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A process is efficient where the production cost is minimised for a certain quality of output, or outputs are maximised for a given volume of input. In a public sector context, efficiency is generally about obtaining the most benefit from available resources; that is, minimising inputs used to deliver the policy or other outputs in terms of quality, quantity, and timing.
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- RMG 137
Related resources including tables and data templates,...
- Reporting Period
- Abstract:
- 1. Introduction1
- Box 1: Problems with cross-country comparisons
- 2.3 Measuring achievements - the outcome
- Input
- 4.3 Environmental factors
- 5. Efficiency and effectiveness of educational and R&D spending
- 5.2 Output and outcome of education systems
- 6. Concluding remarks
At a time when Member States have to deal with increased pressures on public balances, stemming from demographic trends and globalisation, the improvement of the efficiency and effectiveness of public spending features high on the political agenda. This paper shows that the efficiency in public services more generally and in public spending on educ...
At a time when Member States have to deal with increased pressures on public balances, stemming from demographic trends (higher spending on life-long learning, pensions and long term care) and globalisation (adjustment costs, mobile taxpayers) it is even more important that public resources are used in the most efficient and effective way. Given th...
Measurement of efficiency and effectiveness is highly sensitive to the data sets being used. The data used for international comparisons require a minimum level of homogeneity. Nevertheless, it is unavoidable that such data reflect the different organisations and traditions of government and therefore are not fully comparable between countries. For...
The outcome has to be seen in a broader context, as the selection of the underlying objectives is a political choice. The outcome covers all the long-term effects of public programmes in terms of welfare and should capture the various dimensions of society values. Such achievements reflect the effectiveness of different kinds of policy measures (di...
An alternative approach is based on the concept of efficiency frontier (productivity possibility frontier). Figure 2 illustrates this basic concept. If two countries A and B experience the same level of public expenditures (as input), but country A achieves a higher output, country A is considered to be more efficient. Based on this limited informa...
As mentioned before, factors other than inputs and outputs can affect the efficiency and effectiveness levels. These factors are institutional settings, structural framework conditions or, in the case of cross-country evaluations, country-specific features. Studies aimed at explaining overall efficiency levels need to take these exogenous factors i...
Analyses at the aggregated level need to be complemented by assessments of efficiency and effectiveness at the level of individual spending items. First, investigations at a more disaggregated level allow a better identification of the relevant input, output and outcome indicators. Second, all other relevant environmental factors can be better cove...
There is a wide range of policy objectives which could be viewed as an aim of the education system besides knowledge accumulation. For instance easy geographical accessibility for pupils or even issues of integration and social policy, e.g. how countries support pupils that have special needs, can be included. In reality, all these tasks would have...
This paper has highlighted that good value for money is essential because of the increased pressure on public expenditures. The paper's assessment of the efficiency in public services more generally and in public spending on education and R&D in particular shows a large variation between countries. Clearly, there is a significant potential for incr...
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Jul 19, 2023 · Departments are expected to adopt the framework – to categorise their own efficiency savings – within the 23/24 financial year, and agencies, non-departmental public bodies, and arm’s length ...
example, in some dictionaries, ‘efficient’‘cost efficient’ and ‘cost , ective’ are eff given as synonyms. 1. While many economists and others would distinguish between these termstheir uses do not always align. For example, the term ‘cost effective’ is sometimes used to mean that the outcome of an action was worth more than its ...
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Apr 7, 2024 · Definition of Cost-Effectiveness. Cost-effectiveness refers to the evaluation of the relative expenditure (costs) and outcomes (effects) of two or more courses of action. It is a crucial concept in economics, healthcare, public policy, and business decision-making, emphasizing the importance of obtaining the maximum benefit from limited resources.
departments and agencies. This in turn helps in improving efficiency, effectiveness and lowering costs of service delivery. It usually refers to the provision of a service by one part of an organisation or group called Shared Services Centre (SSC), where that service had previously been found in more than one part of the organisation or group. We
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entitlement programmes, as well as debt-servicing costs, that are largely unaffected by these reforms. And since effective reform cannot be confined to central government, fiscal relations across levels of government must be such as to ensure that sub-national governments have the right incentives to deliver cost-effective public services.