Chapter 15: Performance measurement in not-for-profit organisations and the public sector

Question 1

What would you measure in a Uni overall vs individual department or faculty as a NFP?

Answer 1

Overall:
Over cost vs budget
no of students
amount of research funding received
proportion of successful students by grade
quality of teaching - measured by student and inspector assessments
no of publications by staff

Individual:
cost per student
cost per exam pass
staff/ student ratios
students per class
no of teaching hours per member of staff
availability of learning resources
no of library books per student
average age of library books

Question 2

What are the objective on NFP

Answer 2

Not to make money but to benefit a certain group of people
Use financial and non-financial objectives

Multiple stakeholders= Multiple objectives
Prioritise objectives/ compromise

Non-financial objectives are usually more important and complex;
hard to quantify e.g quality of care
multiple & conflicting objectives are more common in NFP e.g quality of patient care vs no of patients treated

Question 3

What does value for money comprise of

Answer 3

1) economy - input measure- cheapest materials for quality required?

2) efficiency - link inputs and outputs- is max output achieved from resources used?

3) effectiveness- output measure- objectives met?