Financial diagnosis as a tool of improving the performance of an organisation
Technical University of Cluj-Napoca, Romania
PROCEEDINGS of
North International Conference of Economics,
Issue 1 / 2016,
pp.318-329
ISSN 2537-317X
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.
