Financial Diagnosis as a Tool of Improving the Performance of an Organisation

Izabela Pop

North Economic Review, 2017, vol. 1, issue 1, 291-302

Abstract: The financial difficulties of many countries have led to the need of finding solutions for a better use of public money. Emphasis is placed in a more significant extent on more efficient use of state resources in each public institution. To achieve this goal, management tools specific to private companies have been adapted and implemented in the public sector. As this approach is relatively new, there is little information on the impact of using these instruments by public institutions. Based on these considerations, the aim of this research is to analyse the extent to which performance of a financial diagnosis improves the results of organizations within the public sector. Following the case study conducted at the County Museum of Art «Baia Mare Artistic Center», it was found that after three years since the diagnosis was performed, the institution’s own revenuesincreased by more than 60%. However,some recommendations have not been implemented, reason why the performances are below the expected level. One of the causes of this situation is the legal system in Romania, which does not stimulate the efficient use of public money, despite the numerous restrictions that exist in terms of spending financial resources of the government.

Keywords: financial and economic analysis; performance; efficiency; museums; budget (search for similar items in EconPapers)
JEL-codes: H21 H72 H83 M29 M42 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://ner.cunbm.utcluj.ro/wp-content/uploads/2017/10/NER-2017.33.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:clj:noecrw:v:1:y:2017:i:1:p:291-302

Access Statistics for this article

North Economic Review is currently edited by Diana Ighian

More articles in North Economic Review from Technical University of Cluj Napoca, Department of Economics and Physics Contact information at EDIRC.
Bibliographic data for series maintained by Izabela Luiza Pop ().