Definition of controlling

Definition of controlling
See also

Controlling is co-ordinated and integrated system covering the entire enterprise. It is supported by information technology and used in the process of strategic and operational business management, coordination and planning. Short term goal of controlling is to maintain profitability, in the long term it is needed to preserve the existence and development of company.

Controlling is sometimes defined as a new management function, but it combines elements of other crucial management functions as: planning, directing, monitoring, analysis and reporting. Controlling is also intended to stimulate the creative thinking in management to make better, multi-faceted decision.

Controlling tasks

  • Searching and identification of strategic and operational objectives, assisting in formulating of objectives.
  • Searching and recognition of a distinguished road for the future development.
  • Finding and identification of the bottlenecks.
  • Introduction of a reliable calculation of costs and performance.
  • The creation of indicators and evaluation measures of company financial position.
  • Creation and continuous improvement of the structure of the financial planning system.
  • Creation of an appropriate information system.
  • Solving highly complex inter-relationships between the company and the environment.
  • Allows the creation of standards, which induces managers and their employees to follow the economic rationality and business interests.
  • Allows choosing of the most optimal methods and techniques to perform new tasks and analysis and creation of new management techniques (such as early warning systems).

Controlling objectives