Further Aspects (2) Flashcards
Do NFPOs and public sector organisations have wealth maximisation as a primary objective?
No
How can performance be measured in piblic sector organisations?
Through value for money as part of the continuing process of good management
What is value for money (VFM)?
Means providing a service in a way which is economical, efficient and effective
What is meant by economy?
Attaining the appropriate quantity and quality of inputs at the lowest cost
What is meant by efficiency?
Relationship between inputs and outputs
What is meant by effectiveness?
The relationship between an organisation’s outputs and its objectives
Problems arise for not for profit and public sector organisations during target setting? (measure)
Selecting a suitable measure for performance
Problems arise for not for profit and public sector organisations during target setting? (data)
Having data which by its very nature is not quantified
Problems arise for not for profit and public sector organisations during target setting? (system)
A lack of system for collecting data about qualitative areas
What are stakeholders?
A group of people or individuals who have a legitimate interest in activities of an organisation
What do stakeholders include?
Customers
Employees
Community
Shareholders
Suppliers
Lenders
What groups can stakeholders be broken down into?
Internal
Connected
External
What are internal stakeholders?
Employees
What are connected stakeholders?
Shareholders, customers, suppliers
What are external stakeholders?
Community and the government
