ACCA Applied Skills · Performance Management · Performance analysis in private sector, public sector and not-for-profit organisations
Which of the following is a characteristic that makes performance measurement in public sector organisations harder than in private sector companies?
Public sector bodies have multiple, sometimes conflicting objectives set by various stakeholders, such as quality, access and cost. With no single profit measure and outputs that are hard to quantify, performance is harder to assess than in private companies.
- AMultiple, sometimes conflicting objectives set by various stakeholdersCorrect
- BA single overriding objective of maximising shareholder wealth
- CEasily quantifiable outputs such as sales revenue
- DUnambiguous measure of success through market share only
Explanation
Public bodies serve many stakeholders with differing and often conflicting objectives, and outputs are hard to quantify. Private companies usually have a dominant financial objective, with measurable revenue and profit. The other options describe private sector features.
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