Managerial controlling is a relatively new way of conducting the performance evaluation of individual units of the company. To realize its objectives, management create special cells that normally do not have imposed any specific era of interest or permanent staffing. Such controlling teams may also be permanently introduced in the organizational structure of the company. The term usually means system of coordination, planning and control of enterprise information security. In the most general terms, controlling support knowledge creation and oversee the transformation of this knowledge into concrete actions that deliver measurable results.
Definitions of managerial controlling
- Controlling is a management function, whose essence is the measurement and correction of the tasks performed by subordinates, and therefore it is needed to assess their performance.
- Controlling coordinates the whole process of planning, control and reporting thereby directing the business to realization of its objectives.
- Controlling the process of measuring and assessing the current state of the company in relation to agreed objectives, plans, standards and budgets. It allows making effective corrective actions.
In a narrow sense, it is defined as process of measuring and evaluating the current state of the organization with respect to the previous goal, plan, standard or budget. In the broadest sense controlling involves all of these tasks and additional: correcting tasks (design, improvement), to motivating and organizing tasks. It can often be identified with the whole management process. In literature in the field of management science authors adopted a narrow interpretation of the term control, which means only one of the functions that make up the management process. It is reasonable to distinguish between controlling and control as the function of management in the narrow sense.
Specificity of managerial controlling
Its task is to develop and control the various business areas. This process takes place in a specific way, it combines operations of coordination, planning, control and reporting. It is performed by so-called "controlling task forces" which consist of: coordinators, planners and controllers.
Controlling is often regarded as management function, the essence of which is the measurement and correction of the tasks performed by subordinates, performed because of need of assessment of objectives. Controlling subsystem is recognized as a certain organization, whose task is to coordinate the overall planning processes, controls and fulfilling information needs.
Applications of managerial controlling
- Continuous monitoring of technical and economic situation of enterprise.
- Assistance in the preparation and implementation of new operations and innovative technological solutions,
- An invaluable help to the company's management during decision processes related to the development, improvement and implementation,
- A tool for efficient and rational management of the enterprise,
- Determination of the likely effects of certain decisions taken at higher management level.
Goals of managerial controlling
According to the concept of managerial controlling its primary purpose is improvement, and control of all business areas of organization. Activities associated with it are arranged in a process that takes place in a strictly prescribed manner. It contains steps such as: coordination, planning, control, and information analysis. Controlling task forces, may include coordinators, planners and controllers. In terms of measuring the efficiency of actions in the organization, the use of managerial controlling can allow:
- Continuous or periodic monitoring of the technical state of machinery and equipment,
- An analysis of the economic situation of the company and each of its units,
- Efficient design and implementation of the new - improved - practices and technological solutions
- Fast, efficient and effective decisions related to the improvement and development of organization.
- Modeling of the possible decisions results.
- La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. (2000). Investor protection and corporate governance. Journal of financial economics, 58(1), 3-27.