The Preliminary Study of Applying TOPSIS Method to Assess an Elderly Caring Center Performance Ranking

Transcription

1 Journal of Busness and Management Scences, 208, Vol. 6, No., Avalable onlne at Scence and Educaton Publshng DOI:0.269/jbms-6--5 The Prelmnary Study of Applyng TOPSIS Method to Assess an Elderly Carng Center Performance Rankng Lao Lng-Chu * Department of Accountng, Shh Chen Unversty, Tape Cty, Tawan *Correspondng author: lngchu@g2.usc.edu.tw Abstract It s most mportant to evaluate performance between proft and not-proft organzatons. Proft- the bottom lne -s an unambguous measure of a busness organzaton s effectveness. Not-for-proft organzatons make performance measurement more dffcult. However, we do not thnk ths means that managers n those organzatons can gnore fnances for contnuous operatng. The study analyze ten successve years nonfnancal and fnancal nformaton varables of the case elderly carng center, rankng surface reflectvty can help the strategc decson-makng. Usng TOPSIS method as based on fnancal and nonfnancal nformaton of ten consecutve years for an elderly carng center to examne past performance and systematcally explorng alternatve ways to make better-nformed decsons n the future. The results ndcate based on the comparson among of the ten years, performance rankng from the frst to sxth are respectvely 203, 20, 204, 205, 206, and 20. Among the ten years, there are four years (e.g. 2007, 202, 203, and 206) are as excellent by the government n Tawan. The elderly carng center also has good executon effcency n accordance wth budgets at the end of year. As an excellent elderly carng center should has a unque operatonal pattern and TOPSIS s very usefully to support organzatonal strategc decson-makng. Keywords: TOPSIS method, elderly carng center, performance rankng Cte Ths Artcle: Lao Lng-Chu, The Prelmnary Study of Applyng TOPSIS Method to Assess an Elderly Carng Center Performance Rankng. Journal of Busness and Management Scences, vol. 6, no. (208): do: 0.269/jbms Introducton Populaton agng s a global trend of the 2 st century, as the global socety has gradually become an ageng socety, governments and enterprses are very aggressveness n elderly nursng and carng servces n the Tawan. From the nternatonal development of elderly welfare polces, the Unted Natons has confrmed health and welfare as two major ssues relevant to the elderly. The World Health Organzaton put forward the core values of Actve Ageng n 2002 []. In order to promote the lvng qualty of elders that must be consder the Optmzed of health, partcpaton, and safety to enhance ageng becomng nto a postve experence. Ths s also the man reference structure for nternatonal organzatons to formulate health polces for the elderly. In 203, Tawan s Mnstry of Health and Welfare ponted out wth the progress of health care, the average lfe expectancy and brth rate decreased sgnfcantly. Tawan s elderly people s up to 7% of the total populaton n 993, offcally entered the agng socety defned by the Unted Natons, untl the end of October 203, ths proporton had reached.43%. Accordng to the statstcal data publshed by the Mnstry of the Interor on Aprl 9, 207, the number of the elderly reached 33,9000 on February, exceedng of chldren less than 4 years old (33,4000) for the frst tme, and the ageng ndex was 00.8, hgher than 00 for the frst tme. The Councl for Economc Plannng and Development, Executve Yuan was estmated that the number would be exceed 4% turnng nto Aged Socety n 208. Further, the number wll be exceed 20% agan n 2025, then turnng nto Supper Aged Socety [2]. Tawan s populaton structure s confronted by two challenges overall: frst, the future ageng speed s hgher than European countres and the U.S.; second, the rato of the functon of elderly carng for by famly members has been decreased. Thus, the government enhanced ther guarantee to protect elderly economc safety by the natonal penson system; about the elders lackng self-carng capablty supported by Tawan s 0-year long-term care plan n current. Tawan s Long-term Carng Servce Law was examned and approved by the Legslatve Yuan on June n 205, and fully and formally mplemented n 207. The Mnstry of Health and Welfare formulated the sub-laws and sub-regulatons, planned relevant support measures, spared no efforts to promote the 0-year long-term care plan 2.0, accelerated the development of long-term servce resources, and generalzed long-term care servces. Moreover, t checked resources, combned wth cvlan power, and actvely expanded the dversfed care servce mode n communtes to cope wth the demands of an ageng socety. In Tawan, the elderly welfare organzatons consst of long-term nursng organzatons and elderly carng nsttutons. The former can be classfed nto elderly long-term care nsttutons, elderly nursng nsttutons, and elderly dementa care nsttutons,

2 Journal of Busness and Management Scences 23 the latter provdes nursng and carng servces. Long-term nursng organzatons provded the servces of the elderly wth long-term chronc dseases and requre health care, and care for the elderly that lack self-help abltes or the elderly requrng nasogastrc tubes and catheter care servces. Elderly dementa care nsttutons care for the elderly dagnosed as more than moderate dementa by specalsts, such as physcans of neurology and psychatry departments, meanng they are able to act but requre carng. Elderly carng nsttutons care for the elderly requrng others care, those who do not have relatves wth the duty to support them, or whose relatves wth the duty to support do not have the ablty to support them, and who can take care of themselves. Accordng to the statstcs of the Mnstry of Health and Welfare on Aprl 30 n 207, the total number of elderly long-term nursng organzatons and long-term care nsttutons were 085, and total number of people was 6,425, actually had been lved 47,275 people, t reached 77% of the total number of people. Let us know the vew that the elderly are very wllng to lve there [3]. The Mnstry of Health and welfare s a welfare nsttuton that manages domestc ssues for the elderly; accordng to the Elderly Welfare Law -Artcle 3, the central governng authorty holds an evaluaton at least once every three years that the evaluaton ams are promoted the busness development and operatonal management concepts of elderly welfare nsttutons, enhanced servce qualty to ensure the elderly can acqure the overall servces from the nsttuton. Elderly welfare organzatons became a socal trend, whch confronted wth operatonal revoluton and nnovaton orentaton [4]. It s an mport ssue that the organzatons how to provde professonal experence for elders, follow the standards under governng authorty s evaluaton, and acheve operatonal management objectves The term of performance refers to the degree of acheved specfc busness goals. The purpose of performance evaluaton s to measure actual performance n order to nform managers of how well they and ther sub-unts are dong. Lnkng both ntrnsc and extrnsc rewards to performance helps motvate managers. For the nonproft care organzaton ndustry, mprovng operatng performance has always been the goal of management. Thus, the problem nvolves mult-crtera, mult-project, mult-personal, and multnatonal consderatons, whch all are a part of mult-crtera decson makng (MCDM). Elderly welfare organzatons must provde long-term care and professonal servces for the elderly, thus, what key success factors are needed n order to provde such servces n a compettve ndustry, meanng sustanng mantenance of natonal communtes, whle consderng cost management and operatonal performance The process should satsfy multple crtera, as well as address alternatves and varyng opnons. Therefore, although dffcult, how to acheve operatng performances that support the best servces for elderly care organzatons s an mportant ssue. The amed of ths study used TOPSIS method to analyze ten successve years nonfnancal and fnancal nformaton varables of the case elderly carng center. Rankng surface reflectvty can help ther strategc decson makng. 2. Materals and Method The subjects of ths study s elderly carng center that operate carng servce n northern Tawan. Ths study took elderly carng center establshed snce 2000 for the frst stage, the second stage snce 2003, then 2009, and untl now. The center are near both mountans and beach, whch provde surroundngs wth beautful scenery, peace, and tranqulty. Ths study also selects elderly carng center that provde dementa care dvson (unt care), an elderly communty college, an eldercare research center, a communty care staton, home care, msson centers, etc. Due to the hghly professonal performances of the case elderly center, the current watng lst has more than a thousand people. In order to gve the most perfect attendance and sncerty servce to the complete care to elders, the center has hred professonal persons to take care of them, provdes medcal clnc servces, vared classes, and sprtual counselng. By combnng vared functons n the center, and cooperatng wth ndustry, government, and academc nsttutons, t strves to ntegrate academc professonal knowledge and experence to creatng satsfactory servces to elders, and meet ther daly lvng needs to realze the care of elder ctzens. 2.. Statstcal Analyss of Data The decson makers of ths study were government agences, experts, academc scholars, and management of the case elderly carng center. There were dfferent eght nonfnancal and fnancal crtera, nonfnancal crtera ncludng Number of employee and Number of servce; fnancal crtera ncludng operatng revenue, expendture, salary and wage, operatng ncome, government subsdy, and captal expendture was shown n Table. The statstcal descrpton analyss and correlaton analyss of all varables were shown n Table 2 and Table 3. Table. Defntons of performance crtera of the case elderly carng center Performance crtera Code Defntons of crtera Number of employee No. E Number of employee s the hrng staff of the elderly center Non-fc. * Number of servce No. S Number of servce s the servce elders n the elderly center Operatng revenue OR Operatng revenue s the servce revenue from carng elders Expendture E Expendture s the regular expenses n the operatng process, excludng salary and wage Fc. ** Salary and wage SW Salary and wage are the rembursement of Employees Operatng ncome OI Operatng ncome s the resdual of deductng operatng cost from Operatng revenue Government subsdy GS Government subsdy s a reward and grant from local or government Captal expendture CE Captal expendture s the expendture of makng long-run plannng decson for nvestments Note: * Non-fc.: Nonfnancal crtera, ** fc.: fnancal crtera.

3 24 Journal of Busness and Management Scences Table 2. The statstcal descrpton analyss of all varables No. E No. S OR E SW OI GS CS Mn , , , , , ,38.00 Man , , , , , , Average , , , , , , Std , , , , , ,43.56 Table 3. The correlaton analyss of all varables No. E No. S OR E SW OI GS CS No. E ** ** 0.70 * ** ** No. S ** ** * ** ** OR ** ** * ** 0.97 ** E * * * SW ** ** ** ** OI ** ** ** ** GS CS * * Note:. The upper rght corner s Pearson correlaton analyss, the lower left corner s the Spearman rank correlaton analyss. 2.*: p<0.05, **: <0.0. TOPSIS s a performance evaluaton tool successfully appled to many knds of research such as envronmental qualty mprovement strateges [5], alternatve-fuel buses for publc transportaton [6], large project solutons [7], customer-drven product desgn processes [8], evaluatng the compettve advantage of shoppng webstes [9], suppler evaluaton and selecton [0,], evaluaton of the performance of property lablty nsurance companes [2], evaluaton of expressway bus transportaton performance [3], evaluatng ntal tranng[4], ocean freght forwarder [5], callng port of a case shppng company [6], and elderly welfare nsttutons [7]. Thus, our study consder usng TOPSIS to rank the performance of a case of elderly carng center. Sun and Ln (2009) ponted out we should follow sx steps when usng TOPSIS method as follow [9]. () Calculate the normalzed decson matrx. The normalzed value r j s calculated as r r2... r j... r n r2 r22... r2 j... r2 n R = r r 2... rj... rn rm rm 2... r mj... rmn rj = xj m 2 xj = () (2) Calculate the weghted normalzed decson matrx. The weghted normalzed value V s calculated as wr wr wr j j... wr n n wr 2 wr wr j 2 j... wr n 2n V = wr wr wr j j... wr n n wr m w2rm 2... wr j mj... wnrmn (2) Where w ( w w w ) =, 2,..., n s the weght of the attrbute or crteron and n w j =. j= (3) Determne the deal and negatve-deal soluton. max vj j J, + A = ' mn vj j J I =, 2,..., m (3) = v, v2,..., vj,..., vn ( ) mn vj j J, A = ' max vj j J I =,2,..., m = ( v, v2,..., vj,..., vn ) (4) j =, 2,..., n (4) Measure the separaton of alternatves from the deal solutons. The separaton of each alternatve from the deal soluton s gven as ( ) 2 n S + = vj v j j=, =, 2,..., m (5) Smlarly, the separaton from the negatve deal soluton s gven as ( ) 2 n S = vj vj j=, =,2,..., m (6) (5) Calculate the relatve closeness of each alternatve to the deal soluton. The relatve closeness of the alternatve s defned as C = S S + + S (7)

4 Journal of Busness and Management Scences < C <, =,2,..., m. (6) Fnally, rank the preference order. 3. Result The decson makers measured the relatve mportance weght of each crtera, whch are summarzed n Table 4. The data s shows that the most mportant crtera n evaluatng performance s Expendtures, Operatng revenues, and Operatng ncome, ndcatng that revenue and cost factors absolutely determne the benefts of elderly care center. The normalzed decson matrx used by Equaton () s shown n Table 5. The weghted normalzed decson matrx used by Equaton (2) s shown n Table 6. For determnng the deal and negatve-deal solutons, the study utlzes Equatons (3) and (4), wth the results are shown as follows , , , , A + = , 0.083, 0.007, , , 0.042, , A = 0.077, , 0.003, We subsequently employed Equatons (5) and (6) to calculate the separaton of each alternatve soluton from the deal soluton, as demonstrated n Table 7. Followng Equaton (7) s shown n Table 8 whch ndcatng the operatng performances of 203, 20, 202, 206, 204, and 205 were respectvely ranked from frst to sxth that may be consdered to be the best maxmzng of the expected performance, n ths case of elderly care center, to concentrate ts operatng resources and strengthen ts mplemented strategy. Table 4. The weght of each crtera No. E No. S OR E SW OI GS CS Weght Table 5. The analyzng results of normalzed decson matrx Year No. E No. S OR E SW OI GS CS Table 6. The analyzng results of weghted normalzed decson matrx Year No. E No. S OR E SW OI GS CS Table 7. The separaton measure of each alternatve soluton from the deal soluton Year S S Table 8. TOPSIS rankng lst of each alternatve Year C Rankng

5 26 Journal of Busness and Management Scences 4. Concluson The amed of ths study used TOPSIS method analyzng performance of a case elderly care center regardng ther nonfnancal and fnancal nformaton varables of ten successve years. Rankng surface reflectvty can help n makng strategc decson. The results ndcate based on the comparson among of the ten years, performance rankng from the frst to sxth are respectvely 203, 20, 204, 205, 206, and 20. Among the ten years, there are four years (e.g. 2007, 202, 203, and 206) are as excellent by the government n Tawan. Although 2007 and 200 are not among the top sxth performance rankng, also recevng excellent. The elderly carng center also has good executon effcency n accordance wth budgets at the end of year. Owng to the management efforts to expand ther fnancal sources, the no-operatng revenues have been ncreasng year by year, and the acqurng of personnel allowance from the government also encourage ncreased employment and reduce fnancal burden. The elderly nursng and carng servces has turned from relef and resettlement to slver ndustry, and from welfare servce, free competton market turn nto busness management orentated pattern. There are the success factors of elderly nursng and carng nsttuton operatons has sx factors, such as operaton concept, work group, resources, professonal servces, nsttuton head, and locaton selecton [8]. Facng the changng, competng, and demands, nursng organzatons and elderly carng nsttutons should be applyng the key success factors of cost and effcency, qualty, tme, and nnovaton to promote sustanable to acheve long-term fnancal socal, and envronmental goal. Ths paper nvestgated and learned wth the results of ten years of nonfnancal and fnancal nformaton of the case elderly carng center, whch nvolves examnng past performances and systematcally explorng alternatve ways to make better-nformed decson and plan for the future. Wth the ncreasng of the agng socety, the slver group has more and more demands for elderly nursng and carng nsttuton servces. Concentraton rato, servce capacty of the elderly populaton, number of elderly people, and per capta ncome (dollars) are the factors that affect the operatng effcency of the nursng and elderly carng organzaton. Areas wth a hgh concentraton rato and the hgher servce capacty of the elderly populaton that can be served by the nursng home all belong to or tend to be olgopoly market and have a negatve mpact on operatonal performance [9]. When settng up an elderly carng organzaton, management not only need to refer the number of elderly people n the area and the number of nursng and elderly carng organzaton, but also consder market attrbutes n order to avod too concentrated ndustral resources and cause a strong resource crowdng-out effect. In areas where the more elderly serve and the lower market concentraton (hgher competton degree), a postve effect for operatonal performance. Under the lack of concentraton of ndustral resources, nursng and elderly carng organzaton may can develop strategc allances wth other nursng and elderly carng organzaton, to enhance dversfed servces, flexblty adjustment, tmely, and provde more promoton for the demands. As an excellent of the case elderly carng center, regardng operatonal concepts and fnancal scales has a unque operatonal pattern. They must be consstently to mprove the servce qualty and compettve advantage. In the operatng process, comply wth the phlosophy, practces, value of the organzaton and accordance wth the rule of government authorty to enhance the corporate socal responsbltes. Ths study also concludes that TOPSIS s a usefully tool for evaluaton performance and supportng organzatonal strategc decson-makng. References [] WHO. (2002).Actve Ageng: A Polcy Framework Pages -37. Publshed onlne: 06 Jul [2] Mnstry of Health and Welfare, Tawan. (207). 207 Local Health Authortes Operaton Assessment Manuals. Avalable at: ec97b8.html. [3] Mnstry of Health and Welfare, Tawan Frendly care for the elderly servce program. Avalable at: 967e-ea8ef4d029.pdf. [4] Mnstry of Health and Welfare, Tawan. (205). No. BSJZD Avalable at: e084-40f3-93e3-f2e62dc0a396.pdf. [5] Tzeng, G. H., Tsaur, Y. D., Law, Y. D., and Oprcovc. S. (2002). Multcrtera analyss of envronmental qualty n Tape: Publc performance and mprovement strateges. Journal of Envronmental Management, 65 (2), [6] Tzeng, G. H., Lne, C. 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