World Applied Sciences Journal 16 (2): 300-312, 2012 ISSN 1818-4952 © IDOSI Publications, 2012 Corresponding Author: Alireza Aftabi, Department of Management, Islamic Azad University, Semnan Branch, Semnan, Iran. Tel: +989121504877, Fax: +982126116882. 300 Evaluation and Weighting Balanced Scorecard Critical Factors by Means of Fuzzy Analytic Hierarchy Process (A Case Study) Mohammad Mahdi Farrokhi, Alireza Aftabi and Mohammad Hemati 1,2 1 1 Department of Management, Islamic Azad University, Semnan Branch, Semnan, Iran 1 Young Researchers Club (YRC), Islamic Azad University, Semnan, Iran 2 Abstract: Complexity of environment of business competitive arena and increased customers' expectations has made necessity of getting awareness from strong and weak points of organization and consecutive improvement of efficiency clear and apparent more than before. Hence, attaining a comprehensive performance evaluation, confident, trustable and flexible method is one of major and basic concerns of current organizations, aimed at obtaining enough and accurate information about their status through resorting it. With their outlook to future, these organizations need a compressive flexible method to take lesson from their previous mistakes. With the application of a performance measurement system based on strategy, activities and affairs can be managed effectively, efficiently and degree of success, work output and work progress can be measured in materialization of strategic objectives. For identification and recognition of their current situation and getting progress and success in contemporary competitive world of today, organizations should take advantage of methods and patterns consecutively with the aim of consecutive evaluation and improvement of their performance and current activities at organization. Organizations’ performance measurement systems are considered for controlling harmoniousness of programs and activities of the organization with the mission and outlook, which determines movement and growth trend of organization for attaining competitive advantage in processes, growth and success indicators. The objective in this study is to construct an approach based on the fuzzy analytic hierarchy process (FAHP) and balanced scorecard (BSC) for evaluating a manufacturing firm in Iran. The BSC concept is applied to define the hierarchy with four perspectives (financial, customer, internal business process and learning and growth) and performance indicators are selected for each perspective, then priority indexes. In this paper BSC and FAHP has been integrated together in case study that is one of the manufacturing company in context of mould making in glass industry of Iran. Key words: Performance evaluation Fuzzy analytic hierarchy process (FAHP) Balanced Scorecard (BSC) INTRODUCTION Performance evaluation is one of the main duties of Performance evaluation is an assessment model aspects which has been carried out more in previous to compare past plans and executions of strategies, through the application of financial indicators. In recent operating activities and target establishment of two decades, subjects like organizational learning, organizations with executive abilities, participating rate creation of knowledge and capacity of innovation have and competing rate of employees. Furthermore, this been taken into consideration as determining factors assessment model is helping organizations to plan of competitive advantage and such concentration has future strategies and set up performance targets of been related due to the emergence of globalization, employees in order to achieve the final target of the entire intensification of competition and unprecedented organization, Stated that ‘‘Performance evaluation is for progress of technology especially in the field of achieving the entire target. It bases on the quantification communications and information technology (IT). For standard made in advance or using subjective judgment this reason, organizations are under severe pressure for to assess the result of daily operation [1]. seeking comprehensive indicators measuring size of every organization and one of performance management