Page 442 - F2 - MA Integrated Workbook STUDENT 2018-19

Chapter 16

Non-profit and public sector

There are said to be two main problems involved in assessing performance of these
organisations:

 the problem of identifying and measuring objectives

 the problem of identifying and measuring outputs.

One way to address this problem is to use the Value for Money concept that revolves
around the 'three Es approach':

VALUE FOR MONEY

ECONOMY EFFICIENCY EFFECTIVENESS

Money spent Inputs purchased Outputs produced

v v v

Inputs purchased Outputs produced Objectives achieved

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