Chapter 15 - Performance measurement in NFP organisations and the public sector

Question 1

What are NFP sector incorporations?

Answer 1

a diverse range of operations including nation government, local government, chartities, trusts and so on

Question 2

What are the benefits arising from expenditure by NFP organizations?

Answer 2

non-quantifiable (social welfare)

Question 3

What is the main objective for NFP organisations?

Answer 3

not to make money but to benefit prescribed groups of people

Question 4

With NFPs why are non-financial objectives more important and complex?

Answer 4

• most key objectives are very difficult to quantify, especially in financial terms e.g., quality of care given to patients in the hospital
• multiple conflicting objectives are more common in NFPs e.g., quality of patient care vs number of patients treated

Question 5

What is value for money?

Answer 5

interpreted as providing an economic, efficient and effective service

Question 6

What are the 3 Es?

Answer 6

Economy
Effectiveness
Efficiency

Question 8

What is economy?

Answer 8

an input measure e.g. cost of books, computer and staff compared with the quality of them

Question 9

What is effectiveness?

Answer 9

an output measure looking at whether objectives are being met e.g., achieving top degrees, carrying out research

Question 10

What is efficiency?

Answer 10

links input to outputs. Is the max output being achieved from the resources used?