Volume 10, Issue 1

Controlling the Quality of Industrial Engineering and Management Education: Structural Analysis of Austrian Degree Programs and Implications for Higher Education Institutions

Ulrich Bauer, Sigrid Weller

Industrial Engineering and Management (IEM) degree programs have always been popular and successful, especially during the last thirty years. Many Higher Education Institutions (HEI) offer a wide range of study programs, and this range continues to expand. This has led to the problem that different programs and qualification profiles are no longer clearly comparable. The Austrian Association of IEMs (WING) sought a solution which woulden sure the high quality of IEM degree programs and the employability of IEM professionals. Therefore, a controlling approach was chosen, which led to satisfactory results, primarily with regard to transparency. This paper presents the approach and the results of a structural analysis and two online surveys, conducted as part of the IEM Profession Online Study carried out in 2018.

 

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The Analysis of Intangible Costs of Trade Companies in Serbia

Radojko Lukić, Veselin Perović

There has been increased attention directed lately, both in theory and in practice, to investigating the impact of intangible assets on company performance. In this context, the importance of intangible costs, i.e. amortization of intangible assets, is also considered. Bearing this in mind, this paper examines the impact of intangible costs on the performance of trade companies in Serbia. The conclusion is that they are an increasingly important factor in the performance of trade companies in Serbia. In support of this, the fact is that there is a high correlation between intangible costs and sales revenues.

 

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The Challenges of Controlling and IT Support in Non-financial Reporting

Nidžara Osmanagić Bedenik, Darko Prebežac, Ivan Strugar, Petra Barišić

It is nowadays becoming increasingly clear that financial reporting can no longer be sufficient when it comes to business reporting. In that sense, the non-financial reporting is a ‘must’ in the modern economy for different groups of the general public as it reflects the responsibility of a company to conduct business activities in a sustainable way. The non-financial reporting represents relatively new area of research, and very little research has investigated the role of controlling and IT support in nonfinancial reporting. Therefore, the aim of this study was to find the best business practices and reveale the role of controlling and IT support in the process of preparing and publishing nonfinancial reports in hotel companies in Croatia. We applied the case study approach on the hotel company Ilirija d.d. The results show that the role of controlling in Ilirija d.d. is most significant in the economic field, and it is of great importance both in the ecological and social spheres; while the IT has a significant role in preparing and tracking data for non-financial reporting.

 

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Controlling - Striving for Excellence Implementation of Model Solutions in Organizations Operating in Poland

Agnieszka Bieńkowska

The article discusses the issue of controlling changes over time in organizations operating in Poland. Reference has been made to the model controlling solutions proposed by A. Bieńkowska [2015], which should ensure that the maximum possible benefits from the implementation of controlling are achieved with certain costs in this respect. It has been hypothesized that in the process of achieving controlling excellence, the percentage of organizations using model solutions should increase, due to the fact that the use of such solutions results in an increase in the effectiveness of controlling, followed by the increase of quality of management and the organizational performance. In order to verify the adopted hypothesis, comparative studies of the frequency of use of controlling model solutions in 2009 and in 2011-2014 were conducted. The sample was not representative but diversified and included 306 organizations in research from 2009 (164 of them declared the use of controlling) and 412 organizations in the studies from 2011-2014 (238 of them declared the use of controlling). Statistical verification of differences in both groups was carried out using cross tables with chi-square statistics. The results of the study allow to accept the hypothesis that in the process of striving for excellence (in time) there is a spontaneous increase in the degree of implementation of the model controlling solutions due to the maximization of the benefits possible to obtain due to the implementation of controlling.

 

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The Importance of Financial Controlling in the Service Systems With Regard to Insurance

Tatjana Kuzmanović

The financial controlling is a significant feature of support management in business process management and business results. In terms of increasing competition in business, it is necessary that the activity in the service systems takes place with the lowest possible costs with the highest possible satisfaction of employees and business associates. This can be achieved by placing a clear structure of business costs control. On the one hand, it is a precondition that excessive cost reduction is not to endanger the activity itself, and on the other hand, it prevents spending without control from losing to business. Comparison of planned and achieved revenues is the foundation of decision-making for further business. These are the basic postulates of financial controlling.

 

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Impact of Decentralized Decision Making on Transfer Prices Models in a Multidivisional Company

Jelena Demko-Rihter

Transfer prices are prices determined in the purchase and selling transactions between business segments or divisions within a company. Tax aspect and the management aspect of transfer prices are usually considered in the literature and praxis. Research in this paper is focused on the relation between the degree of autonomy of divisional managers by making decisions and the way of determining transfer prices in selling and purchase transactions between divisions of a company. The aim of this paper is to introduce problem of transfer pricing and to explain how decentralized decision making through the transfer pricing system affects short-run and long-run divisional and corporate performances. Research has been carried out on a small sample of multidivisional companies that operate in Serbia. The main hypothesis is not confirmed, unlike similar results of researches carried out earlier in developed economies. Spearman's rank correlation coefficient and Phi coefficient are used in this research, as well as nonparametric Mann Whitney test.

 

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Coexistence of Business Continuity Management and Controlling: Controlling use as a moderator of relation between BCM maturity and organizational results

Katarzyna Tworek, Agnieszka Bieńkowska, Anna Zabłocka-Kluczka

The paper is devoted to the analysis of the influence of Controlling use on Business Continuity Management (BCM). The analysis concentrates on BCM maturity and its influence on organizational results. It is assumed that Controlling use is one of factors influencing that relation. Empirical research is conducted to verify formulated hypotheses based on results obtained from more than 1000 organizations from two business contexts (Poland and Switzerland) in order to determine whether Controlling use is a moderator of the relation between BCM maturity and organizational results.

 

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Control in Fiscal Responsibility – Two Roads to the Same Goal

Marijana Cupać, Saša Gravorac, Dejan Gligović, Goran Šijan

The process of privatization and Serbia's determination to join the European Union, as well as the growing economic crisis and market competition as factors of an exogenous nature, have imposed both the need for the creation of an instrument in front of the private sector as well as before the public sector that will overcome the growing market challenges, which are inevitably posed both to private entities and to public sector entities. Apart from their basic role, which is reflected in the provision of quality services to their main consumers - the population, the demands of higher fiscal authorities for saving, increasing the efficiency and effectiveness of operations, as well as for achieving profit, are increasingly placed before the management of public enterprises. Quality of services provided. Increasing public sector orientation towards the market principles of business has imposed on the public sector the implementation of some traditional market mechanisms that are used in the function of raising the overall profitability of the business, and hence the demand for permanent education of management and employees in the function of mastering and implementing traditional market instruments in the direction of greater efficiency of public enterprises. The paper will analyze the concept and characteristics of the public sector, the basic nature and the essence of controlling, the process of implementation of controlling in public sector entities, and the level of development of controlling in the public sector of the Republic of Serbia.

 

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The Evolution of Controlling in Companies in Croatia – a Longitudinal Study

Nidžara Osmanagić Bedenik, Mirjana Pejić Bach

Controlling is primarily a phenomenon found in practice. The interesting question of how controlling develops in practice has received respectable attention in research and corresponding literature. In this paper we explore controlling in the light of empirical research. Moreover, the unexplored question of how controlling develops in practice in Croatian companies is the main inspiration for this paper. The objective of this paper is to provide an insight into the role of controlling and its understanding, function, tasks, instruments and information flow. We analyse the perceived contribution of controlling to business success as well as incentives and obstacles to its development. This study is based on the analysis of primary data with the aim of describing the development of controlling (explorative study). The research study covers the time span of 15 years in three different points in time: 2001, 2007 and 2015. The study is a retrospective longitudinal study, and this allows us to explore the process of change related to particular aspects of controlling. The study is at the same time a trend study since it enables the analysis of changes at the level of the researched sample. In this paper, we observe, describe and explain findings from the controlling practice in Croatian companies. Our results show that controlling in Croatian companies is most frequently understood as assurance of management rationality. In general, operative tasks and operative instruments dominate with internally-oriented focus. What is still needed is a more strategic and normative orientation, more external orientation and more freedom for controllers to create tasks and activities. Controlling is also recognized as a business success factor in Croatian companies. Management has the main influence over the development of controlling while IT support is discovered as the main obstacle in its development. The contribution of this paper is threefold: firstly, we provide insight into the controlling function; secondly, we explore the dynamic perspective in controlling over the last 15 years in Croatian companies, and thirdly, with this paper we hope to provide design guidelines and recommendations that have to be concretized in organizations by taking into account the specific conditions of each individual case.

 

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The Role of Controlling Credit Sales and Receivables in the Wood Processing Companies of Tuzla Canton, Bosnia and Herzegovina

Emira Kozarević, Adisa Delić, Mirzet Omerović

When companies sell goods/services, they may request cash prior to or at the delivery or they may offer deferred payment. The decision on credit policy is a trade-off between the benefits gained from increased sales and the costs of approving credit. Based on the appropriate analysis of reports, controlling should help the management to bring such business decisions aimed towards customers and to take all the necessary measures for obeying the appropriate legal regulations. This way, controlling may influence better liquidity of a company, which includes faster cash turnover, payment to its suppliers, lower outstanding accounts, and better profitability. Apart from the general importance of controlling credit sales and collection of receivables, the article examines the position and the role of controlling in the companies operating in wood processing as the fastest growing industry in Bosnia and Herzegovina.

 

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