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Abstract: Public organizations are becoming nowadays increasingly competitive as a result of the superior valorification of human, material, financial, and information resources according to the national missions they have to fulfill. The concordance between national public organizations and the European/ North Atlantic ones triggers new competitive and functional objectives meant to use resources in a restricted way within an economical, efficient, and effective framework.
This paper will tackle the general aspects that delineate economy, efficiency, and effectiveness, continuing with the presentation and explanation of each particular term with the involvement of the connected internal audit.
Key words: public organizations; organizational performance; public expenses; decision-making processes; economy, efficiency, effectiveness.
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1. General approach
In order to reach the organizational performance triggered by the requirements of economy, efficiency, and effectiveness, the managerial teams of public entities establish specific strategies and put to work the functional structures according to their role and position taking into account the following elements: reaching general and individual organizational objectives; defining missions in accordance with strategic objectives and courses of action; identifying financial, material and human resources needed to apply strategies; implementing necessary strategies to meet the objectives according to which the resources for reaching objectives are allocated 1.
In order to draft the resources needed to meet functional objectives, public organizations hint at reaching the parameters of economy, efficiency, and effectiveness by the adequate dimensioning of the funds used (meant for investment and expenses), as well as tangible (active) and circulating means based on specific quantitative and qualitative indicators.
For reaching the aforementioned objectives, the analyses and organizational activities have shown that the level of competence has to be improved in concordance with the technical, informational, and organizational advancement so that efficiency will increase and costs decrease. In this context, the redefining within the annual framework of objectives and activities is a must because, for of their implementation, the need for materials and equipment has to be correlated with the specific objectives (from the plan) within the established conditions of performance.
In the decision-making processes that have as a result the specific decisions connected to the distribution of human, material, and financial resources, public organizations select in a rational way the optimal variants by analyzing and...