In: Psychology
QUESTION TWO (2)
a) The absence of the profit measure in non-profit seeking
organisations causes problems for the measurement of their
efficiency and effectiveness.
Required:
(i) Explain why the absence of the profit measure should be a cause
of the problems referred to. (ii) Explain how these
problems extend to activities within business entities which have a
profit motive. Support your answer with examples.
b) A public health clinic is the subject of a scheme to measure its
efficiency and effectiveness.
Amongst a number of factors, the 'quality of care provided' has
been included as an aspect of the clinic's service to be measured.
Three features of 'quality of care provided' have been
listed.
(i) Clinic's adherence to appointment times (ii) Patients' ability
to contact the clinic and make appointment without difficulty
(iii)The provision of a comprehensive patient health monitoring
programme
Required: (i) Suggest a set of quantitative measures which can be
used to identify the effective level of achievement of each of the
features listed. (ii) Indicate how these measures could
be combined into a single 'quality of care' measure.
(Total = 30 marks)
a) The absence of the profit measure in non-profit seeking
organisations causes problems for the measurement of their
efficiency and effectiveness.
Required:
(i) Explain why the absence of the profit measure should be
a cause of the problems referred to. (12 marks)
The absence of profit causes a problen to non-profit seeking organizations because of absence of fund for them to initiate other new activities. This makes them ineffective when they want to pursue new activities for social cause.
(ii) Explain how these problems extend to activities within business entities which have a profit motive. Support your answer with examples. (6 marks)
The problems extend in case of business entities having profit motive when these entities are going through the phase of downturn or economic recession. In such scenario these business entities have problems (examples):
(1)to fund their working capital requirement
(2)to service their debt
(3)payment of wages and salaries
(4)Initiation of new projects
(5)payment of dividend to shareholders.