Table Of ContentEAI/Springer Innovations in Communication
and Computing
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Annamaria Behúnová • Lucia Knapcikova
Marcel Behún
Company Controlling
Annamaria Behúnová Lucia Knapcikova
Technical University of Košice Technical University of Košice
Faculty of Mining, Ecology, Process Faculty of Manufacturing Technologies
Control and Geotechnology, Institut with a seat in Prešov, Department of
of earth sources Industrial Engineering and Informatics
Košice, Slovak Republic Prešov, Slovak Republic
Marcel Behún
Technical University of Košice
Faculty of Mining, Ecology, Process
Control and Geotechnology, Institut
of earth sources
Košice, Slovak Republic
ISSN 2522-8595 ISSN 2522-8609 (electronic)
EAI/Springer Innovations in Communication and Computing
ISBN 978-3-031-13152-3 ISBN 978-3-031-13153-0 (eBook)
https://doi.org/10.1007/978-3-031-13153-0
© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature
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The book deals with the study and
implementation of controlling in the
company. By applying controlling,
companies will gain more accurate
information for decisions that will move
them in the right direction. The publication is
dedicated to everyone who wants to learn
more in the field of controlling.
Preface
The dynamics of business environment, the complexity of tasks that management
must solve, and size of a company impact implementation of controlling in the
company. Controlling can be implemented in a company as a philosophy of corpo-
rate governance, or it can be institutionalized in the organizational structure of cor-
porate governance as a department, or controlling tasks can be entrusted to existing
departments, or a company can use the services of an external agency. The goal of
corporate governance is a vital company capable of internally managing change-
oriented to the outside. It presupposes the ability to adapt and progress. To fulfil this
management task, managers need an extensive integrative complement to control-
ling management. Controlling complements and integrates management in both the
conceptual, functional, and institutional terms and the personnel sense. The control-
ling philosophy and controlling infrastructure are pillars of management comple-
ment. With their help, it will be possible to get under control the complexity of
business management. The formation of controlling in manufacturing companies
strongly depends on the type of production. Controlling must monitor several stra-
tegic and operational control variables. Controlling places certain minimum
demands on the management philosophy. Management corresponding to the
requirements of controlling is goal oriented, determined by planning and control.
The complexity of controlling implementation depends on whether it is the initial
introduction of controlling or the expansion of tasks and improvement of control
tools. The book is organized into six main chapters analyzing company controlling.
It is dedicated to everyone who wants to learn more in the field of controlling or is
interested in this area.
Košice, Slovak Republic Annamaria Behúnová
Prešov, Slovak Republic Lucia Knapcikova
Košice, Slovak Republic Marcel Behún
vii
Who controls the past controls the future.
Who controls the present controls the past.
(George Orwell)
Contents
1 Controlling of Company: Basic Concepts and Definitions . . . . . . . . . . 1
1.1 Genesis of Controlling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.1.1 Definition of the Concept of Controlling
in the Anglo- American Language Field . . . . . . . . . . . . . . . . . 2
1.1.2 Definition of the Concept of Controlling
in the German Language Field . . . . . . . . . . . . . . . . . . . . . . . . 2
1.1.3 Definition of the Concept of Controlling in Slovakia . . . . . . 3
1.2 Definitions of Controlling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
1.2.1 Levels of Controlling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
1.2.2 Controlling Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
1.3 Company as a Place of Controlling . . . . . . . . . . . . . . . . . . . . . . . . . . 7
1.4 Company Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
1.4.1 Company Management and Its Equilibrium . . . . . . . . . . . . . 9
1.5 Control Processes in the Company as Part of the Controlling . . . . . . 11
1.5.1 Nature and Importance of Control in the Company . . . . . . . . 11
2 Tasks and Functions of Controlling. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
2.1 Basic Functions of Controlling in the Company . . . . . . . . . . . . . . . . 13
2.1.1 Functioning of Controlling in the Company . . . . . . . . . . . . . 16
3 Dimensions of the Implementation of Controlling
in the Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
3.1 Division of Controlling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
3.1.1 Strategic Controlling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
3.1.2 Operational Controlling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
3.2 Controlling Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
3.3 Position of Controlling in the Organizational Structure
of the Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
3.4 Process Controlling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
3.4.1 Business Processes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
xi
xii Contents
4 Cost Controlling in the Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
4.1 Cost Controlling and Its Position in the Company . . . . . . . . . . . . . . 27
4.1.1 Cost Controlling as a Part of In-Company Controlling . . . . . 29
4.2 Company Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
4.2.1 Classification of Controlling Costs . . . . . . . . . . . . . . . . . . . . 30
4.3 Cost Calculation Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
4.4 Process Calculations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
4.4.1 Activity-Based Costing (ABC) . . . . . . . . . . . . . . . . . . . . . . . 38
4.5 Basic Indicators of the Company’s Cost-Level Evaluation . . . . . . . . 43
4.6 Impact of Cost Controlling on Company Management . . . . . . . . . . . 44
4.6.1 Interrelationships Between Cost Controlling Tools . . . . . . . . 44
4.6.2 Nonfinancial Indicators for Measuring
the Performance of the Company: Balanced Scorecard . . . . 45
5 Controllers and Their Position in the Company . . . . . . . . . . . . . . . . . . 49
5.1 Definition of the Concept of a Controller in a Company . . . . . . . . . . 49
5.1.1 Controlling as a Staff Department . . . . . . . . . . . . . . . . . . . . . 49
5.1.2 Controlling as a Line Department . . . . . . . . . . . . . . . . . . . . . 50
5.1.3 Controlling as a Cross-Sectional Function . . . . . . . . . . . . . . 51
5.1.4 External Controlling. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
5.2 Controller Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
5.3 Controller and Controlling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
6 Controlling in Practice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
6.1 Implementation of Controlling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
6.2 Academic Controlling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
6.2.1 Academic Strategic Controlling and Its Functionality . . . . . . 60
6.2.2 The Process of Creating Goals . . . . . . . . . . . . . . . . . . . . . . . . 62
6.3 Information System in the Controlling Process . . . . . . . . . . . . . . . . . 63
6.3.1 Implementation of Controlling at Public University:
SAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
6.3.2 Sofia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
Further Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
