This text gives a short summary of controlling. It discusses the origins, significance, essential principles, structure and weaknesses of classical controlling.
From the contents:
Historical development,
Concept of "controlling",
Changes in the business environment,
Necessity of controlling,
The goals, The tasks, The instruments,
Key figures and key figure systems,
Strategic and operational controlling
Structure of controlling,
The controlling system,
The controlling concept,
Weaknesses of classical controlling.
Table of Contents
1 Introduction
2 Development of Controlling
2.1 Historical development
2.2 Term "Controlling"
3 Importance of controlling
3.1 Changes in the business environment
3.2 Necessity of controlling
4 Basics of Controlling
4.1 The objectives
4.2 The tasks
4.3 The instruments
4.4 Key figures and key figure systems
4.4.1 Key figures
4.4.2 Key figure systems
4.5 Strategic and operational controlling
4.5.1 Strategic Controlling
4.5.2 Operational Controlling
5 Structure of controlling
5.1 The controlling system
5.2 The controlling concept
6. Weaknesses of classical controlling
Objectives and Topics
The work provides a comprehensive overview of the fundamental principles of controlling, tracing its historical evolution from early state administration to modern management support. It aims to clarify the significance of controlling in adapting to dynamic business environments, defining the tasks, instruments, and structural dimensions required to support effective management decision-making.
- Historical development and terminology of controlling
- The impact of changing business environments on corporate necessity
- Operational versus strategic controlling methodologies
- The use of key figures and key figure systems in management
- Structural design and the multi-dimensional controlling concept
Excerpt from the Book
2.1 Historical development
As the historical analysis shows, the first controlling tasks arose as early as the 15th century in the state administrations of England. This body was called a controller with the task of checking records of money and freight traffic.1
In 1778, the U.S. Congress drafted a legal basis for the use of the controller in the civil service, whose task was to manage the state budget and monitor the use of funds.2
The emergence of institutionalized controlling tasks in today's sense is primarily the result of industrial development in the USA. The first position of controller was created in 1880 by the American railroad company >Atchison, Topeka & Santa Fe Railway System<. At that time, the tasks were predominantly of a financial nature. In 1892, the position of controller was then also created at the company The decisive breakthrough for the establishment of controlling offices came only after the world economic crisis in 1923, when attempts were made to stop an economic ruin at an early stage with methods of safe planning and control.4
Summary of Chapters
1 Introduction: This section provides a brief summary of the book, outlining the topics of origin, significance, foundations, structure, and weaknesses of classical controlling.
2 Development of Controlling: This chapter covers the historical origins of the controller function and explores the various definitions of the term in management literature.
3 Importance of controlling: This chapter addresses the environmental changes forcing companies to adapt and explains why controlling has become a necessity for modern organizations.
4 Basics of Controlling: This section details the objectives, tasks, and primary instruments of controlling, including a distinction between strategic and operational approaches.
5 Structure of controlling: This chapter explains the controlling system and concept, highlighting the coordination between management, execution, and information systems.
6. Weaknesses of classical controlling: This section summarizes the limitations of traditional, retrospect-oriented controlling and highlights the need for modern alternatives like the Balanced Scorecard.
Keywords
Controlling, Controller, Management Support, Strategic Controlling, Operational Controlling, Key Figures, Balanced Scorecard, Corporate Planning, Decision Making, Business Environment, Success Potentials, Reporting System, Coordination, Profitability, Efficiency
Frequently Asked Questions
What is the primary focus of this work?
The book provides a foundational overview of controlling, covering its origin, meaning, structure, and objectives within a corporate setting.
What are the central themes discussed in the text?
The key themes include the evolution of the controller's role, the necessity of controlling due to market changes, the use of key figures, and the structural design of controlling systems.
What is the main goal of controlling according to the author?
The primary goal is to support management in planning, coordinating, and monitoring corporate activities to ensure long-term profitability and success.
Which scientific methods are primarily used?
The author uses historical analysis to trace the evolution of the profession and applies analytical classification to categorize controlling instruments and systems.
What is addressed in the main part of the book?
The main part focuses on the functional components of controlling, specifically defining the objectives, tasks, instruments like key figure systems, and the demarcation between strategic and operational controlling.
Which keywords characterize the work?
The work is characterized by terms such as Controlling, Management Support, Key Figures, and Strategic/Operational Controlling.
How does the author distinguish between strategic and operational controlling?
Strategic controlling is future-oriented, focusing on long-term success potentials and external factors, whereas operational controlling is short-term, focusing on current profitability and economic efficiency.
Why is classical controlling considered to have weaknesses?
Classical controlling is often retrospective, overloaded with administrative tasks, and lacks sufficient focus on future-oriented, non-financial success factors, making it less effective in volatile markets.
- Citation du texte
- Marion Schauder (Auteur), 2004, Basics of Controlling. Origin, meaning, structure and objectives, Munich, GRIN Verlag, https://www.grin.com/document/1185566
