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Performance measurement in not-for-profit organisation

Value for money

 VFM is interpreted as providing an economic, efficient and effective service.

 Appropriate performance indicators should be chosen for each ‘E’.

3Es Examples for a university Example PI for a university

Economy – The cost of books, computers  Measure the cost of books,
an input and academic staff compared computers and academic staff
measure with the quality of these
resources  Measure the quality, e.g.
student feedback rating on
quality of academic staff

Effectiveness  Achieving top degrees  % students achieving a target
– an output for students grade
measure
looking at  Carrying out quality  Excellent research rating
whether research awarded by external body
objectives are
being met  Getting graduates into  % students entering the
the workplace workplace within 6 months of
graduating

Efficiency – Are the books, computers  % time books, computers used
links inputs to and academic staff invested by students
outputs. Is the in being used efficiently?
maximum  % time academic staff spend
output being teaching
achieved from
the resources
used?

Illustrations and further practice

Now read illustration 4 ‘Value for Money’ and try TYU 4.

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