Page 452 - PM Integrated Workbook 2018-19
P. 452

Chapter 15









                   Example 2





                   Def Co provides accounting services to government departments. On
                   average, each staff member works six chargeable hours per day, with the rest
                   of their working day being spent on non-chargeable admin work. One of the
                   company’s main objectives is to produce a high level of quality and customer
                   satisfaction.

                   Def co has set its targets for the next year as follows:

                   (1)   Cutting departmental expenditure by 5%

                   (2)  Increasing the number of chargeable hours handled by advisers to 6.2
                        per day


                   (3)  Obtaining a score of 4.7 or above on customer satisfaction surveys.

                   Which of the following options allocates the above targets to the correct
                   value for money performance category?

                                     Economy                      Efficiency         Effectiveness

                                         (1)                          (3)                  (2)
                                         (2)                          (1)                  (3)

                                         (3)                          (2)                  (1)

                   x                     (1)                          (2)                  (3)
                   Target 1 is a financial target and so assesses economy factors.


                   Target 2 is measuring the rate of work handled by staff, which is an efficiency
                   measure.


                   Target 3 is assessing output, so is a measure of effectiveness.

















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