Performance Evaluation In A Non-Profit Organization
Unlike commercial organization which are profit orientated, there are non-profit organizations like charities, public services,etc which are expected to break-even instead of making profit. In this non-profit organization, there are no profit centres or investment centres but we will still see a decentralized environment with revenue and cost centres.
Unable to use such ratio like return on capital employed or residual income, therefore,the question for performance evaluation exercise in non-profit organization is to find generally accepted practices/measures. Some organizations use ratios based on:
- cost per unit of service to measure performance eg cost per patient treated in a hospital, administratin cost per $ funds raised in a charity
- non financial ratios like percentage(%) growth in membership of an association or members per 1,000 populatio for a political party.
- Return On Capital Employed Versus Residual Income As Divisional Performance Evaluation Tools
- What is Activity based budgeting and briefly describe how it could bring improvements to the budgeting process of an organization
- KPA/KPI: Practical Challenges In Implementing Targeted Performance Management (TPM)
- What Is An Effective Transfer Pricing System In A Divisional Organization
- Targeted Performance Management (TPM) – An Overview
- Foreign Exchange Management: Performance Management
- Advantages and Disadvantages of Using Economic Value-Added (EVA) As Performance Indicator or KPI
November 12, 2007
Posted in: Performance Mgmt
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