents said they had experience with some method related to the managerial decision-making process. 72% of managers regarded as important to manage some method for decision-making in their managerial position.