The Analysis of Non-Profit Organization’s Performance Based an Profit Center System : A Case Study of the Taiwan Accreditation Foundation

• Main Authors: Hsiu-O Lin, 林秀娥
• Other Authors: Wen-Cheng Hsiao
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/06548249324336744884

碩士 === 銘傳大學 === 管理學院高階經理碩士學程 === 98 === Due to the pressure from environmental changes and survival, non-profit organizations are operating towards managerial system to utilize limited resources effectively. The profit center system, by maximizing the benefit of profit centers, setting goals and evaluation mechanisms, can provide a way to achieve organizational mission and vision. The objective of this study is to investigate the performance of a government-founded nonprofit organization (GFNO), Taiwan Accreditation Foundation (TAF) which operates under the profit center system. By understanding the relationship between a GFNO and the government, the study finds the TAF’s operating characteristics of the nature and mission. The study analyzes TAF’s performance and the challenges by financial ratio analysis and literature reviews of profit center system, performance measurement and transfer pricing system. The study finds that the performance of each of TAF’s profit centers is significantly affected by the degree of governmental funding, fitness of internal transfer pricing and capability of investment growth. Although implementation of profit center system does bring the lean management, it also leads TAF into being at a loss whether profit is an appropriate measurement of performance. This results in neglecting TAF’s mission and vision gradually. The study also finds that with appropriate adjustments on percentage of performance evaluation criteria based on both financial and non-financial indicators this results in not only linking the performance of each profit centers and organizational mission, but also leading the organization towards long-term interests and mission effectively.