This thesis presents the specificities and challenges of measuring and monitoring performance and efficiency in the public sector, primarily to provide an economic or non-economic public service. Unlike the private sector, the pursuit of profit in the public sector in subsidiary to satisfying citizens' needs. The thesis aims to analyze the performance and efficiency of the France Bevk Public Library in Nova Gorica in 2018-2022. The analysis will help to determine whether the public institution has (in)efficiently and (in)effectively operated in the analyzed period and in which areas improvements are needed. The objective of the theoretical part is to define public services, forms and methods of financing, to present the public institution, and to get acquainted with its characteristics. The theoretical background and methods for measuring efficiency and business performance are presented below. This is followed by a definition of the financial indicators used to measure efficiency and effectiveness (economy or cost-effectiveness, profitability or rate of return, productivity or performance, solvency, investment, and financial ratios), which are used to assess the performance and efficiency of public and private sector organizations. The empirical part of the thesis aims to analyze the efficiency and effectiveness of the operations of a selected public institution. In doing so, it presents the challenges of applying methods of monitoring the efficiency and effectiveness of public sector organizations through a concrete practical case study. The analysis of the France Bevk Public Library in Nova Gorica confirmed that the selected public institution operated efficiently and partially effectively in the period 2018-2022. The thesis presents the performance of the library and serves as an insight into its operations.
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