Question

Title: Interpreting criteria: Process Management

How to evaluate an organization according to the operational and financial execution criteria?

Answer 1

The operations part of a business is critical to the success of an organization. An organization’s performance is evaluated according to its operational execution criteria such as the availability of resources, infrastructure and the capabilities of the organization. The organization is evaluated based on these operational requirements that help to assess if the organization can produce the desired products or services. In other words, the operational requirements form the basis of an organization’s evaluation such as the measurement of performance, effectiveness, efficiency, sustainability, etc to be successful in the industry.

On the other hand, the financial execution criteria to evaluate an organization are the assessment of the working capital, investments, financial statements, etc to identify if the organization is reaping profits or not. The financial execution criteria help an organization to plan well in advance on the financial needs of the organization. In terms of process management, the financial criteria are the required investments for the inventory, manpower, infrastructure, etc.

To conclude, it is pertinent to say that both the operations and financial execution criteria are important to evaluate an organization to assess its efficiency and capability for the smooth functioning of the business.